How to protect yourself from losing assets from exchange malpractices.

[AlphaBheta]

Following the recent news regarding the issues that a lot of the top exchanges have been dealing with, I think it's important that we all become aware of some things to look out for before using an exchange, so you don't lose your assets to whatever they get caught up in.

I think the most obvious one is when an exchange is usually prioritizing listing hypes over solid fundamentals which mostly leads to "pump and dump" cycles.

It's also not a good look if your exchange continues to ignores whistleblowers and refuses to address internal corruption. It just tells you it's not a platform you can trust, at least that's what I'd think if I noticed that my exchange does something like that.

You can also check for the sentiment that traders have about the exchange online, although it's usually not always accurate, it can be a good start.

In the end, it's just about doing your due diligence, and making sure that whichever platform you use, you've made sure your assets would be safe there.

if you're interested in reading about the latest concerns as regards these exchanges, you can check here

[Ziskinberg]

I think the most obvious one is when an exchange is usually prioritizing listing hypes over solid fundamentals which mostly leads to "pump and dump" cycles.

Exchanges focus more on hype coins because that’s where the money is. As long as a coin meets the listing criteria, they’ll add it without hesitation. Even major exchanges like Binance list a lot of meme coins purely because of the hype, so in that sense, there’s really no difference among exchanges, except for trading volume, where Binance is way ahead of the rest. 

And I guess, I wouldn’t call this malpractice on the exchange’s part since at the end of the day, it’s up to us whether we trade these coins or not. There are plenty of options and if we want to play it safe, we can always stick to proven coins that have been around for years.

[alani123]

If you use an exchange to buy crypto or cash out crypto, simply withdraw fast.
Many exchanges offer very fast withdrawals these days including crypto and FIATpsyments.

If you use the exchange for trading, of course the above applies but it's important to remember that also trading can be done with leverage and for instance you can keep only minor amounts in exchange and serve several styles of trading by simply doing margin supported trades. For these cases you don't actually need to keep all your cash in an exchange.

[JollyGood]

I have no idea why you posted about this particular subject with these warnings about exchanges, it seems to be a post for the sake of making a post.

Keeping that aside, when a newbie account comes along and posts with such detail it raises some questions. I have read your posting history and am certain that the traits you exhibit are synonymous with those that are multi-accounting. How many accounts are you operating within the forum?

Following the recent news regarding the issues that a lot of the top exchanges have been dealing with, I think it's important that we all become aware of some things to look out for before using an exchange, so you don't lose your assets to whatever they get caught up in.

I think the most obvious one is when an exchange is usually prioritizing listing hypes over solid fundamentals which mostly leads to "pump and dump" cycles.

It's also not a good look if your exchange continues to ignores whistleblowers and refuses to address internal corruption. It just tells you it's not a platform you can trust, at least that's what I'd think if I noticed that my exchange does something like that.

You can also check for the sentiment that traders have about the exchange online, although it's usually not always accurate, it can be a good start.

In the end, it's just about doing your due diligence, and making sure that whichever platform you use, you've made sure your assets would be safe there.

if you're interested in reading about the latest concerns as regards these exchanges, you can check here

[Darker45]

I have no idea why you posted about this particular subject with these warnings about exchanges, it seems to be a post for the sake of making a post.

Keeping that aside, when a newbie account comes along and posts with such detail it raises some questions. I have read your posting history and am certain that the traits you exhibit are synonymous with those that are multi-accounting. How many accounts are you operating within the forum?

There's actually a serious accusation here, a sort of a scandal if proven. A market maker is accused of manipulation in connivance with the exchange itself. If I understand it right, even the money itself used by the market maker to provide liquidity is coming from Binance. Wintermute would be returning the money along with the profit after their illegal operation. That's too low.

