Every year, an increasing number of people learn about cryptocurrencies and blockchain technology, as well as about mining, and enter the crypto market. This means that the number of people who would like to try mining, but not yet ready to risk a large amount of money to buy a miner, is also growing. Therefore, the service of cloud mining is gaining popularity. This is the service that makes it possible to rent certain capacity and receive income from its use.
As we already said, it‘s not obligatory for the user to have his own mining farm or even a super-powerful computer. It is enough to rent certain capacity and just get your share of income.
Thus, a person who wants to start mining has several options:
- Invest in equipment (just buy a miner and install it at home or in the garage. But you need to be ready for electricity bills that will not make you happy.
- Invest in the cloud mining (buy a hashrate and receive passive income from cryptocurrency mining)
- Invest in equipment and services (buy a miner and co-locate it on an external site, so-called mining hotel. There, the service provider ensures low electricity rates, good internet and security).
With increasing popularity of mining, the number of scammers trying to make money on newcomers in this area has increased. One can make a fraudulent contract on fake mining sites, and then simply lose the wallet. How to avoid cyber fraudsters, who constantly improving their level of ingenuity?
Here are some recommendations of entering the crypto market:
Monitor reviews. To get started, find and read reviews on crypto forums about this service. Pay special attention to negative reviews, as positive ones can be paid for;
Pay attention to the project information. The company should have some kind of history, references to it on third-party resources (for example, it is good if the team has already taken part in some public events: attended conferences and various exhibitions and forums);
Is the company officially registered? This is a question that service staff should be able to answer.
Look for evidence of the presence of real mining equipment in the company — this can be photos or video from the data center or, for example, papers proving the purchase of miners.
In addition, now there are many HYIP projects supposedly based on cryptocurrencies that can be disguised as mining. Often, they promise 300% return or even higher — remember that no service will officially give you a guarantee on such a yield
Moreover, do not forget that companies that have nothing to hide will always provide all the requested information, will be demonstrating their honesty and reliability. So you can always come to their office and get acquainted with the equipment and chat with the team.