When the crypto industry was still in diapers, there weren’t many people in the mining scene and therefore mining was extremely profitable. But now, as many more players have entered the market with more powerful equipment, and with the increasing difficulty levels, mining is no longer nearly as profitable for the average Joe.
Crypto mining can still be lucrative but it's also very complicated. If you found a mining service that asks you to simply send BTC (or other coins) to start earning, it's most likely a scam. You don't need to have crypto in one wallet to "start mining" and if they ask you to pay for a private key. Don't. There should be no reason to buy a private key.
At the end of the day, investing in crypto mining carries a high scam risk. As this area becomes more and more competitive, it would be best to consider going with the more known and well-trusted names in the industry, and to research any mining pool thoroughly online before making a decision.
What to look out for
- Like with broker scams, if you're promised a high return rate at minimal risk, then it's most likely a scam of this niche.
- Blockchain activation/ wallet activation fees/ mining activation fees any activation fees for mining
How to protect yourself
Know that miners are rewarded crypto for their work, so if you’re investing in mining with crypto, you’ll need to do a bit more digging to make sure that who you’re investing with is legit.
That being said, some legit mining pools may ask for Bitcoin, though this is extremely rare, but either way, it’s always best to talk to others first, check out reviews, stay vigilant, and as always, use due diligence to know who you’re dealing with.