Cloud mining is the sharing of hashing power that is provided by the mining farms. It lets the miners purchase hashing power in mining farms or remote data centres. Cloud mining is also called as cloud hashing, which allows the users to buy hashing power that they can afford without any difficulty.
Why people choose cloud mining over mining?
Cloud mining is quite easy as compared to mining where one needs to use their own hardware and have proper technical knowledge for the same. It is cheaper and gives one the time to do other mining related work, moreover it is more stable. With the use of cloud mining the usage of electricity and maintenance is reduced as it is deducted from the profit that is earned.
Types of cloud mining
There are three forms of cloud mining, namely:
- Hosted mining- In this, mining machine is basically leased.
- Virtual hosted mining- This is a form of cloud mining which can be established by creating a virtual private sector for general purpose and then installing mining software on your own.
- Leased hashing power is a contract for an amount of hashing power without having a virtual computer.
Pros and cons of cloud mining
- It requires no installation or setup cost; some of them might charge a onetime set up free.
- They are not noisy, so there is no kind of sound pollution.
- The maintenance is properly taken care of.
- No extra equipment is required to be bought for mining.
- There is no risk of fire or any other kind of issue that can arise during mining.
- In cloud mining one doesn’t own the equipment which means that it cannot be sold.
- Some of the providers can cease the operation of mining if they no chance of gaining profits.
- There are chances of the cloud mining service provider going out of business or running away with the funds.
These are a few things to keep in mind when it comes to cloud mining, which is why it is better to do the homework before hand. There is no guarantee of anything when it comes to cloud mining, one should always be prepared to face a risk just like the normal investment market.
The right cloud mining service provider
There are a lot of companies that are into cloud mining but not all are decent and genuine, some can be fake which is why it is better to look for the company on the internet. The nig companies can always be traced on the internet with the client feedback, which again is an important thing that should be considered while looking for the right cloud mining service provider.