By the way, I'm giving OP the benefit of the doubt. He/she's just made 6 posts within a week or since his/her account was created. I don't find any reason why he/she would exert effort to maintain such a low-level account. He/she's not spamming, hunting for merits, shilling, and so on. It seems OP is invested in new, hyped, and short-lived altcoins that's why he/she's following certain personalities on Twitter. Perhaps that's how the details were obtained.

[SiliconHat]

I think the most obvious one is when an exchange is usually prioritizing listing hypes over solid fundamentals which mostly leads to "pump and dump" cycles.

Exchanges focus more on hype coins because that’s where the money is. As long as a coin meets the listing criteria, they’ll add it without hesitation. Even major exchanges like Binance list a lot of meme coins purely because of the hype, so in that sense, there’s really no difference among exchanges, except for trading volume, where Binance is way ahead of the rest. 

And I guess, I wouldn’t call this malpractice on the exchange’s part since at the end of the day, it’s up to us whether we trade these coins or not. There are plenty of options and if we want to play it safe, we can always stick to proven coins that have been around for years.

It’s true though as traders the ball is in our court to trade these tokens but as someone who use both Binance and Bitget for trading i might switch fully to Bitget because i came across some allegations against the former on twitter which has been giving me doubt but i will wait and see how it turns out. I understand these exchanges are here for the massive profits but i hope they start filtering out bad projects and stop the “list and dump” pattern that’s now common to them.

[AlphaBheta]

I think the most obvious one is when an exchange is usually prioritizing listing hypes over solid fundamentals which mostly leads to "pump and dump" cycles.

Exchanges focus more on hype coins because that’s where the money is. As long as a coin meets the listing criteria, they’ll add it without hesitation. Even major exchanges like Binance list a lot of meme coins purely because of the hype, so in that sense, there’s really no difference among exchanges, except for trading volume, where Binance is way ahead of the rest. 

And I guess, I wouldn’t call this malpractice on the exchange’s part since at the end of the day, it’s up to us whether we trade these coins or not. There are plenty of options and if we want to play it safe, we can always stick to proven coins that have been around for years.

Yeah I understand how they work and at the end of the day, they are also trying to make profits as a business, my point is if this is done too much it begins to affect the credibility of the exchange. I do not want to use any of them as a bad example but I'm sure as you read this, a few already comes to mind.

I have no idea why you posted about this particular subject with these warnings about exchanges, it seems to be a post for the sake of making a post.

Keeping that aside, when a newbie account comes along and posts with such detail it raises some questions. I have read your posting history and am certain that the traits you exhibit are synonymous with those that are multi-accounting. How many accounts are you operating within the forum?

Following the recent news regarding the issues that a lot of the top exchanges have been dealing with, I think it's important that we all become aware of some things to look out for before using an exchange, so you don't lose your assets to whatever they get caught up in.

I think the most obvious one is when an exchange is usually prioritizing listing hypes over solid fundamentals which mostly leads to "pump and dump" cycles.

It's also not a good look if your exchange continues to ignores whistleblowers and refuses to address internal corruption. It just tells you it's not a platform you can trust, at least that's what I'd think if I noticed that my exchange does something like that.

You can also check for the sentiment that traders have about the exchange online, although it's usually not always accurate, it can be a good start.

In the end, it's just about doing your due diligence, and making sure that whichever platform you use, you've made sure your assets would be safe there.

if you're interested in reading about the latest concerns as regards these exchanges, you can check here

Well I just have this account, and although I created for the purpose of checking updates and news here, I felt compelled to write this, because I came across a post about some of the malpractice that was done by a very top exchange.

I'm sure you must have seen it too, it was trending yesterday on X.

[moderator's note: consecutive posts merged]

[Ziskinberg]

Yeah I understand how they work and at the end of the day, they are also trying to make profits as a business, my point is if this is done too much it begins to affect the credibility of the exchange. I do not want to use any of them as a bad example but I'm sure as you read this, a few already comes to mind.

