Crowdmining.org Review Is Crowd Mining a Scam or Should I Invest

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Bitcoin Cloud Mining

Want to find the best Bitcoin cloud mining contracts? This post has you covered.

Most Bitcoin Cloud Mining Companies are Scams

Like the heading says, most cloud mining contracts are scams. Why?

Because it’s easy for companies to take peoples’ money, and then not pay out. A company can claim to be a cloud mining company without any proof of actually owning any hardware.

So remember: 99% of cloud mining companies are scams.

Quick Tip

Mining is not the fastest way to buy bitcoins.

Which Companies Are Not Scams?

We can’t recommend any cloud mining companies at this time.

Note: If you do find one, you’ll need a wallet to receive payouts to. A secure hardware wallet like the Ledger Nano X is a good option.

Is Cloud Mining Profitable?

It depends what your goals are with cloud mining. If your goal is to obtain bitcoins, then there is really no reason to cloud mine or even mine at all.

You will get more bitcoins for your buck if you just buy bitcoins!

If you think mining is cool and want to try, then cloud mining still is not a good option. Grab a cheap USB miner and run it at home.

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VPNs for Mining

As a Bitcoin miner, you may also want to look into getting a VPN.

You can never have enough security when it comes to bitcoin. Using a VPN adds an extra layer of security.

Bitcoin Cloud Mining Comparison

There is not much to compare, because we personally do not recommend buying any cloud mining contracts so we will not spend the time to compare the two companies above.

But check back in to see if we find any new, legit cloud mining companies.

Bitcoin Cloud Mining Scams History

The reason there are so many cloud mining scams is because it is very easy for anyone in the world to setup a website.

Once the website is setup it can claim that the company has a large mining facility.

The company can act legit by sending initial payments to its customers. But after that it can just keep the already received payments for hash power and then make no further payments.

In just the last few months, two cloud mining scams were uncovered: HashOcean and Bitcoin Cloud Services.

What Payment Methods do Cloud Mining Companies Accept?

Most cloud mining companies accept Bitcoin, PayPal, and credit cards. If a cloud mining company accepts bitcoins then there is a good chance it is a scam.

This is because Bitcoin payments cannot be reversed. Once the scam company receives your bitcoin payment you have no way to get your coins back.

Are there Free Cloud Mining Trials?

No company would give away free cloud mining; this is basically giving away free money.

Any company offering free trials, especially if they require payment information, is most likely a scam.

Quick Tip

Mining or buying bitcoins? You can’t do either without a Bitcoin wallet.

Our guide on the best bitcoin wallets will help you pick one. Read it here!

How does Bitcoin Cloud Mining Work?

Cloud mining means a host company owns Bitcoin mining hardware and runs it at a warehouse.

You pay the company and rent out some of the hardware. Based on the amount of hash power you rent, you will earn a share of payments from the cloud mining company for any revenue generated by the hash power you purchased.

Cloud Mining Viruses

There have been viruses that land on computers and then use the computers’ power to mine bitcoins.

Run a malware detector on your computer if you think you may have come under attack.

Is Mining Software the Same as Cloud Mining?

Mining software is something you download on your computer. It is required when you OWN mining hardware. Software connects your hardware to the internet so that it can make hashes and communicate with the network.

Just buy Bitcoins!

If you just want bitcoins, don’t bother with cloud mining. Just find an exchange in your country and buy some bitcoins.

Learn More

Best Bitcoin Mining Software

Best Bitcoin Mining Hardware

Best Bitcoin Mining Pools

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Buy Bitcoin Worldwide does not offer legal advice. Any such advice should be sought independently of visiting Buy Bitcoin Worldwide. Only a legal professional can offer legal advice and Buy Bitcoin Worldwide offers no such advice with respect to the contents of its website.

Buy Bitcoin Worldwide receives compensation with respect to its referrals for out-bound crypto exchanges and crypto wallet websites.

Wallabit Media LLC and/or its owner/writers own Bitcoin.

Beware of These 5 Bitcoin Scams

Bitcoin’s meteoric rise in prices in 2020 awakened mainstream interest in the original cryptocurrency.   But the rise in interest has not been without consequences. One of the downsides of new investors entering the market is the increase in the number of scams, frauds, and stories of retail investors who lose their coins to shady ventures. From ICO scandals to wallet theft and fraud, regular consumers can fall prey to crime easily.

