This can be a bit tricky because not all cloud mining operations are scams. Some are completely legitimate, however many are scams, so it’s best to warn people (especially newcomers) to be careful when looking into cloud mining.
Cloud mining is shared mining hashpower, where people pool their funds together to rent Bitcoin mining machines. For legitimate operations, this works and can be profitable. For scams, returns may be low or non-existent. As we’ve established above, it’s best to trust your instincts and look for red flags.
Does the site use HTTPS? Did you find the site from a referral link on social media? Does the cloud mining operation not give any insight into what pool they use to mine, or let you select the pool you want to direct your hashrate to? These are just a few things to look for;
