The digital industry is not that simple as you think. The developing digital industry is digitalizing the way you think, the way you earn money and the whole world of currencies. Today cryptocurrencies have earned a different stature in the digital industry today. With every industry comes a scam. Cryptocurrency is not an exception. Cloud mining is a popular platform that has been subject to scams and frauds.
Cryptocurrency mining is subject to scam. From coins, to contract, mining services can cost you the loss of your hard earned money. So, how to identify the scams? This article will give you a brief idea on detecting the fraud services before binding into a contract.
How to identify the scam cloud mining contracts?
• The domain name of the mining services is never registered under the username. It remains hidden.
• Directors of a fraud Bitcoin mining company are always registered as a foreign resident where tracking them down is not possible, and creating a fake id is possibly easy. They register a company only to give you an illusion of a prestigious firm.
• Whenever a miner asks for the proof of the mining tools and equipment, they become evasive and resist from showing the proof.
• In order to show an illusion of honesty and respectable firm, the fraud companies keep aside the funds and use only the initial ones to make a pay-out. They illuminate a Bitcoin address for clearing the pay-outs, which stops after a few days.
• They use fake promotional videos and contents of fake offices and without any proof of equipment.
• The fake companies give out some portions of the money to comparison sites thatdo not check the credentials of the company. They do so in order to distract the miners from checking out the credibility of the mining services.
Thus, whether you are going for Monero cloud mining or Bitcoin or ethereum, it is always advised to check out the company’s profile to avoid falling for any scams and frauds.