It may seem as though it’s the Wild West for investors, but it doesn’t have to be. While there are certainly risks in the market, the opportunities may be irresistible for some. However, being cautious is always a must, and there are clear signs of scams that investors can look for. By avoiding these traps, users can better their chances of success and protect their investments. These are some of the most common scams and how they can be avoided.

Key Takeaways

  • Bitcoin investors can increase their odds for success by identifying common scams, such as Ponzi schemes, fake ICOs, and fraudulent exchanges.
  • One common scam, exposing bitcoin users to theft, is the sale of a hardware wallet with a compromised pre-configured seed phrase, which allows hackers to steal funds.
  • Since bitcoin exchanges are unregulated, fraudulent exchanges can trap investors with the promise of unrealistic prices and heavy discounts on use.
  • Websites featuring fake ICOs instruct users to deposit funds into a compromised wallet through their site, resulting in the theft of funds.

Hardware Wallet Theft

For users who are concerned with security and privacy, a hardware wallet—a physical device that stores their private keys—is an increasingly popular option. Usually, as small as keychain USB drives, these wallets offer an offline way to help crypto investors protect their bitcoin even further. However, there have been reports that some of them have built-in vulnerabilities that open them to hackers that could easily steal all a user’s holdings. 

This is far from the only issue, however. According to Ofir Beigel, the owner of 99Bitcoins.com:

One scam entails selling hardware wallets to users with a ‘pre-configured’ seed phrase hidden under a scratch card. The new user is told that he should scratch the card . and set up the wallet with the compromised seed.

This creates a backdoor that allows hackers to drain funds once a wallet is activated. These scams are becoming more common, but they can easily be avoided by only accepting wallets from trusted sources. 

Exchange Scams

Despite their decentralized nature, most cryptocurrencies are still bought and sold at exchanges. While this makes it easier to find the coins investors desire, there is still no regulatory body overseeing these exchanges in many countries. Thus, many investors have been left penniless when the exchanges they signed up for turn out to be traps. In December of 2020, several South Korean exchanges were exposed, leading to promises of stiffer regulations by the country’s authorities. 

These scams are not hard to spot but can be costly if not avoided. One of the biggest red flags is the promise of unrealistic prices. Exchanges that promise heavy discounts on bitcoin use this strategy to lure in unsuspecting victims.

Additionally, users can check exchanges’ URLs. Web addresses should always begin with HTTPS, a sign that traffic is encrypted. Visiting unsecured websites is a bad idea, but alert investors can avoid losing thousands by looking for the right signs.

Fake ICOs

One of the best results of the cryptocurrency boom has been the rise of the initial coin offering as a way for companies to raise capital. With thousands of new blockchain-based companies entering the market with unique ideas and exciting projects, users can now back their favorite businesses easily. However, this massive explosion of ICO opportunities has inevitably raised the specter of fraud.

There are several ways scammers can separate investors from their bitcoin. One popular method involves creating fake websites that resemble ICOs and instructing users to deposit coins into a compromised wallet. Other times, it’s the ICOs that are at fault.

Centra Tech, for example, a blockchain venture backed by several celebrities, has been sued in the US. The company stands accused of portraying fake team members, misleading investors, and lying about their products.   The best way to avoid these scams is close research that involves picking apart the white paper, reviewing the team behind the venture, key board members, and investors. Before making any investment, it’s vital to learn as much about the company as possible to avoid any unpleasant surprises.

Cloud Mining Schemes

Mining is the only way to extract new bitcoins without buying or exchanging them, but it has become an incredibly resource-intensive activity. Due to the unique way new coins are mined, it takes massive amounts of processing power and electricity, and thus money, to mine a coin. However, many companies now offer regular users the ability to rent some server space to mine coins for a set rate.

Some companies offer “lifetime contracts” that keep costs the same and supposedly offer outstanding returns. However, as the difficulty of mining increases, the same investment will return smaller amounts each time. Moreover, some companies make bold claims regarding their returns without being transparent about the true costs and diminishing returns. Others operate Ponzi schemes that can lead to massive losses. It’s vital to look into opportunities and understand the risks and costs associated with mining before investing.

