Cloud mining allows you to access data centre processing capacity and obtain cryptocoins without the need to purchase the right hardware, software, spend money on electricity, maintenance, and so on. The essence of cloud mining is that it allows users to buy the processing power of remote data centres.
The whole cryptocoin production process is carried out in the cloud, which makes cloud mining very useful for those who do not understand all the technical aspects of the process and do not want to run their own software or hardware. If electricity is costly where you live – for example in Germany – then, outsource the mining process in a country where electricity is cheaper, such as the US.
Types of Bitcoin cloud mining:
There are currently three ways to conduct mining in the cloud:
1. Leased mining. Lease of a mining machine hosted by the supplier.
2. Virtually Hosted Mining. Creating a virtual private server and installing your mining software.
3. Renting hash power. Renting a certain amount of hash power, without having a dedicated physical or virtual equipment. (This is by far the most popular method of cloud mining).
What are the advantages of Bitcoin cloud mining?
– Not dealing with the excess heat generated by the machines.
– Avoiding the constant buzz of the fans.
– Not having to pay electricity.
– Not selling your mining equipment when it is no longer profitable.
– No ventilation issues with the equipment, which is usually heated a lot.
– Avoiding possible delays in the delivery of hardware.