How to identify Crypto exchange scam??

[Shohag123]

In recent times,there are 100 of crypto exchages are opening and the number is increasing.It is a good thing that we can trade our coin in this exchanges.But the most worrisome news is that majority of the small exchanges are scamming people though their exchages.

Recently Exstock exchage is the perfect example of scams.They have promoted their exchange nicely.And after sometime they are not giving withdraw to any people.A lot of small traders like me have lost their money.So for now i am very worried about the safety of my money.

As you see i have scammed so many times through excahge,i don't have any knowledge to identify the scam exchage.Can you suggest me some scam exchage are there right now so that i can avoid those exchanges.

And it will be better if any crypto lovers will tell me how to identify scam exchanges.I am very enthusiastic about crypto and i don’t want to be disappointed and not interested to loss money. .So feel free to give me a suggestion.It will be very helpful.   

[Jawhead999]

It's quite hard to identify scam exchange if they're not do stupid thing (offer ponzi scheme, fake review/team or plagiarized content). According to many accused about scam exchange, I learn few way to identify a scam exchange :

1. Fake volume. (example)
High trade volume in exchange doesn't mean the exchange is legit and safe, especially for new exchange. It very suspicious how a new exchange created on 2019 can beat Binance. Don't trust data from CMC, you should compare with this sites for a real volume https://www.livecoinwatch.com/exchanges or https://www.bti.live/exchanges/
2. Contradicting content (example)
When you read the exchange said was founded from 2015, don't really trust it... verify with WHOIS data first. If the domain of that's exchange created on 2019 not 2015, then you should stay away.
3. Fake price or discount (example)
Each exchange have different prices on same crypto (Bitcoin), maybe in binance is $8,701 coinbase $8,682, or okex $8,690. You can see only 0,2-0,5 % the difference of each exchange. If you find a exchange the price of Bitcoin is upnormal, or offering buy 1 bitcoin only pay 0,8 btc... than it's scam.
4. Ask for minimum deposit or KYC (example)
Many scam exchange usually do this after you want to withdraw your funds. They will say to complete your KYC first or ask to deposit first to make you can
to withdraw.

I would suggest to use trusted and popular exchange only... such as binance or coinbase, it's risky to use brand new or unknown exchange. Also don't forget to double check the right url to prevent from phishing sites.

CMIIW

[btcltcdigger]

Well, if you run into an exchange which you've never heard of, but someone claims it's "old and legit" just google it.
If it's really old, it should have dozen upon dozens of pages of reviews or mentions

[marbru3]

High withdrawal fees are also one of the known exchanges scams.
Always do your research, it is better to spend some more time looking for information than regreting it later that you didn't.

[Jating]

High withdrawal fees are also one of the known exchanges scams.
Always do your research, it is better to spend some more time looking for information than regreting it later that you didn't.

Or better yet, you can't withdraw any. Yes, I have heard Exstock pulling scams in crypto space recently. I guess the only options is (1) used DEX (2) if you are going to used CEX, you should go with the top like Binance or high liquidity exchanges. In the space we move and live in, you can't really trust anyone here, and check the history of exchanges before depositing any of your hard earn money so always DYOR. You can also check this website https://www.bti.live/exchanges/ for fake volume reports and which exchange are faking their volumes.

[janggernaut]

High withdrawal fees are also one of the known exchanges scams.
Always do your research, it is better to spend some more time looking for information than regreting it later that you didn't.

Not always, Hitbtc which has one of highest wd fees (around 0.0015 btc) isn't a scam site (i've been used them since years).

 

4. Ask for minimum deposit or KYC (example)
Many scam exchange usually do this after you want to withdraw your funds. They will say to complete your KYC first or ask to deposit first to make you can
to withdraw.

This one which we should have extra caution, especially when we are choosing new exchange to exchange/store our coins. Just forgot and leave a site when they asked you to make deposit before you make a withdrawal

[chaser15]

Without going too much technical, if the exchange is new to your vocabulary then simply ignored it. There are lots of reputable around.

But what if you have tokens that needed to be traded there? You have no choice but to take the risks.

