[Guide] Stay safe when dealing with Exchanges.

[DaPaaShunting]

I am impressed with the level of explanation and guidance that have been given here on exchanges. I will take a cue from it and avoid mistakes when dealing with exchanges. Thank you

[terencio]

I've always check their volume and if they need KYC for a very small transaction, because I have bad for two exchanges just for withdrawing my 10 usd worth of token, I have to pass the KYC.

[crypto mania]

...why not stick with the big exchanges?

Sometimes I have tokens (bounty, airdrop) which are listed only on this scammy exchanges and that is why sometimes one has to be dealing with them.
Anyways during all these years and many problems along the road (look at the list), I was never hacked and finally always get paid (took 8 months once).
This is why I know that this guide works for everybody just stick to those few points and You will be relatively safe.

[wwzsocki]

I've always check their volume and if they need KYC for a very small transaction, because I have bad for two exchanges just for withdrawing my 10 usd worth of token, I have to pass the KYC.

exactly good point. I understand that KYC is needed when the exchange is fully regulated. You are right that some of the exchanges are misusing KYC and take advantage of it. One can never know if KYC which is asked to do is really needed because of regulators or because of the exchange self.

Lately, there are already started to pop up on the dark web sell offers with KYC data from major exchanges.

 I will not share the link to the source to not advertise hackers if somebody wants to know more can search on google.

This could be a fake ad because hacker says that he has KYC data from Kraken, Bittrex, Poloniex and there was no information from these exchanges about hacked KYC data.

Let's hope this was a bad joke.

[Ispep]

I always make sure to usd popular exchanges, the ones that have real volume and is widely used.
I never trade on new exchanges or any one that looks fishy or has any sort of negative feedback.this is one way I stay away from scan exchanges
Also exchanges with false trading volumes, simply to attract investors, it's a bad sign and enough for me to stay away

[joniboini]

This could be a fake ad because hacker says that he has KYC data from Kraken, Bittrex, Poloniex and there was no information from these exchanges about hacked KYC data.

There is no way they'd publicly disclosed it if they don't even know their database has been hacked. It's quite easy for ICO project to get KYC actually, especially from greedy bounty hunters who don't mind sending their identity over the internet to somebody else. In fact, I see it myself that a team from bounty management might still have access to your KYC (if they don't have strict management policy). So it's not surprising if somebody sells them in the black market.

Also exchanges with false trading volumes, simply to attract investors, it's a bad sign and enough for me to stay away

So you use Forkdelta only? Or did you believe Binance has 100% legit volumes?

[tbct_mt2]

For the OP, crypto mania,

Firstly, I give you a round of applause for the helpful topic.
Secondly, I have a recommendation for you on the way you quoted others' posts.
For your next posts, you should avoid over-quotes or pyramid quotes to keep the topic clean, and easily to follow discussion as well as flow of ideas.
Avoiding over- or pyramid- quotes also help to protect forum users' fingers (because without pyramid quotes, they don't have to over scroll their computer or laptop mouses by their fingers and get them hurted).
There is my topic on tips to avoid pyramid quote:
Tips for newbies, who want to avoid over-quoting
For example, you can easily see how DdmrDdmr quoted and joined the discussion.

[UserU]

any reason why you'd go with those listed from you?
Huobi as an example is one of the largest exchanges, and lists almost as many coins as Binance.
and is cheaper than Binance (and Liqui for that matter)

why not stick with the big exchanges?

My educated guess would be that those small exchanges are popular with the lesser-known tokens.

[whotookmycrypto]

Hey OP great list! Some suggestions...

Diversify as much as possible. Trade across multiple exchanges for large sums. You may save on transaction fees by trading on a single exchange but this comes with risks. Example would be what happened to this guy. He sent funds to Quadriga and sought to withdraw them immediately but wasn't able to do so.

Diversifying also means signing up for multiple exchanges before hand so that you have plenty of options on hand. Don't wait for the crypto mania to kick in before attempting to sign up. If not, you may not get be able to sign up at all.

