How do you tell an exchange is a scam ?

[Mr Reporter]

 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??

[Hatchy]

Are you referring to local exchanges? Centralized exchanges like Binance and Bybit use P2P for their currency pair exchanges. P2P creates a more secure environment for both buyers and sellers, with the exchanges acting as escrow.

If you want to initiate a transaction, it's better to use reputable exchanges and choose only verified merchants. Be cautious of merchants who offer significantly higher exchange rates, as they might be scammers. Instead, opt for verified merchants with a high transaction volume to avoid falling victim to scams.

Regarding local exchanges, I advise using only popular ones known in your local area and doing research to see if anyone has had issues with them before. Don't rush to send your coins, as you might be fooled and scammed.

[Troytech]

Before using an exchange it is important you found out which tier first as the reliability of an exchange by a user is measured on which tier.  We have tier-1 exchanges like Binance and Coinbase. These tier 1 exchanges are considered to be a better option for users because they have high security due to the number of users they have. They are more trusted since they are responsible for holding billions of dollars in the exchange. You can also check out tier 2 exchanges and tier 3.

Also, an exchange does scams but what happens is that some exchanges are vulnerable to scammers using the exchange as a means to scam people of their money. And you hardly can tell which exchange will be full of scam users.

[CryptSafe]

OP, I will be replying based on the subject matter and not the content of your post.

These days as a result of the sophisticated nature of scammers, one can hardly detect if an exchange is a scam looking at the fact that exchange cost lots of money to develop. At first, if you can verify the licence of the exchange, that would mean a lot you know. Even if an exchange is not that popular, at least, it should be known in the Crypto space to be existing and have recorded transactions in the past. Look out for their social media handles for more information on the exchange .

I believe casino that are in existence have followership and these followers do everything possible to make sure they say or share the exchange activities vis a vis their platforms. Any exchange that does not have such is likely a scam and it would be in your own safety to run for your dear life so you do not get scammed.

[Amphenomenon]

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

This is relatively true, scam exchanges may lure customers to use their platform with unrealistic offer I'm compare to other big exchanges but this is not just scam exchanges, every new/unpopular exchanges still do this while sometimes, this might just have some terms which may make customers being unable to participate on a chance to get such balance, though they may find ways to make the terms not easily seen by customers until they sign up and what to get the bonus and then be stuck with some requirements to get it.

Also in knowing exchanges that are legit here is a list: https://www.coingecko.com/en/exchanges.
Though seeing the exchange on this list doesn't means they're entirely legit or may not go bankrupt since there have been some exchanges that were legit, until stole customers and disappeared while others suffered from hacks or other mismanagement to suffer bankruptcy.

Here are some other important questions to ask, before picking:

• How long has the exchange been existing
• Who's the CEO and founder, is he a well known person to avoid the risk of them runningwith your funds
• Have they suffered hack before, how did this affect the customers,  where their funds frozen from them to withdraw
• Where is the exchange headquarters located
• What are their customers complaints  about them

These are some questions to ask and answer before picking a centralized exchange, though this only limit the risks of picking a bad one. Remember not your key not your coin

[Adbitco]

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??

Nowadays it's very uncommon for people to get scammed on exchange except that person was blinded to go use that exchange, in fact currently there are well known exchange we do use within our country which I think it could be hard for you to fall prey into scam.

To me after from those exchange I wouldn't go use any new exchange that is launched newly and even though they are offering an airdrops or a kind of sign up bonus to people if they make deposit and trade I won't use them neither will I go for the bonuses.

If you are an active member in this board you would see the exchange that are mostly mentioned by our people so it will be very bad to remain here and used untrustworthy exchange.

[Egii Nna]

 "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??

 
Well sometimes an exchange that is giving a lower rate can sometimes be referred to as scams because many lower rates attract many people and so they have the opportunity to scam them. so it is better to exchange in trusted and legit platforms like Binance and Bybit so as to avoid scams because some platforms precisely all that promise lower rate are scammers and they do so to attract people ,even though the scams won't happen to the first beneficial but is likely to happen to second batch of beneficials because by that time they have attract many people being that the first beneficial exchange was successful and dey don start to get people trust.
 
