bitcoin and exchngers and others

[cryptoboss2020]

so how do we know that crypto exchngers dont sell us the coins what they dont exisit?

and how do we know those big funds who bought or pretinding to buy or sell some big ammounts of cryptocurrency `?
how do we know they dont lie us ?

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[logfiles]

so how do we know that crypto exchngers dont sell us the coins what they dont exisit?

By avoiding trading shitcoins in shit exchanges. When you buy bitcoin from an exchange like Binance or Kraken, then there is a good level of confidence that you actually bought real bitcoins. The next step would be to withdraw them to an address whose private keys or backup seed phrases you have access to. If those Bitcoin's haven't hit your bitcoin address, they are technically not yours.

and how do we know those big funds who bought or pretinding to buy or sell some big ammounts of cryptocurrency `?
how do we know they dont lie us ?

The Good thing about bitcoin is that everything concerning transactions is viewable through bitcoin blockchain explorers. If a company claims that they bought and hold 10,000 BTC, then they should be able to prove that they own such an amount by providing the address that hold the bitcoins and sign a message for you to confirm by use of a blockchain explorer.

[Zemomtum]

You deal with a reputable exchange when buying a coin/token so that you will be ascertained that you are buying a real value product. There are some exchanges that if engaged with them, you are buying coins/token that has no real value or usage and most often disappear from market with 2 years. Binance, Huobi, Bittrex, Coinbase has proving to be listing a reliable projects that have passed a test of time.

[int03h]

We can buy cryptocurrencies that are listed on reputable exchanges such as Coinbase, Gemini, Binance, Houbi, Okex ...
or other exchanges with a large enough volume.
We cannot tell if the funds are buying cryptocurrencies but we can track the flow of money on the bitcoin blockchain.
A company that buys real cryptocurrency they can tell us by making their address public.

[Casdinyard]

so how do we know that crypto exchngers dont sell us the coins what they dont exisit?

and how do we know those big funds who bought or pretinding to buy or sell some big ammounts of cryptocurrency `?
how do we know they dont lie us ?

You can simply check coinmarketcap if the Coin/Token/Crypto exists. Soon, as you progress more in engaging to crypto community, you'll learn what's a real crypto and what's not. Crypto exchangers that supports coins/token exchange are mostly shits and were only promoted by those scammers. There are numerous events back then that exchangers supported token and their token address to be exchanged on real crypto yet it wouldn't work unless there would be some buy order on the market. Also, if your really wanted to know more about such topic, better try browsing on trading discussion, as you've seemed to be interested in how trading works.
'

[joniboini]

You can simply check coinmarketcap if the Coin/Token/Crypto exists.

I think that's not what he wanted to ask. He's asking whether or not those exchange are trading "real" coins and have the assets to back it up, or just arbitrary ticker.

IMO everything is verifiable on the blockchain, which is why some bot like Whale Alert can label an address as "Kucoin Hot Wallet", "Binance Cold Wallet", etc. On top of that, as long as you can still withdraw your coins from that exchange I think that's fine. If you still feel nervous while you do that, then use DEX or make P2P deals.

[NeuroticFish]

so how do we know that crypto exchngers dont sell us the coins what they dont exisit?

I think that the best indicator is that the exchange is old/established and nobody complained they cannot withdraw their coins from the exchange (to their own wallets).

and how do we know those big funds who bought or pretinding to buy or sell some big ammounts of cryptocurrency `?
how do we know they dont lie us ?

You cannot really know who is trading what amounts. There are plenty of exchanges and an entity can spread the orders between them.
If you buy/sell it doesn't matter if you use a reputable exchange, see your first question. Most exchanges match the funds between buyer and seller, so if they didn't deposit they cannot trade.

A much better question is who is holding how much. And there some are probably lying (like the story that USDT is properly backed) and some are probably telling the truth (Square), but only 3rd party proper audit can tell the truth.

[liquigate]

It is practically impossible to understand if the bitcoin you purchase exists in the first place as exchanges can replicate the orderbook with fake volume. However, large exchanges (Binance, Kraken, Coinbase etc) are using market makers, and market makers make sure that there is enough liquidity on a token / cryptocurrency. Exchanges must quite oftern perform Audits and they must keep an up to date bookeeping that makes it easy to find out what is happening (assuming someone would investigate an exchange)...

That being said, if an altcoin / cryptocurrency exchange has no market maker and reports high volume, quite possibly it is faking it. (yes, both a token and an exchange must have a liquidity provider.) CoinMarketCap and other such cryptocurrency data CAN NOT BE FULLY TRUSTED, because to some extend they are "trusting" the token owners and small exchanges which at some extend have no power to work with market makers for healthy orderbooks. Altcoins exchanges can manipulate their volume by faking their orderbook.

The best thing to do, is to search for "market makers/liquidity providers for cryptocurrencies" and which exchanges they are working with.