But beforehand, always ask the community and check for some reviews here.

[GreatArkansas]

I also already encountered these kinds of exchanges, which is extremely risky because if you look at the first glance, like on their website, you don't think it is a scam or something shady exchange since their user interface kinda looks legit, you will only know once you deposited funds in your account or start to trade or withdraw the funds, but these possible incidences can be avoided if we will also have a time to read their Terms & Conditions, but still, even their Term & Conditions are well written and they are still want to scam you, it's no effects.

[o_e_l_e_o]

Why do you need to use an unknown exchange ever, for any reason?

There are enough well known decentralized exchanges such as Bisq, LocalCryptos, Hodl Hodl, and enough well known centralized exchanges (although I would never recommend sacrificing your privacy and security by using a centralized exchange), that there is no need to ever choose a new or unknown exchange, especially considering the majority of them turn out to be scams. Any coin or token that can only be traded on some unknown two bit exchange is either a scam itself or completely pointless and will only lose you money.

Just stick to bitcoin and stick to exchanges that are well known. Don't lose your money on scam exchanges with scam altcoins.

[masulum]

that there is no need to ever choose a new or unknown exchange, especially considering the majority of them turn out to be scams.

I remember when I try to use Hotbit (before marked as a scam by Bitcointalk member) last year. The main reason why I choose this exchange because they are the only one exchange available for my Altcoins. Maybe the same things also happen to  newbie. They want to join the new exchange because he doesn't have an option to sell their Altcoins, or they are interested in airdrops or some "bonuses".

[taufik123]

-snip-
4. Ask for minimum deposit or KYC (example)
Many scam exchange usually do this after you want to withdraw your funds. They will say to complete your KYC first or ask to deposit first to make you can
to withdraw.

I would suggest to use trusted and popular exchange only... such as binance or coinbase, it's risky to use brand new or unknown exchange. Also don't forget to double check the right url to prevent from phishing sites.

CMIIW

If asking to complete KYC must be more careful, KYC is very vulnerable to be given to others because it contains our personal data.

Exchange that is not popular and not yet widely known can be an indication of an exchange scam that requires a deposit and KYC.

Choosing Exchange which is popular and widely used by people today such as Binance, Coinbase, will indeed be more secure. But as you said, be careful of URL links because many phishing sites resemble the original Exchange site.

But there is an Exchange that has already indicated SCAM but still exists today, p2pb2b and Coinsbit.
P2PB2B Scam!! Selling coins they don't have, wash trading, fraud and theft!

[marcelsantoso]

For me, trading on big exchanges matters a lot. Not only to avoid getting scammed, but also for the market spread. I tried trading on small exchanges, the bid-ask spread is HUGEEEE ! It took a big portion of ur profits ! on top of that, you still have to pay for the transaction fees as well!

[LbtalkL]

It is hard to trust on new exchange now, We have top exchanges, why not try and only use those exchange to avoid being scammed? You can identify them by reviewing some feedbacks about that particular exchange if it is suspicious dont ever give your personal data to them. Coinmarketcap has a lot of sh*t exchanges listed but I guess CZ will remove it one by one. You can verify some exchanges on coinmarketcap only search the name of the exchange, you also look on coingecko to look for exchange data.

[ShowOff]

I remember when I try to use Hotbit (before marked as a scam by Bitcointalk member) last year. The main reason why I choose this exchange because they are the only one exchange available for my Altcoins. Maybe the same things also happen to  newbie. They want to join the new exchange because he doesn't have an option to sell their Altcoins, or they are interested in airdrops or some "bonuses".

Yes, you are right. Often bounty hunters are faced with new exchanges to sell altcoins that they get from bounty. There is no other choice for them if they dont sell it there and they have to bet with the security of their money and personal data like KYC that is needed.
Its just that they still have to be careful using the exchange even though there are no other exchange options. And it would be better, do not use the exchange if the amount of assets owned is very small. Unknown exchanges have an unfavorable potential for trader security.

[ololajulo]

High withdrawal fees are also one of the known exchanges scams.
Always do your research, it is better to spend some more time looking for information than regreting it later that you didn't.

