Extramining.io Review Is Extra Mining Scam or Should I Invest

Best Binary Options Brokers 2020:
  • Binarium
    Binarium

    1st Place! Best Binary Broker 2020!
    Best Choice for Beginners — Free Education + Free Demo Acc!
    Sign-up and Get Big Bonus:

  • Binomo
    Binomo

    2nd place! Good choice!

Extra Mining Review (Extramining.io)

Extra Mining claims to be the ultimate cloud mining platform which every crypto enthusiast needs. They allegedly generate returns of at least 10% per day and the max profit tops out at 6,000% after 240 days.

Anyone who has realistic idea about the markets or economy in general will definitely know that, these statements are all bogus. However, there are still a lot of people who don’t have any idea about the blockchain mechanism or the way the industry works.

Due to lack of knowledge, thousands of investors have already lost their funds. Before they convince you to join their miracle mining platform, read our entire review to understand their real intent.

Registration Claims and Customer Support

Ever since online investing got popular, the amount of scams skyrocketed. So, it is of utmost importance to make sure that you are dealing with entities with proper legal documents.

This firm claims to a UK based company and even have shown a registration number on their website. However, it does not mean that, they are overseen by the FCA.

Many ponzi schemes like this one feature a registration certificate only to earn the trust of the public and convince them into depositing with them. If you need to talk with their support team, you can get in touch with them via email and telephone.

Do keep in mind the fact that, they are extremely unprofessional and will keep on trying to make you buy one of their packages. Below are the contact details of this firm.

Phone – +44 2080899034

Extra Mining Business Model

Extra Mining is a cloud mining solution which means they should be backed up by the physical miners. In simple words, their main job is to bring the cost of mining down so, that the average guys can get some piece of the action.

Their narrative might be convincing especially if you are a newbie. However, they do not have any reliable proof to support their claims. First of all they have not talked anything about the equipment they use and the costs involved.

We do not have a clue about their physical location. On top of all that, even the details of the owners is a mystery. Cryptocurrency is gaining attention from media and many people are starting to adopt them in their portfolio.

Just like any other asset cryptos has its merits and demerits. So, never buy into any package which promises you instant fortune, because such things never exist in reality.

Profits Advertised

Mining as a whole has been very impractical for retail investors unless you are strategically placing yourself in the sector. This platform advertise returns of up to 6,000% after 240 days.

These kind of profits are impossible to achieve through mining any coin and if anyone says otherwise, you are being mislead. Check out their plans, aren’t they ridiculous?

Recommended Services
Best Crypto Exchange
Best Brokerage and Auto Trading Robot
Recover Money from Scams

Affiliate Program

Traffic is the life line of every business. In this modern era, it is easier than ever to reach millions of people through leveraging the internet. Ponzi schemes like this platform need consistent stream of victims in order to survive and grow.

To make their marketing both cost effective and risk free, the creators of this scam offer an affiliate program. The affiliates gets huge revenue share for every innocent investor they bring on board and there are no specific rules concerning their campaigns as well.

So, to gain more traffic the promoters are following all the unethical ways of marketing such as creating fake reviews and testimonials. Do not fall for their hype and be cautious with any channel which endorse them.

Fake Reviews and Testimonials

There are numerous positive testimonials on their site which might make you believe their narrative. However, you should know that, they are all from fake user profiles.

Many HYIP websites do these deceptive tricks to earn credibility from the investor community. Take a look at what real people are telling about this filthy platform on Beermoneyforum .

With two months of existence and the investigation sites have not yet manifested. It is prudent to wait until we are certain that there are normal payments and that at least it lasts a couple of months or more. Congratulations, friends.

Please do not buy money in the Company. The Money is away. You get two, three days payout and than nothing. PONCI SCHEMA

Is the same owner how flexmining .ltd and stablemining. biz.

Look the Ip Addres of the site 190. 115. 19 . 11

I hope the Police found you.

Domain Whereabouts

With the help of whois.com and alexa.com, we were able to gather to following information about their website. Sadly, we couldn’t trace out the actual people behind them.

Registered On – 25/02/2020

Global Rank – 20,186

Rank in Iran – 1,034

Audience Geography – Iran, Brazil, Russia, India and Venezuela.

Extra Mining Review Conclusion

Extra Mining is an ugly and deceptive scam designed to slaughter the newbies financially. They might pay some of their clients here and there, but ultimately they are going to flee away with all the money.

