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

[dothebeats]

It's unusual in this day and age for exchanges to just simply pop in to the scene and generously list coins without any fees. Even if an exchange is new, they would have asked for some listing fees no matter how small if they want to profit.

Their first moves already scream scam. Probably even collaborating with some coin creators too. Best to avoid the exchange for the mean time unless they are able to prove their legitimacy.

[Rengga Jati]

-snip

Sometimes, this doesn't only happen on newbies but also some people, in the crypto also expected this, getting into the new exchanges that are low trust, reputation, and also probably scam.
This will depend on how we see the new exchange. Sometimes, they offer very interesting and also promising rewards, very low transaction fees, or event various events or programs. And sometimes, many people are trapped to be interested in this kind of promotions.
Well, it depends on each individual.

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.

If theya're newbies, I think that they don't know much about what to differentiate among the exchanges. Or, they only follow others to get into certain exchanges because of certain promotions. Or even they're interested in the rewards that they will get

[Shasha80]

As traders, I am very grateful for the opening post to remind all of us as traders, especially newbies, about the new exchanges. Because if we
weren't careful with the lucrative offers from new exchanges, we could all fall victim to scams. Therefore, choose exchanges that really have
a good reputation, so that it can prevent us from becoming a victim of scams. If you are really curious to try using new exchanges that don't
have a reputation, you can deposit a small amount first. After 6 months of using the exchanges never having a problem, it is very likely that
the exchanges are reliable. Then you can increase the amount of deposits even bigger.

[Bitcoin Smith]

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.

Centralized p2p like LBC or Pax never going to help you legally if you traded with someone who is having illegal source of income. I am personally trading on LBC for more than year I know lot of people got penalty from the government because they traded with hacked bank accounts and LBC may not even share the KYC details of the user who traded with you so beware of p2p trades no matter it is either LBC or Localcryptos.

[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.

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.

That's a really crappy way to make a comparison. How do you know that centralized services aren't sending you money from random people whose source of income is unkown? Or that the money you get on a daily basis is also from unknown sources? Do you even know who pays your signature campaign and where their income comes from?

[michellee]

If we already have our own favorite exchange, we do not have to try to use the new exchange before we know if that exchange is real and good for trade because we must avoid the scam exchange, as @OP says. If the new coin or new token is listed on the new exchange, we may need to wait for a while and see how it progresses. If the progress is good, maybe you can try to trade for a small amount to see if that exchange is fitted for you. Otherwise, you need to stay away from using that exchanges.

[tranthidung]

This will depend on how we see the new exchange. Sometimes, they offer very interesting and also promising rewards, very low transaction fees, or event various events or programs. And sometimes, many people are trapped to be interested in this kind of promotions.
Well, it depends on each individual.

New exchanges attract me if they have bonus without any requirements to make deposits or volume of trading to claim bonuses. Some exchanges give you free money for registration and they give you more if you make deposit, trade.

Beware of risks for deposit first if they require huge amount. There might be different tier of deposit to claim bonus and please don't fall into top tier, with big required deposit. If I join such bonus, I choose small one, just for fun and I don't stay on new exchanges for long. I will join them back if later they prove that they are legit exchanges.

If we already have our own favorite exchange, we do not have to try to use the new exchange before we know if that exchange is real and good for trade because we must avoid the scam exchange, as @OP says. If the new coin or new token is listed on the new exchange, we may need to wait for a while and see how it progresses. If the progress is good, maybe you can try to trade for a small amount to see if that exchange is fitted for you. Otherwise, you need to stay away from using that exchanges.

That is it. Sometimes, for shit coins or tokens, you have to make deposit to a strange exchange, to cash out. Mostly, they are not scam at beginning so when you cash out, withdraw your fund immediatly. Don't stay and trade on new exchange, if they are keen on listing newborn coins or tokens.

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.

I know. Legit exchange will do start with big and old altcoins. They will expand to new coins/ tokens later together with promotions. If one new exchange tend to focus only on new coins / tokens, it is not a good signal. They might scam you.

[Findingnemo]

snip~~~
That's a really crappy way to make a comparison. How do you know that centralized services aren't sending you money from random people whose source of income is unkown? Or that the money you get on a daily basis is also from unknown sources? Do you even know who pays your signature campaign and where their income comes from?

I think you need to calm a bit and analyze what I am saying, centralized exchanges are registered companies making payments from their bank accounts but while doing p2p we are receiving funds from random people we found using the platform, even though they submitted their KYC we can't actually trust that we are dealing with the verified person.

And about signature campaign payouts or basically gambling site payouts are not coming from unknown sources, those sites also regulated and we are receiving funds from their hot wallet not directly from other person's deposit means we are having someone in the middle between the transaction and gambling site will take responsibility if some illegal source funds are coming to their site.

[isaac_clarke22]

~

I am not even surprised with these types of exchange anymore. From the gazillion number of exchange that are popping up quite often, why do some people chose those that don't even built their reputations just yet and then complain in the end that they've been, as you mentioned, exit scammed.