I observed this high withdrawal fee in some of those low rated exchanges, what will take you to those exchange will be projects that dont want to spend on good exchanges. This withdrawal fee are not stable and volume for bitcoin and ethereum are very low. Experienced traders are smart not to get on these exchanges to trade, so they are rarely visited and approached for listing, sometimes they go the other way to approach project for listing at low price.

[Pmalek]

Not always, Hitbtc which has one of highest wd fees (around 0.0015 btc) isn't a scam site (i've been used them since years).

I wouldn't be so sure about that. You might want to read a few things about them. They are known for freezing customer funds.

Take a look at what the community thinks about them
https://bitcointalk.org/index.php?action=trust;u=194708

Some scam accusations
https://bitcointalk.org/index.php?topic=5220892.0
https://bitcointalk.org/index.php?topic=5221422.0
https://bitcointalk.org/index.php?topic=5050207.0
https://bitcointalk.org/index.php?topic=2556342.0

They are untrustworthy to say the least if you ask me. 

[Harlot]

As you see i have scammed so many times through excahge,i don't have any knowledge to identify the scam exchage.Can you suggest me some scam exchage are there right now so that i can avoid those exchanges.

And it will be better if any crypto lovers will tell me how to identify scam exchanges.I am very enthusiastic about crypto and i don’t want to be disappointed and not interested to loss money. .So feel free to give me a suggestion.It will be very helpful.   

Best way to avoid joining a scam exchange is not to be in it in the first place. What I mean about that is don't always jump into new exchanges the first time you see about them or have heard about them joining a new exchange even if they are highly promoted is risky especially if you really don't know who are running them, you are basically putting your money on a stranger online. You should stay away from these exchanges and monitor them for months to see if they are really ok. I don't even know why a lot of people are searching for new exchanges every time here as if the ones who are already established are not good enough, maybe you are just one those people who are looking for exchanges that has no KYC or 0% trading fees, well those kinds of exchanges (at least the trusted ones) don't exist.

[Negotiation]

I think the easiest way to identify crypto exchange scams is to stay away from KYC and always avoid exchanges on new sites New sites are scamming more You need to analyze the market well. Also, I would suggest you verify the reliability of the site you are going to exchange, so you can easily identify scams It is not possible to do that on the site that is in doubt and before working on a website the manager has to check it well In case of an exchange you have to do a good search which cannot be found in the market.

[joniboini]

One of the easiest way to avoid a scam is to place any exchange without public team members or known founder in the 'possible exit scammer' list if they're new. Those exchanges can easily run off with your money.

Identifying whether an exchange is going to scam you or not is quite difficult as we don't know exactly what's going on under the hood. But there is always a sign if something is going downhill. Aside from all of those signs mentioned above, you can check whether withdrawal on those exchanges is running smoothly or not. If there are a lot of reports that there are ongoing problems with withdrawal and no clear fixes have been done by the exchange in question, you should start flagging them as 'soon to scam us' exchange.

[Akiko]

In recent times,there are 100 of crypto exchages are opening and the number is increasing.It is a good thing that we can trade our coin in this exchanges.But the most worrisome news is that majority of the small exchanges are scamming people though their exchages.

Recently Exstock exchage is the perfect example of scams.They have promoted their exchange nicely.And after sometime they are not giving withdraw to any people.A lot of small traders like me have lost their money.So for now i am very worried about the safety of my money.

As you see i have scammed so many times through excahge,i don't have any knowledge to identify the scam exchage.Can you suggest me some scam exchage are there right now so that i can avoid those exchanges.

And it will be better if any crypto lovers will tell me how to identify scam exchanges.I am very enthusiastic about crypto and i don’t want to be disappointed and not interested to loss money. .So feel free to give me a suggestion.It will be very helpful.    

considered it scam when its still new exchange  so you will not feel victim if they plan to scam user's. There are many popular exchange that close in the last past years and run traders money.
For example c-cex,cryptopia and the last I heard is idax.

Its really hard to identify if who's  in those exchange is scam and plan to run traders money, only use an exchange trusted by many and don't stored many coins in any  exchange for long time even its trusted by many users.