How to start Bitcoin Mining or Cloud Mining

Bitcoin Mining is too good to be true
Bitcoin Mining is too good to be true

STOP thinking about it!

The headline of this article should be: The dangers of Cloud Mining

Everybody who uses Bitcoin has already heard about "mining". It is a process, where your computer calculates and tries to find the new block for the blockchain. If you find it first, you get rewarded with some Bitcoin for it. Of course, it's nearly impossible to find a block first if you are alone, that's why it's common that a lot of people work together. If somebody finds the block, the reward is divided between every user in it's community. The more you contribute, the higher your reward. Like that, you get a lot of small rewards. Otherwise, if you mine alone, you will most likely never get a reward at all.

If you don't have the equipment to mine from your home, you can also pay a Cloud Mining Company. You rent their equipment for a certain time and mine with it. You get all the rewards and the Cloud Mining Company gets the money you pay them to rent their equipment.

Why does the Company not mine themselves?

The reason is the heavily fluctuating price of Bitcoin. If you have a big company and have to pay the salary of your staff, rent, power and other things, you don't want to rely on the price of Bitcoin. That's why the calculate it thoroughly and rent their equipment to users. Like this, they earn a certain amount of money every month and can pay all their bills and earn some money on top of it. It doesn't matter if the price of Bitcoin goes up or down, they still earn their money.

If the price falls rapidly, the users who rented their equipment may make a loss, but if the price stays the same or goes up, the users will win a lot of money from it. That's why you should only invest in Cloud Mining, if you believe that the price of Bitcoin will rise.

Before you invest in Cloud Mining, make sure to inform yourself about the different providers of Cloud Mining. Their offers can vary quite a lot and if you invest without checking other sites, you may make a bad deal.

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Don't believe in bitcoin mining deals that are TOO good to be true

Sadly, the most site that offer Cloud Mining are a scam. They are Ponzi-Schemes and you will lose your money if you invest there. They lure users with absurdly high interest rates to get them to invest their money. For example, one site offers you 0,33 % interest daily. If you invest more than 80 Ether, you even earn 0,63 % interest every day. That's completely absurd. We did the math for you, so you know exactly why we state that this is ridiculous.

You invest 100 Dollar and earn 0,63 % daily. After 200 days, you will have 351,15 Dollar. After exactly one year, you will even have 989,75 Dollar. Nearly ten times the amount you invested in. Believe us, there is NO way, some company manages to make that much money without any risk. If they promise you such big returns on your investment, they lie. And if they lie, it means they want to scam you. No legitimate business will state blatant lies like that, because they could easily be sued.

They hope to find enough greedy people to invest and then they will take the money and close their site. You won't find a trace of them and all your money is gone. Never invest in such a site. Even if they tell you that they work with big companys like Microsoft or tell you, that even Forbes recommend them. They lie to lure you in, they only want your money. For example, it is pretty easy to be mentioned at Bloomberg.com.

Let us show you an example:

Cloud Mining Bloomberg

As you can see, the site got mentioned at bloomberg.com, but it is just a press release. That means, Bloomberg just posted the text they got from the admin of the site, Bloomberg hasn't written the article nor have they checked the article. It's just a press release and it's easy to do. Everyone can do this and believe us scammer will work exactly with this method!

You will also just find positive reviews about such a site. Because they offer generous rewards for referring people to them. That's why a lot of people who invested there will try to lure you in by writing positive reviews, because they get money from it. But they will never see a Dollar from it, because they too won't get any money as soon as the site shuts down. These scams are really well made, so be cautious before investing in ANY Cloud Mining Company at all.

If you are not sure about the legitimacy of a provider of Cloud Mining, feel free to send us a message. We will check the site for you and tell you if they are a scam or not.

Youtube-Video: Bitcoin Mining Risks and the truth behind investing in BitCoin Mining

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