There will be at least two instances when newbies or even experienced users want to use new exchanges, either:
1. There is a promotion that promises to give x% return of the money they deposited to the exchange (or other kinds of promotions that basically require users to deposit).
2. They need to exchange some shitcoins that are only listed on those exchanges.
You can actually trade and withdraw your crypto from those exchanges before the days they do their exits. They provides a very friendly exchange for developers and users. Developers can list any coin they want. With Altex, they listed many coins free of listing fee to attract projects and users. People who mined or bought shit altcoins need a place to sell it and Altex gave them a place. Finally, people cashed out their shit altcoins to BTC, LTC, XMR, etc. and if they did not withdraw from that exchange, later they will be scammed and lost money.
I don't give anyone my advice that those exchanges are safe and should be used but if they are scammed initially to mine shit altcoins, it is better to have exchange to cash out. The key thing is withdraw immediately after sell orders are filled. Don't trade on those exchanges.
Before scam exits, they often shed some lights of exits. In my topic you can see the exit of Crypto Bridge (forced KYC on US customers and one or few months later, they forced KYC for global users. Weeks later, they exited (with money and identities of users).
I was scammed by Altex but fortunately I did not KYC with CryptoBridge and withdrawn my money in the given time.
IMO if you need to do those, never do KYC and only use a small part of your money. A better option would be to wait until they prove their security. I've been a victim too in the past because I need to sell some shitcoins, and I never got my money back.
Why KYC is extremely dangerous – and useless