If an exchange or altcoin is not working with a market maker, then quite possibly it is faking its volume. Market makers exist in order to provide liquidity.

In the stock market, from what I know (please someone correct me if I am wrong) it is required by law to have a liquidity provider. This rule might have not yet applied to cryptocurrency exchanges, but it is a no brainer if you want a healthy orderbook. Otherwise you risk pump and dumps, big spreads etc. You can find out which token has no market maker by checking its spread. For example a token that has a buy order at 100 satoshi, and a sell order at 900 satoshi, quite possibly has no liquidity provider.

If you do not know what a liquidity provider / market maker does, I suggest you google it as it is quite interested topic in order to understand a bit more about how markets work.

PS: My background comes from Operations and Business Development with an exchange and an online broker. I have recently started a Bitcoin cashback service that rewards users for shopping online with well known brands such as Booking.com, Aliexpress, Zaful, Alibaba etc. I would appreciate a feedback on our website https://www.liquigate.com and mobile app, and if anyone is interested in helping out, do email me at support@liquigate.com

Thank you in advance
Denis

[witcher_sense]

so how do we know that crypto exchngers dont sell us the coins what they dont exisit?
~

That is called fractional reserve exchanges. On these exchanges it is assumed that most people will not cash out at the same time and continue trading instead. Using this method exchanges can artificially expand their trading volume by printing fake coins and also profits by collecting additional fees. The main problem here is that such exchanges are insolvent by default, if demand for real coins increases, it leads to collapse and bankruptcy of the exchange. In other words, if any exchange is run on fractional reserve system, it is insolvent therefore a scam exchange. Users should always remember the motto "Not your keys, not your coins." to avoid being scammed by these fractional reserve exchanges.

[Karartma1]

so how do we know that crypto exchngers dont sell us the coins what they dont exisit?

and how do we know those big funds who bought or pretinding to buy or sell some big ammounts of cryptocurrency `?
how do we know they dont lie us ?

There is a very informative thread on the matter you want to investigate. Is from a while ago but I haven't seen a better explanation so far.
https://bitcointalk.org/index.php?topic=945881.0
Of course it's a matter of trust whether you believe or not to the fact that the exchange you are using will live up to its obligations.
Never forget: if you don't control the keys, then you have no coins.
If I was you I would take some time to study all this.

[liquigate]

Nicely said, +1 on this!

so how do we know that crypto exchngers dont sell us the coins what they dont exisit?

I think that the best indicator is that the exchange is old/established and nobody complained they cannot withdraw their coins from the exchange (to their own wallets).

and how do we know those big funds who bought or pretinding to buy or sell some big ammounts of cryptocurrency `?
how do we know they dont lie us ?

You cannot really know who is trading what amounts. There are plenty of exchanges and an entity can spread the orders between them.
If you buy/sell it doesn't matter if you use a reputable exchange, see your first question. Most exchanges match the funds between buyer and seller, so if they didn't deposit they cannot trade.

A much better question is who is holding how much. And there some are probably lying (like the story that USDT is properly backed) and some are probably telling the truth (Square), but only 3rd party proper audit can tell the truth.

[pooya87]

so how do we know that crypto exchngers dont sell us the coins what they dont exisit?

I think that the best indicator is that the exchange is old/established and nobody complained they cannot withdraw their coins from the exchange (to their own wallets).

unfortunately that is not a good indicator because unless everyone makes a withdrawal we have no way of knowing whether the exchange is lying or not.
but the more important thing to remember in this case is that the coins that someone buys on an exchange is not bought from the exchange, it is bought from other people (aka the other traders). the only thing exchanges fake is their volume and in some cases their solvency which can only be seen if everyone made a withdrawal.

[fiulpro]

Whosoever buys coins from an exchange should not keep them in there for long periods of time.

You need to send it to a safe location! A wallet whose keys you do have.

At the same time you don't have to actually use a exchange that would be this suspicious, therefore I believe  if you have to ask such questions, you have to think about using good one's.

Check the review of the website before using it and make sure that you are using something reliable, something which many people trusts.

Even if you have to pay a little more fee I believe security is the prime importance.

[dothebeats]

Simple, don't do business with no-namers in the scene and take your business on somewhere reputable. Dealing with centralized exchanges require a small amount of trust that they won't fuck you over with non-existent coins that they just alter within their systems without you knowing it. That's why one should not fully trust exchanges no matter how big they get since there is still a slim amount of chance that they will do something fishy on your account and you can't do jack shit since they hold the receipts. Even the best exchanges sometimes have their faults, and even established ones tend to do some shitty things too on a small-scale, so it's not entirely safe IMO.

[20kevin20]

so how do we know that crypto exchngers dont sell us the coins what they dont exisit?

While using reliable/decentralized exchanges fits as an answer perfectly, sometimes it may be a trusted exchange selling virtual Bitcoins. That's right, virtual virtual currency.

