Cloud mining is the most popular trend in the world of digital currencies and blockchain at this time, and cloud mining is experiencing very big growth and popularity.
This type of cryptocurrency mining was able to overcome all the problems of traditional mining – we’ll talk about that shortly – and it didn’t stop there, but offered many other advantages.
The reason why we are writing about this topic is that it is a great revolution in the world of mining and it helps the newbies to get into a very powerful and profitable field, namely the field of cryptocurrency.
In this article, we will provide you with everything you need to know about cloud mining, its pros and cons, its types, how it works and much more information.
What is cloud mining
Cloud mining is based on cloud computing where you perform remote mining operations.
One might think that this type of mining is relatively new, but on the contrary, it dates back to the beginnings of digital currencies but only flourished after the proliferation and popularity of digital currencies, especially Bitcoin.
Before learning more about cloud mining, I think it’s best to quickly go through the other types of mining:
. Solo mining
This type of mining is the traditional mining we are all familiar with, where a person mines their cryptocurrency themselves without relying on any other person or company.
The problem with this type of mining is that it requires a lot of technical knowledge as you are the first one responsible for dealing with mining hardware and software.
In addition, you will need to regularly maintain the equipment, make sure it has 24/7 power, and also be responsible for monitoring throughout its operation.
It is also expensive because you need to buy mining hardware which is usually very expensive and you need to prepare your house or room for mining operation and hardware.
In addition, there are a few trivialities, such as the constant background noise of the devices, the extremely high power consumption and the excessive heat development of these devices.
. Pool mining
A mining pool is a group of people mining digital currencies who decide to pool all of their computing power and skills over a network to increase the efficiency of their mining process.
After the process of mining and obtaining digital currencies, each of them takes a percentage of what they have mined according to their computing power or what is known as the hash rate.
Although some may think that this type of mining is very similar to cloud mining, that’s not true at all.
In the mining pool, you must own your own mining rigs, which you use to participate in the mining process with other people on the same network.
With cloud mining, you rent this equipment from the company and assign all necessary operations and maintenance to the company.
. CPU mining and GPU mining
The difference between these two types is the hardware used to mine cryptocurrency as it can use CPUs or GPUs.
Of course, there are many differences in pricing and efficiency between these two types, but this requires a separate whole article to talk about.
If you would like us to write in detail about these two types of mining, write to us in the comments.
And the last type that we are going to focus on today is cloud mining.
All mining equipment is located at a company location and is operated, serviced and maintained by specialists to work effectively.
That way, you don’t have to worry about breakdowns, power outages, or even the extreme noise and heat these devices generate.
Cloud mining is a very good option for beginners because you don’t need any technical knowledge and you don’t have to pay huge sums of money to buy mining hardware.
With cloud mining, you rent mining hardware or you rent hash power to do mining.
Also Read: Best Cryptocurrency Wallets, Types and How to Choose the Right One for You
How does cloud mining work
Cloud mining works just as well as traditional mining, with on-premises equipment taking the complexityen perform mathematical operations of cryptocurrencies.