Reminder for crypto newbies, traders. Be cautious with new exchanges

[tranthidung]

I am not sure Beginners & Help or Trading discussion is a best board for this topic. I leave it here. If it belongs to Beginners & Help, please move it.

In bull market, projects are created daily and exchanges are created to list new coins or tokens. You never know which teams are behind exchangers. Are they scammers and own some scam projects? What are purposes of those people when they create exchangers?

Years ago, in 2018, I lost my money with my stupid ignorance on advice from senior members. "Never store your cryptocurrency on exchanges. Store them in your non-custodial wallets."

Story

• Altex ^[1] is the exchanger that very friendly to list Cryptonight coins.
• Cryptonight coins were created abundantly in that year. Easy to mine with GPUs.
• The exchanger listed new coins without listing fees (as I recalled).
• They quickly accept any listing request -- that I believe you will see more in this current bullish market.
• Early signal of scam exit ^[2]
• Less than one month later, they made that annoucement ^[3] and exit.

Advice

• Don't blindly accept new exchangers because you are greed and want to get rich fastly
• Don't blindly make big deposit just to claim deposit bonus
• Pay your attention on early signals of scam exit
• and more. Generally, be cautious with new exchangers in the bull market

Resources

• https://twitter.com/altex_exchanger
• https://twitter.com/Altex_exchangeR/status/1015052661605924864
• https://www.twitlonger.com/show/n_1sqk2fh
• Beware of "Pay original fine" - a scam method. It is a template scam exchanger. I am not sure you still see this scam template around. If you see it, beware of this scam and protect your money.

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[Oshosondy]

It will be good to move this to beginners and help, or scam accusation, but for beginners to gain from it, will be good to move it to beginners and help. There are exchanges like that, it is called scam exit. Before using an exchange, it is good to make detailed research about them because some are scam while some projects are just scam, either scam exit or pump and dump. Also after researches, it is also good to focus on the coins listed, new coins are often risky to dump while many are just scam that will lead to classic scam exit. There is nothing better than to invest in bitcoin or invest in strong ones that you know are not scam, altcoins like ethereum, polkadot, litecoin, cardona and of the category.

[zanezane]

The problem is why do newbies want to go for the new exchanges when there are established ones that are far more reliable and are guaranteed to not run away with your money. Going in with big money as a newbie I think is the biggest mistake that anyone can do especially as the topic says, you are in a new exchange.

[cryptomaniac_xxx]

The problem is why do newbies want to go for the new exchanges when there are established ones that are far more reliable and are guaranteed to not run away with your money. Going in with big money as a newbie I think is the biggest mistake that anyone can do especially as the topic says, you are in a new exchange.

I can only think of one reason, perhaps that token that they want to trade is listed on that exchange. But perhaps the token devs and exchange themselves has been colluding to dupe crypto traders, specially newbies. And then after they ran their scam, the crypto exchanges will suddenly disappear and newbies are going to complain in this community and it's gonna be too late.

[tvplus006]

The problem is why do newbies want to go for the new exchanges when there are established ones that are far more reliable and are guaranteed to not run away with your money. Going in with big money as a newbie I think is the biggest mistake that anyone can do especially as the topic says, you are in a new exchange.

Indeed, there are now many cryptocurrency exchanges that have been operating for quite some time and already have a positive image. Among the long list, you can choose several exchanges that will fully meet your trading needs. But as a rule, beginners are looking for such exchanges, for registering on which they receive a certain bonus, which is fundamental for them.

[Gozie51]

As far as this internet space is concern, you will keep getting and hearing people scammed. This is unfortunate that no matter the preaching and warning, people get scammed especially newbies. These are part of the experience. When you like to go for cheaper products and what free gift you get, then you keep losing the substance. Experience teach us something if we learn from it.

[sheenshane]

As I remember in that year (2018) there are too many exchanger platforms that arrive and most of them running a bounty campaign here in the forum.  And yes, they promoting their exchange platforms altogether with the token/coin that based on the name of the exchange.  But as I noticed them, they dont survive and they don't make it to grow at least operated for how months. 

It's really hard to trust a new exchanger that newly arise, even though it has offered great promos but still, you need to be careful on depositing a huge amount, it might they exit scam will happen.  Though this is very common that happened and we dont know what is the sole purpose of the owner who runs an exchanger.  Failure of exit scam is a very common thing that happens in most crypto projects back then.

Withdraw your fund after making a profit on the exchanger, don't let sleep your fund on the exchanger, that's not a good practice.

[cryptoaddictchie]

The problem is why do newbies want to go for the new exchanges when there are established ones that are far more reliable and are guaranteed to not run away with your money. Going in with big money as a newbie I think is the biggest mistake that anyone can do especially as the topic says, you are in a new exchange.

Not only newbies can fall for this even regular users can be a victim especially if the promotions is irresistible.

