Cloud mining is typically done through a contract, in which the user pays a company to rent out a certain amount of computing power from their data center. This rented computing power is then used to mine cryptocurrency, with the profits shared between the user and the company.
One of the main advantages of cloud mining is that it allows individuals to participate in the cryptocurrency mining process without the need for a significant upfront investment. This can be especially appealing for those who live in countries with high electricity costs, as setting up and operating a mining farm can be prohibitively expensive.
Another benefit of cloud mining is that it eliminates the need for users to worry about the maintenance and upkeep of their mining equipment. This can save a significant amount of time and effort and reduce the risk of equipment failure and associated costs.
Overall, cloud mining is a convenient and cost-effective way for individuals to participate in the cryptocurrency mining process without investing in expensive equipment and technical expertise.