How to Detect a Cloud Mining Scam?

Bitcoin continues to grow, attracting more and more users throughout the world. However, most crypto fans cannot afford buying expensive equipment for mining and therefore they start looking for some alternative decisions. The most popular option is cloud mining services – resources that provide mining equipment for rent.

The trend for cloud mining services is understandable, since this activity can actually bring real profit as long as enough investments are involved. Renting equipment means that you don’t have to purchase, install and take care of it. No problems with electricity bills, noisy running and attendance. You just become a part of a network, unite with other users and mine currency much more effectively. Sounds nice!

The problem is to find a reliable platform among numerous scams that emerge like mushrooms after the rain. In this article, we will discuss some important recommendations that will help you select a trustworthy service and avoid being cheated.

Check out the public mining address

One of the main signs that a company owns mining equipment and gets their coins in a network is a public address. Keep in mind that scammers may publish fake addresses, so at least you have to try checking the address on a map. The best option is to ask a company for a signed block, especially if you are going to make a large investment.

Forget about services that give an iron-clad success guarantee

Guaranteed profit is an advertising trick to attract customers and cloud mining services are aware of that fact, too. Remember that such promises are just eloquent-sounding words! Your profit doesn’t depend on the cloud mining service – it is based on the investments and currency growth dynamics. Therefore, such guarantees are just an attraction for users (mostly, newcomers). Honest cloud mining service never build their business on fake marketing moves.

Check the company’s level of transparency

Make sure to check the company’s website carefully to get as much crucial information as possible. Remember that if a service you are interested in publishes information about servers and data center but doesn’t provide any contracts, electricity bills, contracts and photos – this might be suspicious. However, the transparency issue is not a big deal in most cases, so don’t perceive this tip as an absolute guide – some companies decide to stay anonymous due to the specificity of the niche. Keep in mind that service should provide you with some proof that they are mining cryptocurrency per request, so don’t be shy to address their administration before making an investment.

Check the reviews and customer feedback

No need to say that one should take time to look through a number of reviews before requesting online services. If you have been on the cryptocurrency market for a while, you must already know how to check whether one or another platform is popular among clients. The easiest way is to read forums, check reviews, articles and guides about a certain company.

Check the social media activity

Most scam-companies don’t pay too much attention to the social media, but if they do, then their pages are full of fabricated and inorganically-made content. You can check this intuitively – posts, videos, photos, number of likes, reviews and user activity will tell their own tale.

These tips will help you decrease risks and keep your funds safe, so make sure to follow them attentively every time you want to invest money in a cloud mining service. Keep these recommendations in mind and we hope that you’ll never run into scams!

Leave a Reply

Your email address will not be published. Required fields are marked *