How To Avoid Bitcoin Cloud Mining Scams And Make Money - WeUseCoins

bitcoin cloud mining scam

Want to know how to make the most money safely from a bitcoin cloud mining contract? Here is a comprehensive cloud services and mining contracts guide.

Bitcoin investment has grown day by day with cloud mining increasing as the new and most efficient strategy to making sound profits.

However, for you to invest in this area it requires dependence on Bitcoin cloud mining companies but very few are actually legit. Here is how you can know as well as avoid scamming Bitcoin cloud miner companies.

1. ASIC Miner Vendor Support

It is true that most of these legit Bitcoins cloud mining companies have hardware that is expensive but worth noting its ASIC vendors will voluntarily and out of appreciation make not only acknowledgment but also public posts of the company they are dealing with.

This is to point out that the company mentioned is one of their clients Worth noting is these advertisements are free, and as such, the cloud mining Bitcoin company in question acquires confidence.

As such, most Bitcoin cloud mining companies will request these so they can grind a better and firm kick off to the market as well as retain a highly competitive profile in the market. Therefore, there is no reason why any ASIC vendor wouldn’t support the company at hand

2. Data Center Photos

It is quite suspicious why a Bitcoin cloud mining company would provide you with details of their data center but when you request a relevant photo regarding the details provided, you are subjected to a couple of unreasonable excuses why they don’t have any photos.

Here is the warning- a legit Bitcoin cloud miner company should provide both the datacenter details and relevant photos for convenience and when asked for.

Think of a company that even goes to the extent of providing proof of electric bills or other costs - isn’t that one legit? Right, it is. Always bear in mind that companies can fake a data center- it only requires record videos and all is well, so take caution.

3. Public Address or User Selectable Mining Pool

bitcoin cloud mining public address

A legit Bitcoin cloud hashing company will have a public mining address- it is a sign of proof and evidence that the company, like Genesis Mining, is mining their available bitcoins on a network.

However, you should keep an eye out since some companies have been known to have borrowed and faked address that they don’t own.

Along with this, to check whether the company at hand owns the address or not you can request the company to sign blocks and if it is unable then it’s likely the company doesn’t own the address.

On this line, it is worth noting that only those companies that can sign blocks own the said address- it’s the whole magic of attesting the legitimacy of a Bitcoin cloud miner company.

Did you know that for any scam Bitcoin cloud hashing company that you purchase bitcoin hardware and hashing power from they aren’t able to no strictly direct the purchased hashing power to your preference mining pool? That it is.

4. Anonymous Domain Registration

Run run run if you come across any Bitcoin cloud mining company website that is anonymous- it’s just a one-step clarification that the company is a scam. But why?

Allow me to take you through- any owner of any cloud hashing company website domain should never at any moment be anonymous since they provided full contact details during the registration process of their website domains.

As such, a legit Bitcoin cloud hashing company website domain will not appear as anonymous and one can view all their contact details with ease- they are not hidden. It's only scammers who will hide their contact details to eliminate any chance of being tracked.

5. Social Networking

bitcoin cloud mining social networking

It is true that the bitcoin cloud miner market sector has very sharp thin profits and as a result it gets harder for companies to pay 5% let alone 10% referrals.

As such, BEWARE!! Bitcoin cloud hashing companies that have referral programs claiming to pay almost or equal to 10% is a red flag.

Worth noting is, experts in this industry echo that referral programs are used either as a feed for scamming or providing posters with financial incentives that lie about the true nature of the company.

6. Lack Withdraw Option

Since Bitcoin cloud miner then for any company that you engage with, it should allow you to both sell the GH as well as withdraw your earnings.

However, scammers will always act opposite- they will allow you to sell the GH, buy on their website and there is no specific place you can withdraw your earning; that’s weird, and it should tell you that something is wrong and that’s why you will need to leave the site.

Also, if the company doesn’t credit any trade or sale option of your cloud contract GH or TH, be assured it’s a scamming site- run run run away.

7. Offer Guaranteed Profit

Scammers use any sensible and attractive way to get you on their site and that’s why, you will find some Bitcoin cloud hashing companies offering a denominated or guaranteed profit- this should put up a red flag and tell you to stay away, why?

In the bitcoin mining world there is no such thing as certain profit- oh no!

Worth noting is, the bitcoin mining world is so hard to predict and as such, no one can even state tomorrow’s BTC price let alone weeks or months to come- so why are they guaranteed profits? It’s the incentive of scammers.

8. Unlimited IPO

Did you know that the amount of GH that you can sell is always limited by your data centers- the amount of mining hardware in it?

Yes, as such legitimate companies will always have limitations particularly on the amount of GH one can sell besides stating how much GH they can access not to forget the amount that has been sold.

Worth noting is, the process of getting more hardware in a bid to sell more GH will always consume more time during the ordering and delivery process. As such, any company that doesn’t limit sales is very likely a scam- BEWARE!!

Scam cloud hashing companies are out there and only through the above tips can you avoid them- BEWARE!! If you do see one, stay away.

Written by We Use Coins on July 12, 2016.