Today, there are a number of cloud mining companies that defraud the customers. Since the day cryptocurrencies have emerged, they had been plagued by the scammers continuously. Even you can find some mining scams on the social media, describing how a new user defraud the cloud mining company. If you look at the whole scenario, you can see that this does not only hurt just one user but the entire ecosystem. To protect the mining users from the bad intentions of the industry, the education about this industry is much needed. So, what are the factors you need to consider before selecting a mining company, to make you informed, here is a blog post. Read on!
- Longevity of the Business
The mining company who works on Ponzi scheme, do not need to work overnight. The Ponzi scheme is an investment operation in which an operator generates returns through the revenue submitted by new investors for older investors. You have to keep in mind that there is no way to get your money back if you choose the company that does the business on Ponzi scheme. After a long time, you keep on doing your business, one day you realize that you have been scammed.
For instance, if a company is providing mining services from the past 10 months, then it does not mean it is legitimate. So, it is advisable to keep your research on till you find a reliable one to work with.
- Pictures of the Data Center
The data centers have large operations and they prove their existence by posting pictures of it. So before selecting a mining company, you should ask them to provide data center pictures images. If in case, the company is not sharing the pictures of the data center with you, then you should be attentive. Therefore, it is advisable to read the reviews of the company and check their profile.
- ASIC Endorsement
It is essential for every cloud mining company to work with ASIC vendor before. As these vendors provide endorsements to the customers as self-advertisement. Every mining company can easily acquire an ASIC endorsement. Make sure to check for ASIC endorsement of the mining company before making it a business partner.
In the cryptocurrency mining world, margins are everything. If a mining company is focusing on customer acquisition and giving maximum referral discounts, then you should take a pause. For instance, if a company is offering more than 10% discount, then there is a possibility of some scam later or company is following a dangerous business model.
There are companies who never conceal their identities. However, a few hide their identities. So it is advisable to look for a company that does not get into a scam and follows a transparent process. Always look for transparency!
- Acceptance of Credit Cards
For a mining company, to get a merchant processing is pretty much difficult. The process might be tedious and may require attachment to a real identity. If in case, they are only making crypto payments, then you need to pause. Therefore, do check that mining company accept the credit cards in order to simply the payment process.
- Contribution to Cryptocurrency Industry
Are the company’s founders regulars at events? Are they making any contribution to the growth of cryptocurrency industry? If not, then find some other reliable mining partner.
- No Guarantees
This is so obvious to say, but it is important too. If a company guarantee you profit on cryptocurrency mining, then it is a lie. With the changing technology, no one can predict that what will be the price of cryptocurrency in the coming time and what will happen next. So if you are planning to invest in the cryptocurrency mining, do not consider the guaranty factor.
- Concise Solutions
When choosing a mining company, it is important to adhere the core functions required for mining. When selecting a mining provider, you are dealing a person of the sales department. So if the company representative is not able to provide the clear solutions, then you should select some other company.
So, if you or your known is looking for a reliable mining company, follow the above-mentioned things, as it will highly reduce the chances of being scammed.