There are many mining sites that claim people could earn bitcoin trough their cloudmining operations to the extent that some are set up with free mining plans that the owner would generate coins just by inputting their wallet addresses. We can see this with MiningCheap, a new cloudmining service that is still gaining traction.
Granted, there are many users that do not know how to go about making profit off the myriad of opportunities on the internet, especially since the advent of Bitcoin and other digital currencies. The ignorance of people is the reason why scam sites proliferate with fraudsters launching thousands daily.
This is why investor education has become paramount to many in the crypto community. It is a fact that one of the reasons many investors are disenchanted with the cryptosphere is the prevalence of scam investment sites in the industry, especially after Bitcoin became popular in 2017 and the attendant surge in blockchain projects, many of which did not deliver on their promises.
What is MiningCheap?
This is a site that claims that the company already has mining rigs set up. So the investor just has to sign up to start receiving daily returns on their investment after purchasing a plan. There are issues with this assertion because not even faucets enable substantial earnings for participation as the site claims.
The site even claims that when upgrading, users could gain some bitcoins by participating in spins.
“Happy new year. Great promotions from January 1 to January 10. Receive bonuses and gift cards, Spins valued at up to 0.18 bitcoins when upgrading plans.”
Even though we do not have anything against games, the fact that this site is a combination of an investor-based game and supposed cloudmining means that you’re actually playing games with your funds if you invest in it.
For starters, cloudmining plans are not as lucrative as the site made it. The mining plans are actually too good to be true considering that the mining difficulty for bitcoin is high while it is still expected that block reward would half in a few months.
According to the site, the basic mining plan is sold at 0.003 btc and has daily returns of 0.0001 btc. Such income for a cloudmining service is definitely not guaranteed.
Furthermore, the fact that the owners of the site are not known makes it risky to send your funds to the site. It is obvious that you may get nothing out of your investment even though it has been tenured 200 days.
What Should You Do?
Investing in suspicious mining operations is risky. In fact, most cloudmining operations are not worth it since they are mostly promoted by fraudsters who are primarily interested in the funds that they hope to receive from investors buying the mining plans.
Options available for investors who want to earn bitcoin and other cryptocurrencies include working for it, staking and trading. However, there are even easier options that include copy trading which enables the investor to copy the trades of professionals and make gains as the expert traders do. You can sign up with one of the sites that make it easy to accomplish this.
Will You Make Profit?
There are several transaction ids (txid) displayed on the site in a bid to prove that the owners actually pay users. However, this makes it even suspicious because this is a common strategy employed by scam cloudmining operations to deceive people and make them invest. In any case, pulling txids from the blockchain is a simple matter and there is no way to prove that the owners of the site actually made the transactions.
Bearing this in mind, you should not be carried away by sites that try to use social proofs to convince people to invest in it. Sending your funds to random sites because they promise they’d pay high profit is a quick way to lose your assets.
You can see that MiningCheap is a new site. This means that it has no online reputation, but hopes to use its affiliate program to gain traffic. There are many people who will promote scams to make money. Unfortunately, the only person that makes money from scams ultimately is the fraudster.
According to the Securities and Exchange Commission’s (SEC’s) Investor Alerts and Bulletin,
“The SEC’s Office of Investor Education and Advocacy (OIEA) and the Commodity Futures Trading Commission’s Office of Customer Education and Outreach (CFTC) warn investors to scrutinize investment opportunities through websites purporting to operate advisory and trading businesses related to digital assets. These websites often contain “red flags” of fraud including claims of high guaranteed returns and promises that the investments carry little or even no risk.”
It should be obvious by now that MiningCheap fits the narration and warning given on the SEC website. That is not all as the site continued by stating that:
SEC and CFTC staff have recently observed investment scams where fraudsters tout digital asset or “cryptocurrency” advisory and trading businesses. In some cases, the fraudsters claim to invest customers’ funds in proprietary crypto trading systems or in “mining” farms. The fraudsters promise high guaranteed returns (for example, 20-50%) with little or no risk.
After the investors make an investment, typically using a digital asset such as Bitcoin, the fraudsters in some cases stop communicating with the investors altogether. These fraudsters can quickly send your money overseas, with little chance of you being able to get it back.”
That should be clear enough. Sending your funds to these random sites is akin to throwing them away, so it makes better sense to donate your money to charity than to fraudsters.
Investing in random sites is definitely not advisable irrespective of what they claim they would give you. People have lost most of their savings and earning to scams because they think that investing in high yield investment sites is a quick way of getting rich.
Genuine investment sites would not promise you quick riches, their owners are people who have built reputation in the business world and the companies are properly regulated by the appropriate agencies. This ensures that the investors’ funds are safe and that the guidelines governing such investments are followed. The investment sites that we recommend is the this social trading site that enables you copy expert traders, you can sign up here.
What do you think of MiningCheap? You can share your experience using the comment box below.