The process of cloud mining is a simple process. However, it is divided into three main forms:
1. Hosted Mining
This is the most basic form of cloud mining where a server rents the processing power for a client.
2. Virtual Hosted Mining
In this form of mining, the user creates a general purpose virtual private server. Then, we use this VPS for the purpose of mining. This is a more secure system of mining from the server.
3. Leased Hashing Power
The third form of mining is through the use of leased hashing power. In which, a server engages in the mining procedures with the user based upon the amount of hashes. The leased hashing power does not have a dedicated physical or virtual machine.
This is the most popular and convenient method by far that the miners use. It is convenient for the miners as it delivers the required mining power for the users, while efficiently saving the hashing power for the hashing servers (the servers that mine).