Crypto Mining

Mining is the process that Bitcoin and several other cryptocurrencies use to generate new coins and verify new transactions. It involves vast, decentralized networks of computers around the world that verify and secure blockchains – the virtual ledgers that document cryptocurrency transactions. In return for contributing their processing power, computers on the network are rewarded with new coins. It’s a virtuous circle: the miners maintain and secure the blockchain, the blockchain awards the coins, the coins provide an incentive for the miners to maintain the blockchain.

Cloud mining is a mechanism to mine a cryptocurrency, such as bitcoin, using rented cloud computing power without installing and directly running the hardware and related software. Cloud mining firms allow people to open an account and remotely participate in the process of cryptocurrency mining for a fee. This helps make mining accessible to a broader base of people because it reduces the need to purchase and maintain equipment or pay direct energy costs.