How do you tell an exchange is a scam ?

[Cryptomultiplier]

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

You really hit the nail on the head with your careful arrangement and points to note.
Exchanges may exist without having the normal license, without being regulated and with cheaper fee rates.
Still, one can't really tell a scam exchange unless they take out the time to scrutinize the exchange by checking out its website and if the customer care or support is active and responsive as well.

Its better to learn from and follow the best investors with the right insight and knowledge to share, before engaging any Bitcoin or cryptocurrency issue for the first time.

[SatoPrincess]

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.

[Perfectbaby]

"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??

Reputable exchanges does not foster spreading only services featuring their users comforts where the organization are not in operation of profiting. Some may tend to convince users like they are even running charity services just to make sure they attracts the audience and only greedy minded people would accept that false speculation because they want platforms that would offer free services without undermining if hidden factors may be involved.
Visiting of comment reviews in the sites commendation boards, figuring the regulatory status quo, ability to research and finding out the exchange websites is encoded and encrypted in Https services are tendencies to understand if an exchange is genuine or not. Some transparent about their official services with no hidden factors.

What just happened is that while using an exchange you should take thorough look at it do your research before even making an account with them, for instance we have trusted and reliable exchange not because their fees were too minimal or is somewhat cool to use but due to transparency if you there wouldn't be any bad report concerning your funds. If any exchange offers low fee then it's a red flag to them because they could be very vulnerable and likely to scam people who registered under them.

[Mate2237]

If you want to know the legitimate of an exchange then check the exchange from reviews. You can ask google about the exchange and it shows the reviews of the exchange. Example. Ebi crypto exchange who's is the new exchange in town. Before I used it Nd recommend to others, I checked the exchange online to know what others say about it and another one again is which will open their platform for trading is Ultrapro cryptocurrency exchange and you can see the Trustpilot reviews on it from the link. https://www.trustpilot.com/review/ultraproex.com

And the best way to avoid scamming and to know a legit exchange is to ask crypto participants around you if you are not a participant here but I'd you are a participant then you can come and ask questions about a good wallets or an exchange and people are here to educate you which one to use and not.

[Abu-Naim]

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

Yes, they are most likely to be a scam exchange especially the local exchanges.

When you are new to cryptocurrency, don't go further to use anything that is new or any exchange or platform that is reputable or well recognized globally or withing your region or country; this because reputable exchanges that has already made name will always protect their reputation, they will hardly scam you easily unless if you downloaded the fake exchange or cloned exchange which one of the main reason you are always advise to download any exchange, wallet, or anything you will use from their official website to avoid downloading the fake wallet or exchange that will compromise your accounts easily and scam you.

Exchanges are also into business, the offer service to also get paid, they can never give you lower fees than the reputable onece because they don't have large community; therefore, such lower fee is a red flag in any new or local exchange especially if they don't have reputation. Furthermore, make sure you always verify their social media handles before trading with any exchange because scam is real.

[Antotena]

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??

Please I will like to clarify and clear something about listening to this podcast and TV channels that discuss about crypto.
Last week before Hamster Kombat launched, I saw one man was invited on Channels TV to come discuss the anticipated price of Hamster Kombat since the listing was just a week a way and he was just saying nonsense and given people hope that they will not buy lambo but they are going to make big money that will change life that the price will go $1 and I was disappointed because no way a coin with 100b will list $1 on launching, poor analyst invited to teach crypto.

The same goes with all this podcast you guys watch that invite empty skull people to discuss crypto. If you really want to learn about crypto, stick to this forum or better stay glued to YouTube and don't use one channel to learn so that your knowledge will be uniform so another person wouldn't be saying wrong things. As for the exchange, use exchange many people are using just to be safe, with time you will know which is better when you know how to use them properly.

[Dailyscript]

My dear, you cannot tell if an exchange is a scam. Although there are examples which just by looking at the interface and their security level, you don't need anyone to advise you to leave the exchange right away. Exchanges with sleek interfaces, high security, and active daily trading might look legit, and then they end up scamming their users.

Some exchanges are filled with bot trading, and it is not worth leaving a huge amount of your asset there. One thing you should keep in mind is that dont leave any of your assets in the exchange. Once you buy your asset send it immediately to your wallet using the network it requires.

[Uhwuchukwu53]

Just as many have stated, the issue of detecting if exchange is scam or not because of low fee or high fee is very difficult because the situation seem to be the more you looked the less you see, if your purpose is to sell your asset on exchange all you need do is to find out certain criteria of the exchange mostly their security as one details can be left in some exchange after transaction secondly avoid keeping of assets on exchange ni matter how trusted the exchange may appear, self custodian wallet has always been the best option if it's to save purpose.
To be at safest why making use of exchange bi thinks weather low or high consulting fellow members who is ahead of you can aid you better result base on he or her experience can make your fake stronger .