Their entire network is shady and they have no regards to law as well. Investing with them is just like sitting on a time bomb, you will never know when it will explode. So, keeping your best interest in mind, stay away from them.

Bitcoin Cloud Mining

Want to find the best Bitcoin cloud mining contracts? This post has you covered.

Most Bitcoin Cloud Mining Companies are Scams

Like the heading says, most cloud mining contracts are scams. Why?

Because it’s easy for companies to take peoples’ money, and then not pay out. A company can claim to be a cloud mining company without any proof of actually owning any hardware.

So remember: 99% of cloud mining companies are scams.

Best Binary Options Brokers 2020:
  • Binarium
    Binarium

    1st Place! Best Binary Broker 2020!
    Best Choice for Beginners — Free Education + Free Demo Acc!
    Sign-up and Get Big Bonus:

  • Binomo
    Binomo

    2nd place! Good choice!

Quick Tip

Mining is not the fastest way to buy bitcoins.

Which Companies Are Not Scams?

We can’t recommend any cloud mining companies at this time.

Note: If you do find one, you’ll need a wallet to receive payouts to. A secure hardware wallet like the Ledger Nano X is a good option.

Is Cloud Mining Profitable?

It depends what your goals are with cloud mining. If your goal is to obtain bitcoins, then there is really no reason to cloud mine or even mine at all.

You will get more bitcoins for your buck if you just buy bitcoins!

If you think mining is cool and want to try, then cloud mining still is not a good option. Grab a cheap USB miner and run it at home.

VPNs for Mining

As a Bitcoin miner, you may also want to look into getting a VPN.

You can never have enough security when it comes to bitcoin. Using a VPN adds an extra layer of security.

Bitcoin Cloud Mining Comparison

There is not much to compare, because we personally do not recommend buying any cloud mining contracts so we will not spend the time to compare the two companies above.

But check back in to see if we find any new, legit cloud mining companies.

Bitcoin Cloud Mining Scams History

The reason there are so many cloud mining scams is because it is very easy for anyone in the world to setup a website.

Once the website is setup it can claim that the company has a large mining facility.

The company can act legit by sending initial payments to its customers. But after that it can just keep the already received payments for hash power and then make no further payments.

In just the last few months, two cloud mining scams were uncovered: HashOcean and Bitcoin Cloud Services.

What Payment Methods do Cloud Mining Companies Accept?

Most cloud mining companies accept Bitcoin, PayPal, and credit cards. If a cloud mining company accepts bitcoins then there is a good chance it is a scam.

This is because Bitcoin payments cannot be reversed. Once the scam company receives your bitcoin payment you have no way to get your coins back.

Are there Free Cloud Mining Trials?

No company would give away free cloud mining; this is basically giving away free money.

Any company offering free trials, especially if they require payment information, is most likely a scam.

Quick Tip

Mining or buying bitcoins? You can’t do either without a Bitcoin wallet.

Our guide on the best bitcoin wallets will help you pick one. Read it here!

How does Bitcoin Cloud Mining Work?

Cloud mining means a host company owns Bitcoin mining hardware and runs it at a warehouse.

You pay the company and rent out some of the hardware. Based on the amount of hash power you rent, you will earn a share of payments from the cloud mining company for any revenue generated by the hash power you purchased.

Cloud Mining Viruses

There have been viruses that land on computers and then use the computers’ power to mine bitcoins.

Run a malware detector on your computer if you think you may have come under attack.

Is Mining Software the Same as Cloud Mining?

Mining software is something you download on your computer. It is required when you OWN mining hardware. Software connects your hardware to the internet so that it can make hashes and communicate with the network.

Just buy Bitcoins!

If you just want bitcoins, don’t bother with cloud mining. Just find an exchange in your country and buy some bitcoins.

Learn More

Best Bitcoin Mining Software

Best Bitcoin Mining Hardware

Best Bitcoin Mining Pools

Disclaimer: Buy Bitcoin Worldwide is not offering, promoting, or encouraging the purchase, sale, or trade of any security or commodity. Buy Bitcoin Worldwide is for educational purposes only. Every visitor to Buy Bitcoin Worldwide should consult a professional financial advisor before engaging in such practices. Buy Bitcoin Worldwide, nor any of its owners, employees or agents, are licensed broker-dealers, investment advisors, or hold any relevant distinction or title with respect to investing. Buy Bitcoin Worldwide does not promote, facilitate or engage in futures, options contracts or any other form of derivatives trading.