New market exchange seems to be a quite a trick now. What can scammer get from feeding a known method. Their trying to gear up a real project with a slow rug liked that will happened somewhere in the future as they can make their platform trustable. Too bad, services can be knee if working properly or have signs of an exit scam.

[crwth]

I think it's wise to take everything with skepticism. It's not that I don't trust anything but it's way too obvious to fall for scams without anything to hold on to. I'm quite curious about how exchanges like the scams out there get the victims. Are they that common or is it like a pyramid scheme that you get your payout if you invite people etc. I'm saddened by people who get scammed like this.

I have recently known someone that is in talks with people in a certain exchange and I'm not sure if it's legitimate or not. He only deposited a small amount but he gave his information and ID for them. The KYC method so I'm quite worried about his experience.

[yhiaali3]

Unfortunately, many people fall victim to such scams, especially beginners, the worst is that many of these fraudulent platforms are listed on Coin Market Cap, some people think that the mere presence of the platform or coin on Coin Market Cap, this means that it is reliable, and this of course is not true so you find many They fall victim to fraud.

[Findingnemo]

I want to remind something to the traders especially to newbies, "don't beleive google when searching crypto related services", because mostly you will end up choosing a scam or clone website.

[davis196]

I wonder why a newbie would choose a new crypto exchange,rather than some established platform.
Is it because of the lack of KYC and ID verification,or it's because of the lower trading fees and other perks?
Don't they realize that they are putting their coins at risk,when depositing into unregulated exchanges,that have no positive feedback around the internet.
I've used only one small and relatively new exchange(it was new back in 2018) just to sell some tokens that I got back in 2018.I didn't have problems,but the amount of was small(200USD),so I wasn't risking that much.
I'm never going to use a brand new and unregulated crypto exchange platform again.

[cheezcarls]

To be honest, I don’t think we need new exchanges anymore because it’s already saturated and may get very low trading volume and liquidity or supporters. Why would I need new exchanges to be in the game, where there are already existing ones like Binance, OKEx, KuCoin, Bityard, Huobi Global, etc. Just saying.

[slaman29]

These days you don't need a centralized exchange anymore so that's the good thing. Go p2p if you want, safer with escrow, or if it's those alttokens you're interested in there are so many AMMs out there that'll take your btc too.

I can't ever consider using a new exchange now. If I really need a CEX Binance and Bittrex are enough for me.

[goaldigger]

I’m tired of seeking for new exchanges since most of them failed to operate even after making so many updates and most of them turned into a scam.

This is why newbies have to deal with the best exchanges, to avoid problems in the future and of course, they offer good services as well. If in doubt, always go for the best options and for me, Binance makes things possible for a trader.

[Findingnemo]

These days you don't need a centralized exchange anymore so that's the good thing. Go p2p if you want, safer with escrow, or if it's those alttokens you're interested in there are so many AMMs out there that'll take your btc too.

I can't ever consider using a new exchange now. If I really need a CEX Binance and Bittrex are enough for me.

P2P is not really an alternative for centralized exchanges because you are going to trade with random person which means the source of the money is unknown for you but what if it comes from someone who involved in illegal activities so you also will be on the wanted list now.

[Furious 7]

Maybe we often see projects about exchanges that will be launched with a lot of promos that they spread, but that all can be a danger if we are careful scamers with a lot of funds are taken away by him.

All you have to avoid is for beginners who don't know don't be consumed by promotions so that beginners deposit more money to get a meager $$ even though it's a trap for you.

There are many exchanges available, maybe all the best altcoins are there so use an exchange with a good reputation.

It's true that the OP saves assets more on hardware than on the exchange with full of risk.

[el kaka22]

Exchanges are definitely one of the riskiest places to lose all your money, after all they could take millions of dollars easily and run with it, it is easier than any other place on earth. I believe there is no reason to get away from big places, using binance, coinbase, kucoin and so forth would yield no problem, or at least it would be harder for those places to face any problems compared to these small level places.

I am not talking about this example but normally small exchanges could be easier to hack as well and that is why even if they are decent places with no scamming intention, they could still end up losing all their coins from one hack and they would have to close, that is the saddest part because they are still legit and they made no money but because of some hackers they are seen as scammers, that does happen time to time to some people.

[Oshosondy]

P2P is not really an alternative for centralized exchanges because you are going to trade with random person which means the source of the money is unknown for you but what if it comes from someone who involved in illegal activities so you also will be on the wanted list now.

If the funds are illegal, so far you use a legit p2p exchange, you have nothing to be worried about, it is not black market but I am speaking about the ones on centralized exchanges, most p2p are centralized, only few are not centralized. But if decentralized one is used, I do not know what could happen in this case.

[carlfebz2]

With lots of exchanges in the market and still continue to grow in numbers as a the year passed by then its really not surprising about these scammy exchangers existence.

Even though not all of them are scam though, imagining wayback on how Binance and other famous exchange atm did start where it did really came from scratch.

You can eventually tell if a certain platform is serious on giving out their service from UI/UX until to service that they do gave into its users.