I can assume we all know about cloud mining sites. The idea is simple - They have a ton of miners somewhere, and you pay to rent a part of their power. Simple, right? Well, not so much. Many of the cloud mining sites that you see are scams. Let's look at some of the red flags that point to a cloud mining or investment scam.
1. Ridicilous refferal programs
We've all seen these - "You get 50% from everything your refferals get" kind of stuff. This is a very big pointer to a scam. How exacly does the website make money if they give so much to refferals? Chances are, they don't even pay out.
2. Claims of ROI and profit in a very short time
Any real website can't magically make you get 3 dollars/month from 1GH. That's a hellishy small amount of hashrate that has no chance of producing that much money. 10 dollars for 1 gigahash isn't even a good deal.
3. Sloppy English
Even the smallest grammar mistakes in these websites can point to a scam. Any real website would have the money to get someone to write a few gramatically-correct sentences for them.
4. Giving you "Free" money to try it out
Ahh, the promise of free money... Of course it's not true. This is a obvious red flag to a scam. No website can just give away free money and still make profit.
5. Too good to be true!
Ridicilous claims - "Secure, Private, Fast, Flexible". It's too good to be true, Because it isn't
This is all I have to say on the topic of cryptocurrency related scams. If you see anything I said wrong, please post in the comments.
EDIT: Fixed grammar mistakes