Bitcoin cloud mining is a procedure where individuals can be involved in Bitcoin mining without owning or managing physical hardware. Instead of purchasing expensive mining rigs and setting them up at home or in a data center, users rent computing power from remote facilities—usually large-scale mining farms—run by professional mining companies. These services typically charge a fee and provide users with a share of the mined Bitcoin proportional with their investment. Cloud mining has grown in popularity due to its convenience, lower barrier to entry, and reduced technical complexity.

In traditional mining, individuals use their very own hardware to resolve complex cryptographic puzzles, validate transactions, and secure the Bitcoin network. Cloud mining outsources this process. Users register with a cloud mining provider, purchase a contract that offers them usage of a certain amount of hash power (mining power), and then receive a share of the Bitcoin rewards generated. Everything—from maintenance and electricity costs to cooling and operation—is handled by the provider. Users simply buy access and monitor  bitcoin mining earnings through an online dashboard.

You can find primarily two types of cloud mining: hosted mining and leased hash power. In hosted mining, the client rents or buys a device located at the provider's facility and has control over it. This offers more customization but requires some technical knowledge. Leased hash power, the more common option, allows users to buy a group number of mining power without owning any physical equipment. This is fantastic for beginners who desire passive experience of mining without engaging in the technical weeds.

The greatest benefit of cloud mining is accessibility. It eliminates the requirement for large upfront investments in mining hardware and reduces electricity bills, noise, and heat—common issues for home miners. In addition it saves users from having to comprehend the intricacies of mining software, firmware updates, and configuration. Furthermore, cloud mining services usually have economies of scale, meaning they could operate more efficiently and cheaply than individual miners.