Cloud Mining
Renting remote cryptocurrency mining hardware or hash power from a provider instead of running miners yourself.
Cloud mining is a service that lets users pay to access cryptocurrency mining equipment hosted and operated by a third-party company. Instead of buying ASIC miners, finding cheap electricity, managing heat, noise, repairs, and software, a customer rents a share of the provider’s computing power, often called hash power. Any mining rewards are typically distributed according to the contract terms, minus fees and operating costs.
It matters because it lowers the technical barrier to participating in proof-of-work mining, but it also shifts trust and risk to the provider. Returns depend on network difficulty, coin price, electricity costs, fees, and whether the provider is legitimate. For example, buying a cloud mining contract is a bit like renting time on a shared machine in a data center rather than owning a mining rig in your garage: it is simpler to start, but you have less control and must carefully read the contract.
Other terms in Mining
GPU Mining
Using graphics cards to perform the calculations needed to secure certain proof-of-work blockchains and earn newly issued coins or fees.
Mining Rig
A specialized computer setup used to run mining software and perform the calculations needed to secure proof-of-work blockchains.
Orphan Block
A valid mined block that is not included in the main blockchain because a competing block was accepted by the network first.
Proof of Stake
A consensus method where validators lock up cryptocurrency to help secure a blockchain and earn rewards for proposing or verifying blocks.