Here's a general guide as to how to spot a scam and how to keep loosing money to various ponzis and frauds. Don't let your greed get the best of you! Also a rule that will help you - is there any proof of mining? If not, turn away and go elsewhere!

How to Spot a Scam

One question that remains to be answered is the reason why the public keeps falling for this agelong trick, despite their own previous painful experiences or those experienced by others within the space. Another major issue that persists is how to identify such schemes, for what they truly represent, in the early stages, especially as it relates to cryptocurrencies.

According to Bob Wood, the founder and CEO of Nexxus Partners, scams of all kinds feed on two ingredients to create their perfect storm: ignorance and greed. Wood explains that new technologies are not understood by most people, enabling scammers to twist the facts just enough to include some truth mixed with deception, so as to occasionally fool individuals.