Anytime you are going to exchange please don't use platforms because they promise lower rate because there is saying that lower rate attracts more people and so they use that mentality to scam people. when they have many people using their platform, they immediately scam them and shot down the platform. so don't trust new exchange platforms and if you really begin to trust them make proper research about the owners and their former platforms or the platform itself before trusting them.

[Odohu]

"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 you are still new to cryptocurrency, judging from your account age, I will advise you to use only recognised and popular exchanges such as Binance, Bitget and Bybit.... maybe with time you will be able to know how to assess other exchanges before using them. This will save you the pain of losing your crypto to scams because there are many platforms that claim to be exchange which are all setups to steal people's money.

I have seen some Telegram groups claiming to be a platform to exchange people's cryptocurrency to fiat and vice versa but if you try to trade with them, your money will be lost. Just be careful because there are scammers everywhere.

[AmaGold70]

 "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??

Exchange that promises lower fees may not necessarily be a scam But it's important to know that it's a common tactic used by fraudulent exchanges to lure users, I've learned and seen that those super low fees exchange can be a wolf in sheep's clothing. It's important to do our research and dig deeper into an exchange's reputation and users reviews.

Let's be real to ourselves, if you see an exchange promising you the moon, doesn't it sound too good to be true? Some of this fake/scam exchange go as low as faking their social media engagements and reviews just to lure users in, for me, it's about finding the balance between the fees and security so I'm not going to risk my assets for a few discount percentage points.

[CryptoHeadlineNews]

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

It's true that ever since the invention of crypto got popular on social media space, we have had series of fake and phishing exchanges been established with the sole aim to lure people of their hard earn money. So when it comes to how do we identify or know an exchange is a scam, the answer is always very simple, because mere looking at it's marketing style, it will always be noticable to spot an offer by the exchange too good to be true, such as "Very Welcome Bonus, Non KYC, and Very Low Fees"

And when it comes to how to identify reliable exchange, it's always very easy to spot them out, as there is a section on coinmarketcap where top rated exchanges both CEX and DEX are listed just as shown in the image below, as it's adviceable to stick to the top 10 rated on the list.

[Charles-Tim]

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

There are many exchanges with low fee and they are good exchanges. Some exchanges with high fee might not be a recommendable exchange.

There are some exchanges that I left using because of the high fee which is one of the reasons people should avoid them. Also there are exchanges with low fee that I moved to and I prefer their services. Although, not that the fee is very low, but better as they charge less than half or more of what those high fee exchanges are charging.

[Rruchi man]

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,

Because the Nigerian government has been fighting a lot of exchanges in the country, the likelihood of people now falling victim to scam exchanges is now even higher than before. It can still be avoided by asking the right questions.

"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"...

Ridiculously low fees and many promised bonuses can be red flags. An exchange trying to copy another having a similar logo and interface, etc. should also be an obvious scam.

[Y3shot]

If you really want to know if an exchange is good then follow the social media page of the exchange, the complains you read from users in the page will prove if the exchange is good or not. Just online reviews can't give you a reputable information of an exchange because same people from exchange can still write a review, this is a strategy to attract more user's. Every exchange has a social media page and if the exchange is not giving their customers what they want people always come to the page to complain and if the exchange is not a reputable one people will always make complains on the page about any scam experience. Making research about an exchange will definitely give good information of an exchange if it is good not.

[Zigabel]

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??

For newbies I advise if the exchange isn't a known one such that they are recognized, disregard their low fees and use that which is recommended for your own good so you don't end up loosing your funds, there's no exact thing with which you can differentiate them from the original some times because they use almost the same template and then end up shutting down when they feel they have gathered enough money. There's nothing particular with which ro different them, just know that if they aren't recognized or amongst top ten, don't use as a beginner or if you must, only put in litte amounts.

[EluguHcman]

"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??

If you mean comments in the review sections, they are actually real but literally structured for positive captions by the public.
Those comments are sarcastically not to hold on to (distrust) as the strategy is to attract audiences who commends exchanges based on site comment reviews.

