What is Cloud Mining and How to Know Cloud mining is fake

CloudMining, is a service provider to be able to mine Bitcoin. With this service, Bitcoin users can buy contracts to rent devices owned by those who provide cloud mining services with a certain period of time.

Cloud Mining emerging because in mining Bitcoin is required device that can work optimally. Especially if not, it will take a long time and greater spending on electricity costs and internet charges.

Currently, quite a lot of cloud mining services. With that, Bitcoin users should be more careful in choosing where to buy the contract. Many occur, fake cloud mining that has been victimized by the guise of cloud mining this.

What to Know About Cloud Mining

Previously we have discussed about what is cloud mining. The number of difficulty factors to be able to do Bitcoin mining itself to make people who finally start thinking practically. Many who think with Cloud Mining, will be the right solution. In order to make a profit.

In fact, most Cloud Mining service providers in online sites that we usually see and know, do not actually do any mining. Meanwhile, many people do not care about this. Quite a few people who are too easy just to see the ROI bid factor from the mining service provider.

So what if there is a Cloud Mining company that can pay customers if they do not do any mining? Worse, many also think the most important is they are proven to pay. This presumption is a big mistake.

Do not Easily Believe Telling Offers

Start thinking smartly and carefully. Especially if you intend and decide to buy a mining contract. Do not easily trust someone else's offer. Especially if the offer there is a referral link.

Here are some things that must be considered and taken into consideration. You need to be vigilant if you look at some of these things at a mining service provider.

• There is no mining address in the pool.

The point is, if the mining company does not allow the hashrate you have purchased to be directed directly to the mining pool you want, then it is unlikely that they will not do their own mining. And this outline will end up a scam. Because basically there is no reason to hide a mine address.

• initial public offering (IPO)

IPO is the initial sale of shares from a company to investors. In the purchase of a mining contract, a company that does not limit the amount of hashrate sales limit from its possession needs to be wary of. Unless the cloud mining is operated solely by the vendor Asic or other vendors.

• Referral Programs and Social Networking

As mentioned above, these referral programs need to be wary of. Especially if there is a referral profit offer up to 10% or maybe more than that. And also ask customers to socialize on social networking. Basically, the company would be very difficult to be able to pay it. Such programs are mostly used as a marketing strategy so that operations can run longer. Most ponzi concepts mostly use this kind of program.

• No Endorsement from Asic vendors or other mining device vendors

Endorsement refers to the transfer of rights to another person on transferable or negotiable instruments. In the case of Bitcoin mining, this Endorsement is the support of the vendor of mining equipment. Usually the vendor will simply appreciate their active customers. And create some kind of free advertising to help grow the business of its customers. While if the mining company does not get support from the vendor then need to watch out also that the company does not really have a mine device.