I particularly only traded in Binance, EtherDelta, and had a bit of peek in Bittrex but they were still closed for new registrants back then so I didn't manage to do my trading there.

[michellee]

If we already have our own favorite exchange, we do not have to try to use the new exchange before we know if that exchange is real and good for trade because we must avoid the scam exchange, as @OP says. If the new coin or new token is listed on the new exchange, we may need to wait for a while and see how it progresses. If the progress is good, maybe you can try to trade for a small amount to see if that exchange is fitted for you. Otherwise, you need to stay away from using that exchanges.

That is it. Sometimes, for shit coins or tokens, you have to make deposit to a strange exchange, to cash out. Mostly, they are not scam at beginning so when you cash out, withdraw your fund immediatly. Don't stay and trade on new exchange, if they are keen on listing newborn coins or tokens.

That is why I do not pay too much attention to the new coin or token, especially if that coin or token is listed on the new exchange. But that will be different if that coin or token is listed on the big exchange such as Binance, Bittrex, Poloniex, KuCoin, or others. If that so, maybe I will try to search for the information, but I do not buy in a large amount. I agree with you to withdraw our funds immediately after we can sell the new coin or token.

[Kittygalore]

It's unusual in this day and age for exchanges to just simply pop in to the scene and generously list coins without any fees. Even if an exchange is new, they would have asked for some listing fees no matter how small if they want to profit.

Their first moves already scream scam. Probably even collaborating with some coin creators too. Best to avoid the exchange for the mean time unless they are able to prove their legitimacy.

Newbies are definitely going to fall for this but I think other traders falling for it is highly unlikely because of the reason why would you go for a new exchange when the old one is working just fine, I mean have they heard of the saying, "If it ain't broke don't fix it."? Because that is the case when they are going to switch to a new exchange with some questionable add-ons that as @dothebeats say, scream scam.

[sana54210]

It is understandable for a newbie to look for low level places and low level coins because we have made so much profit from just keeping bitcoin, not even on exchange, just buy it and put it on your wallet and we made 10x from last year, and they know that in order to make 10x they can't buy bitcoin, that would be 550k+ bitcoin price, which may eventually happen but we all know it is not going to happen anytime soon.

So those newbies, thinking they are too late for bitcoin or any other major coin, end up buying the low level coins from low level exchanges with the hopes of making 10x as well, and soon realize that most of the times that is as bad as it gets, it is a loss making move, making profit with bitcoin is possible, maybe you are late, but it still doesn't mean that you should risk all of your money to make a profit like bitcoin holders did, bitcoin is legit and binance level places are legit, looking for that kind of profit in small places for small coins could hurt you.

[taufik123]

-snip-
So those newbies, thinking they are too late for bitcoin or any other major coin, end up buying the low level coins from low level exchanges with the hopes of making 10x as well, and soon realize that most of the times that is as bad as it gets, it is a loss making move, making profit with bitcoin is possible, maybe you are late, but it still doesn't mean that you should risk all of your money to make a profit like bitcoin holders did, bitcoin is legit and binance level places are legit, looking for that kind of profit in small places for small coins could hurt you.

It is indeed a very fatal mistake when trusting a new coin or exchange platform whose price is still very cheap and will conduct a public sale or something like that. Some of them created phishing web portals to trick some trusted users. The hope of getting 10x the initial price certainly makes them very interested. Currently there are many fraudulent practices like this. and what's becoming popular is the BSC platform and lots of new coins listed, some of which make cloning coins popular so people get stuck and Rugpull will happen.
Trading on the Binance exchange is the safest and don't trust any new exchange or coin whose origins are still unclear.

[tranthidung]

I agree with you to withdraw our funds immediately after we can sell the new coin or token.

Frankly, I fell into that step. Made deposits, took profit but I hesitate or just was lazy to withdraw my money. I let my capital on potential scam exchanges and lost it eventually. Not all, but some newbies will step in my shoes again.  

So those newbies, thinking they are too late for bitcoin or any other major coin, end up buying the low level coins from low level exchanges with the hopes of making 10x as well

It is the basics for investments. Choose the leaders in each aspect for your investments. In crypto market, it is bitcoin.

It is indeed a very fatal mistake when trusting a new coin or exchange platform whose price is still very cheap and will conduct a public sale or something like that. Some of them created phishing web portals to trick some trusted users. The hope of getting 10x the initial price certainly makes them very interested. Currently there are many fraudulent practices like this. and what's becoming popular is the BSC platform and lots of new coins listed, some of which make cloning coins popular so people get stuck and Rugpull will happen.

You are correct but I warned in OP about the risk of let your money in new exchanges. After you deposit, cash it out, withdraw it instantly into reputable exchanges. Don't stay on new exchanges more than what you need. There are many older and more reputable exchanges for you to use and make profit.

Trading on the Binance exchange is the safest and don't trust any new exchange or coin whose origins are still unclear.

Even Binance don't give you a guarantee that they can protect you from new coins or tokens are listed on their platform.

