The internet has made it easier for people to earn extra money. Mining cryptocurrencies is one of the most popular ways to do this. Many websites offer the promise of free coins, but are they actually out to empty your wallet?
This article will talk about the new sites being launched daily in this period (Summer of 2023). Why do we see so many sites launched daily? Is this a hidden agenda after that? Or is it just the new trend in making money?
In this article I will try to unveil the truth about this question, starting with the following:
Understanding the concept of online mining websites
Online mining websites allow users to earn money by mining different cryptocurrencies such as Bitcoin, Ethereum, Litecoin, and many more. With the rise of the cryptocurrency market, online mining websites have become more accessible and easy to use for people of all ages. To understand how online mining websites work, it is important to understand the concept of cryptocurrency mining. Cryptocurrency mining is a process of verifying and adding transaction records to the public ledger, known as the blockchain. This is done through a network of computers, known as miners, and requires a significant amount of computing power. Mining is an important part of the cryptocurrency system and allows for the secure and anonymous transfer of funds. It also allows new coins to be created, which is why miners are rewarded with a portion of the currency they help to create.
The real concept is that these sites give you fixed interests claiming they are mining currencies on the hardwares they buy using members' money.
The risks involved in using online mining websites
These risks are divided into three parts. The first one is the most common, and it is that these sites are similar to HYIP websites, just ponzis that take members' money then give them fake earnings from these investment sums. Then use the money they get from the second wave of investors to give profits to the initial ones. While this is occurring, they give free investments to HYIP monitors to keep posting payment proofs, till the point they get all members investments, at that moment, they will stop answering support tickets and disappear.
The second, is that they do some crypto or forex trading with the funds they've collected from members, no cloud mining at all! Then they either be honest, to keep paying maybe for years till they start losing, or till many ignorant members act foolishly and deposit a very large sum, at this point the ponzi instinct will lead the (honest) honor to steal members' money and leave them forever.
The third, it is nearly impossible to believe. They really buy equipment and start mining for real, and again they will reach the moment where members never find the website and their money or find the website and their balance growing, but they never get paid at all..
Identifying legitimate online mining websites
I don't believe there are any, unless you're talking about those which give you an app that you can download and start mining on your machine.
Tips to protect yourself from fraudulent online mining websites
- All of these sites will stop paying sooner or later. Keep this in your mind.
- If you want to invest, search carefully and examine the design of the website, how crazy or reasonable the earnings are, what people talk about in blogs and forums.
- Invest only what you can afford to lose.
- Remember that when your money leaves your wallet, someone else has the ability to give them back to you or not.
Conclusion: Making informed decisions about online mining websites
Like any other investment site, and like what I said before, don't give your money to others and complain if they stole them, and don't be fooled by images of farms and business men in suits.