Buy Bitcoin Worldwide does not offer legal advice. Any such advice should be sought independently of visiting Buy Bitcoin Worldwide. Only a legal professional can offer legal advice and Buy Bitcoin Worldwide offers no such advice with respect to the contents of its website.

Buy Bitcoin Worldwide receives compensation with respect to its referrals for out-bound crypto exchanges and crypto wallet websites.

Wallabit Media LLC and/or its owner/writers own Bitcoin.

Is Bitcoin Mining Profitable?

Money can be made, but no method guarantees profit

Interest in cryptocurrencies has surged since 2020 as bitcoin has seen its value rise from about $300 per coin to a peak of about $20,000 per coin in December 2020, then dropping to about $8,000 per coin as of November 2020.   Other cryptocurrencies have seen similar surges and dips in value. Nearly 3,000 cryptocurrencies are listed on investing.com, but two of the most popular alternatives to bitcoin include ethereum ($145 per coin, $15 billion market cap, as of Nov. 2020) and litecoin ($45, $2.9 billion). 

While buying on an exchange like Coinbase is usually fairly simple and allows you to buy fractions of cryptocurrencies, there are those who prefer to mine their coins. The best option likely depends on individual circumstances.

Mining Profitability

Mining cryptocurrency seems like a no-brainer. Set up a computer to help solve complex math puzzles and you are rewarded with a coin or a fraction of a coin. The first bitcoin miners were able to earn coins relatively quickly just using what computing power they had in their homes. 

By 2020, cryptocurrency mining has become a little more complicated and involved. With bitcoin, the reward is halved every four years.   On top of that, serious miners have built huge arrays to mine, making it harder for smaller miners to compete. You can join a bitcoin mining pool to be more effective, but that comes with a fee, reducing your profits. 

Some crypto miners instead opt for other currencies. Some other cryptocurrencies are worth very little in U.S. dollars, but it’s possible to use what you mine and convert it into fractional bitcoins on an exchange, then hope that bitcoin gains in value.

No matter what you decide to mine, you have to account for your setup costs, including, in some cases, graphics cards that can cost upward of $700 apiece.     It’s possible to put together a basic rig for some of the less popular cryptocurrencies for around $3,000. However, some miners spend more than $10,000 on their rigs.

On top of building your rig, you also need to realize that you are going to be using quite a lot of power. If you have high power rates, you could end up spending quite a lot to mine coins—especially bitcoin. The electricity cost involved in mining a single bitcoin is more than $3,000 in the cheapest states.   For states with higher electric rates, you could spend more than $6,000 in electricity to mine a single bitcoin. With the cost of one coin hovering at $7,000 as of November 2020, the energy costs alone don’t make it worth it. 

A less powerful rig mining alternative currencies could save you money. Even so, it can take several weeks, or even months, to recoup your original investment and become profitable.

Cloud Mining

Cloud mining involves purchasing time on someone else’s rig.   Companies like Genesis Mining and HashFlare charge you based on what’s called a hash rate—basically, your processing power. If you purchase a higher hash rate, you are expected to receive more coins for what you pay for, but it will cost more.

Depending on the company you choose, you might pay a monthly fee, or you might pay according to the hash rate.   Some companies also charge a maintenance fee. In general, cloud miners that allow you access to bitcoin come at higher rates.

In some cases, you might be required to sign a year-long contract, locking you in. If the value of the cryptocurrency drops, you could be stuck in an unprofitable contract. As it is, depending on what you mine, it can take several months before your cloud mining investment becomes profitable.

However, at least with cloud mining, you don’t have to worry about power consumption costs and other direct costs related to doing all of the mining with your own rig.

The Long View

Investing in expensive equipment and spending in excess of $3,000 in energy bills to mine one bitcoin only makes sense if you believe the price of bitcoin will rise beyond the $3,000 to $4,000 range.

Buying bitcoins with hope of their value rising is equally risky. The market for cryptocurrencies is young, and for every analyst who sees great potential, there is another who expects the market to go bust.

Banks such as JP Morgan still view cryptocurrencies as unproven and likely to drop in value.   Benoit Coeure, a board member with the European Central Bank, argued in January 2020 that cryptocurrencies could prove to be a good system for cross-border payments as long as there is an understanding of how to “control these gateways between the shadow-currency universe and the regular financial system.”   Less than a year later, he referred to bitcoin specifically as the “evil spawn of the financial crisis,” while still acknowledging the broader potential of cryptocurrencies. 

