Cloud mining is a concept that emerged as an alternative to the previous investments and maintenance costs associated with hardware mining.
In cloud mining, cloud operating power is rented from remote data centers instead of installing installed hardware for mining.
How to Make Cloud Mining?
Users purchase the specified amount of hashing power when signing mining contracts.
They become users of the mining pool. Hashing power refers to the operating power associated with Bitcoin mining.
The more hashing power the user has, the faster he will be able to verify transactions and mine coins.
In successful Bitcoin and Ethereum mining, users get a share of the profits in direct proportion to the amount of hashing power they rent.
What is Cloud Mining Contract?
Mining is performed by signing a contract with the service provider.
The mining contract allows you to rent operating power and machinery from a third party.
This allows you to gain access to the servers host that you don’t need to own or maintain directly.
Generally, mining contracts require a monthly subscription fee. However, some providers do this by taking a prepayment instead of a subscription model.
What are Types?
Mining machines in the main system
In this model, miners rent ASICs and equipment hosted by a third party.
In return, they pay a monthly fee to the mining hosting company.
Platform mining on the main system
Platform mining on the host is another scheme that involves leasing virtual computers.
The Amazon EC2 platform is such a host service.
Different templates are offered for miners to choose from depending on the volume capacity and required performance.
Hashing power rental
Last but not least, miners can lease hashing power directly from service providers.
As an example, we can say the minersy application that you can access from your mobile devices. Minersy is a cloud mining system that you can access from your Android mobile devices.
You can dig by renting a Hasstrate.
While cloud mining, your device is never used for mining. A free trial version is available.