Cloud mining is a mechanism to mine a cryptocurrency, such as bitcoin, using rented cloud computing power without installing and directly running the hardware and related software. Cloud mining firms allow people to open an account and remotely participate in the process of cryptocurrency mining for a fee. This helps make mining accessible to a broader base of people because it reduces the need to purchase and maintain equipment or pay direct energy costs.

Cloud miners become participants in a mining pool, where users purchase a certain amount of "hash power." Each participant earns a pro-rata share of the profits in proportion to the amount of hashing power rented.

Cloud mining relieves you of the financial burden of buying and maintaining expensive equipment.