Cloud mining or mining-as-a-service allows users to rent the mining capacity of hardware in companies.
What Is Mining as a Service?
Cryptocurrency mining-as-a-service allows you to purchase computing power that is used to mine coins like Bitcoin and LiteCoin. You can then exchange these coins for fiat currency or another cryptocurrency. Some of the benefits of this feature include:
You don’t have to worry about extensive upfront costs because it’s a pay-as-you-go plan that charges you based on how much computing power is used.
You don’t have to worry about downtime because the service provider maintains all the hardware and software needed for mining.
You can choose how long you’d like to mine and can switch it off at any time.
Some cloud mining companies even sell contracts for future delivery of the coins you’ve mined. This way you can lock in an exchange rate and guarantee your returns before having any risks involved with hardware or software failures.
Mining as a Service certainly has some downsides too.
Cloud mining companies, by nature of their operations, have to rely on outside sources to provide hardware and maintenance. The problem is that most cloud mining companies are not upfront about who they use as their service providers and other critical information. This makes it hard to know whether you can trust them or not.
Cloud mining services have been known to shut down without warning, abandoning all their customers without compensation or explanation. While many platforms claim to offer high-yield investment options, they might not be real at all.
A little research and cautiousness can go a long way in identifying a potential fraudulent MaaS company.