Since cryptocurrency mining is still a new industry, there are many unscrupulous people making use of the lack of general knowledge to make a quick buck. These scammers are giving a beautiful, world-changing initiative a bad reputation.
Many customers come to us saying how their hard-earned money were gone because of dishonest vendors.
1) Arm yourself with the right knowledge of warranties
We’re putting out this as there are too many new miners getting scammed when trying to pursue their passive income dreams. In the worse case scenarios, they can’t claim or protect themselves because no receipts or paper warranty were issued. While buying GPUs, here’s what you should know:
There are 2 kinds of GPUs:
- Gaming GPUs
- Mining GPUs
Ensure you are buying a mining GPU, NOT a gaming GPU. GPU manufacturers employ a rule: if you use gaming GPUs for mining, your warranty will be voided immediately. Yet, some shady retailers will not reveal this fact and try to sell new miners a gaming GPU. To make matters worse, they say that it’s easy to resell these gaming GPUs on the resale market. Few will buy a voided warranty GPU!
2) Request for proper documentations
The retailer should give you all the soft-copy receipts and warranties. Ensure all warranties are local and done with a formal lawyer vetted agreement – you have the rights to ask for that before making any purchase!
3) Warning signs
Crypto multi-level marketing (MLM) schemes with no actual product or service that promise high commissions for referrals are a type of Ponzi scheme. In such schemes, coins paid out to participants in the scheme are not company profits. Instead, they are solely a share of the new money that new users are placing into the scheme.
Any multi-level marketing scheme that does not have participants selling an actual product, software as a service (SaaS) or other services are almost always guaranteed to be Ponzi schemes.
How can Mining Rig Club help you avoid scams?
When in doubt, give us a call, we are happy to give you complimentary advice! We also offer blockchain and ICO (initial coin offering) consultancy with our in-house blockchain experts who can smell a scam miles away. Invest your hard-earned money wisely! Visit our free and educational MasterClasses to learn more about crypto mining and how to protect your money.