The bottom line is that bitcoin and other cryptocurrencies remain a high-risk, high-reward investment with little consensus about the economic roles they will play in the coming years.

Best Bitcoin Cloud Mining Contract Reviews and Comparisons

What is Bitcoin Cloud Mining?

Cloud mining or cloud hashing enables users to purchase mining capacity that of hardware in data centres.

Two operators, Hashflare and Genesis Mining, have been offering contracts for several years.

Bitcoin cloud mining enables people to earn Bitcoins without bitcoin mining hardware, bitcoin mining software, electricity, bandwidth or other offline issues.

Bitcoin cloud mining, sometimes called cloud hashing, enables users to buy the output of Bitcoin mining power from Bitcoin mining hardware placed in remote data centres.

Then all Bitcoin mining is done remotely in the cloud. This enables the owners to not deal with any of the hassles usually encountered when mining bitcoins such as electricity, hosting issues, heat, installation or upkeep trouble.

Sometimes you may want to mine a more volatile altcoin like MWC which is superior for scalability, privacy, anonymity and fungibility by utilizing MimbleWimble in the base layer.

With mainnet launching in November 2020 it has risen from $0.22 to over $8.00 in its first two months.

What are Bitcoin Cloud Mining Advantages?

  • No excess heat to deal with
  • Quiet because of no constantly humming fans
  • No electricity costs
  • No bitcoin mining equipment to sell when bitcoin mining is no longer profitable
  • No ventilation problems with hot equipment
  • No preordered bitcoin mining hardware that may not be delivered on time by bitcoin mining equipment suppliers

What are Bitcoin Cloud Mining Disadvantages?

  • FRAUD.
  • Unverifiable or otherwise shady Bitcoin cloud mining operations
  • No fun! If you like building your own Bitcoin hashing systems.
  • Lower profits – Bitcoin cloud mining services or mining company will have expenses
  • Bitcoin mining contracts may have the ability to cease operations or payouts in the contracts if the Bitcoin price is too low
  • Lack of possession of the Bitcoin mining hardware
  • Lack of ability to change the Bitcoin mining software

Best Bitcoin Cloud Hashing Services

Being listed in this section is NOT an endorsement of these services and is to serve merely as a Bitcoin cloud mining comparison. There have been a tremendous amount of Bitcoin cloud mining scams.

Hashflare Review: Hashflare offers SHA-256 mining contracts and more profitable SHA-256 coins can be mined while automatic payouts are still in BTC. Customers must purchase at least 10 GH/s.

Genesis Mining Review: Genesis Mining is the largest Bitcoin and scrypt cloud mining provider. Genesis Mining offers three Bitcoin cloud mining plans that are reasonably priced. Zcash mining contracts are also available.

Hashing 24 Review: Hashing24 has been involved with Bitcoin mining since 2020. They have facilities in Iceland and Georgia. They use modern ASIC chips from BitFury deliver the maximum performance and efficiency possible.

Minex Review: Minex is an innovative aggregator of blockchain projects presented in an economic simulation game format. Users purchase Cloudpacks which can then be used to build an index from pre-picked sets of cloud mining farms, lotteries, casinos, real-world markets and much more.

Minergate Review: Offers both pool and merged mining and cloud mining services for Bitcoin.

Hashnest Review: Hashnest is operated by Bitmain, the producer of the Antminer line of Bitcoin miners. HashNest currently has over 600 Antminer S7s for rent. You can view the most up-to-date pricing and availability on Hashnest’s website. At the time of writing one Antminer S7’s hash rate can be rented for $1,200.

Bitcoin Cloud Mining Review: Currently all Bitcoin Cloud Mining contracts are sold out.

NiceHash Review: NiceHash is unique in that it uses an orderbook to match mining contract buyers and sellers. Check its website for up-to-date prices.

Eobot Review: Start cloud mining Bitcoin with as little as $10. Eobot claims customers can break even in 14 months.

MineOnCloud Review: MineOnCloud currently has about 35 TH/s of mining equipment for rent in the cloud. Some miners available for rent include AntMiner S4s and S5s.

Best Bitcoin Cloud Mining Contracts and Comparisons

Bitcoin cloud mining contracts are usually sold for bitcoins on a per hash basis for a particular period of time and there are several factors that impact Bitcoin cloud mining contract profitability with the primary factor being the Bitcoin price.

