How does Cloud Mining Bitcoin work?

How does Cloud Mining Bitcoin work?

If you wish to make an investment in bitcoin mining without managing your own hardware you have the option of using the cloud in order to earn your coins. There are three main types of cloud mining which are available and they are:

  • Hosted mining: It means to take a mining machine on lease which will be hosted by the one who provides it.
  • Virtual hosted mining: You can install your own mining software and it will be controlled by a virtual private server.
  • Leased hashing power: This is the most popular and successful method of cloud mining in which you have to lease a fixed amount of hashing powder without anyone interfering such as a physical or virtual computer.

There are some pros and cons of cloud mining which you should be keeping in mind however such as:


  • A quiet process without anyone interfering
  • No electricity costs
  • No chance of loss by mining suppliers
  • When mining goes in loss you do not need to sell any equipment
  • You do not have the need to deal with ventilation problems with any hot equipment’s.


  • Huge risk of fraud with it
  • It is not that much of a fun activity for someone who wants entertainment
  • Very low profit
  • Lack of flexibility and no control
  • Mining operations might be too opaque

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