On choosing reliable exchanges, users can refer to Blockchain Transparency Institute as a guide. The list includes exchanges with suspected wash trading activity.

On a final note, your list is incredibly detailed and we like it. Wish we could merit you but we don't have any. We previously did an article on cryptocurrency exchange safety which had not covered some of the points you raised. Would get down to updating our article in the future and would provide full credits back to your opening post.

Thanks.

[cryptobaro]

Useful information regarding security, thank you. I support KYC when it comes to secure trading and if possible, I always check teams' experiences to make sure.

[crypto mania]

Hey OP great list! Some suggestions...

Diversify as much as possible. Trade across multiple exchanges for large sums. You may save on transaction fees by trading on a single exchange but this comes with risks. Example would be what happened to this guy. He sent funds to Quadriga and sought to withdraw them immediately but wasn't able to do so.

Diversifying also means signing up for multiple exchanges beforehand so that you have plenty of options on hand. Don't wait for the crypto mania to kick in before attempting to sign up. If not, you may not get be able to sign up at all.

On choosing reliable exchanges, users can refer to Blockchain Transparency Institute as a guide. The list includes exchanges with suspected wash trading activity.

On a final note, your list is incredibly detailed and we like it. Wish we could merit you but we don't have any. We previously did an article on cryptocurrency exchange safety which had not covered some of the points you raised. Would get down to updating our article in the future and would provide full credits back to your opening post.

Thanks.

Thank you very much for your useful insights. I will add your suggestions to my list today.
If anybody has more great information such as these above please share so we can make the best guide ever possible

[HODL2090]

It's been a while I came across such a descriptive post here on the forum, nice work and very understandable steps which would be very useful to all enthusiasts.
I have also dropped you s merit for effort and relevance. I would surely be applying this steps next time I visit an exchange.

[crypto mania]

It's been a while I came across such a descriptive post here on the forum, nice work and very understandable steps which would be very useful to all enthusiasts.
I have also dropped you s merit for effort and relevance. I would surely be applying this steps next time I visit an exchange.

Thanks your appreciation matters to me and encouraged me to update once again this list. Here are the changes I have made today:

- Add 2FA authentication to your account and any other available security measures, such as the anti-phishing password for email, pin, additional security questions.
- Before logging in, double-check the URL of the site and bookmark it.
- Always check everything three times, especially the current information page (if available), which currently coins or tokens should be avoided, maintenance is carried out or there are any other problems, for example with synchronization, addresses, fees, times, etc.
- During the transaction itself (purchase/sale or deposit), use the triple check rule to check amounts, addresses, etc.
- Never deposit everything in one transaction.
- Send a small amount first and check if everything works (transfer, trade, withdrawal, confirmation).
- Continue depositing smaller amounts (smaller amounts mean less headache if something goes wrong).
- Withdraw each time before the next deposit, if possible.
- Never leave your coins or tokens on the exchange because it is not intended for that.
- Always remember that the exchange is not a wallet and is not secure.
- Never use exchange addresses for payments for bounty or for air-drops.
- Before each use of the exchange check its pages on social networks, in particular on Twitter, Facebook and see new complaints about coins or tokens.
- Be careful about the security of 2FA itself, keep the backup codes for each 2FA secured exchange (use Authy as 2FA due to the possibility of backups).
- TOTP for 2FA (you scan a QR code by Authy or a similar program which is implementing TOTP according to the specification in RFC 6238) it is a much better solution than authentication by means of incoming codes via SMS because it is not difficult to take over a phone number.
- Do not send scans of documents to an unknown stock exchange immediately after registration, usually, it is not necessary to trade only with cryptocurrencies.
- Diversification is very important. Trade on a few exchanges if possible because trading on one is associated with the risk of losing all capital.
- When selecting an exchange, you can use the Blockchain Transparency Institute as a guide. The list includes exchanges with suspicious trading and money laundering activities.
- Register on several exchanges, so you have plenty of options available. Do not wait for the crypto mania to run before attempting your registration. Sometimes you can not have an opportunity at all.

