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Cloud Mining Meaning

Cloud mining is a method of cryptocurrency mining where users rent hashing power from a third-party provider instead of owning and operating mining hardware themselves. Rather than buying ASICs/GPUs, setting up rigs, paying electricity bills, and managing cooling and uptime, users purchase a contract that entitles them to a share of mining output. Cloud mining is often marketed as a way to access mining rewards without technical complexity. The provider runs the equipment in dedicated facilities and typically charges fees that may include:

Hardware rental cost
Maintenance and facility cost
Electricity and cooling costs
Platform overhead / margin

The key factor for cloud mining is profitability, which depends on:

Network difficulty and hash rate competition
The underlying coin price
Electricity costs (built into the contract pricing)
Contract duration and fee structure
Provider reliability and transparency

Cloud mining carries notable risks:

Counterparty risk: you rely entirely on the provider to operate honestly and remain solvent.
Opaque economics: contracts can be priced so that expected returns are low or negative after fees.
Fraud risk: cloud mining has historically attracted scams (selling “hash power” that doesn’t exist).
Market risk: if coin price drops or difficulty rises, rewards may not cover fees, and providers may terminate contracts.

For institutional-grade operations, cloud mining is generally viewed as higher risk compared to direct mining or exposure via regulated instruments, unless the provider is highly reputable and audited.

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Important Disclaimer:

Finery Markets BVI Limited (“Finery Markets”) provides software, technology infrastructure, and related Information and Communication Technology (ICT) services on a Software-as-a-Service (“SaaS”) basis. Finery Markets acts solely as a software vendor and does not operate a trading platform, does not intermediate, match, execute, clear, or settle transactions, and does not engage in any activities that would require regulatory authorisation under applicable laws.

Finery Markets’ software is non-custodial and is provided exclusively to licensed institutional entities that act as independent operators of their own environments. All counterparties are solely responsible for establishing and maintaining their own bilateral trading and settlement relationships. Finery Markets is not a party to any such arrangements and assumes no responsibility for the conduct, verification, or compliance obligations of any users of the software.

Nothing on this website shall be construed as a financial promotion, investment advice, or an offer to engage in regulated activities. Access to and use of the software is strictly limited to clients who have entered into a software licensing agreement with Finery Markets. Persons located in jurisdictions where such access is restricted should not rely on this website or any of its contents.

Additional notice to UK visitors: This website and associated communications are not intended to constitute a financial promotion under The Financial Services and Markets Act 2000 (Financial Promotion) Order 2005 (as amended) and related guidance. Access to services provided by Finery Markets is limited to regulated entities, professional clients and eligible counterparties as set out by the Financial Conduct Authority. UK users are not permitted to use this website for the services of Finery Markets if they don't fall within these categories.