How to Notice Bitcoin Cloud Mining Scams
Every new industry in the market could potentially be full of scams. Bitcoins and cryptocurrencies are no exception. The recent increase in the value and volatility of cloud mining is driving business around the world.
Investments are growing, making the Cloud mining business viable. As long as the invested capital is enough, anyone can actually profit from the business. However, finding the right cloud mining company is difficult given the number of scams in the market.
Scammers will use any attractive way of getting your attention. Most of them assure you huge profits once you enroll in their business. Any legit person knows that cloud mining is not an assurance of success.
Your output depends on the amount of capital that you have invested in the business. Digital currencies are evolutionary in nature. No one can predict Bitcoin’s state for even a day. Stay away from scammers guaranteeing you profit.
Any legit Bitcoin hashing company will have a public mining address. It is a sign of proof and evidence of the company. Some companies have fake or borrowed addresses. Be on the lookout.
To check the authenticity of the Public Mining addresses asks a company to sign blocks for you. If they are unable, then the public address is not theirs and the company is a scam.
If you are relatively new with the digital currency market, you can check a company’s popularity on the market. You can check a number of customers that the customers serve to get their authenticity. Look for mining reviews, online articles, and guides on the mining pool in question.
Social Media platform provides an opportunity for anyone to analyze the mining pool. Many of the illegal Bitcoin mining tools will not emphasize on the online presence. You will identify them since most of their posts are fabricated, standardized and have a lot of inorganically grown content.
Any company paying social media users through referrals is a scam. Legit companies make very little profit to engage in this type of money spending scheme.
If the Bitcoins mining pool has decided to transact business with you, ensure that the data center provides further details on them, especially in terms of photos. A legit Bitcoins mining company will provide data center details when asked to do so. If several unreasonable excuses are given as to why the photos cannot be available, then the company is a scam.
Ask for photos of an electricity bill for authenticity. As you research online reviews, do not trust all of them. A scam review can be created to credit a fake company.
There are as many scam companies out there as there are legit cloud hashing companies.