Cloud mining is where you buy shared processing power from a data center whose equipment is used to mine cryptocurrencies.
A company leases you a mining machine to mine for cryptocurrencies. All you have to pay for is the usage costs of the machine.
You use a virtual private server (VPS) to install and run mining software. You just pay for the cost of running the instance, which can be pretty expensive depending on your processing power needs.
Leased Hashing Power
You lease an amount of hashing power from a service provider. This method is generally the most popular.