Mining cryptocurrency is a popular and time-proven method of making money with blockchain technology. Despite the fact that it’s a very reliable way of earning cryptocurrencies, some people consider crypto mining as something that’s far too hard and complicated. Cloud mining is a new type of mining cryptocurrency that aims to be more convenient and accessible. But what is cloud mining exactly, what are the benefits of cloud mining, and how does cloud mining compare to the traditional way of mining cryptocurrency?
Simply stated, crypto mining means solving complex mathematical formulas to create crypto coins or tokens, by means of hardware or software.
With crypto mining, everything is documented on the blockchain. Everything is collected in a ‘block’, which then forms a chain of blocks in line with each other. You must remember that additions can only be made behind the block. Past transactions will always remain a part of the Blockchain and cannot be changed.
Incidentally, not only are the transactions stored but also refers to the previous block (the hash): a difficult to crack the mathematical puzzle.