Cloud mining is a process of cryptocurrency mining that utilizes a remote data center with shared processing power. This type of mining enables users to mine cryptocurrencies like Bitcoin or alternative cryptocurrencies without managing the hardware themselves. The mining rigs are housed and maintained in a facility owned by a mining company, and the customer simply needs to register and purchase mining contracts or shares. Cloud mining can offer several advantages, especially for individuals who are interested in crypto mining but may not have the resources or technical expertise to set up their own mining operations. Some of the benefits of cloud mining include:

• No technical knowledge required: One of the major advantages of cloud mining is that it doesnt require any technical knowledge. The cloud mining company takes care of all the details, and the users will only need to rent or buy mining capacities from the cloud mining company.

• No upfront hardware costs: Cloud mining requires none of the setup that regular cryptocurrency mining does. You don’t have to buy specialized hardware, store it anywhere, or pay for electricity bills. Instead, you have to pick a successful cloud mining pool, rent some hardware from it, and wait until the mining pool generates money.

• Accessible to a wider number of people: Cloud mining firms allow people to open an account and remotely participate in the process of cryptocurrency mining for a basic cost, making mining accessible to a wider number of people across the world.

Cloud mining can be done via two common models: hosted mining and leased hash power. Hosted mining is the most popular model, where users lease a physical mining server or a virtual private server and install mining software on the machine. Instead of leasing a dedicated server, some services offer hashing power hosted in data centers for sale denominated in Gigahash/seconds (GH/s); users either select a desired amount of hashing power and a period for the contract or in some cases can trade their hashing power. Cloud mining leverages cloud computing for the purpose of producing blockchain-based cryptocurrencies. Cloud computing, more generally, is one of the fastest-growing technology trends wherein computing services such as processing, server capacity, database services, software, and file storage are accessed via the cloud, over the Internet.