Cryptocurrency Ponzi Schemes or Cryptocurrency Mining Scams

Scammers always find new ways to rip people off. Cryptocurrencies have created big opportunities, both for people to make money, and for scammers to fool people and suck their blood. People are getting to know more about cryptocurrencies every day. They are learning that they can make money with cryptocurrencies. Therefore, they spend their money on cryptocurrency Ponzi schemes who claim they mine cryptocurrencies using their members’ funds, which is a big lie.

I receive messages from these cryptocurrency Ponzi schemes every day. Unfortunately, there are many of them now. There are thousands of sites that ask you to pay them to mine cryptocurrencies for you to give you some profit every month.

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People know that they can collect cryptocurrencies through a process which is called cryptocurrency mining. However, they also know that it is not easy to mine cryptocurrencies on their own because it needs special and expensive equipment, proper environment, cheap electricity and skilled staff (please forget about those who mine cryptocurrencies in their kitchens. I am talking about professional cryptocurrency mining). In spite of this, they still want to take advantage of this opportunity. Cryptocurrency Ponzi schemes use this opportunity to scam these people. How?

On their websites, cryptocurrency Ponzi schemes explain that if you join and pay some money (you buy their packages), they will use your money to buy cryptocurrency mining equipment to mine cryptocurrencies for you. But that’s a big lie. They never use your money to buy cryptocurrency mining equipment. They are just Ponzi schemes that take money from the new members to pay the early members.

What Is Cryptocurrency Mining?

If you are new to the cryptocurrency world, I must give you a short explanation about “cryptocurrency mining”. I have my own definition which is a lot easier to understand, compared to the too technical and complicated ones that you can find on the Internet.

I describe cryptocurrencies as small electronic boxes. You cannot see them as you cannot see the electricity that is running through wires. However, cryptocurrencies are like countable virtual/electronic boxes. They become produced through a special process called mining. Cryptocurrency mining is also an electronic process that cannot be seen like what you see in gold or charcoal mining. Cryptocurrency mining is indeed resolving some complicated math problems that computers do virtually and electronically, not on paper. Each cryptocurrency is a very special math problem that is resolved.

Cryptocurrency mining needs strong and fast computers that are connected to each other. When a computer can resolve one of the math problems earlier than others, it will own the produced cryptocurrency that will be deposited in the electronic wallets. The computer owner will have the mined cryptocurrency in their electronic wallet, and so they can send it to other wallets, or sell it against other cryptocurrencies or Fiat currencies.

To work faster and mine more cryptocurrencies, professional cryptocurrency miners connect several mining devices to each other parallelly. It is like connecting several batteries to each other to get stronger output power to be able to turn on a bigger and stronger light-bulb or electromotor.

Costs of Cryptocurrency Mining

Based on the explanations above, you can guess that it is not cheap to mine cryptocurrencies. Besides, electricity has an important and vital role in cryptocurrency mining because cryptocurrency mining devices use lots of electricity. If you cannot have access to cheap electricity resources, you may hardly make profit through cryptocurrency mining.

Above all, cryptocurrency mining devices are not cheap.

Therefore, cryptocurrency mining not only is not free, but it is expensive too.

How Cryptocurrency Ponzi Schemes Scam You

So, people want to make money through cryptocurrency mining. But they don’t know how to do it while many of them don’t have the money to buy and set up the devices as well. In other words, it is too (1) technical and (2) expensive for most people. Even when they have the money, they don’t know how to do it technically while they don’t have the proper space and access to cheap electricity.

This creates an opportunity for scams to rip people off. They create cryptocurrency Ponzi schemes to scam people. How?

Cryptocurrency Ponzi schemes claim that they (1) use your money to buy mining devices; (2) mine cryptocurrencies for you; and (3) transfer your share from the mined cryptocurrencies to your wallets.

Therefore, without doing any due diligence and investigation, many people sign up for an account with them, buy a membership or mining package, and wait for the company to pay them every day. But the so-called cryptocurrency mining company, or I’d better say cryptocurrency Ponzi scheme, never pays them, or even if they do, it will be a lot less than expected and what the company had promised.

Why?

What cryptocurrency Ponzi schemes like MiningCity say is a big lie. They never mine cryptocurrencies for their members. I have talked to many of their members who have lost thousands of dollars. None of them have ever seen any cryptocurrency mining facility that belongs to these cryptocurrency Ponzi schemes. MiningCity claims that their mining facilities are in Norway, but this is a big lie. They don’t mine cryptocurrencies at all. They just use the new members’ money to pay their early members, which is what a Ponzi scheme does. Besides, what they pay their members is a lot lower than what they promise.

