Crypto mining is the backbone of distributed ledger technology. A mining operation validates the transactions on a blockchain network while rewarding the miners. While millions of users are trading digital assets globally, very few understand the underlying technology.
Considering this fact, many crypto scams are launched every month. While most of these scams fail to attract any crypto users due to their obvious nature, some go the extra mile to fraud users. One of the most sophisticated crypto scams is the cloud mining scams like Fancy Crypto, Happy Miner, IDMining, and NFTProX. In this article, we’ll learn how to identify crypto cloud mining scams.
What Is Crypto Cloud Mining Scam?
As the name suggests, crypto cloud mining is a way to mine cryptocurrency without purchasing and maintaining your own mining equipment. This makes it an ideal choice for many miners who don’t want to go through the hassle of managing a mining farm. BTC mining is the most common type that rewards miners with Bitcoin for securing the network.
In a typical cloud mining scam, the scammers usually set up a website that looks legitimate. Then they claim to offer high returns on investment. In most cases, fake testimonials are also provided by so-called ‘satisfied customers’. However, once you invest your money, the scammers will take it and disappear. Happy Miner, IDMining, Fancy Crypto, etc., are some of the well-known crypto cloud mining scams in this regard.
Is Fancy Crypto Legit?
One of the most well-known websites which claims to offer lifetime cloud mining services is Fancy Crypto. The website also has a sign-up bonus of $10 for new users, and it offers a very high return on investment. This is just one way to attract new crypto enthusiasts.
There are many red flags associated with Fancy Crypto, including a poorly designed website, a lack of transparency, and no physical address or phone number. Additionally, there have been reports that Fancy Crypto has been hacked. Therefore, it is highly likely that Fancy Crypto is a scam. Happy Miner and IDMining also have similar red flags. In fact, you may easily find thousands of negative Happy Miner reviews across different forums on the internet.
What Is NFTproX Crypto Scam?
Unlike the above-mentioned crypto scams, NFTproX works a bit differently. At first look, NFTprox appears to be a decentralized protocol that allows users to create, manage, and sell NFTs without needing a centralized marketplace. According to the project’s website, it is built on the Ethereum blockchain and uses the ERC-721 standard for NFTs.
A deeper look into the project reveals that it is just another type of crypto scam. Many users have given this project a negative rating on Trustpilot, which is considered to be a credible review site. Most users have been denied withdrawals after depositing thousands of dollars on the platform.
How To Avoid Cloud Mining Scams?
Crypto cloud mining is legitimate, and many credible companies offer these services. However, cloud mining is often not feasible due to very high rates and fluctuating crypto prices. Therefore, if you see a random ad on the internet that claims to offer very high returns via crypto mining, it would probably be a scam.
Another way to identify such crypto scams is by carefully browsing their website. Most scam sites have grammatical errors and very little or no information about their owners. Therefore, you must always do your due diligence and research before depositing your hard-earned money on any such platform.