(1) What is cloud mining?
Cloud mining is the process of mining is the process of mining that we can do from our home, without needing to have all the Hardware, as the mining is done in a mining centre with shared processing power.
This means that we can do mining from home without worrying about the equipment, or installing any software on our computer and even less about electricity consumption.
This type of mining allows users to mine different cryptocurrencies without having to worry about installing any software on their computer, or owning the right hardware, or even electricity costs.
Companies that have the right equipment to carry out mining, rent part of that power so that private users can participate in mining by paying a rental fee.
(https://cdn.steemitimages.com/DQmaNjMnvk6vhVtakhhUwYQya9FqeyNawU4d8gT1NrjQqpp/image.png)
In short, we can say that cloud mining is a service offered by companies that make large investments in equipment and suitable facilities to be able to carry out this process and offer users to rent part of this mining power and thus be able to obtain these cryptocurrencies from this mining.
Users enter into a mining contract with the mining companies who rent Hashing Power (computing power) and when the company obtains profits from the mining, the user gets a share proportional to the rent they have paid.
Mining in the cloud can be done in different ways:
Hosted Mining.
This type of mining occurs when we acquire the equipment but we do not carry out the mining process from our home, but we send our equipment to a company that has the appropriate facilities for this purpose, thus avoiding the consumption of electricity, the necessary cooling and the hassle of having a computer on all day.
This type of mining can also occur when we rent equipment from a mining company.
A contract is signed, the computer is certified and everything obtained from it becomes the property of the user who decided to rent the physical space or the computer for a certain period of time.
Virtual hosted mining.
Virtual hosted mining is very similar to hosted mining, but the only difference is that instead of renting a physical computer, we rent a virtual miner, which we access remotely and over which we have full control of the computer we have rented.
Hashing power rental or Hashing power rental
In this option we do not rent a physical or virtual computer, but we rent Hashing Power in exchange for the payment of a rent, for a determined period of time and the user keeps all that is produced by this computing power during the period of time stipulated in the contract.
This is the most common form of cloud mining.
Hash power is the power of a computer to solve complex mathematical calculations. Let's remember that whoever ends up mining a block within a blockchain is the one who first solves that complex mathematical calculation.
(2) What are the best cloud mining platforms?
From what I could research cloud mining is very dangerous as it is very likely that we will end up in the middle of a scam whereby they will take our funds. You have to do a lot of research to avoid having a bad experience and above all to know where you are putting your money.
Among the best cloud mining companies I found the following:
- [ScryptCube](https://scryptcube.com/): This platform is one of the most recommended for its good reputation and above all for its good track record. The site is very easy to use and its prices are very affordable which allows good returns.
2. [Hashing24](https://hashing24.com/?rid=53616c7465645f5f4f4d610aaf0957b6c7a49bbf223e32f1&rtid=12366&clickid=0699b573-ea0d-49df-8ffc-4549be2716d8): This company offers low-cost Hash rental, but has the disadvantage that its site is not so easy to use.
- [CCG Mining](https://www.ccgmining.com/index.php?clickid=6c497ffd-231b-4b94-8bf4-52fd9f4ff886&pid=12366&sub5=&utm_source=advendor&utm_medium=cpa&utm_campaign=advendor-wmid12366&utm_content=): Company with many years of experience, which makes it a reliable site and their prices are very affordable. Here we can not only mine BTC but also EETH, LTC, BCH and other cryptocurrencies.
- [Genesis Mining](https://www.genesis-mining.com/): This is one of the oldest and largest companies in the market and has the advantage of being located in Iceland, a country whose electricity prices are among the lowest, which makes its prices very attractive.
(https://cdn.steemitimages.com/DQmbXs7Yrpggq9QMgAkJmhMaFZSAwsZqjt5cJTV8ksD1VEp/image.png)
Once we rent the Hashing power we can decide what percentages we allocate to the mining of the different cryptocurrencies that are dedicated to mining.
There are many other companies on the market, but these are the best known:
- StormGain.
- ScryptCube.
- Genesis Cloud Mining.
- Nicehash Cloud Mining.
- HashFlare.
- Hashnest.
- Eobot.
- Hashing24.
(3) Analyse the advantages and disadvantages of cloud mining.
Cloud mining has its advantages and disadvantages, it all depends on the analysis we do and the decision we make.
The main advantage of mining in the cloud is that we do not have to invest in the purchase of appropriate mining equipment, we do not have to install and deal with any software, nor will we be burdened with large electricity bills.
Another advantage of mining in the cloud is that there is no constant noise in the house, nor do we have to endure the intense heat that this equipment generates.
The profits offered by cloud mining companies, although not entirely attractive, offer good returns.
We do not run the risk of losing thousands of solar that we have invested in our equipment due to theft, fire or some other incident.
The disadvantages include:
There is a high risk of being swindled by fraudulent companies.
Little control over profitability due to the high volatility of the price of the vast majority of cryptocurrencies.
Risk of losing out if we miscalculate.
Companies can suspend the service of our computer if the profitability is too low.