Does This Mean You Must Forget About Making Money with Cryptocurrencies?

No. As I explained above, cryptocurrencies have created big opportunities for crooks to run cryptocurrency mining scams or Ponzi schemes to rip people off. However, it doesn’t mean that you cannot make money with cryptocurrencies or through mining them. Indeed, you can make millions with them if you know how to do it, and if you don’t get fooled by scams.

Cryptocurrency Mining

The first thing you must learn is that there is no real cryptocurrency miner that mines cryptocurrencies with your money and returns you some profit every month. This is impossible. If they want to make profit too, they cannot pay you in a way that you also make profit and receive more than you pay. The reason is that cryptocurrency mining is expensive, and so, not all cryptocurrencies they mine are their profit. They have lots of expenses, including electricity bills.

Therefore, even if they really mine cryptocurrencies, they cannot return your profit if they also want to make profit. They must hold all the cryptocurrencies they mine for themselves. It means, those who say they mine cryptocurrencies with your money, are either lying or even if they really mine, they must act as a Ponzi scheme and pay you with the money new members pay them. So, they are cryptocurrency Ponzi schemes and scams. Avoid them.

If you want to make money through cryptocurrency mining, you must do it on your own. You should not pay these so-called cryptocurrency mining companies like MiningCity to do it for you. They are nothing but cryptocurrency Ponzi schemes.

However, as I explained above, making money through mining cryptos is not everyone’s bread and butter. Most people cannot do it because they cannot afford it, and they don’t know how to do it technically.

Does Cryptocurrency Mining Really Make Money?

Unless you (1) know how to do it, (2) have access to cheap and affordable electricity sources, and (3) you do it on a large scale, you won’t make a reasonable profit that can change your life. It is a waste of time and money if you don’t have the above three conditions.

Therefore, this makes money for the real and professional miners who can mine on a large scale and under a proper condition. Of course, just the title of “mining” makes money for the so-called mining companies that are indeed cryptocurrency Ponzi schemes.

So, maybe cryptocurrency mining is not your choice to make money. For most people, when it comes to cryptocurrency mining, all they know is that they must avoid the cryptocurrency Ponzi schemes and mining scams. You should never pay others to mine cryptocurrencies for you because they are scams.

Cryptocurrency Trading

You can make money through trading cryptocurrencies too. But to make profit, you must know and master the techniques, otherwise it can be too risky and you can lose lots of money. Cryptocurrency market is too volatile, and so it can wipe out your account if you don’t take proper direction and you don’t know how to control and limit your losses. It can take years of learning and practicing to reach the level that you can make money through trading consistently.

Therefore, in addition to cryptocurrency Ponzi schemes, trading can also be your enemy. There are so many who say that they make thousands through trading cryptos. However, most of them are lying and they lose more than they make. I am not saying it is not possible to make money through trading cryptocurrencies. it is possible, but it is not easy and needs enough skills and experience.

Making Money With the Biggest Cryptocurrency and Blockchain Alliance

I have never paid the so-called cryptocurrency mining companies to mine for me because what they do has never made sense to me and I know them as cryptocurrency Ponzi schemes. They are scams who claim that they mine cryptos with their members’ money, but they never do it. I have explained this enough above. I don’t want to repeat it again. I am now trying to show you a great way that makes lots of money, without getting scammed by the cryptocurrency Ponzi schemes. So, make sure to read the rest of this article.

Regarding making money through trading cryptocurrencies, although I am a trader, I have never traded cryptos because their markets are so volatile and unstable. It also doesn’t make sense to me to trade in a market that goes up for thousands of dollars, with an Elon Musk’s tweet, and goes down for thousands of dollars, with one of his other tweets. I trade in the US stock market and I am so happy with my performance.

However, who doesn’t want to make more money if possible?

Therefore, it has been a while since I have joined a reward-based membership system, designed and developed by the biggest cryptocurrency and blockchain alliance in the world. They have one of the four biggest cryptocurrency mining systems in the world, plus over 40 cryptocurrency exchange platforms with millions of users and billions of daily transactions. I am so happy with the rewards I am receiving from them. Therefore, I strongly recommend you join this great system, instead of getting involved with the cryptocurrency Ponzi schemes. Learn about this program here.

Cryptocurrency Ponzi Schemes

Published by

Vahid Chaychi

Vahid Chaychi is an experienced web developer and internet marketer since 2002. He has been able to become the top seller/earner and affiliate with several different companies. He has launched his own affiliate programs as well. He is a blogging and WordPress expert with lots of enthusiasm in blogging and vlogging to share his knowledge and experiences. He is also a serious Kyokushin Karate warrior and a good snowboarder. Follow him if you like to become a financially free online entrepreneur.

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