What Is Crypto Cloud Mining, and How Does It Work?

Published 24 January 2024
What Is Crypto Cloud Mining, and How Does It Work?


At the beginning of the cryptocurrency era, the mining process was relatively simple and did not require much processing power. It was popular, and many people learned about cryptocurrency thanks to it. While mining was originally done on personal computers, nowadays, mining is done using GPUs (graphics processing units) and ASICs (integrated circuits designed to mine cryptocurrency). In addition to equipment, room rent, and security costs, classic miners must pay high electricity bills.

But what if there is a way to mine cryptocurrency on someone else’s equipment and not spend money on rent and electricity? This is precisely what our article is dedicated to.

What is Cloud Mining Technology?

Cloud crypto mining is a process in which users rent computing power from specialized services instead of purchasing and maintaining their mining equipment.

Crypto mining is a simple and economical option for those who want to try themselves in this niche. Mining in cloud requires very little technical knowledge. In addition, you won’t have to pay vast sums of money for electricity. Depending on the selected computing power, you only have to pay a commission to the cloud provider.

Types of Cryptocurrency Cloud Mining

Host Mining

One of the most popular types of mining is also called custodial mining. You need to buy the equipment or purchase it through a hosting company. The equipment is placed on the company’s farm (host center). Such farms are usually located in places with cheap electricity and suitable climatic conditions. The host center ensures the smooth operation of the farm, for which clients pay a monthly fee. The fee depends on the capacity used and includes the cost of electricity and space for equipment. The service package typically includes everything necessary for the smooth operation of the installation: security control, customer service, and monitoring. So you can conveniently control the mining process through a smartphone or computer without getting up from the couch.

Rent Hash Power

Unlike host mining, in this method, you don’t buy equipment but rent it from a mining farm. By renting hash power, the computing resources of the mining farm are used to solve cryptographic problems related to blockchain hash generation. Customers pay for this power and get a share of the altcoin cloud mining revenue. This is convenient if you want to avoid investing in expensive equipment or understanding the technical aspects of mining. In addition, it reduces the risks associated with setting up the equipment.

How does Cloud Mining Work?

Blockchain technology is at the heart of the entire cloud mining investment process, ensuring the security and transparency of its resulting transactions.

ETH cloud mining works on the principle of combining computing resources, such as GPUs and ASICs, into a single network. Customers can rent a portion of this power by paying for it according to the chosen pricing plan.

Crypto mining cloud farms usually participate in mining pools, where power is pooled to mine blocks, and the rewards are shared among the participants. In addition, farms also provide maintenance and security for the system.

How to Start Cloud Mining Cryptocurrency?

  • Choosing a Provider

It is easy to meet scammers on the way to finding a provider, as the Ethereum cloud mining industry attracts many unscrupulous operators. Researching the platforms and their offers and reading reviews thoroughly is essential. Fraudsters are most often guaranteed to promise high income. In addition, the operator must conduct its activities publicly and provide legal documents to customers.

  • Registration and Contract Selection

It is necessary to create an account on the chosen cloud mining platform, follow its instructions, and set up your profile. The platform will offer to select the amount and duration of the lease of computing power. Familiarizing yourself with the cloud Bitcoin mining contracts and choosing the right one is essential. The contract’s price will depend on the lease term and the equipment’s power selected.

  • Cryptocurrency Selection

The platform will provide a list of crypto assets from which you can choose a coin for profitable cloud mining, for example:

  1. Bitcoin (BTC);
  2. Ethereum (ETH);
  3. APTOS (APT);
  4. Arbitrum (ARB).
  • Connect and start

After selecting the tariff and cryptocurrency to be mined, the host will provide access to a remote farm and Bitcoin cloud mining software. Typically, this is a cloud mining website or a mobile app that can control the process, view statistics, and receive reward notifications.

Mobile Cloud Mining: Is It Real?

There are various mining applications, but they have nothing to do with cloud mining from your phone. It is more related to classic mining, and its effectiveness could be better due to the limited processing power of mobile devices compared to powerful computers.

Let’s talk about tracking cloud mining from your phone. Many providers provide such an opportunity by developing mobile applications or web interfaces.

Is Cloud Mining Profitable?

Before the advent of powerful computers and competition, Bitcoin could be mined from your computer or laptop. It was easy, profitable, and economical. Due to the high cost and competition, automatic cloud Bitcoin mining companies seek the most favorable conditions and places with cheap electricity.

Since free cloud mining is quite simple, getting passive income from cloud mining is a suitable option. But remember, you may have to sell crypto at the right time to gain maximum cloud mining profit, as prices constantly change. Moreover, the profit can be reinvested, increase the processing power of your device, or use more resources.

The amount of earnings depends on many factors: the contract’s type and term, the equipment’s power, the amount of investment, and so on. It is also essential to consider that even though a cloud miner does not spend money on rent and electricity, it is still challenging to achieve a high income due to competition.

Related Article:
What is Profit and Loss (PNL), and How to Calculate It?

Related Article:

What is Profit and Loss (PNL), and How to Calculate It?
Read the article

Pros and Cons

Advantages of Cloud Mining

  • It does not require investing in cloud mining equipment;
  • Users do not pay for electricity for mining;
  • No need to rent a space for mining;
  • Easy to set up and start mining;
  • Equipment is located in secure data centers;
  • Choice of different contracts and cryptocurrencies.

Risks of Cloud Mining Crypto

  • High risk of being scammed;
  • Limited control over mining operations;
  • Dependence on the provider;
  • Most services are not transparent in terms of business.


Mining cloud without investment is a unique way to earn cryptocurrency, avoiding barriers such as high-energy costs and the complexities of equipment maintenance. It requires less technical knowledge but comes with certain risks, like any investment. Potential miners must research providers thoroughly, understand contract terms, and keep up with changes in the cryptocurrency industry.


Cloud mining meaning is a process in which users rent computing power on remote servers managed by specialized companies. This allows you to mine cryptocurrency without investing in or spending money to support your mining farm.

The cost of connecting the best cloud mining depends on the term of the equipment lease and its computing power. Companies offer various options, where everyone can choose a tariff that suits their budget.

The legality of BTC cloud mining depends on the laws of a particular country or region. Auto-cloud mining is legal in most countries, but some places may have restrictions or specific regulations.