You know what the most important factor I take into consideration when looking at cloud mining sites?
Making sure each site has a company address and contact number.
This makes it less likely to be a scam.
But users need to beware of virtual addresses. Scammers try to fake federal tax I.D’s and place their company’s address next to real companies to make it seem like their business is legitimate. They might even fake having receptionists and mail handling.
These are just some of the red flags to be wary of.
To make sure a site is legitimate, follow these guidelines:
If you get information on the company address, name of business owners, and identification numbers, but can’t verify the information, then that “business” can potentially be fraudulent.
Most of the time, businesses that’re fraudulent will try to get away with the least amount of paperwork. So if you can’t find legitimate paperwork along with corroborating evidence, then that’s a huge red flag to move on to your next site of choice.
Inconsistencies in information is another huge tell when figuring out which sites to trust. If the company is constantly changing addresses along with other information, it’s safe to say that business is sketchy.
Anything like phone numbers, addresses, or any other vital information changing is suspicious.
If the business is trying to get you sign documents right away, DON’T DO IT! Not only is this needy, but for them trying to sign you right away reeks of suspicion.
Ask yourself this. Why doesn’t the business try to build a relationship with the customer? Building relationships with customers is a great way to get recurring business. It’s also another way a company builds trust with its customers.
Second, when a company comes off like that without no explanation of why you should sign, they just want to get your money.
Lastly, if they just talk about future success without consequences, then run away FAST! A company that truly cares about their customer will go through everything with their customer even if it includes risk.
Although these guidelines aren’t right every time, if any of these red flags show up, keep an eye out for any potential fraudulent activity. Now, I want to show you the most trusted sites when it comes to cloud mining:
Genesis mining is one of the oldest cloud mining sites. Starting in 2013, Genesis mining is different from other cloud mining sites because it’s transparent on what they do and where they’re located.
Although farmers have a variety of coins to mine, they’re mostly known for Bitcoin mining.
How Does Genesis Mining Operate?
Once you make your payment to Genesis, your profile is immediately updated. Depending on your profile, you can mine Bitcoin, Dash, Litecoin, Zcash, and Ethereum.
Once your payment is processed, you can start mining. But you also have the option to transfer your payments to other coins if you want to. This usually happens when a holder wants to diversify their holdings.
An example of this is when a miner goes all in on Bitcoin. Putting 100% of your money into Bitcoin is risky, but putting 20% in Ethereum, and putting another 20% into Litecoin while leaving the other 60% in Bitcoin is a valid strategy to mitigate risk.
The only down spot I can think of is having to wait 48 hours for your initial payout, but after that, you get your money after 24 hours after the mining day is over.
Another factor that makes Genesis a trusted cloud mining site is their open-ended contracts. In the event where a customer’s contract starts becoming unprofitable, Genesis’ daily payout becomes zero.
When the contract starts becoming unprofitable, the contract will remain for 60 days. And after 60 days, if the contract is still not making money, Genesis will eliminate the contract.
The daily payouts becoming zero happens to cover maintenance fees covered by Genesis. The fees include electricity, cooling, hosting, and services. Although Genesis tells you when your contract is up, it doesn’t tell you when you start becoming unprofitable.
The only way you can tell is when your daily payouts are zero. But three factors determine when your open-ended contract ends.
Those three factors are mining difficulty, Bitcoin/USD conversion rate, and maintenance fees. And the only one that is controllable is maintenance fees.
This should tell you how risky mining can be.
100% Uptime Guarantee
In the case of hardware breaking down or completely failing, Genesis “guarantees” their algorithms shift you to relevant pools. This ensures you don’t lose any mining time.
If anything does happen, you won’t notice.
Genesis makes customer service their highest priority. They understand their customers are investors, and investors want to know how a business works.
To make sure questions are answered, they have provided their e-mail, [email protected].
Genesis mining doesn’t disclose a specific address on their mining farms due to security purposes. But they do disclose an address which makes them liable in case something happens to customers.
Even though they don’t disclose a specific address on their mining farms, they do provide a general area on where their farms are.
Most of their farms are located in Rejkjavik, Iceland, and that includes their Bitcoin, Dash, and Ethereum facilities.
With the emergence of different altcoins, Genesis Hive allows you to monitor all the different coins all on one interface. This makes it easier to use Genesis mining and allows users to monitor markets simultaneously.
Hashflare is the creation of the HashCoins team. Their teams consists of cryptomining experts and have been involved in the cryptomining scene since Bitcoin came about.
They have 3 years worth of experience with cryptomining and their goal is to make mining available to everyone.
Regardless of age, ethinicity, or capital, mining epitomizes the internet, and Hashflare is another by-product. Democratizing mining and cryptocurrency is what Hashflare is all about.
Starting in 2013, Hashflare was found by Sergei Potapenko and a few others to create Hashflare. Their teams consists of a lead developer, business develper, media buyer, support specialist, and chief product officer.
What’s even more appealing is all of them are crypto enthusiasts.
What makes Hashflare even more transparent is they share what their team does through social media. If you have Instagram, check their profile @hashcoins.
In terms of similarity to Genesis, Hashflare has an address where customers can contact them if something goes wrong. This also makes Hashflare accountable if customers have a bad experience. To top it all off,
Hashflare also provides pictures of their data center:
Hashflare also likes to tell visitors/customers about their technology. If you look at their data center for cloud mining page, you’ll see what type of equipment they use to get the job done.
