Any new industry is full of scammers, the Bitcoin and Crypto industry is no exception. From coin scams to mining and equipment contracts. There are countless ways to steal the hard-earned money and cheat you.
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So how do you identify a Bitcoin scam. Yes, it is really difficult for anyone to recognize the scam and the scam artists are getting smarter.
Here at CryptoCompare We will do this for you. We will review the web and if we have any doubts about companies offering Bitcoin contracts cloud mining, it will not appear in our listings. The same goes for mining equipment - if the devices are not transparent and have not been tested - or are not real and if the company does not have a proper track record - then we will list that company. to the danger list. We also list all companies that have been reported to have suspicious issues on forums from the community.
For example, there are many websites comparing mining contracts for Bitcoin, Litecoin, and Ethereum - but those are paid by scammers for attracting potential users to visit their websites.
So comparison sites don't really care about running a fake ad for some scammers when they get some money from the scammed victims! They just quietly take the money and don't care their users are cheated.
In 2014 and 2015 there was a shift from individual mining equipment being used to being too expensive for individuals to do - so the cloud mining market has grown steadily. This has attracted the attention of scammers, who have set up several websites offering Bitcoin, Ethereum, and other coin mining cloud mining contracts.
In any industry, scammers must be one step ahead to circumvent the law. With Bitcoin, it is difficult to get stark evidence as the industry is geographically spreading - but there are alarming things as more and more people are being scammed.
Here are some tips they use:
1. The domain name is never registered with the real user but it is hidden instead.
2. They register a company - some do so in London to create the illusion of credibility - but the directors are often registered as foreign residents where false identification is required. appearance.
3. They are evasive when asked for information and evidence about their equipment.
4. They spend an amount of money and use the initial cash from customers to make payments that show an illusion that creates trust and credibility that will attract many customers. than. They show a Bitcoin address they make a payment from which you can verify. One day, the address will stop paying.
5. They use advertising about facilities, eg video using fake agent and office - no evidence of equipment.
6. They advertise with comparison websites of companies that do not fully check the company's information because they are sharing profits from scams. Comparison sites say their website can be verified because it makes payments from a specific Bitcoin address. See point 4.
So don't join any mining service providers - check out the listings and reviews of companies from members of the community - check out our equipment reviews and check out check the bogus list of scam companies. It is better to pay attention to safety than to regret it later.