Their warning at bottom of every announcement.

Risk warning: Cryptocurrency trading is subject to high market risk. Please make your trades cautiously. Binance will make best efforts to choose high-quality coins, but will not be responsible for your trading losses.

[darewaller]

Don't blindly accept new exchangers because you are greed and want to get rich fastly

Completely agree there with you, picking an exchange is like choosing a bank account because we are sometimes going to deposit all our crypto there to trade and more than 10 exchanges I can easily recall that turned into scam. Some are selective scammers while others just shut down.

Don't blindly make big deposit just to claim deposit bonus

Never heard of a deposit bonus at an exchange but if anyone offers such things, I would rather avoid and be even more cautious.

Pay your attention on early signals of scam exit

I think the early signs are blocking other user's withdrawals while allowing deposits, right?

I actually never use new exchanges because I don't find a reason to fix something that isn't broken. I trade at Binance and they are more than trusted for a small trader like me and even then, I withdraw my profits into my wallet rather than keeping them on the exchange itself. I was shocked when cryptopia was hacked or they scammed, whatever. I stopped using new exchanges since then.

[bearexin]

I have even noticed that there are people who just register on exchanges because they are giving registration and first deposit bonuses, they don’t even care to check out these sites most of the times to know how legit they are, which is totally wrong.

People shouldn’t be letting these traps that are being laid by scammers to catch them, the main focus should always be on how good an exchange really is and not their offers, that’s just a tactics that’s being used by scammers to distract people from focusing on the main issues , it’s just like cheese on a mouse trap.

[ScamViruS]

New crypto traders are always waiting for some kind of bonus. It is often seen that new exchanges give users a bonus for registering on their exchange or giving a bonus on the first deposit. As a result, new traders are interested in registering and depositing in those exchanges without any research. And because of their haste, they often fall prey to various scams. There are people with bad intentions who are always waiting, looking for ways to fool inexperienced people and scam their money.

So new traders should refrain from depositing their funds in any unknown exchange to get any kind of bonus.

[wiss19]

If we already have our own favorite exchange, we do not have to try to use the new exchange before we know if that exchange is real and good for trade because we must avoid the scam exchange, as @OP says. If the new coin or new token is listed on the new exchange, we may need to wait for a while and see how it progresses. If the progress is good, maybe you can try to trade for a small amount to see if that exchange is fitted for you. Otherwise, you need to stay away from using that exchanges.

There are lucrative offers thrown at the potential traders by giving them features like 0% trading fees for the first month or things like that which lures the traders into making an account and start trading on these new exchanges.

It's unusual in this day and age for exchanges to just simply pop in to the scene and generously list coins without any fees. Even if an exchange is new, they would have asked for some listing fees no matter how small if they want to profit.

Some exchanges are actually making a living by doing this, they take money list a coin and don't care if the project is a scam because they get their listing fees and that is how they run their website.

I particularly only traded in Binance, EtherDelta, and had a bit of peek in Bittrex but they were still closed for new registrants back then so I didn't manage to do my trading there.

Bittrex is not very good, is all I can say. I have heard a lot of bad things about them and some even call them scam but because I haven't seen any accusation with proofs, I am not going to accuse them of scamming but staying away for sure.

[michellee]

I agree with you to withdraw our funds immediately after we can sell the new coin or token.

Frankly, I fell into that step. Made deposits, took profit but I hesitate or just was lazy to withdraw my money. I let my capital on potential scam exchanges and lost it eventually. Not all, but some newbies will step in my shoes again.  

I have that experience before, and I feel regret about that. Many times we do not want to take profit when we see the price increase higher. The truth is we want to make a bigger profit but we do not see the conditions that the exchange is good or not, so we delay to take profit. Once that exchange turns into become a scam and run away with the member's money, that will make us feel sad.

If we already have our own favorite exchange, we do not have to try to use the new exchange before we know if that exchange is real and good for trade because we must avoid the scam exchange, as @OP says. If the new coin or new token is listed on the new exchange, we may need to wait for a while and see how it progresses. If the progress is good, maybe you can try to trade for a small amount to see if that exchange is fitted for you. Otherwise, you need to stay away from using that exchanges.

There are lucrative offers thrown at the potential traders by giving them features like 0% trading fees for the first month or things like that which lures the traders into making an account and start trading on these new exchanges.

I am sure traders will attract to come to that exchange and deposit in big money. But if they can research for more information about that exchange, they will know the truth and they will not try to deposit their funds to that exchange. We need to be careful if we get those offers and make sure that we really know that the exchange is legit.

[7788bitcoin]

Even Binance don't give you a guarantee that they can protect you from new coins or tokens are listed on their platform.

Binance is asking for everyone's KYC if you are trading above a certain limit and if these tokens are making money and accepting investors then why not comply with a full KYC procedure for all the company members to be listed. I am not sure about the policies on listing a coin but they need to do something to avoid the scams that can be avoided by collecting and verifying these information.