Since Binance announced that it will open up cloud mining for Bitcoin enthusiasts, this topic has resurfaced among the crypto community. Apart from the popularity of Bitcoin, it is also because this method is considered easy.
Basically, cloud mining can be done anywhere, as long as it is supported by adequate hardware or facilities. The problem is, not all investors have these hars.
So, if you want to try mining on the crypto exchange platform, first read this article. Especially so as not to get caught up in fraudulent schemes that often occur.
What is Cloud Mining?
In simple terms, cloud mining is a way to mine cryptocurrency without having your own tools. The tools needed to mine include a computer and adequate electricity.
The way to do this is by solving the complex algorithms in the blockchain network and validating the transactions on it. Because not everyone is able to provide sufficient computing and electricity, this activity can then be carried out through the crypto exchange platform.
The platform provides two types of mining, namely paid and free. If paid, the miner will be charged a certain fee which is generally paid in advance. Meanwhile, if it's free, then the platform will take some of the mining results as a 'wages' for them.
Using mining services like this is easier because miners don't have to think about providing and maintaining hashes. Including thinking about the procurement of complex infrastructure.
How to Avoid Cloud Mining Scams
Even though it seems simple, blockchain mining is still not free from fraudulent schemes. Generally occurs in free mining services. There are many scam modes that apply, including illegally taking miner's data.
So, how do you avoid scams like this? Here are some of the paths.
Pay close attention to user reviews
It is possible for platforms to use positive and persuasive fake reviews to attract miners. You can look at the existing reviews. If it seems excessive, similar to each other then it could be fake.
Compare multiple platforms
There are tons of free blockchain mining offers, especially Bitcoin. Compare different platforms and see how they market their services. Including whether they protect user data.
Look for recommendations from trusted people
Crypto communities and online forums are great places to get mining platform recommendations. You can also ask experienced acquaintances and try their recommendations.
Friends and the community also usually have good tips for recognizing and avoiding fraud in the cloud mining realm.
How, are you increasingly interested in doing cloud mining? Don't forget to consider the risks before making a decision. Hope it is useful.