Avoid Bitcoin Mining Scams

The Scam in Digital Currencies

Laying the ground rules for digital currency startups can make all the difference in avoiding a bitcoin mining scam. Some scammers look for smart contracts and integrate a coin into a computer’s processor, which means it’ll mine bitcoin automatically. A mining scam can be anything from installing malware on a PC or spreading malware around online, stealing your hard-earned money and then deleting your wallet without you ever noticing.

Since the entire value of bitcoin and other digital currencies is based on the computing power of the computers it’s run on, miners have a tremendous amount of power over what cryptocurrency users see and how much they’re making.

How To Avoid Bitcoin Mining Scams

So if you’re looking for legitimate bitcoin mining startups, you have a couple of options. If they track their use of electricity use in their bitcoin mining operations, you can see where their mining rigs are located. You can also search online for legitimate bitcoin mining startups and verify whether their platform has active development, competitive prices, and an active customer support team. Always make sure that the company is regulated by an entity (preferably a U.S regulator).

“For the vast majority of Bitcoin mining startups, it’s actually okay to take their word on energy consumption numbers because they often are low, however it’s usually not a big deal, because there’s so many scams out there to compare to that, if it is verified and if it’s in line with what they’re claiming, it’s fine,” says Ronnie Moas.

Conclusion

Keeping your cryptocurrency secure isn’t a matter of being tech-savvy. You need to be educated on the best ways to avoid scams that plague cryptocurrencies and the people who deal with them. If a company won’t respond to you or makes you feel uncomfortable, reconsider that investment.