[CryptopreneurBrainboss]

If you want to know the legitimate of an exchange then check the exchange from reviews. You can ask google about the exchange and it shows the reviews of the exchange. Example. Ebi crypto exchange who's is the new exchange in town. Before I used it Nd recommend to others, I checked the exchange online to know what others say about it and

This is the worst way to verify if an exchange is a scam or not, abi no be this forum wey we dey see review campaigns everywhere and what do you think those campaigns bring about? False reviews just because people want to get paid as if you no write well them fit no pay you. Na only few managers go welcome the criticism and work with the project to improve their platforms.

There are also exchanges and other projects that go right out to pay people for false review just to boost their exchange to the top of the search online. Make we no dey believe everything online and also on the forum too (but you get more chance to get better reviews here than online).

There are few signs you can use to identify a scam exchange but make the longevity of the exchange no deceive you because some scam exchange no dey start as scam and they undercover until they have gathered reputation over the years then boom, they exit scam.

Just no trust any exchange and only use them for exchanging and not as wallet to store your cryptos.

[Adams0001]

My dear, you cannot tell if an exchange is a scam. Although there are examples which just by looking at the interface and their security level, you don't need anyone to advise you to leave the exchange right away. Exchanges with sleek interfaces, high security, and active daily trading might look legit, and then they end up scamming their users.

Exchanges that are not very popular are, in my opinion, the majority of scams. Popular exchanges are those that you believe people are more likely to use to trade and do p2p. If you say you will check the security, you will not know if it is a scam or not because they will make it strong and similar to other exchanges so that you will not think about it. You will only know if the exchange is a scam because when you download it, you will playce that review helpful ad and you will see many people reply about the app and you will know if it is good or not without even stressing yourself out by downloading and registering. how they have exchange that are successful that is how they have some that are scam you just need to smart enough. what is more advisable is to used exchange that is more powerful and popular that people are using mostly to trade, and get something at of it not the one that you won't hear people are talking about.

There are few signs you can use to identify a scam exchange but make the longevity of the exchange no deceive you because some scam exchange no dey start as scam and they undercover until they have gathered reputation over the years then boom, they exit scam.

Just no trust any exchange and only use them for exchanging and not as wallet to store your cryptos.

You are right, is not advisable to secure your funds for exchange is not a good idea since you will lose your money if the exchange stops working anymore, because they have all of your secret phrases and will gain access to your exchange account. After successfully trading on prominent exchanges, send your funds to a secure wallet where no one can access them. Keep your secret words hidden to ensure privacy. And they have most of cryptocurrency generally retain their investment on exchange since some assume they are real and they can never run with their funds. because is be a long years they are existing without any problem. And some claim that they can't unable to keep secure wallet phrase, they will lose it, thus it is more desirable for them to keep it somewhere if they forget the password they can reset it. they are unaware that they are making serious slips by holding money on exchange.

[MainIbem]

Exchanges that are not very popular are, in my opinion, the majority of scams. Popular exchanges are those that you believe people are more likely to use to trade and do p2p. If you say you will check the security, you will not know if it is a scam or not because they will make it strong and similar to other exchanges so that you will not think about it. You will only know if the exchange is a scam because when you download it, you will playce that review helpful ad and you will see many people reply about the app and you will know if it is good or not without even stressing yourself out by downloading and registering. how they have exchange that are successful that is how they have some that are scam you just need to smart enough. what is more advisable is to used exchange that is more powerful and popular that people are using mostly to trade, and get something at of it not the one that you won't hear people are talking about.

I agree that one can differentiate a good exchange from the one that's not legit by their popularity, before using and exchange probably by recommendations or advertisements it's advisable to check their ratings on coin market cap or check their reviews by users on playstore or apple play store and if the number of positive reviews is greater than the negative ones then consider that the exchange is legit. People always give bad reviews to scam exchanges for others to take precautions so I think reviews are helpful too, another thing is the ratings.

You are right, is not advisable to secure your funds for exchange is not a good idea since you will lose your money if the exchange stops working anymore, because they have all of your secret phrases and will gain access to your exchange account. After successfully trading on prominent exchanges, send your funds to a secure wallet where no one can access them. Keep your secret words hidden to ensure privacy. And they have most of cryptocurrency generally retain their investment on exchange since some assume they are real and they can never run with their funds. because is be a long years they are existing without any problem. And some claim that they can't unable to keep secure wallet phrase, they will lose it, thus it is more desirable for them to keep it somewhere if they forget the password they can reset it. they are unaware that they are making serious slips by holding money on exchange.

You're definitely on point, exchanges are not meant for storing of digital assets due to high risk factors like scam or weak security issues and most exchanges are not very secured they can be easily assessed by scammers, so the best recommendations to store digital assets are non- custodial wallets or Hardware wallets cause they're more secured and can't be easily assessed by hackers. Exchanges are only used for buying and selling of Cryptocurrencies or by tradings and not recommended for storing digital assets.