For example, Pay per GHash/s would be 0.0012 BTC / GHs for a 24 month contract.

Contracts vary from hourly to multiple years. The major factor that is unknown to both parties is the Bitcoin network difficulty and it drastically determines the profitability of the bitcoin cloud hashing contracts.

Bitcoin network difficulty is a measure of how difficult it is to find a hash below a given target.

The Bitcoin network has a global block difficulty. Valid blocks must have a hash below this target. Bitcoin mining pools also have a pool-specific share difficulty setting a lower limit for shares.

The Bitcoin network difficulty changes roughly every two weeks or 2,016 blocks.

There are all types of cloud mining options for other forms of blockchain technology.

Best Litecoin Cloud Mining Services and Comparisons

There are limited options for Litecoin cloud mining contracts. If nothing on the list below meets your needs, you can buy Bitcoin cloud mining contracts (listed above) and simply convert the bitcoins you earn to litecoin.

Hashflare Review: Hashflare offers scrypt mining contracts with a minimum purchase of 1 MH/s.

Genesis Mining Review: Genesis Mining offers Litecoin cloud mining contracts.

Minex Review: Minex is an innovative aggregator of blockchain projects presented in an economic simulation game format. Users purchase Cloudpacks which can then be used to build an index from pre-picked sets of cloud mining farms, lotteries, casinos, real-world markets and much more.

Minergate Review: Offers both pool and merged mining and cloud mining services for Litecoin.

Eobot Review: Eobot offers Litecoin cloud mining contracts with 0.0071 LTC monthly payouts.

Best Dash Cloud Mining Services and Comparisons

There are limited options for Dash cloud mining contracts. If nothing on the list below meets your needs, you can buy Bitcoin cloud mining contracts (listed above) and simply convert the bitcoins you earn to Dash.

Genesis Mining Review: Genesis Mining is the largest X11 cloud mining provider. Genesis Mining offers three Dash X11 cloud mining plans that are reasonably priced.

Best Ether Cloud Mining Services and Comparisons

There are limited options for Ether cloud mining contracts. If nothing on the list below meets your needs, you can buy Bitcoin cloud mining contracts (listed above) and simply convert the bitcoins you earn to ether.

Hashflare Review: Hashflare is a large Ether cloud mining provider with reasonably priced Ethereum cloud mining contracts.

Genesis Mining Review: Genesis Mining is the largest Ether cloud mining provider. Ethereum cloud mining contracts are reasonably priced.

Minex Review: Minex is an innovative aggregator of blockchain projects presented in an economic simulation game format. Users purchase Cloudpacks which can then be used to build an index from pre-picked sets of cloud mining farms, lotteries, casinos, real-world markets and much more.

Eobot Review: Eobot offers Ethereum cloud mining contracts with 0.0060 ETH monthly payouts.

This Ethereum cloud mining guide will show you how to mine Ethereum using Amazon cloud servers.

Bitcoin Cloud Mining Scams

There have been a tremendous amount of Bitcoin cloud mining scams like the possible $500,000 Bitcoin cloud mining ponzi scheme that was uncovered. Potential buyers should be extremely guarded and careful before purchasing any bitcoin mining contracts. Services to beware of:

Scrypt.cc Review: Scrypt.cc allows purchase of KHS in a matter of seconds, start mining right away and even be able to trade your KHS in real time with prices based on supply and demand! All KHashes are safely stored and maintained in 2 secured data-centres.

PB Mining Review: Claims to operate Bitcoin mining ASIC hardware. When customers buy a bitcoin mining contract then they will begin earning Bitcoins instantly. At Piggyback Mining, they cover the electricity costs and all Bitcoin mining pool fees. The Bitcoin mining contract is 100% insured because they want customers to succeed.

Bitcoin Cloud Services (BCS) Review: Appears to have been a $500,000 Ponzi scam fraud.

Zeushash Review: Appears to have halted payouts.

Bitminer.io Review: Based on user reports they appear to have halted payouts.

Cryptocurrency Cloud Mining Companies

Hashflare Review: An Estonian cloud miner with SHA-256, Scrypt and Scrypt-N options and currently appears to be the best value.

Genesis Mining Review: Genesis Mining is the largest Bitcoin and scrypt cloud mining provider.

Hashing 24 Review: Hashing24 has been involved with Bitcoin mining since 2020. They have facilities in Iceland and Georgia. They use modern ASIC chips from BitFury deliver the maximum performance and efficiency possible.

