As bitcoin has become more mainstream, interest in bitcoin mining has also increased. In the past, bitcoin mining frequently required the use of massive amounts of equipment, a process that required time and investment in equipment and software.

Cloud mining has now made it possible for individuals to participate in the benefits of bitcoin mining without the need to actually have hardware at home. Is bitcoin cloud mining right for you? Which cloud mine sites are best?

In determining whether cloud-based bitcoin mining is the right choice for you, it is important to evaluate both the advantages as well as the disadvantages. Cloud mining typically means using shared processing power operated from remote data centers. All that is needed is a home computer and a local bitcoin wallet, if you desire.

In considering cloud mining, it should be kept in mind that this option does mean that you can eliminate the need to worry about having equipment constantly running in your home. This not only translates to lower utility costs but also a cooler and quieter home. In addition, you do not have to be concerned about buying expensive equipment. There is also no need to worry about ventilation problems that can occur when you have massive amounts of hot equipment operating around the clock.

It is also important to consider that with on-site bitcoin mining, there is always the potential for hardware failures. This is not a consideration with cloud mining. Additionally, cloud mining offers the benefit of an almost instantaneous setup. There is no software configuration or system building involved with cloud-based mining.

While there are obviously numerous benefits associated with cloud mining, there are also some disadvantages related to this option of which you should be aware. If you happen to enjoy system building, cloud mining will likely be less enjoyable for you. Additionally, you should be aware that cloud mining does offer lower profits that traditional mining. The reason for this is that operators must ensure that their costs are covered. You gain a tremendous amount of benefits with cloud mining and there is a cost for that. Finally, you should consider the fact that cloud mining offers less flexibility and a lack of control.

If you have decided that cloud mining is the right choice, it is important to be aware that there are actually various types of cloud mining. The various options include hosted mining, virtual hosted mining, and leased hashing power. With hosted mining, you are able to lease a mining machine that is actually hosted by a provider. By comparison, virtual hosted mining allows you to create a virtual private server so that you can install your own bitcoin mining software. With leased hashing power, you gain the ability to lease a certain amount of hashing power without the need to have a dedicated virtual or physical computer. To date, leased hashing power has proven to be the most popular method for cloud mining.

Several cloud-based bitcoin mining sites have emerged has popular choices. Among those is CEX.IO. With this provider, you are able to buy Gigahashes, which are immediately credited to your account. You also receive a complimentary Ghash.IO account that you can use for tracking you shares of the current mined block in real time. If you decide you would like to do so, you also retain the ability to sell your Gigahashes so that your mining is practically free. HashRack is another popular cloud mining site, as is CloudHashing, which is known for providing a fairly in-depth interface for tracking.