There are some scams going on in the wild west of cryptocurrencies. Cloud mining is no exception. More precisely, 99% of cloud mining companies are not trustworthy, but rather operate a Ponzi scheme.
These companies don’t actually do crypto mining. Instead, they collect money from investors, pay some of it to new investors and keep most of it for themselves. This scam works as long as new investors come in and no suspicion arises. If an offer sounds too good to be true, it is likely not true.
While fraud is common, it doesn’t mean that all cloud mining providers are up to bad luck. Cloud mining can be profitable under certain conditions. However, the same applies here: You won’t become a crypto millionaire overnight here, you probably won’t become a millionaire at all with cloud mining.
You make a profit when you have covered your first investment with the profits. Should the price of a cryptocurrency rise massively, this will also increase your profits. But – courses can also fall!