Crypto mining platforms, such as Baked Beans, BNBSeed, or BNB Miner, are controversial and definitely high-risk investments. However, if you decide to put money into it, you should avoid these 5 mistakes by any means!

Over the last 1.5 years, I’ve used and tried many crypto miners. Some generated fantastic returns, while others quickly turned out to be scams or unhealthy. During that time, I found out that most often, five mistakes lead to wrong investments when it comes to crypto miners.

Why do I write this article? I am fully aware that crypto miners are very controversial and bear a high risk. However, personally, I made the experience that you can earn juicy returns when you play the game right. Therefore, this article intends to help people that want to invest in crypto miners avoid the common mistakes — I had to learn the hard way.

However, before we dive into the five mistakes you should avoid when investing in a crypto mining project, here’s some background about crypto miners. You can directly jump to the next chapter if you are already familiar with crypto miners.

Crypto Miners — What is it about?

Before I explain the simple hack that increases your return by 25%, here’s some background for those unfamiliar with crypto mining.

Crypto mining is an investment strategy that observes massively growing attention. First off, crypto mining in this context has nothing in common with the traditional Bitcoin mining process. On the contrary, you can compare crypto mining with staking or lending — however, it’s slightly different.

Here’s how crypto mining works

Usually, you deposit an amount of money in the first step. This deposit is locked, and you can’t withdraw it. However, you will receive a constant return (usually 3% — 8% daily) for an infinitive or defined timeframe from the time of depositing. Nevertheless, most crypto mining projects encourage you to re-stake (compound) your return and thereby grow the value of the project and your rewards.

How many crypto mining projects exist?

There are hundreds of crypto mining projects in the market (Check out this article: ). However, only a few of them have managed to become sustainable. Most of the projects run on the Binance Smart Chain. Nevertheless, you can find some projects on the Avalanche, Cronos, Matic, or Fantom blockchain.

Are crypto miners legit?

Well, there are two things you have to know: The vast majority of crypto miners are based on some kind of Ponzi scheme. Moreover, the high return comes with increased risk. Therefore, the scam and rug pull potential is high. Here are two articles with more details about crypto miners:

5 Mistakes You Should Avoid When Investing in Crypto Miners

#1 Don’t select the miner with the highest daily return

Let’s start with the most critical first. As mentioned above, the amount of crypto miners is sheer endless. And many of the miners want to convince with high daily returns of 10% and even more.

However, these projects are usually not sustainable and only last for a few weeks. This is simply because there’s not enough new money to pay the high daily returns. Therefore, the probability of losing money is very high when going for those miners.

And to be honest: Everyone knows that a project that promises a 10% daily return can work. So don’t get blinded by these promising numbers.

Conversely, it is much better to go for lower daily returns but choose sustainable miners. For example, BNB Miner has been paying out 3% daily for more than 400 days.

#2 Don’t forget to check the contract’s TVL!!!

I can’t stress this enough. Please check the TVL of the mining project BEFORE throwing your money in. Usually, the TVL is shown on the miner’s website directly.

Don’T Make These Five Mistakes When Investing...

If it’s not directly shown, there should be a ling to contract on bscscan or cronosscan (or whatever network you use). That’s where you can check the value too.

Why this is important: The contract value contains the assets that users can pay out. I’ve seen many projects have a meager contract value of only a few hundred dollars. Therefore, it is unlikely that you can earn attractive returns with the miner.

#3 Don’t invest in new miners

I know, usually, it’s good to be early in the world of crypto. However, from my experience, it isn’t a good idea to invest in new miners directly at the beginning. This, from my POV, puts the high risk to an even higher level. From my observations, the amount of projects that die or get rugged within the first weeks is very high.

Therefore, I would constantly monitor new projects for a couple of weeks. But, again, if you want to play it safer, go for miners that have been working for several hundred days, for example, BNB Miner (>400 days) or Baked Beans (>220 days).

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#4 Don’t invest in miners with high fees

Of course, everyone defines “high fees” differently. However, I don’t want to invest in a project that requires a 10% fee for buying and selling. Usually, the fees go directly into the pockets of the project team since a miner does not generate high ongoing fixed costs. Moreover, a 10% buy and sell fee can reduce your earnings massively.

Therefore, I would choose miners with an overall fee of 10% (e.g., 5% buy and 5% sell fee). Some of my favorite projects require even lower fees: Baked Beans requires 6% overall (3% buy and 3% sell), and BNBSeed works without fees!

#5 Don’t throw your money into one miner

Never ever put all your eggs in one basket. You have to always bear in mind that miners are a high-risk investment: They can’t stop paying your returns from one day to the other, get the rug pulled, or simply vanish.

Therefore, diversifying your investment across several miners is of utmost importance. As you can see in my portfolio at the end of this post: Besides some smaller test ballons, I’m currently invested in four miners: Baked Beans, BNB Miner, BNBSeed, and BUSDSeed.

#6 Don’t put too much money into miners

And finally, the most essential advice: I know that the daily returns sound so juicy. However, you must consider crypto miners as a kind of gamble. If you do it right and have some luck, you can make good money.

Nevertheless, the risk is just too high! Therefore, never put too much money into a crypto miner. And by no means invest what you’re not willing to lose!!

My current crypto miner portfolio

I’ve been investing for more than 18 months in several crypto miners. Here’s my portfolio that prints very good results for me at the moment:

BNB Miner: Probably the most sustainable and low-risk miner (if the word low-risk exists in this context
)
Baked Beans: One of the rare miners that managed to be sustainable despite high daily returns (8%)
BNBSeed: A miner that has just started beginning June but seems to have a very sustainable concept since they incorporated a maximum payout.
BUSDSeed: Similar to BNBSeed. However, I like the stable coin alternative due to the current market volatility.

Important: The links I share here contain affiliate links.

This article is for informational purposes only. It should not be considered Financial or Legal Advice. Not all information will be accurate. Consult a financial professional before making any major financial decisions.

Don’T Make These Five Mistakes When Investing...