Cloud Mining is a simple Bitcoin and crypto asset mining system. However, you need to be careful because there are many scams on cloud mining platforms.

Before we talk about cloud mining scams, it helps us first learn what cloud mining is and how it is different from regular mining.

Check out the explanation below.

What is Cloud Mining? 

Cloud Mining is the process of mining Bitcoin and other crypto assets using a data center such as the cloud. So, mining does not need to use mining devices such as VGA and others.

Cloud mining can also use a computer or laptop as it is. In fact, you can also use a smartphone. In mining units, the unit of speed is Giga hash (Ghs). You can try it for free.

However, just like regular Bitcoin mining, usually cloud mining platforms also ask for payment. This is to increase the Ghs speed so that you can more optimally get crypto assets.

Your mining crypto assets can be cashed through on exchanges platforms such as Indodax and others. It’s just that, there are many cases that state that mining results cannot be transferred and cannot be cashed.

The Difference of Mining and Cloud Mining

The most basic difference between mining and cloud mining is the use of hardware or hardware. Ordinary mining requires VGA with the highest capability to get optimal results.

So don’t be surprised if Bitcoin mining computers use very expensive hardware, it can be hundreds of millions of Rupiah. Because miners use a lot of VGA. The more VGA, the more optimal the crypto assets will be obtained.

Meanwhile, cloud mining, because it is connected to a cloud network, can be used with an ordinary computer or laptop. You can even use a cellphone.

The Fraud of Cloud Mining

• You Must Deposit to Upgrade your Mining Speed

Cloud mining platforms usually provide speed-up services. To get this service, you need to deposit a number of crypto assets. For example, USDT, Bitcoin, DOGE and others.

There is a balance that you need to send according to their request. You can send it from any exchanges platform, without having to transfer money from your account to the cloud mining address.

After that, your mining speed will indeed increase. The cloud mining platform has taken the crypto asset you submitted as a condition for a deposit.

• The Crypto Can not be Sent

Then, after days or weeks of mining, your mining products have been collected. Maybe the balance is only limited to the maximum sending only. For example 1,000 DOGE in one month.

After that, you want to cash it into Rupiah via the Indodax platform. However, cases that often occur your mining products cannot be cashed.

This is the fraud mode of cloud mining.

The Modus

The characteristics of fraudulent cloud mining are luring large profits. In fact, ordinary mining is not that big. There are several features of cloud mining that don’t make sense. Here’s the explanation

• Profit to High

In some cloud mining, it is stated that you can get 5% profit for one month. In fact, ordinary mining does not generate that much profit.

For ordinary mining using an Antminer machine, the cheapest is IDR 70 million, you can only get Bitcoin and other crypto assets which are very small. In fact, not necessarily a return on investment (ROI) for one year.

This is natural because Bitcoin mining is more difficult after the halving day. Same is the case with Litecoin mining, and others.

Even if cloud mining offers a return of only 10% per year, it is still impossible or absurd.

• Scheme is not Make Sense

Not only does it offer high returns, cloud mining also offers unreasonable schemes. For example getting 1,000 DOGE in one week. In fact, the total DOGE supply of 128 billion has been mined entirely.

How could DOGE be mined again?

In addition, these nonsensical schema modes are also common.

• Website Domain

The cloud mining website address does not use a .com domain. Usually, cloud mining uses a website domain address that is rarely used. For example .LTd or world.

Also, sometimes cloud mining websites are difficult to access.

• No Service Address

Any company needs a person or a team. Of course, they all gathered at the office. They also have telephone numbers and e-mails that they can contact so they can serve their customers.

Usually, cloud mining platforms do not include work addresses, e-mails and phone numbers. Or they just put a fake address that can’t be reached.

Can We Trading Only?

In 2021, conventional mining has become increasingly difficult. Because Bitcoin is getting harder and harder to come by. Naturally, because the halving day is implemented to maintain the supply of Bitcoin so that the price will continue to be stable and increase.

Then, how can cloud mining offer the benefits and convenience of mining?

In fact, crypto asset communities and forums in Indonesia and even around the world have also left mining. For them, mining is out of date in 2021.

Maybe, for those of you who are just trying to trade crypto assets, it’s a good idea to just learn trading. Because there is a lot of trading knowledge that you need to learn and get maximum profit.