Multilevel Marketing

Even in the digital spheres, many multilevel marketing schemes have emerged that offer naïve investors excellent “opportunities” for progressively larger sums of bitcoin. MLMs, as they’re known, are predicated on offering quick returns, but involve taking more money for the promise of even higher profits.

One major company that has been repeatedly outed is OneCoin, whose owners were implicated in several other shady operations. The company offered investors massive earnings, as well as luxury goods and perks for paying more. 

However, there is little information on the company outside of its site, and users have left scathing reviews online. It’s important to pay attention to a company’s fine print and ensure that their claims are feasible and real. Avoiding these scams early can protect investors’ wallets.

With the current craze, being vigilant and doing one’s due diligence are a must before investing in bitcoin. The market is also showing signs of maturity, leading to better transparency and clearer rules. Regardless, a smart investor’s first step should always be careful research to ensure their investments are winners.

Genesis Mining Review 2020 – Is it a scam? How profitable is cloud mining on Genesis?

“Should I invest in cloud mining?” is probably every other Bitcoin question I get.

I’ve talked a lot about Bitcoin investments in the past and one of the things I always tell people who ask me about cloud mining is that I think 99.99% of the companies that offer cloud mining services are probably scams.

This means that they don’t actually mine Bitcoins with the money you give them. They only use your money to pay out other users until the owners run out of money and vanish. However, there are 0.01% of companies that actually do run mining hardware and mine Bitcoins for you, and Genesis Mining is one of them.

Founded in 2020, Genesis Mining currently owns mining farms located in America, Europe, and Asia. However, the exact locations are not known to the general public due to security reasons. Genesis has a publicly known mining farm set up in Iceland and the miners on the farm are able to mine Bitcoin, Ethereum, Zcash, Litecoin, Monero, and Dash. Check out a picture of the farm in Iceland!

Genesis Mining is definitely one of the most well known cloud mining companies and it’s not a scam.

The only two cloud mining companies we are even willing to write about are Hashing24 and GM.

Genesis Mining is one of the oldest Bitcoin companies around, and it’s is arguably the largest and most popular cloud mining provider for Bitcoin, Ethereum, and other coins, and it has even registered with the SEC for a Bitcoin mining fund.

Note: This does not mean Genesis Mining is profitable. However, it means that Genesis Mining honestly provides the services it offers.

It is important to note that these mining contracts are life time contracts. This means that they do not have a maturity date, and you will continue to mine and receive payouts as long as the contract is profitable.

How Does Genesis Mining Work?

According to their website, Genesis Mining is a safe and easy way to buy hash power without having to deal with the complex hardware and software set up. This means that instead of spending thousands of dollars on Bitcoin mining hardware, you can pay someone to lease their hardware and keep the profits to yourself, because the company that rents out the miners takes care of the maintenance and all of the hassle of setting them up.

Genesis Mining specializes in building the most reliable and efficient mining rigs that they offer for rent to their clients, and they are required to pay a fee for their service.

To start mining, all you need to do is set up an account with them.

After signing up, fund your account via Bitcoin, credit card, PayPal, or wire transfer. After that, choose the mining plan that’s best for you.

Pricing

There are several start-up fees you have to pay, depending on the level of contract you want to engage in:

For newbies you can start with a 100 GH/s (Gold) lifetime Bitcoin mining contract, which will help you in understanding how cloud mining works and what the profitability might be. It will cost you $19.

If that proves to be small, you can try the 2,000 GH/s (Platinum) lifetime Bitcoin mining contract. It will cost you $340.

The third and the largest contract is the 10,000 GH/s (Diamond) lifetime Bitcoin mining contract. It will cost you $1,600.

What Coins Can Be Mined?

There are several coins available for mining with Genesis mining platform, and they fall into different contracts, as follows:

  • For X11 contracts you can mine the following coins: Bitcoin, Namecoin, Startcoin, Peercoin, Dash, Dogecoin, and Litecoin.
  • For SHA-256 contracts you can mine the following coins: Bitcoin, Darkcoin, Zetacoin, Dash, and Litecoin.

