Cloud Mining

Cloud mining is a type of passive cryptocurrency mining using other people’s equipment. The user rents computing power for a fee at a remote data center and receives a portion of the mined coins in return. The final profit depends on the range of services and options offered by the cloud mining company.

How cloud mining farms work

Cloud mining is a type of passive cryptocurrency mining using other people’s equipment. The user rents computing power for a fee at a remote data center and receives a portion of the mined coins in return. The final profit depends on the range of services and options offered by the cloud mining company.

How cloud mining farms work?

A company that opens a remote data center for cloud mining must go through several important steps:

1. Procurement of equipment for mining: video cards, processors, cooling systems, power supplies, etc.

2. Creation of crypto-farms. Each farm can consist of several connected units of equipment for mining, and its work is controlled by special software. Only experienced specialists can do the right installation.

3. Launching digital currency mining. The company can offer to mine different types of coins, depending on the features of the farm.

4. Creation of a website, through which the company offers to rent the capacity of its farms. Usually there are several contracts available for customers to choose from. Their cost depends on the hash rate — the speed of mining.

5. Miners buy a contract to rent power. In return, they get a percentage of the coins mined. The more expensive the rate, the higher the profitability.

6. The company receives revenue in the form of commissions for renting capacity. Part of the amount goes to farm maintenance and staff salaries. The remaining money is the net profit.

In the end, everyone stays with the profits. Miners get their digital currency, and cloud services get profit from renting out power.

The popularity of cloud mining

There are several main reasons that explain the increased interest in this method of cryptocurrency mining:

• Simplicity. A miner does not need to buy equipment, assemble a farm, and monitor its operation. This is done by the cloud mining service. All that is needed is to choose and pay for a contract using fiat or digital currency.

• Efficiency. Cloud farms have high power. This increases the speed of solving crypto problems and obtaining rewards. When solo-mining on a home farm, the chances of finding a block are lower.

• Availability. There are many sites on the Internet that offer cloud mining services. The main thing is to find a reliable and trusted company among them.

• Security. Some companies have an official legal status. As a rule, these are remote data centers from Europe. They strictly follow the laws and do not cheat customers.