For example, I would avoid purchasing BTC on platforms that only give you non-withdrawable Bitcoin on paper like purchasing Gold stocks. You don't actually end up owning Bitcoin on there - it's just you paying the price for something they don't truly sell, if that makes sense.

Back when the immigrant crisis was a thing in Europe, banks selling gold have been hoarded by people trying to physically withdraw their owned gold - and that is a very big issue. I'd rather own it physically than virtually, the same way I'd rather own Bitcoin in my own wallet rather than a number on a random "reliable" website.

Edit: Revolut may be one of these reliable platforms selling non-withdrawable Bitcoin. The link sends you back to a 2017 forum post though, so the information may be outdated.

and how do we know those big funds who bought or pretinding to buy or sell some big ammounts of cryptocurrency `?
how do we know they dont lie us ?

Who, exchanges? Oh, there are lots of exchanges doing what is known as wash trading, faking their volumes.

How do you know who bought what? Well, you just don't. But you don't know if Gold's market activity is 100% legit either - and I can assure you it isn't.

[BrewMaster]

You can buy sell crypto in coinmarketcap listed top exchanges like Binance, Kucoin, Probit exchange, there is sure confidence that you have bought right coin but if you invest in socalled exchange, you may lost your assets by trap. So beware before investment in new exchange. Always try to trade in top exchanges.

You are very mistaken if you think sites like coinmarketcap care about what they list on their platform. This includes exchanges they list. Besides, we all remember how many top exchanges and top altcoins in coinmarketcap have gone down, scammed and ran away.
Dont be fooled by these things ever or you'll end up losing your money just like so many others did.

[taufik123]

Simple, don't do business with no-namers in the scene and take your business on somewhere reputable. Dealing with centralized exchanges require a small amount of trust that they won't fuck you over with non-existent coins that they just alter within their systems without you knowing it. That's why one should not fully trust exchanges no matter how big they get since there is still a slim amount of chance that they will do something fishy on your account and you can't do jack shit since they hold the receipts. Even the best exchanges sometimes have their faults, and even established ones tend to do some shitty things too on a small-scale, so it's not entirely safe IMO.

The coins we have on the exchange are not really our coins because we don't have full control over these coins. It is very risky to keep all the assets we have on an exchange, but the quality of the exchange is also a guarantee that our assets are safe. Examples such as binance. The case of Binance that was hacked made Binance even more vigilant and the security level was improved again.

Do not entrust all owned assets to an exchange that is not clear about its reputation. Reputation is very important so that nothing bad happens in the future.

[kryptqnick]

so how do we know that crypto exchngers dont sell us the coins what they dont exisit?

and how do we know those big funds who bought or pretinding to buy or sell some big ammounts of cryptocurrency `?
how do we know they dont lie us ?

If you register on a reputable exchange, buy some BTC with fiat and then withdraw it to your crypto wallet, you'll definitely know the coins exist when they appear in your wallet. Use reputable exchanges, wallets and cryptocurrencies, and you'll avoid scam. And if you mean fake trading volumes that exchanges report, this is way harder to check and is unfortunately a serious problem. I don't trust the reported volumes after the scandals that occurred, but it's fine to choose exchanges based on other things like the number of active users and, most importantly, reputation.

[traderethereum]

so how do we know that crypto exchngers dont sell us the coins what they dont exisit?

and how do we know those big funds who bought or pretinding to buy or sell some big ammounts of cryptocurrency `?
how do we know they dont lie us ?

You can avoid that by registering on the reputable exchanges such as binance, bittrex, poloniex, and don't use the unknown exchanges or the new exchanges because we don't know how good that exchange serves their members.
You can check the coins at coingecko or coinmarketcap to find where the coin is listed, so you can choose a reputable exchange to buy the coin.
We don't know who the person who buys the coin with big funds because if you check on the order queue, we don't know if that order is from one person or two people.
As long as you can buy on the reputable exchanges, you don't have to worry about scam because the reputable exchanges will always take care of their reputation.
You don't have to worry about the negative things because you can prevent that by always selecting the reputable exchange, and no need to be afraid.
You should remember that you don't need to use big money to buy the coin if you are not sure about the exchange.

[suzanne5223]

so how do we know that crypto exchngers dont sell us the coins what they dont exisit?

Crypto exchange site operate as traditional banks but we have a situation where some exchange site are accused of scam and fake trade volume and to avoid such trading site you have to choose dron the top reputable exchange site

and how do we know those big funds who bought or pretinding to buy or sell some big ammounts of cryptocurrency `?
how do we know they dont lie us ?

Firstly, you using an exchange site or an exchanger (a person who buy and sell through p2p or on this forum) have to start with you grusting the exchange site or exchanger and to know they actually don't lie you have to check their review and feedbacks but I will advise you not to use exchange site that is not listed on CMC of coingecko cause there are fake exchange site that can also fake review.