Cloud Mining: Meaning, Models and Popular Platforms

Cloud mining is an approach to mine cryptocurrencies like Bitcoin. It is a profitable scheme for both the miners and third-party providers. Unlike the traditional mining schemes, crypto cloud mining is a cost-effective approach.

 

In this blog, we will study about cloud mining. We will also take a look at the top 7 crypto cloud mining platforms trending in 2022.

 

 

What is Cloud Mining?

 

Cloud mining is also known as cryptocurrency cloud mining. It is the process used to mine cryptocurrency. Cloud mining can be used to mine bitcoins and alternatives cryptocurrencies without the modification of the software. Cryptocurrency cloud mining is done by using a remote datacenter with shared processing power.

 

Anyone can mine clouds and cryptocurrencies by simply registering and purchasing the mining contracts or shares. The cloud mining rigs are generally owned and maintained by the mining company. It is basically a type of blockchain mining that is done via clouds and thus reduces the issues such as maintenance of equipment and direct energy costs.

 

Just as blockchain miners, cloud miners also participate in a mining pool. Each miner has to purchase certain hash power to carry out the mining process. The end money won by the miner is sometimes low while high the other times.

 

In technical language, cloud mining is defined as a mechanism to mine cryptocurrency like Bitcoin and Ethereum. It is done using a rented cloud computing power. The basic advantage of cloud computing is that it allows the people to participate remotely in the process of cryptocurrency mining at basic costs

 

 

What are the important features of Cloud Mining?

 

1. Cloud mining can be used for mining the crypto coins by using mining equipment from the third-party cloud providers.

 

2. Cloud mining reduces the overall costs associated with mining and allows even the beginners who lack knowledge to mine cryptocurrencies.

 

3. For beginning a mining activity, hash power is required.

 

4. The only disadvantage of cloud computing is that the end profits are susceptible to demand.

 

 

How does Cloud Mining Work?

 

You might be wondering how this cloud mining works actually. Crypto cloud mining utilizes the cloud computing techniques for the purpose of blockchain mining. Cloud Computing is the technique which enables the computing services such as server capacity, file storage, and databases to be accessed via the cloud and the internet.

 

While mining of the cryptocurrency is the process by which crypto transactions are verified and added to a blockchain. Mining is the way of releasing new coins from the public ledge. It doesn’t necessarily involve mining, but the sole purpose is to maintain the security of the distributed ledger.

 

 

Cloud Mining Models

 

There are several forms of cloud mining. Let us discuss the major models involved:

 

Hosted mining

 

1. Most popular form of cloud mining.

 

2. The user purchases the mining hardware from the miner's facility.

 

3. Miner in return is responsible for the maintenance of the equipment.

 

4. Cost effective approach.

 

5. Still, upfront cost is associated with this type of mining.

 

Leased Hash Power

 

1. The required computing power is leashed from a farm.

 

2. Customers get a share of the overall profits.

 

3. A better approach for mining altcoins.

 

4. Require an open account of the user with the company.

 

Also Read | What are Crypto Whales?

 

 

Best Cloud Mining Sites in 2022

 

There are several mining sites available on the internet. But the ruling cloud mining sites those are breaking the internet are as follows:

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Best Cloud Mining sites in 2022

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1. Shamining

 

UK-based cloud mining company Shamining is one of the most promising mining sites currently. The site is mostly preferred for Bitcoin mining. It is the best tool to support beginners who lack technical knowledge.

 

The features of the site are as follows :

 

• Personal manager for each user.

 

• Low rent amount for cloud mining, $250.

 

• Immediate payouts.

 

• Can be used in any device.

 

• Withdrawal options are available

 

2. Gminers

 

Gminers is a British mining company. It provides all the crypto investors simple access to the Bitcoin cloud mining. If you are too sure about carrying the process on a long term. Make sure to take a one-year plan at this site to avail more benefits. The data centers of the site are located in Iceland, Georgia, and Kazakhstan.

 

The features of the site are as follows:

 

• Minimum deposit required is $500.

 

• Daily payouts available.

 

• Several cloud mining contracts are available.

 

• The site offers an average yield of 150%.

 

3. Genesis Mining

 

Launched in 2013, Genesis mining is one of the biggest cloud mining companies till the date. The site works through different algorithms. Last year, the mining contracts on the site went out of stock, but it is still popular this year.

 

The important features of this site are:

 

• Best site to mine Ethereum by the cloud service.

 

• It has zero maintenance fees.

 

• Variety of Cryptocurrency and plan options.

 

• You can select 12- or 24-months runtime features.

 

4. IQMining

 

IQMining, an innovative cloud mining platform was launched in 2016. The site combines cloud mining through several algorithms with different trading tools. The platform can be successfully used to mine Bitcoins and several altcoins, like Litecoin, Ethereum, and Dash.

 

The important features of the sites are as follows:

 

• Several cloud mining contracts are updated daily.

 

• The estimated yield is up to 145%.

 

• Daily payouts available.

 

• Users can use cloud mining income calculators.

 

• Live support for the users.

 

• Response time for the query is less than 2 minutes.

 

5. NiceHash

 

NiceHash was launched in 2014. It is a reliable, gainful, and a pioneer crypto cloud mining platform. It enables mining cryptocurrency without huge investments. The platform has active users in different countries.

 

The features of this platform are as follows:

 

• Advanced hash power available.

 

• 30+ algorithms available for cloud mining.

 

• Minimum order price is approximately $51 only.

 

• Fiat to crypto exchange available.

 

• Crypto to crypto exchange available.

 

6. ChickenFast

 

ChickenFast, founded in 2015, supports the cloud mining of coins like Bitcoin, Ethereum, and Bitcoin Cash. It is a simplified cloud mining platform that assists exceptional service without skills or hardware. 

 

The features of the platform are as follows:

 

• It is a User friendly mining system.

 

• Customer support available.

 

• Investment starts with $250.

 

• Automated AI and high-tech design.

 

• Low fraud risks.

 

7. Trustcloud Mining

 

Trustcloud Mining is the most effective crypto cloud mining platform. It is a proven brand to earn maximum profits and cash at the end. It is a reliable and proven brand and utilizes solar energy for cloud mining services.

 

The features of the platforms are as follows:

 

• Quite easy to use.

 

• Support service available.

 

• Daily payouts available.

 

• Can be used to mine Zcash, Bitcoin and Ethereum.

 

• Flexible Contracts.

 

• Low Investment required.

 

Despite the mentioned 7 crypto cloud miners, there are several other crypto cloud mining sites available. Few other reliable sites are:

 

1. BeMine

 

2. Scryptcube

 

3. Miningrigrentals

 

4. Awesomeminer

 

5. Hashing24

 

6. OXBTC

 

7. Freemining

 

8. Hashnest

 

9. Cryptouniverse

 

10. Easyminer

 

Also Read | Polygon (MATIC)

 

Despite profits and earnings, there are regulatory risks associated with cloud mining. And few countries are also expected to ban it. As the process requires a huge burning of fossils. Though specialized hardware is costly, the risk can be lower if you own a personal mining system.