How do you tell an exchange is a scam ?

[Fiasem20]

Does this tells that an exchange that is given or offering an lower rate to it users is know for scam??

Nowadays it's very difficult for one to tell if an exchange that offers lower rate is a scam or not because even few exchanges in the industry that offer higher rate are scam,so base on that perspective it actually not a 100% to me.As a newbie in the crypto ecosystem it's best using reputable and trustworthy exchanges but no matter how reputable and trustworthy an exchange is, it's still not a platform to store your digital asset,the essence of using an exchange is to sell,buy,swap and trade your coin.
The reason why I think no exchange is a safe haven is the fact that exchanges are open to online hack and can be bankrupted.Exchanges in the industry with good repute and trust are Binance,Bybit,OKX,Kraken,Coinbase,these exchanges I listed are reputable and recommendable to those in search of an exchange.
How can one tell if an exchange is a scam;
1.Promises are that too good to be true.
2.Inactive social media handle.
3.Inactive customer support, reputable exchanges are always open 24/7 to attend to their customers challenge.
4.Unprofessional website is a red flag to me.
5.Exchanges that haven't registered with regulatory bodies like (FCA),(SEC),(ASIC)etc.Any exchange that hasn't registered with regulatory bodies is a red flag to me.
In 2017, South Korean authorities exposed one of the most notorious fake cryptocurrency exchanges. BitKRX was named to look like the cryptocurrency arm of the legitimate and largest financial trading platform in the country, Korea Exchange (KRX) — a common technique for fake exchanges trying to establish legitimacy quickly.

Based on public goodwill towards KRX, BitKRX was able to lure investors who believed BitKRX was run by KRX. But when clients who thought they had purchased BTC tried to access their funds, they discovered their money had vanished.So this is another strategy to lure victims,many scam exchanges will just come up with this tactic to deceive victims that their platform is owned and managed by a reputable exchange.

[Ishicryptic]

I personally don't bother about researching about unknown exchanges whether they are scams or legit, an exchange will have to proof that they are reputable and well rated before I can consider them. When it comes to choosing an exchange, I don't look at patronizing our local platforms or any unknown exchanges for trials, I only focus on reputable exchanges that have built trust over the years. I can only use a reputable exchange like Binance, that everybody knows is not a scam, I can't take chances to be on any exchange that doesn't have good rating in the crypto market. Finally whether an exchange is a scam or legit, it's not advisable to hodl your coins inside them because if it's not your keys it's not your coins.

[Antotena]

I personally don't bother about researching about unknown exchanges whether they are scams or legit, an exchange will have to proof that they are reputable and well rated before I can consider them. When it comes to choosing an exchange, I don't look at patronizing our local platforms or any unknown exchanges for trials, I only focus on reputable exchanges that have built trust over the years. I can only use a reputable exchange like Binance, that everybody knows is not a scam, I can't take chances to be on any exchange that doesn't have good rating in the crypto market. Finally whether an exchange is a scam or legit, it's not advisable to hodl your coins inside them because if it's not your keys it's not your coins.

I hope the rating you are talking about are not he online ratings though, sometimes ratings can be misleading and you don't get what you need to know but what I will do is that since a forhm like this existed, I will kindly ask questions and hope to get honest answers most especially since we have a local board like this one where I can ask questions from my fellow naija people that are experience in that regard, its better and safer that instead of hoping on some ratings that can be manipulatd.

Make sure to use use decentralized ones if you check the available list, with that you don't need to trust anyone because swap isn't something that requires anything but when bridging from one protocol to another, you need to be very careful and mindful of them, there are many instances where funds are stolen from bridge but it's better than when you don't even know about anything on exchanges.

[Ishicryptic]

I don't need to check or tell if an exchange that has not built reputation in the crypto space is a scam or not, I just don't use their platform, it's only exchanges that have built solid reputations that I can trust. There is too many scams in the crypto space and I can not take chances with the ones that have not proven their reputations. Generally, leaving your coins in an exchange is risky because as it's said in this forum, if it's not your keys it's not your coins. We shouldn't put all our trust in exchanges, no matter their ratings because we have heard of big exchanges that have gone under. So to minimize the risks of losing your money in an exchange in the case of hacks and bankruptcy, it is preferable to use the reputable ones, I believe that they are more in the position to secure your coins than the unpopular platforms.