- While contacting customer service, try to wait at least the minimum response time, often inform about the minimum time to reply (do not create many queries).
- Try to get help on the official social media websites of a given exchange (sometimes it works great, sometimes not).
- Use various contact options such as chat, phone, WhatsApp or Skype if available.
- Be polite, do not lose your patience, provide all the documents they ask for (even if you have to send the same document several times).
- Do not give up when they say "no", be persistent (if you are right) and start from the beginning. Sometimes another agent will help you (they are just people and often make mistakes).

I hope You like it even better now   .

Additionally, I see that @wwzsocki the author of the main version has published lately this post in polish language https://bitcointalk.org/index.php?topic=5119320.0 and I updated a few added changes.

[crypto mania]

This could be a fake ad because hacker says that he has KYC data from Kraken, Bittrex, Poloniex and there was no information from these exchanges about hacked KYC data.

There is no way they'd publicly disclosed it if they don't even know their database has been hacked. It's quite easy for ICO project to get KYC actually, especially from greedy bounty hunters who don't mind sending their identity over the internet to somebody else. In fact, I see it myself that a team from bounty management might still have access to your KYC (if they don't have strict management policy). So it's not surprising if somebody sells them in the black market.

Also exchanges with false trading volumes, simply to attract investors, it's a bad sign and enough for me to stay away

So you use Forkdelta only? Or did you believe Binance has 100% legit volumes?

I don't think this will be possible to keep such an information secret.
I assume this would be against the law too if they kept it secret.
They are obligated to do this if such an event occurs, I think.

[iam_aayushiJ]

The best way to stay safe is, not trade via any exchange which are custodial and keep your coins within their wallet, so many times withdrawal is disabled, the coin wallet is at maintenance etc. Prefer to store coins within your own wallet, MetaMask for example works for all ERC20 Standard coins. I would recommend you to use Non Custodial exchanges, i.e instant exchanges, where you send coins from your own wallet and receive after trading in your own wallet.

Check this image -


You can compare the prices and trade, hassle free, with support  best in industry.

[whotookmycrypto]

The best way to stay safe is, not trade via any exchange which are custodial and keep your coins within their wallet, so many times withdrawal is disabled, the coin wallet is at maintenance etc. Prefer to store coins within your own wallet, MetaMask for example works for all ERC20 Standard coins. I would recommend you to use Non Custodial exchanges, i.e instant exchanges, where you send coins from your own wallet and receive after trading in your own wallet.

Can you explain how non-custodial exchanges like Changelly are safer?

https://changelly.com/how-it-works

If you look at the page above, you still need to transfer your funds to them (in Step 1). How is this any different from custodial exchanges?

Can see the point if you say it is more convenient but fail to see if when you say it is safer.

Oh and if you browse the forums, there are many complaints against such exchanges too. Example: https://bitcointalk.org/index.php?topic=3765927.0

[crypto mania]

The best way to stay safe is, not trade via any exchange which are custodial and keep your coins within their wallet, so many times withdrawal is disabled, the coin wallet is at maintenance etc. Prefer to store coins within your own wallet, MetaMask for example works for all ERC20 Standard coins. I would recommend you to use Non Custodial exchanges, i.e instant exchanges, where you send coins from your own wallet and receive after trading in your own wallet.

Can you explain how non-custodial exchanges like Changelly are safer?

https://changelly.com/how-it-works

If you look at the page above, you still need to transfer your funds to them (in Step 1). How is this any different from custodial exchanges?

Can see the point if you say it is more convenient but fail to see if when you say it is safer.

