Cloud Mining has become, perhaps, one of the most popular ways to mine cryptocurrencies today. The reason for the acceptance is that it allows users to mine cryptocurrencies without the necessary – and often expensive and energy-consuming – equipment.
How? Through the renting of computing power from companies that have it and operating in the cloud.
However, there is more involved than just benefits in crypto cloud mining, as several scams have somewhat affected the perception of this solution touted as coming directly from heaven.
How Does Cloud Mining Work?
Before seizing the benefits from cloud mining, the starting point is to register on a platform offering the services, where users can purchase contracts or shares within the said platform.
These contracts allow the user to employ the mining services and make a profit, and once the minimum withdrawal amount is reached – defined by each platform – users can withdraw the profits to their wallet.
Similarly, on the other end, companies offering cloud mining services make money out of selling contracts and renting the hashing power. According to CoinDesk, users have to “pick a successful mining pool, rent some hardware from it and wait until the mining pool generates money.”
“You also have to pick a cryptocurrency. Bitcoin, ethereum, and dogecoin house the largest mining pools, according to…