[Sticky Bomb]

E get something way them dey always talk for crypto…them say “no trust, verify”. That one mean say for this crypto matter you gats dey very vigilant and sceptical of everything. Before you make any move, you gats check am two times whether wahala dey there. I go say instead of person to dey find which exchange be scam, e better to just dey trade for only the ones way get good reputation and don tay for the market.

Definitely, the crypto space is very porus and you get to verify even what seems very clear to you since there are such things as tricks in spelling of these exchanges or it's support email address. A friend of mine was almost duped even from the legitimate exchange when he initiated a P2P transaction and the scammer indicated he paid and even went ahead to use a similar Bitget support email address to persuade my friend to release the coin that they've confirmed the evidence of payment. We stood our ground and after much disturbance, I had a clear look at the email contacting him and saw it was not the official customized Kucoin  mail address that was there. We immediately reported the scammer's account and he was restricted afterwards.

It's risky out there guys. Always verify repeatedly before trusting the process

[Odusko]

First excahges only announces their tradings fees and most of them are within the same percentage or even none fees on some classes of trades so when you want to use a cryptocurrency exchange the first thing your should do is to investigate what are the team behind the exchange and the market cap of the exchange, most of the fakes cryptocurrency excahges are easy to spot, because of their actions and ways of operations, because on such exchange, your will noticed fake trading volume and also presence of bots trader's much more than real human trader's, I. Current events those bots are their to decieved real cryptocurrency trader's into believing their trading against other humans but not knowing that it's them against bots who are allowed by the excahge just to pump and dump the market at Will.
So for that if you are trading on those fake, scam cryptocurrency excahges and you are unlucky to choose a trading piar of one of those shit coin, the bots will just act and dump you out of the market, it a mechanism that the developers have set and a way of milking traders and systematically scamming you out of the market, is not about having high turnover in the last trading chart that should be your conviction about a coin, and don't take displayed trading or market cap of the excahge because all that could be framed up any time.

[IceLincoln]

Yesterday I was watching a live podcast going on live on my phone which i was listening to and which he was adivings newbies and some old member that are into the market of crypto to be careful on how they use some unrecommendeqd exchange without making careful research about the exchange and some crypto guys talked about this,

 "using an exchange that promise lower fees, when in reality majority of them are just scam and which he may mention of there social media platforms not having real comments on their pages"...

Just like marketing and ponzi they’ll make it sweeter than it already is to attract you. Though not all exchanges that have lower fees or other bonuses that can be identified as Scam.
For example those that do airdrops there are some times binance, OKX and Bitget do give extra bonuses to those that use their system to receive the drops. Doesn’t make these exchanges scam but they’re trying to get more customers to increase their revenues.
There was also Ultrapro exchange that came out not too long ago and promised people $25 but couldn’t fulfill that at the end of the day, now trusting such an exchange is a Risk to any one who will want to use it.

Does this tells that an exchange that is given or offering an lower rate to it users is know for scam??

It’s better you use the popular and trusted ones than venturing into a new one which is not credible.
Developers will always come up with something to entice their customers it’s not scam but marketing strategy but  don’t fall for the too good to be true ones(mostly from new exchanges).

[HajiBagi]

Yesterday I was watching a live podcast going on live on my phone which i was listening to and which he was adivings newbies and some old member that are into the market of crypto to be careful on how they use some unrecommendeqd exchange without making careful research about the exchange and some crypto guys talked about this,

 "using an exchange that promise lower fees, when in reality majority of them are just scam and which he may mention of there social media platforms not having real comments on their pages"...

Does this tells that an exchange that is given or offering an lower rate to it users is know for scam??

Before thinking of using an exchange make sure you know much about the exchange the exchange is so popular that many people are using it, as an investor or someone who has a coin you should know good exchanges that are very good that you can't even think they are not good or they are scammers, although no any exchanges are safe because scammers are in every exchange pretend to be a buyer and scam people.

But as someone who knows what he or she is doing you can not just be using an exchange that is not well known, exchanges like Bybit, Binance, and Bitget are mostly exchanged people use in terms of P2p transactions, Binance does not function as other in P2p but Bybit and Bitget are still working perfect and without no being biased you will know that these exchanges are good because people use them very well.