Profitability

Of course that it makes no sense purchasing contracts from Genesis Mining if it’s not profitable for you.

With that in mind, let us analyze the profitability of the different contracts that were mentioned under the previous section i.e. X11 and SHA-256.

Please note: The factors that make a contract profitable or not are constantly changing, for example each coin’s price, hash rate, and network difficulty change every day.

X11: You can expect payouts of 0.027mBTC per 1MH/s per day with a cost of 13.6mBTC per 1MH/s, which means that you can break-even after approximately 500 days.

SHA-256: With SHA-256, payouts of 0.37mBTC per 1TH/s per day are made while a cost of 0.25 BTC per 1TH/s, which means that the break-even point should be approximately after 670 days.

It’s important to note that for lifetime contracts a small maintenance fee is deducted (as long as they are profitable).

Who is the Creator of Genesis Mining Website?

The Genesis Mining website was founded in 2020 by Marco Streng. At the time, Streng was only 23 years old and on course to becoming a mathematician, but he dropped out of college to create his own niche in a fast-growing cryptocurrency industry. He teamed up with two other individuals, Jakov Dolic and Stephan Schindler, and together, they have created a company that has a global staff base of over 100 people and attracts over 300,000 users daily.

Marco said in an interview with Forbes, that the reason for setting up a bitcoin mining company was his observation of a lack of trustworthy platforms in the altcoin market. Over the years and with additions such as the Genesis Mining scam free Bitcoin system, the company has continued to grow rapidly in a fast-changing industry.

Streng, along with his two co-founders, is a real businessman, and the fact that Forbes published a full-length article on him speaks a lot about the legitimacy of Genesis mining system. He is an actual person, and not an alias or a paid actor. There are so many profiles of him in authentic articles and magazines, and his story actually checks out in all of them.

Genesis Mining App- Main Advantages

Genesis mining software is one of the very few cloud mining companies that actually do what they say they do. There are some advantages which make them stand out of the crowd.

Saves you Time:

The Genesis Mining scam less system also saves you a lot of time because there is no need setting up a rig from scratch. You just sign up and begin trading instantly.

Saves you Money:

If you want to set up a mine, you should know that a large investment is required for mining hardware. Occasional maintenance is also required on your rigs. The problem is that all of these cost money. With Genesis mining, your rig is already set up for you, which means that this initial cost is erased.

Freedom and Flexibility:

This freedom lies in your ability to trade between several coins and currencies and make a profit from them.

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You can easily allocate hash power to different currencies using Genesis Mining review software, and feel safer knowing that your income will flow in from multiple streams.

Genesis Mining Robot is Easy and Convenient

With Genesis Mining Cloud App, online mining does not include all the heat and loud noise of establishing a mine. Also, stress and maintenance hassles are completely erased.

Lifetime Contract:

The idea that it is a lifetime contract also makes it very lucrative because with values and prices increasing every day, you can be sure of a very good future using Genesis Mining app. Just one investment and you can earn profits for the rest of your life.

In What Way Is Genesis Mining Different from Other Cloud Mining Providers?

As mentioned earlier, Genesis Mining is the largest and most popular cloud mining provider, and it has made mining an easy and pleasant experience.

A significant investment in mining hardware is required for any miner. However, you will not have to go through the hassles of setting up hardware or maintenance of mining rigs if you cloud mine with Genesis Mining.

Remember that with Genesis Mining you are mining online. This means that you will not have to deal with loud rigs which produce a lot of heat. One more thing worth noting is that there are also no mining pool fees.

The fact that you can decide which coins you want to mine with the purchased hashpower is the one factor that really stands out. Thanks to this feature, you can split up your total hashpower to different coins.

It is clear that GM aims to provide both the big investor and the average miner.

There have been serious concerns of whether Genesis Mining is legit or a scam. However, after doing research it is quite clear that Genesis mining program is real and it works. It’s important to note that this does not mean Genesis Mining is profitable. It means that Genesis Mining honestly provides the services it offers.

Genesis Mining is great for cloud miners who want to mine without having to go through the stress of setting up a rig at home or choosing a bitcoin mining pool, software, and hardware.

Sign up to Genesis Mining and enjoy all its features.

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