Educational Post

What Is Cloud Mining?

Cloud mining is a process where individuals participate in the mining of cryptocurrencies, such as Bitcoin, without needing to own or manage the mining hardware themselves.

Instead, users pay a fee to rent mining capacities from a company that owns and manages the mining hardware and process. When the rented mining hardware mines a block, the rewards are shared among the users and the company. 

The term "cloud mining" comes from the concept of cloud computing, which refers to the use of a network of remote servers hosted on the internet to store and process data, rather than a local server.

Similarly, cloud mining lets users rent a share of the mining capacities of cloud mining companies. The mining takes place "in the cloud," rather than your personal computer.