In such cases, the scammers are the ones initiated and organizes those comments to be attracted to. And usually, newbies and the greed exchange users falls victims to them due to the positive recommendations and how they ought to serve their clients better.

Though, that is not enough to summarize if an exchange is genuine or not but then when you feel convinced with one, don't forget to consult and make further research for your fund safety.

[knowngunman]

Since you are still new to cryptocurrency, judging from your account age, I will advise you to use only recognised and popular exchanges such as Binance, Bitget and Bybit.... maybe with time you will be able to know how to assess other exchanges before using them. This will save you the pain of losing your crypto to scams because there are many platforms that claim to be exchange which are all setups to steal people's money.

I have seen some Telegram groups claiming to be a platform to exchange people's cryptocurrency to fiat and vice versa but if you try to trade with them, your money will be lost. Just be careful because there are scammers everywhere.

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.

Op, there are many ways to identify a scam exchange aside the ones you mentioned. Offering lower fees doesn't make an exchange to be a scam, Infact, it's a strategy to gain customers but when it's too good to be real,  it's probably a scam. Trading volume is one thing to observe as well because some exchange fake trading volume. If they're not transparent, they can not be reliable. You'll get to know more as you continue to progress your journey in this industry. For now, just keep to what Oduhu suggested and use only reputable and popular ones.

[Lida93]

Nowadays it's very uncommon for people to get scammed on exchange except that person was blinded to go use that exchange, in fact currently there are well known exchange we do use within our country which I think it could be hard for you to fall prey into scam.

It may not be common as it were but not that very uncommon about people been getting scammed still through exchanges, both from the very popular and new exchanges. Even in the popular centralized exchanges that we all know the likes of binance, kucoin, bybit, people still get scammed, and how does this happen...

Not that the exchanges themselves are the scammers but it's more or less the merchants that runs the p2p trading in these popular exchanges that does the scamming, and if a person is not familiar with how the p2p procedures are done being a newbie with little or no knowledge, they can easily get scammed if they're unfortunate to trade with a scammer client in the exchanger.

I have severally had such experiences but as one that's when acknowledged about cryptocurrency to an appreciable level my knowledge has helped me not to fall into their gimmicks. The last time I had to file for an appeal to the exchange about the discrepancies I encountered with the merchant and everything was amicably settled without me losing my coins. In a nutshell all am saying is that people can still get scammed using popular exchanges for their trade.

[Salahmu]

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??

Well from the whole advice the person was given and also the measures he preferred for people to use in other to ascertain the legitimacy of a particular exchange, I think I would disagree on the expect of considering the exchanges that offers a lower fees as a scam exchange, because on the contrary there are so many reputable exchanges that has lesser fees when doing withdrawals or other transactions, so actually I wouldn't use that measure to evaluate the authenticity of an exchanges.

Well in the case of evaluation of there social media I think I would agree on that because any exchanges that doesn't have much or no interaction on there social media especially on telegram should not be venture into because if there is any complaint there is no way you could possibly reach them, so actually if you are still a newbie on that area you can possibly reach out to people who understand it more better about exchanges to guide you before doing anything.

[Jibdeen]

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

Yes, most a time a new exchange that is offering an lower rate to it user can likely be a scam.that is why it is always advised to use trusted exchange platforms.
 But not all exchange offering lower rate are know as scams,because say new intakes into this exchange things go like to attract more user that be why dem dey offer lower rate on exchange and at the other hand scammers also use this method to attract more users in order to scam dem.that be why you will need to research properly about any new platform before trusting dem with your hard earn money,if not it is better you exchange in trusted centralized platforms.
 Scammers know fully that some people earning their money illegally will not like to exchange in centralized platforms dat be why dem dey  create all this new exchange platforms anyhow so dat dey  will scam all dis people but sometimes people working hard to earn their money fall victims of dis scams,and the reason why people working legally exchange in this platforms is because of low charges and the fact that you are running away from higher charges can make you eventually fall victim.That is why is it always better to trade or exchange in trusted and centralized plaatforms