Cloud mining

Quick definition

Cloud mining is a service that allows users to lease crypto mining capacity of hardware in remote data centres and earn a portion of the rewards.

Key details

• Cloud mining allows you to mine cryptocurrency without buying your own hardware
• You pay a fee to lease the mining capacity and earn a portion of the rewards it generates
• Cloud mining requires significantly less money compared to hardware mining, but the rewards are correspondingly smaller

What is cloud mining

Cloud mining is a way of mining cryptocurrency by leasing the hardware required rather than having to buy it yourself. Instead, you pay a fee for the right to a portion of a company’s mining capacity, and then you earn a corresponding portion of the rewards they generate.

The main advantage of cloud mining, compared to regular crypto hardware mining, is that you don’t have to buy expensive hardware or pay for its maintenance. You just need to pay a contract fee to rent computing power and a small fee for upkeep. Another plus is that there’s no excess heat or noise to deal with, since the hardware is located remotely in data centers.

Is cloud mining profitable?

Compared with the cost of mining with your own rig, cloud mining is fairly profitable, especially if you have taken out a contract for a lot of hashing power. But the profits are unlikely to be huge because of just how competitive crypto mining is now. Steady money can be made over a long period of time, so it’s best to treat cloud mining as a low-income steady interest investment and not a get-rich-quick scheme.

Is cloud mining regulated?

No, cloud mining is not regulated. While a number of countries have showed concern when it comes to the energy consumption of bitcoin mining in general, most have been silent on regulating the industry altogether.