The list of mining equipment is quite narrow - cryptocurrency can be mined using a graphics card or processor. There is also a specialized device called an ASIC. The user sets up and configures these devices at home or in a special room. Such farms require constant monitoring and maintenance. Not everyone is ready to bear such responsibility. There is an alternative option when the user joins an existing service for cryptocurrency mining.

The Concept of Cloud Mining

Companies build their own farms and maintain them themselves. The tenant pays a monthly rent in exchange for a certain share of income from cryptocurrency mining. This allows mining remotely without resorting to buying expensive equipment.

What Makes Up the Rental Amount

A monthly contract for cloud mining requires payment of a certain amount. The tenant also pays a fixed fee for equipment maintenance. It's worth noting that income is paid in cryptocurrency, while all rental payments are in fiat currency. Therefore, cloud mining often leads to losses - a negative balance for the miner is considered normal.

Types of Cloud Mining

Cloud mining can be divided into three types:

• equipment power rental - the miner does not have access to settings and other technical parameters;
• virtual hosting - the miner gets remote access to the server and sets up mining software independently, the entire process is then controlled by the miner;
• hosting - the miner rents a ready-made farm and manages it through a special website.

Main Advantages of Cloud Mining

Cloud mining has several advantages:

• does not require special technical knowledge;
• no need to buy equipment;
• no noisy and heat-generating farms in the apartment;
• the miner can terminate the contract at any time.

Negative Aspects of Cloud Mining

Remote mining has many negative aspects:

• there are many scammers in this industry who hide behind such a facade;
• income from cloud mining is much lower than from real mining;
• the miner does not receive clear reporting and statistics from the project creators;
• cloud mining can lead to losses;
• promises from companies in the industry are always exaggerated.