What Is Cloud Mining and How Does It Work?
Cloud mining is an innovative way of mining cryptocurrencies like Bitcoin. Unlike traditional crypto mining, cloud mining doesn’t require you to personally purchase and configure any complicated hardware or software. It’s an easy and accessible way in which anyone, anywhere in the world can profit from crypto mining. But how does cloud mining work?
The Problems With Traditional Crypto Mining
To understand the benefits of cloud mining, it’s essential to know what the problems with traditional crypto mining are.
Mining used to be one of the original ways of earning crypto passive income. Miners were using their computing power (called “hashing power” in the crypto terminology) to validate transactions on the blockchain. In return for helping to keep the network operational, miners were rewarded financially.
However, the algorithms securing the blockchain network are extremely complicated, and validating blocks on the network consumes tremendous amounts of hashing power. Because of that, mining digital assets like Bitcoin requires specialized hardware called “mining rigs”.
Mining rigs are expensive, and configuring them is very complicated. They also consume a lot of energy. Traditional crypto mining is something that’s feasible only for people with a lot of IT experience, who can afford a huge initial investment and have access to a source of cheap electricity.
Cloud Mining: Crypto Mining Accessible For Everyone
Cloud mining was invented to empower everyone with the ability to profit from mining cryptocurrencies by turning crypto mining into a community-based experience.
The initial investment required to start mining cryptocurrencies like Bitcoin is huge, and the ongoing maintenance and electricity costs are also very high. Cloud mining enables people to share only a fraction of that cost, and in turn, be eligible for a portion of the returns.
In other words, cloud mining allows you to purchase a specific amount of hashing power from a cloud provider. That way, you can still profit from mining crypto, without having to actually do any of the hard work involved in setting up and maintaining mining rigs.
What Are Cloud Mining Contracts?
Cloud mining contracts allow you to invest in crypto mining in a safe and efficient way, without requiring you to afford a huge initial investment.
Thanks to cloud mining contracts, you can simply purchase a specific amount of hashing power from a third party. By doing that you pay for a fraction of the maintenance cost of the mining equipment, and become eligible to earn a portion of the returns from mining.
To put it simple, cloud mining contracts allow you to invest in crypto mining without actually mining crypto by yourself. You don’t have to worry about configuring mining rigs and paying electricity bills — you pay for a clearly defined amount of hashing power, and you reap proportional rewards.
Spot Contracts and Futures: Different Types of Mining Contracts
One of the main advantages of cloud mining is flexibility. By choosing between different cloud mining contracts you can customize your mining experience to perfectly fit your needs.
Specialized hashpower platforms like GHPEX enable you to pick the right cloud mining plan for you. GHPEX is not just another cloud mining provider: it’s a community-based platform dedicated to hashpower spot market, futures trading, and other game-changing crypto products.
Cloud mining spot contracts are an innovative instrument which enables you to purchase hashpower in the market, in a process similar to buying cryptocurrencies on spot exchanges like Binance or Coinbase.
GPHEX also allows you to pick from different types of spot contracts: “Hash cards”. Choosing between 1-month plans and 2-year plans, and between different cryptocurrencies such as Bitcoin and Ethereum, will allow you to start investing in crypto mining on your own terms.
