Basically, cloud mining refers to the process of running a program on acomputer from a remote data center with a shared processing power. The program then verifies and processesthe cryptocurrency transactions that other people broadcast to the worldwide web. The only thing needed is a home computer to aid in communication. The miners do not manage the hardware themselves; a host company owns the mining hardware and run it at a warehouse.
Mining Monero makes use of the cloud to earn coins for you without too much hassle. You pay the company for them to rent you some hardware. The amount earned depends on the amount of revenue generated by the hash power that you had rented.
Currently, there are 3 types of remote mining available. They are:
Pros and Cons of Mining Cryptocurrencies
Cloud mining has many advantages such as; there are no interruptions when there’s a power outage, and no issues related to poor internet connectivity. Other advantages of mining are:
Cloud mining XMR is associated with several risks that one needs to understand clearly. Some of the disadvantages of mining include:
There are a couple of websites that offer Monero cloud mining services. Most of these companies have their data centers in countries where electricity is cheap such as China and Iceland. Let us have a look at a few of the most reputable companies:
The founders of Genesis Mining are from Germany but the company is based in Hong Kong. It was launched in 2013 and is the largest and most popular. Genesis mining has verifiable data centers and offers mining for different cryptocurrencies.
Hashnest was launched in 2014 and is based in China although it has many verifiable mining farms around the globe. It’s backed by Bitmain which is the manufacturer of ASIC
Hashflare has been around since 2013. This provider deals in multiple cryptocurrencies so users have a variety of options. You are free to choose your own mining pool.
There are always risks involved when engaging in any type of crypto mining; also profitability is possible if you make informed decisions. Practice due diligence andinvest only if you are comfortable with the risks.
Before investing in monero, calculate all the costs involved and what profit you expect to get.