Cryptocurrency is a digital currency, and new units of currency are generated by “mining.” This is a computationally intensive task, and it requires a lot of processing power. Essentially, the computer is rewarded for solving difficult math problems. This processing power is used to verify transactions, so all that number-crunching is required for the cryptocurrency to work.

Cloud mining or cloud hashing enables users to purchase mining capacity of hardware in data centres. By this people can earn cryptocurrency without managing hardware, software, electricity, bandwidth or other offline issues. Then all cryptocurrency mining is done remotely in the cloud. This enables the owners to not deal with any of the hassles usually encountered when mining cryptocurrency. It’s like you buy a share in a gold mine where you already know there is gold. Someone mines the gold out and you get the profit for it!