Oh and if you browse the forums, there are many complaints against such exchanges too. Example: https://bitcointalk.org/index.php?topic=3765927.0

It could be better when and if, set up correctly and not only to scam people in the end or to have such a possibility all the time to exit scam in any convenient time.
I don't know how these services work only assume from a post above that this is pure BS because you have to send them the money which is the third party trust problem and a red flag for me.
This could work if done correctly. Like cold storage with multi-sig wallets where you sent them and third-party escrow to manage the funds or any other set up which don't involve a thrust to a third party. Period

[iam_aayushiJ]

The best way to stay safe is, not trade via any exchange which are custodial and keep your coins within their wallet, so many times withdrawal is disabled, the coin wallet is at maintenance etc. Prefer to store coins within your own wallet, MetaMask for example works for all ERC20 Standard coins. I would recommend you to use Non Custodial exchanges, i.e instant exchanges, where you send coins from your own wallet and receive after trading in your own wallet.

Can you explain how non-custodial exchanges like Changelly are safer?

https://changelly.com/how-it-works

If you look at the page above, you still need to transfer your funds to them (in Step 1). How is this any different from custodial exchanges?

Can see the point if you say it is more convenient but fail to see if when you say it is safer.

Oh and if you browse the forums, there are many complaints against such exchanges too. Example: https://bitcointalk.org/index.php?topic=3765927.0

In exchanges like Changelly or Coinswitch - You indeed send them funds, but after conversion the funds are in your custody, in your wallet, in a DEX also you have to send funds, even if it is handled by a software, you have to send them funds. Without sending funds exchange is not possible. With regards to complaints against changelly or any such exchange, I can vouch for Coinswitch, I have worked there since the inception, and we interact with the support of changelly, binance, hitbtc, huobi, changnow on customer's behalf, since all these exchanges are our partner exchange, We make it sure that customers receive there funds and we try to provide a hassle free experience of trading. You may try us out with a small amount and then take your call.

[whotookmycrypto]

In exchanges like Changelly or Coinswitch - You indeed send them funds, but after conversion the funds are in your custody, in your wallet, in a DEX also you have to send funds, even if it is handled by a software, you have to send them funds. Without sending funds exchange is not possible. With regards to complaints against changelly or any such exchange, I can vouch for Coinswitch, I have worked there since the inception, and we interact with the support of changelly, binance, hitbtc, huobi, changnow on customer's behalf, since all these exchanges are our partner exchange, We make it sure that customers receive there funds and we try to provide a hassle free experience of trading. You may try us out with a small amount and then take your call.

Yeah but that's if the coins actually reach the point where they are converted. If they don't then they still are in the hands of the provider.

There are other alternatives where you don't have to transfer to a trusted party eg. LocalBitcoins.

The point here is that stuff like Changelly is indeed more convenient. But is it safer? Absolutely not.

[iam_aayushiJ]

In exchanges like Changelly or Coinswitch - You indeed send them funds, but after conversion the funds are in your custody, in your wallet, in a DEX also you have to send funds, even if it is handled by a software, you have to send them funds. Without sending funds exchange is not possible. With regards to complaints against changelly or any such exchange, I can vouch for Coinswitch, I have worked there since the inception, and we interact with the support of changelly, binance, hitbtc, huobi, changnow on customer's behalf, since all these exchanges are our partner exchange, We make it sure that customers receive there funds and we try to provide a hassle free experience of trading. You may try us out with a small amount and then take your call.

Yeah but that's if the coins actually reach the point where they are converted. If they don't then they still are in the hands of the provider.

There are other alternatives where you don't have to transfer to a trusted party eg. LocalBitcoins.

The point here is that stuff like Changelly is indeed more convenient. But is it safer? Absolutely not.

Since I have been working in crypto industry for long, also since I work for Coinswitch, let me tell you, we handle support issues for all our partner exchanges, weather it is binance, changelly, changenow, idex, blocktrades, swaplabs etc. 1000s of orders are processed through them, and through us also. We have a fraud detection system enabled by which we find out addresses, which are processing orders through us who got hold of funds using incorrect practices. In case of local bitcoins I am not sure if you can identify a scammer, and find out how he got hold of his funds.