Is cloud mining SCAM a big ponzi or legit?


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There are a lot of reports of cloud mining companies being ponzi schemes. This is because they often do not have the necessary infrastructure to actually mine cryptocurrencies, and instead just use money from new customers to pay old customers. This can eventually lead to the company not being able to pay out all of its customers, and the entire scheme collapsing, but it depends on the specific cloud mining company. However, it is generally accepted that cloud mining is a risky investment, and there have been a number of documented cases of cloud mining companies being scams. As such, it is advisable to do your research before investing in any cloud mining company.

Mining companies can use your money to trade or for some other risky schemes. When they eventually lose they close the site and you are without your coins. Many are smart contract scams where you download a dapp that allows the smart contract creator to steal coins out of your wallet.