Based on my experience from 2015 joining various cloud mining sites, I have concluded that more than 90% of cloud mining sites are scams, even though some are legit, the rewards miners get are often very slow and small. Of course I will explain several reasons such as:
1. Promise of high profits of up to 5% per month, even though crypto mining rarely gets a 5% reward.
2. Request a crypto deposit in advance to rent a rig, or hash power. Usually hash is available based on the rental package. Withdrawing rewards and capital is often difficult or even impossible to withdraw. Even though at the beginning the launch of the cloud mining site seemed legit, after a few months it turned into a scam.
3. Strange Scheme, I often come across cloud mining sites that offer to mine Ethereum, since the Ethereum blockchain merged, Ethereum can no longer be mined but can be staked.
4. The service address is only temporary, generally after a few months it doesn't work.
5. Ponzi schemes, can be applied to any site, including investment sites, crypto mining and staking. So at first this site seems legit but after they collect the desired funds the site will immediately be closed.
6. There is no evidence of the mining they do, such as the amount of hash power being operated, crypto mining addresses, mining pool names, mining devices, so users will easily track transactions via the blockchain.
1. Promise of high profits of up to 5% per month, even though crypto mining rarely gets a 5% reward.
2. Request a crypto deposit in advance to rent a rig, or hash power. Usually hash is available based on the rental package. Withdrawing rewards and capital is often difficult or even impossible to withdraw. Even though at the beginning the launch of the cloud mining site seemed legit, after a few months it turned into a scam.
3. Strange Scheme, I often come across cloud mining sites that offer to mine Ethereum, since the Ethereum blockchain merged, Ethereum can no longer be mined but can be staked.
4. The service address is only temporary, generally after a few months it doesn't work.
5. Ponzi schemes, can be applied to any site, including investment sites, crypto mining and staking. So at first this site seems legit but after they collect the desired funds the site will immediately be closed.
6. There is no evidence of the mining they do, such as the amount of hash power being operated, crypto mining addresses, mining pool names, mining devices, so users will easily track transactions via the blockchain.
