All exchange names are provided as examples and not as advertisements.
I would like to share my thoughts on why beginners (I will not say that almost all newbies do this, but there is a large percentage of those who do this) choose any dubious no-name exchanges at the beginning of their trading path.
I never understood this. What, well, what could be attractive in an exchange where the trading volume is less than a million dollars, in the exchange list there are solid shitcoins with zero capitalization and 1-2 dozen already well-known cryptocurrencies, such as ETH, XPR, DOGE, LTC, etc.? Such exchanges do not always even have a stop loss, not to mention other types of orders.
Over the course of several years of observation, I have identified for myself the most common reasons why newbies sit on such semi-dead exchanges.
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The exchange accepts my national currency and withdrawls in it too. I understand that many novice crypto traders do not have large capital and this is a convenient step, but for the sake of this, choosing an exchange ... I don't know, it's like choosing a car to match the color of your shoes. The convenience of converting your profit is immediately overshadowed by the weak liquidity of the exchange itself and, in general, the prospects of trading itself as an occupation. I'll take the Yobit exchange as an example. Many Russian newbies choose this exchange because there is support for the ruble. And then they complain that the exchange takes their money, makes a fool of them with investment boxes, does not answer questions, and so on. But there is support for the ruble.
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On the exchange, you can trade those tokens that I was given for an airdrop or bounty. Well, it's okay if you came to the exchange to try to throw off these tokens and convert them into something more worthwhile. But when people stay on such exchanges further to learn how to trade ... and they also bring money there, this is already overkill. If you have shitcoins, then create a special account for this on the exchange where these shitcoins are traded, and for normal trading, choose something better known. Thus, you will also diversify your crypto assets and will not keep everything in one place. I take into account that many exchanges will be scammed, you will not suffer much, since as a result of the scam you will only lose your shitcoins.
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There are zero commissions on the exchange. Ohh, well, it's a sin not to lure some newbie. Freebies always work flawlessly and many people fall for it. As a rule, zero commissions are used to lure either completely dead exchanges or for the purpose of scam. If you think about it, the exchange needs to make money somehow. If she's not making money on commissions, then she's making money somewhere else. It is worth paying attention to the withdrawal limits, withdrawal fees. Perhaps there may be a surprise waiting for you.
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There are various welcome bonuses on the exchange. Again, many people bite for free. Although I can't say that only the exchange's no-name is used by such enticing methods (after all, the same billion-dollar ByBit also has welcome bonuses for registering a newcomer), but in the overwhelming majority this is a distinguishing feature of any dubious exchanges, like the recent Digex, which offered 50 000 tokens for registration, but there is no sense in this, as such, these tokens cannot be withdrawn, trading on the exchange is near-zero, a lot of conditions so that these gift tokens are not taken away from you. But nobody thinks about it. A newcomer sees that they are giving FREE 50 000 tokens for registration, but on some Binance they do not give anything. The choice is obvious, let's go trade on Digex.
When such exchanges try to lure a newcomer with their promo and statements that look at us, we have much lower commissions than the same Bitmex, Binance, Kucoin, etc., it is worth remembering that they not only have lower commissions than well-known exchanges, but and LIQUIDITY and TRADING VOLUMES are also much lower. This must always be remembered. Nothing is free in the world, especially when it comes to a commercial product. You will pay anyway, and sometimes with everything you have.
When choosing an exchange, a beginner should be guided by the following parameters:
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Availability of liquidity. If the choice is between zero commission and high liquidity, always choose the latter. Because it is much easier to make money when you pay zero commissions, but the orders stand still for days, than if you pay 0.1% and your order is executed in 40 minutes.
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Availability of trading instruments. As I already mentioned, many no-name exchanges do not even have a stop loss, let alone some advanced orders. How are you going to build your risk and money management if the exchange does not provide you with the functionality you need? But the bonus was given at registration, yeah.
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Availability of trading pairs. This is also of great importance. The basic set of popular cryptocurrencies, such as BTC, LTC, DOGE, XPR, DASH, etc., was relevant in 2017, now crypto trading is more progressive, margin trading, DeFi tokens, stablecoins, etc. Many no-name exchanges do not have all this, and the full listing of such exchanges rarely exceeds two dozen pairs. Any pair with shitcoins where the trading volume is $ 10 per day is hardly worth trading there.
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Good support. Proven large crypto exchanges always have a developed support. Which helps you to solve questions and understand the functionality of the exchange. When conflicts arise, this is also of great importance. Many no-name exchanges do not respond to tickets at all. Although there are large exchanges that can suffer from a similar ailment.
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Exit scam risk. Undoubtedly, if you choose a no-name exchange, then it has much more chances to get skipped than an already proven, proven exchange. After all, the well-known top exchanges are already a well-established business that works and bears fruit. No-name exchanges cannot boast of good earnings due to low activity, as a result, they often go offline, along with clients' money. If you look at the statistics of deceased exchanges
https://www.cryptowisser.com/exchange-graveyard/, we will see that there are mostly unknown exchanges and their fate is sad.
In general, there is no point in starting your trading path with all sorts of no-name exchanges that are trying to lure you in with zero commissions, welcome bonuses, like in a casino, and other things that are useless for a trader. In exchange, you will be given dead trades, a small number of liquid pairs, and the ability to trade unwanted shitcoins. A dubious pleasure ... which will last until we see another topic on the forum about how someone was scammed on the next no-name exchange, or in the signature we will see another anti-advertising of the next scam exchange. Why give someone a reason to rob yourself, do not trade on dubious exchanges, choose long-tested and proven exchanges. But remember, no exchange can guarantee you that you will not be scammed.
I am very happy to read this post. I was once a user who was harmed by an anonymous exchange. It was not long after I first contacted Bitcoin. At first, all my funds were traded on Binance. Later, there was a person who claimed to be Royal Thai. The small exchange of the exchange appeared. At the time, it was said that new users would be exempted from transaction fees for 3 months, and an airdrop worth 200 US dollars was given. I transferred a small part of the funds to this exchange. At that time, his platform Coins are very cheap and are rising every day,
I started to buy their platform currency, which rose from 0.3 U.S. dollars to 10 U.S. dollars. Many friends around me were also buying it. I remembered to catch up with the coronavirus disease,One day, the currency price dropped from 10 U.S. dollars to 0.5 U.S. dollars. The exchange actually issued a statement that it was hacked. We didn’t believe it. Then there was an announcement saying that the technician was infected and the system was paralyzed. Then it said that the operation team had a car accident. A series of operations were too shameless. By this year, 519 users want to withdraw coins. The exchange actually said that due to the influence of Chinese policy, users are not allowed to withdraw coins. An exchange claiming to be Thailand said these words, which is simply disgusting, so I appeal Novices really need to trade on large exchanges, and some small exchanges will have relatively greater risks regardless of internal or external reasons.It is reported that the owner of this exchange is a businessman with a debt of hundreds of millions of yuan. To do this kind of exchange is to cheat money to pay off debts. Being deceived is something that often happens in this circle, but we really have to be vigilant and refrain from such mistakes.