[Mate2237]

Snip

Oh yes weti you tok na correct thing. We no need to look online  reviews to judge good project and also weti you tok here sef na correct one because most of the reviews wey we dey see here self na because of the pay and nothing more so dem go just tok weti go sweetness di company and do manager to get paid. But there are some people wey dey do the review from here wey e dey give di legit intel. And for me di ones wey I don do I dey give the real matter. I go use am and give weti I see.

And as for me to to use exchange and know whether him good or not na to use am with only p2p. Only use am to buy an sell. And e no good to keep coins in the exchange because anything can happen at anytime.

[Forever101]

Before entrusting your funds to any new exchange, first you should check if they are verified by the right authorities and secondly, check who they are partnered with. Every reputable institution will not allow partnership with any institution that will rob then on the mud

[RockBell]

My dear, you cannot tell if an exchange is a scam. Although there are examples which just by looking at the interface and their security level, you don't need anyone to advise you to leave the exchange right away. Exchanges with sleek interfaces, high security, and active daily trading might look legit, and then they end up scamming their users.

You can tell sometimes and their ways that this things can actually be avoided interface does not even matter because they can decide to fake everything,  but their level of security is actually a good point and mere looking at this popular exchanges you can tell how legit they are direct you do Kyc and other important qualifications before usage, this are little things that you can use in knowing exactly how this thing works because their are a lot of fake exchanges out their.

Some exchanges are filled with bot trading, and it is not worth leaving a huge amount of your asset there. One thing you should keep in mind is that dont leave any of your assets in the exchange. Once you buy your asset send it immediately to your wallet using the network it requires.

Even in big exchanges people use bot trading but the number one rule never trust any exchange with your money not your keys not your coin, and if you are keeping for a very long time then all you have to do is to transfer after buying, this are ways that you can keep your fund safe.

[Davidvictorson]

I think that instead of trying to tell which exchange is a scam you can save yourself that stress and simply you the most popular exchanges that your peers and people in your community use. There's is no need branching out on your own in order to try a new or a relatively unknown exchange or even an exchange that isn't popular among your peers. If you don't have peers you can simply Google the top exchanges there is a ranking of them in order of trading volumes.

[Cityhunter34]

Normally due to how scammers are operating now in the market I think one really need to be very careful with any exchanges that is offering a low prices to their customer's because most of them normally use that strategy just to scam people's money. However, just like what other users responded about the those genue exchanges like Binance, bitget, and bybit. I think this three exchanges are very good for you to use because if am not mistaking almost everybody that are in this our local board normally used them for exchanges so I would advise, if you want to be on the seffer side use the mentioned exchanges.

[CryptopreneurBrainboss]

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

Hope you do understand that you're in a decentralized space where decentralization is being encouraged and not kicked against, so some of those your criteria no too follow as having an unknown founder/owner of a working decentralized exchange is better than having a known one because of government harassment and other factors.

Exchanges don't need a headquarters unless you're focusing your attention on just Cex and not including Dex. Longevity of an exchange doesn't make it scam proof but it brings about some level of trust so this is okay but it shouldn't be totally dependent on.

Exchange wey dun survive bear market na other factor to consider before using them so your longevity fit come in here because most exchanges and projects can't survive a bear market.

FTX crash during the 2022 bear market and other exchange that have gone down in the past is usually during the bear market as they don't have inflow of money coming into the exchange to cover up their lapses and they get exposed for their shady behaviours and lose customers more, leading to the collapse of the exchanges.

[Coyster]

One way wey you go take avoid scam exchange is by avoiding new exchanges, i know say no be all new exchanges be scam oh, but to just dey on the safer side, e better make you use exchange wey don dey in the market for a very long time and users don dey use am for a very long time.

Having said that, dem fit hack any exchange at anytime, even exchange wey dey old and wey get reputation, so even as you dey use dem, no keep your assets for the exchange, you fit lose am as people take lose their money for FTX and others that have been hacked or went bankrupt.

[Sonia_123]

The exchange will not have a strong security measures,suh as, no Two-factor authentication and encrypted communication channel, can't prioritize users' data and funds with good and firm security storage ,they have not being in the industry for long and might no have a tracking record and reputation .
The exchange will not be registered as a money service business.or to trade forex,yet they trade crypto and they don't have a physical address that will be traced to them.
They don't comply with rules and regulations and not regulated by reputable authorities and poor customer's service s, giving an unrealistic returnsand  Misspelled URLs.

[Mayor of ogba]

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

This is not enough reason to say any centralized exchanges that do this are scams. Most centralized exchanges that give their users low rates are not scams; some of these centralized exchanges that do this are newly launched centralized exchanges, and they do this as publicity to let the world know about their newly launched centralized exchange and the problem they intend to solve in the crypto world and also attract people to make use of their newly launched centralized exchange. Before you make use of any centralized exchange, make sure to check their X account to know how often they tweet, and it will help you determine if it's safe to deal with such an exchange. Check their Telegram official channel to know how active they are in replying to messages and solving users problems. Check the spot trade of the centralized exchange that you want to use to know how often people trade there so that your money will not get stuck.