Minex Review: Minex is an innovative aggregator of blockchain projects presented in an economic simulation game format. Users purchase Cloudpacks which can then be used to build an index from pre-picked sets of cloud mining farms, lotteries, casinos, real-world markets and much more.

Minergate Review: MinerGate is a mining pool created by a group of cryptocoin enthusiasts. It is the first pool which provides service for merged mining. This means that while mining on our pool you can mine different coins simultaniously without decrease of hashrate for major coin.

Hashnest Review: Hashnest is operated by Bitmain, producer of the Antminer line of miners. HashNest currently has over 600 Antminer S7s for rent. You can view the most up-to-date pricing and availability on Hashnest’s website.

Bitcoin Cloud Mining Review: Supposedly has been mining Bitcoin since mid-2020. All Bitcoin miners are located in a state-of-the-art data centre in Australia and they have direct access to high quality equipment and 24/7 support.

NiceHash Review: NiceHash offers you to sell and buy hashing power. Selling hashing power is as simple as connecting your miner to our stratum mining pools while buyers can buy hashing power on demand, on pay-as-you-go basis. Claims to bring an innovative easy-to-use and risk-free cloud mining service. You can mine the vast majority of popular coins, based on SHA-256 (Bitcoin, etc.), Scrypt (Litecoin, Dogecoin, etc.), Scrypt-N (Vertcoin, etc.) and X11 (DarkCoin, etc.).

Eobot Review: Claims to be the easiest, cheapest, and best cloud mining solution. Start with as little as $10 using PayPal and choose between any cryptocurrency including Bitcoin, Litecoin, Peercoin, Namecoin, Feathercoin, Dogecoin, NautilusCoin, and Vertcoin.

MineOnCloud Review: MineOnCloud appears to have obselete hardware. It was launched on November 2020. They offer Bitcoin mining contracts for SHA256 using a very stable ASIC 28nm chip. They have two bitcoin mining contract options – a day pass and an annual contract. Customers can choose the Bitcoin mining pool and change every month for free with year contract.

Scrypt.cc Review: Scrypt.cc allows purchase of KHS in a matter of seconds, start mining right away and even be able to trade your KHS in real time with prices based on supply and demand! All KHashes are safely stored and maintained in 2 secured data-centres.

PB Mining Review: Claims to operate Bitcoin mining ASIC hardware. When customers buy a bitcoin mining contract then they will begin earning Bitcoins instantly. At Piggyback Mining, they cover the electricity costs and all Bitcoin mining pool fees. The Bitcoin mining contract is 100% insured because they want customers to succeed.

Bitcoin Cloud Services (BCS) Review: Appears to have been a $500,000 Ponzi scam fraud.

Zeushash Review: Appears to have halted payouts.

Beware of These 5 Bitcoin Scams

Bitcoin’s meteoric rise in prices in 2020 awakened mainstream interest in the original cryptocurrency.   But the rise in interest has not been without consequences. One of the downsides of new investors entering the market is the increase in the number of scams, frauds, and stories of retail investors who lose their coins to shady ventures. From ICO scandals to wallet theft and fraud, regular consumers can fall prey to crime easily.

It may seem as though it’s the Wild West for investors, but it doesn’t have to be. While there are certainly risks in the market, the opportunities may be irresistible for some. However, being cautious is always a must, and there are clear signs of scams that investors can look for. By avoiding these traps, users can better their chances of success and protect their investments. These are some of the most common scams and how they can be avoided.

Key Takeaways

  • Bitcoin investors can increase their odds for success by identifying common scams, such as Ponzi schemes, fake ICOs, and fraudulent exchanges.
  • One common scam, exposing bitcoin users to theft, is the sale of a hardware wallet with a compromised pre-configured seed phrase, which allows hackers to steal funds.
  • Since bitcoin exchanges are unregulated, fraudulent exchanges can trap investors with the promise of unrealistic prices and heavy discounts on use.
  • Websites featuring fake ICOs instruct users to deposit funds into a compromised wallet through their site, resulting in the theft of funds.

Hardware Wallet Theft

For users who are concerned with security and privacy, a hardware wallet—a physical device that stores their private keys—is an increasingly popular option. Usually, as small as keychain USB drives, these wallets offer an offline way to help crypto investors protect their bitcoin even further. However, there have been reports that some of them have built-in vulnerabilities that open them to hackers that could easily steal all a user’s holdings. 

