What is Cloud Mining?
Cloud mining is a process that involves cryptocurrency mining without the need for hardware equipment. The mining is executed through remote datacenters or mining farms where cryptocurrency miners can buy or lease desired hashing power. Cloud mining eliminates the need for crypto miners to invest in mining equipment because they have access to the equipment hosted and provided by a third party. Users of cloud mining services become investors in a company for mining cryptocurrencies.
The downside to cloud mining for users is that they have to trust the third-party provider, and they don’t have control over the equipment and how it is used. Consequently, a major challenge for users is to find a reputable cloud mining company. The positive aspect of cloud mining is that it eliminates the need for users to invest and maintain expensive equipment.