Everything on the data center page includes their power, cooling, connectivity, and more. It lets you, as the investor, know what goes on in the operation.
In addition, all the information Hashflare provides make it more trustworthy. If this were a scam, it would take too much work to put up these photos and information.
In contrast to Genesis, Hashflare starts mining immediately after confirmed payment. Payouts also happen within 24 hours. Compare that to Hashflare where the initial payout takes 48 hours, and Hashflare wins.
Just like Genesis Hive, you can view your mining information in real-time. From any point, and any location, Hashflare gives you the opportunity to constantly monitor your coins with advanced statistics.
Alongside those attractive features are instant withdrawals and fixed fees. A big concern with cloud mining is wondering if a cloud mining site is a “Ponzi scheme”.
A Ponzi scheme is where returns only happen for older investors due to new money coming in from new investors joining.
One quick way to dispel rumors of a Ponzi scheme is to show investors that you can withdraw your money. In Ponzi schemes, it’s commonplace for your money to be locked up.
But if you’re able to withdraw, then you’re not in a Ponzi scheme.
I mean the whole point of investing is to withdraw your money out at some point, and a cloud mining site that lets you do that has an advantage over others that don’t.
Transaction fees, commissions, and variable fees can add up over time. But Hashflare doesn’t play that game.
It’s a site that gives the investor power, and one way it does that is to keep no hidden fees or commission.
Unlike cryptocurrency exchanges with low fees, every single transaction on Hashflare is visible to the customer.
So the theme of transparency keeps going. Furthermore, here is a video demonstrating how Hashflare works:
Hashing24 has been in business since 2012. To help investors with cryptocurrencies, they constantly update their customers with knowledge.
Staying up-to-date with big players in the Bitcoin mining space lets customers know which way the market is being influenced. It gives investors an advantage when investing.
They also constantly evaluate supply chain partners regarding equipment. Looking for the next best equipment also gives Hashing24 an advantage over bigger cloud mining companies.
It allows them to pivot when the equipment is better. Compare that to a company who already has a large user base, it could take them awhile to implement everything needed to transition equipment.
However, equipment can still break down due to technical difficulties which is why Hashing24 makes their partners liable for warranties and maintenance.
If anything were to disrupt the hosting of mining for users, the warranties make it faster to get back on track making Hashing24 trustworthy if a problem occurs.
The same is said for bad weather, power outages, equipment, and maintenance issues as they’re all covered by Hashing24.
100% Uptime Guarantee
They ensure a 100% uptime guarantee. Problems like hardware crashing, slow speeds, or complete breakdowns aren’t a problem for customers because Hashing24 takes care of those problems.
Hashing24 makes it easy to start mining. In there FAQ, they state you “choose the plan, pay for it, and collect freshly baked Bitcoins.”
To withdraw, Hashing24 put down a step-by-step in their FAQ section.
In order to make a withdrawal (taken from their website):
- Sign in to your account
- Click on the “withdraw” tab
- Choose type of coins
- Enter amount
- Choose your wallet (or enter new wallet)
- Click on the withdraw button
- Check your email inbox, you will receive an email with a confirmation link
- Click on the confirmation link
- Our minimum withdrawal amount is 0.002 BTC. You can request a withdrawal any time. Withdrawal requests are processed the next day after the request has been placed (UTC time)
Hashing24 makes sure their customers are secure. That’s why they have a 2-step process for customers to log in.
They also include a SSL certificate. This means any communication between your browser and website is encrypted. Although it seems like most websites have SSL, you would be surprised how much of an effect having a SSL certificate does for a website.
Hashing24 offers open-ended contracts which means there are no limits on hashing power until your contract is over. It’ll go until your contract is up, or until it doesn’t become profitable anymore.
Unlike Genesis, if your contract can’t cover maintenance fees, you’ll have 3 days to make it profitable or else your contract will be cancelled.
But profitability depends. It all depends on the hashing power you use, the payment method you use, the price of the coin, and more.
Remember that Hashing24 began in 2012 so its only been around for 5 years. With the new technology that’s popping up everywhere, there are gonna be lots of questions floating around.
Here is their contact info in case you want to ask their team some questions:
Cloud mining is relatively new if you think about it. Hashing24 started in 2012, and Hashing24 started in 2013. Personally, cloud mining is an attractive choice.
Passivetalks is all about investing and passive income, and cloud mining checks both of those boxes.
But because it’s new, scammers have found their way into the space. This is why I felt like it was the right time to write this post.
Distinguishing a legitimate site from a Ponzi scheme can happen if you look at the red flags I’ve posted in the beginning.
But even if you don’t find some of those flags its important to contact as many people as possible. It’s harder for scammers to fake something if they have to talk to you in person.
As for the cloud mining sites itself, Genesis, Hashflare, and Hashing24 are the most frequent sites if you Google it. Whether its through reputation or security, these sites are based on a scale of overall trustworthiness.
As the industry gets older we’ll see more sites like these but better. That just comes with time. Hopefully, in the near future, we won’t have to worry if cloud mining is a scam.
We’ll just worry about how much we’re making through cloud mining.