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RE: Cryptocurreny Cloud Mining – Opportunity or Scam?
Word of warning: don't put in any money you're not willing to lose.
3 years ago, sent 20 litecoins to a Chinese 'cloud mining' website. It had an exchange which let you buy hashrate for litecoin and bitcoin. If you held 'hashrate' there, it would mine for you. Once you had 3 Mhash, you could 'withdraw' it in the form of them shipping you a scrypt asic miner capable of 3Mhash, on the same page where you would withdraw your BTC or LTC.
A very well designed site, and my LTC balance was increasing as I was holding a few Mhash there.
Well, a few days later, the site was gone! Only the cloudflare proxy at the front remained, and all my LTC were taken :(
Have read a few stories like this, thanks for your feedback & sorry to hear you got scammed. Definitely look at it as high risk, but certainly don't want to loose. That's why I've been looking at the bigger sites, but they provide no indications of potential earnings. Don't really have the headspace to learn trading, have watched a couple vids and can see it takes focused time, which isn't spare at the moment.
Even big sites can be risky. I don't know if you were in the crypto space at the time of Mt Gox.
I recently had a "haircut" from Bitfinex too. They got hacked and I lost just over 1BTC there.
They gave me their own altcoin instead, with the promise that they'd buy it back for the original value when they could afford to. To their credit, they did do this, but by then, I had sold the tokens for about 1/3rd of their value because I didn't believe them.
The lesson is, if you don't have the private key, they're not your coins :)
Thanks, appreciate the feedback. I certainly recall theGox debacle from the news at the time. Speculation I've heard is they were scamming & faked the theft to not get caught out for some reason I can't remember. Been studying the wallets & figuring which ones provide full control.