Cloud mining is the production of Bitcoin, Litecoin, Zcash, Dash, Ethereum and other crypto currency (more than 1400 altcoyins), using special cloud services, accumulating capacities in their data centers and farms. This is a new model of earnings, which creates groups (mining pools), with one goal: to obtain more revenue, in comparison with the usual distributed mining, due to the management of equipment on the part of the contractor, which solves all issues on the technical and software components.

The profitability of cloud contracts is due to the fact that the companies providing the service themselves are usually producers of production equipment (ASIC). This significantly reduces the cost and cost of mining, and the consolidation of ASIC data into large data centers reduces maintenance costs.

Thus, this model of work is beneficial to all participants, since it allows to significantly increase profitability and get a bigger profit.

That is, in simple terms, a certain company produces or purchases equipment for mining, and then sells its capacity to end customers, while maintaining equipment, electricity costs, setting up and connecting to the Internet completely fall on the company's shoulders.

Cloud service deprives customers of most of the problems and difficulties accompanying the mining process:
- interruptions in the operation of the Internet and electrical network (there is no idle equipment),
- setting up and maintaining the equipment in a working condition (the paid capacity is constant),
- high noise and heat dissipation (there is no need to cool the room),
-legal questions in the field of legislation and taxation (it became actual at the end of 2017).

Some companies charge a small commission for their work, which consists of electricity fees and equipment maintenance. But in any case, it is much more profitable for the end user than to keep the equipment at home or rent a separate room for it. Since the farms and the data centers of these companies are usually built in places with cheap electricity and heat generation. Most often, such companies are occupied by cloud mining of bitcoins and lightcoins, using the so-called ASIC equipment developed for the extraction of crypto currency for the production of crypto currency.

In connection with the disappearance of video cards and ASICs from the market, cloud mining services are gaining huge popularity and many contracts are redeemed just a few days after the appearance (commissioning of new capacity). The most reliable ones are HashFlare and Genesis Mining. They are guaranteed not to burst like bubbles of HYIP projects that work for several months, gain the right amount of money, and curtail, and users lose their investments. Specifically, our editorial staff uses the HashFlare service (approximately 80-85% of the total capacity), for more than a year of working with the service, we did not have any problems or delays in payments.

If you decided to do investing in mining now, when it's very difficult to get video cards and ASIC, and if you do, then at the huge prices, the easiest mining is the easiest and most effective way to profit from investing in crypto currency production. Agree, buying your own equipment two or three times more expensive is silly.

Author's Bio: 

Dave is IT specialist in the past, 10 years worked as a software developer. Now he is studying the crypto currency and mining, he decided to share his experience with the rest and give an opportunity to earn.