[Justbillywitt]

Yesterday I was watching a live podcast going on live on my phone which i was listening to and which he was adivings newbies and some old member that are into the market of crypto to be careful on how they use some unrecommendeqd exchange without making careful research about the exchange and some crypto guys talked about this,

 "using an exchange that promise lower fees, when in reality majority of them are just scam and which he may mention of there social media platforms not having real comments on their pages"...

Does this tells that an exchange that is given or offering an lower rate to it users is know for scam??

Since they are saying exchanges with low gas fees are likely to be scam, do they prefer you trading in exchanges that charges higher fees? How many of us here will be very comfortable to go and trade in exchanges that are charging us high gas fees? No exchange will openly tell it's prospective customers that they are charging high fees, because that's not a good marketing strategy. Trading volume of an exchange is a major criteria for someone to use and know which exchange has an active customer base. And you know people are mostly going to trade where they are comfortable and satisfied with their services. So when you see exchanges with lower daily, weekly, monthly and yearly  trading volume, you should stay away from such exchanges as they are Likely going to be scam exchanges. Like other people has also suggested, the social media account of the exchange, especially X should be another place for you to get feedback from users experience who has had experiences with those exchanges.

[Mpamaegbu]

Sometimes, I do think that people who are new to cryptocurrency are always interested to bring problem upon themselves because I don't understand why someone can not stick to popular exchanges with reputation when you can not tell between legit and scam exchange. I know Op is asking a reasonable question but I don't think it's necessary for someone who's just beginning his journey to start looking for scam exchanges when they are available ones they can use confidently.

Make I just echo wetin you talk there, maybe e go amplifier am as d koko. I go like make newbies wey dry owa midst to always make sure to check up whateva exchange wey anybody recommend give dem for coin aggregator sites before registering on dem. D reason to do dat na to find out d Trust Score for dat exchange. E get why. Na until recently sef I begin consider exchanges wey get 8 over 10 for dem ratings because I can sey I get ways to buffer my risk. On a norma, make dem dey go for 10 over 10 rating. E go save dem getting scammed. E nor dey necessary to wan experiment, especially as dem still dey learn d ropes.

[Abu-Naim]

I don't need to check or tell if an exchange that has not built reputation in the crypto space is a scam or not, I just don't use their platform, it's only exchanges that have built solid reputations that I can trust. There is too many scams in the crypto space and I can not take chances with the ones that have not proven their reputations. Generally, leaving your coins in an exchange is risky because as it's said in this forum, if it's not your keys it's not your coins. We shouldn't put all our trust in exchanges, no matter their ratings because we have heard of big exchanges that have gone under. So to minimize the risks of losing your money in an exchange in the case of hacks and bankruptcy, it is preferable to use the reputable ones, I believe that they are more in the position to secure your coins than the unpopular platforms.

Local exchange cannot be completely trusted because they never get the reputation needed by the global world and market, so they can scam at any time even though some of them might be good and trustworthy, but trust no one in crypto space.

Generally, using Centralized exchanges is normal but leaving your coins or asset in there is the problem, but if you can just send and receive money through them, it is proper.

Preferably, always use centralized exchanges that have good reputation to avoid losing your assets.

[SmartCharpa]

I personally don't bother about researching about unknown exchanges whether they are scams or legit, an exchange will have to proof that they are reputable and well rated before I can consider them. When it comes to choosing an exchange, I don't look at patronizing our local platforms or any unknown exchanges for trials, I only focus on reputable exchanges that have built trust over the years. I can only use a reputable exchange like Binance, that everybody knows is not a scam, I can't take chances to be on any exchange that doesn't have good rating in the crypto market.

You're right, there are some exchanges where you are not required to do a lot of research before beginning to use them since they have a strong reputation based on comments made by others who have been operating them for years. Like Binance, Bybit, and Kucoin, one doesn't have to do research before using the exchanges; however, in a situation where the government's rules cause the well-known exchanges that we listed to remove the NGN p2p, we have no choice but to start using the unknown exchanges; we must carry out research on any unknown exchange to change our dollars.

However, the majority of us are switching exchanges because of our government. I recently figured out about a new exchange called Reminato, and I was surprised to hear the name and there are many scammers there. I reasoned that if it weren't for our government, we wouldn't be aware of some exchanges. Even when I knew Bybit was a well-known exchange when I started using it, I still did a little research on it, so it's a good idea to ask others or do some research before using an exchange. As dem say, "Person wey asks questions no dey lose his way."