This is far from the only issue, however. According to Ofir Beigel, the owner of 99Bitcoins.com:

One scam entails selling hardware wallets to users with a ‘pre-configured’ seed phrase hidden under a scratch card. The new user is told that he should scratch the card . and set up the wallet with the compromised seed.

This creates a backdoor that allows hackers to drain funds once a wallet is activated. These scams are becoming more common, but they can easily be avoided by only accepting wallets from trusted sources. 

Exchange Scams

Despite their decentralized nature, most cryptocurrencies are still bought and sold at exchanges. While this makes it easier to find the coins investors desire, there is still no regulatory body overseeing these exchanges in many countries. Thus, many investors have been left penniless when the exchanges they signed up for turn out to be traps. In December of 2020, several South Korean exchanges were exposed, leading to promises of stiffer regulations by the country’s authorities. 

These scams are not hard to spot but can be costly if not avoided. One of the biggest red flags is the promise of unrealistic prices. Exchanges that promise heavy discounts on bitcoin use this strategy to lure in unsuspecting victims.

Additionally, users can check exchanges’ URLs. Web addresses should always begin with HTTPS, a sign that traffic is encrypted. Visiting unsecured websites is a bad idea, but alert investors can avoid losing thousands by looking for the right signs.

Fake ICOs

One of the best results of the cryptocurrency boom has been the rise of the initial coin offering as a way for companies to raise capital. With thousands of new blockchain-based companies entering the market with unique ideas and exciting projects, users can now back their favorite businesses easily. However, this massive explosion of ICO opportunities has inevitably raised the specter of fraud.

There are several ways scammers can separate investors from their bitcoin. One popular method involves creating fake websites that resemble ICOs and instructing users to deposit coins into a compromised wallet. Other times, it’s the ICOs that are at fault.

Centra Tech, for example, a blockchain venture backed by several celebrities, has been sued in the US. The company stands accused of portraying fake team members, misleading investors, and lying about their products.   The best way to avoid these scams is close research that involves picking apart the white paper, reviewing the team behind the venture, key board members, and investors. Before making any investment, it’s vital to learn as much about the company as possible to avoid any unpleasant surprises.

Cloud Mining Schemes

Mining is the only way to extract new bitcoins without buying or exchanging them, but it has become an incredibly resource-intensive activity. Due to the unique way new coins are mined, it takes massive amounts of processing power and electricity, and thus money, to mine a coin. However, many companies now offer regular users the ability to rent some server space to mine coins for a set rate.

Some companies offer “lifetime contracts” that keep costs the same and supposedly offer outstanding returns. However, as the difficulty of mining increases, the same investment will return smaller amounts each time. Moreover, some companies make bold claims regarding their returns without being transparent about the true costs and diminishing returns. Others operate Ponzi schemes that can lead to massive losses. It’s vital to look into opportunities and understand the risks and costs associated with mining before investing.

Multilevel Marketing

Even in the digital spheres, many multilevel marketing schemes have emerged that offer naïve investors excellent “opportunities” for progressively larger sums of bitcoin. MLMs, as they’re known, are predicated on offering quick returns, but involve taking more money for the promise of even higher profits.

One major company that has been repeatedly outed is OneCoin, whose owners were implicated in several other shady operations. The company offered investors massive earnings, as well as luxury goods and perks for paying more. 

However, there is little information on the company outside of its site, and users have left scathing reviews online. It’s important to pay attention to a company’s fine print and ensure that their claims are feasible and real. Avoiding these scams early can protect investors’ wallets.

With the current craze, being vigilant and doing one’s due diligence are a must before investing in bitcoin. The market is also showing signs of maturity, leading to better transparency and clearer rules. Regardless, a smart investor’s first step should always be careful research to ensure their investments are winners.

Best Binary Options Brokers 2020:
  • Binarium
    Binarium

    1st Place! Best Binary Broker 2020!
    Best Choice for Beginners — Free Education + Free Demo Acc!
    Sign-up and Get Big Bonus:

  • Binomo
    Binomo

    2nd place! Good choice!

Like this post? Please share to your friends:
Binary Options Trading Wiki
Leave a Reply

;-) :| :x :twisted: :smile: :shock: :sad: :roll: :razz: :oops: :o :mrgreen: :lol: :idea: :grin: :evil: :cry: :cool: :arrow: :???: :?: :!: