How to recognize fraudulent Cloud miningNovember 24, 2021
Any new industry is full of scams and the Bitcoin and crypto industry is no exception. From scam coins to mining rigs and contracts, there are countless methods to steal your hard earned cash and blind your eyes.
There are many Cloud mining projects, good and bad. So how do you identify a Bitcoin mining scam? Well, it’s hard for anyone who doesn’t know. Moreover, the scammers are getting smarter and smarter.
Here, we do all the hard work so you don’t have to. We trawl the site and if we have any doubts about the Company offering Bitcoin cloud mining contracts it does not appear on our scam list. The same goes for mining equipment – if we haven’t had and tested it yet – or see enough proof of its existence or a good track record for the Company – only then will we list it. list it. We also list all the Companies that have made suspicious reports on the forums from the community.
For example, there are many websites that compare Bitcoin, Litecoin and Ethereum mining contracts – but they are rewarded by scammers for sending potential users to their site.
So these comparison sites don’t really bother running fake ads to some scammers when they get a piece of whatever the victim turns! They just quietly take the money and allow themselves to be led by the hand and not take care of their users.
In 2014 and 2015, there was a shift from mining rigs being used by individuals to being too expensive for individuals to implement alone – so the cloud mining market has grown. development and growth. This has caught the eye of scammers who have set up several cloud mining sites offering mining contracts for Bitcoin, Ethereum, and other altcoins.
With any industry, the scammers have to be one step ahead of the people who control it. With Bitcoin, it’s difficult to get any distinct proof when the industry is geographically spreading – but there are red flags we look for that usually mean popping up from time to time.
How to recognize fraudulent Cloud mining virtual money mining projects
Check domain information
The domain name is never registered to real users but is instead hidden.
Fake domain name registration information
They register a Company – some have done so in London to create the illusion of prestige – but the Directors are often registered as foreign residents where identity claims are prone to falsification.
They are evasive when asked to show proof of their device.
Minimum payout is too big
They set aside funds and use initial funds from customers to make payments to once again the illusion of respect and honesty which will then generate more customers. They show a Bitcoin address they make payments from which is verifiable. One day the address stops paying.
Advertisement exaggerates the truth
They use ads that are too real, for example videos that use representations and fake offices – no evidence of equipment.
They advertise with comparison sites who do not fully check the Company’s credentials as they get a share of the profits from the scam. Comparison sites say the site can be verified because it is making payments from a specific Bitcoin address.
So don’t jump on any mining provider – check our Company listings and reviews from community members – check our equipment reviews and check our list of companies. The scam company does not have enough evidence to be verified. Better safe than sorry.