It won’t affect their credibility as long as the listing is legal. Besides, many traders already understand the risks of trading meme coins and other hype coins.  Sure, some people might complain, but most of the time, it’s not because they got scammed, it’s just them trying to justify their mistakes.

[JollyGood]

I do not believe you. People that register in the forum as real/genuine newbies do not usually behave in the way you have done. I could be wrong but it seems as though you have more than one account otherwise you would behave as a real newbie.

Well I just have this account, and although I created for the purpose of checking updates and news here, I felt compelled to write this, because I came across a post about some of the malpractice that was done by a very top exchange.

I'm sure you must have seen it too, it was trending yesterday on X.

[Darker45]

Yeah I understand how they work and at the end of the day, they are also trying to make profits as a business, my point is if this is done too much it begins to affect the credibility of the exchange. I do not want to use any of them as a bad example but I'm sure as you read this, a few already comes to mind.

It won’t affect their credibility as long as the listing is legal. Besides, many traders already understand the risks of trading meme coins and other hype coins.  Sure, some people might complain, but most of the time, it’s not because they got scammed, it’s just them trying to justify their mistakes.

I think it's not about credibility. It's not even about listing. Listing of shitcoins is Binance's prerogative. The point is that market manipulation isn't just a malpractice; it is illegal. And, worse, as far as this accusation is concerned, is that it isn't just the market maker that's guilty of creating fake volume and drastically influencing the price. It seems Wintermute is just a dummy. Binance is actually the one calling the shots and providing the necessary wherewithal.

[Ziskinberg]

Binance is actually the one calling the shots and providing the necessary wherewithal.

This needs to be proven first before calling it illegal. Binance knows how to play the game, and at this point, they’re not even afraid of penalties anymore as they’ve already paid huge fines in the past.

As a speculator who regularly uses Binance as my go-to exchange, I’ve read a lot of theories about them manipulating volume or certain coins. But at the end of the day, we’re still using the platform, and some traders even call it their favorite exchange, and yeah, I’m guilty of that too.

[cabron]

Binance is actually the one calling the shots and providing the necessary wherewithal.

This needs to be proven first before calling it illegal. Binance knows how to play the game, and at this point, they’re not even afraid of penalties anymore as they’ve already paid huge fines in the past.

As a speculator who regularly uses Binance as my go-to exchange, I’ve read a lot of theories about them manipulating volume or certain coins. But at the end of the day, we’re still using the platform, and some traders even call it their favorite exchange, and yeah, I’m guilty of that too.

It could be because most if not all exchanges are doing the same as the coin team developer have tried manipulating. Binance although we have suspicions about this exchange, they are the first to have guaranteed they will return stolen funds if hacked as they did. But th3en again exchanges claiming they were hacked are all just claims.

OP however is telling us all to be on the look out of these exchanges and act before its too late. I have been a victim of one of these exchanges.

[Darker45]

Binance is actually the one calling the shots and providing the necessary wherewithal.

This needs to be proven first before calling it illegal. Binance knows how to play the game, and at this point, they’re not even afraid of penalties anymore as they’ve already paid huge fines in the past.

That it's illegal doesn't have to be proven. The SEC prohibits manipulation. Binance is regulated by the SEC. They're bound to comply with the rules. What needs to be proven, however, is Binance's involvement in it. That's why I call this merely an accusation because it isn't proven yet. I don't even think there's a formal complaint lodged in the SEC pertaining to this.

No, I'm sure Binance is afraid of penalties. They're in the billions, after all. And if this becomes a pattern, bigger penalties might be imposed.

As a speculator who regularly uses Binance as my go-to exchange, I’ve read a lot of theories about them manipulating volume or certain coins. But at the end of the day, we’re still using the platform, and some traders even call it their favorite exchange, and yeah, I’m guilty of that too.

Well, notwithstanding the accusations and other violations they're guilty of, they remain to be at the top, so there's still reason to use the platform.

[hugeblack]

It's also not a good look if your exchange continues to ignores whistleblowers and refuses to address internal corruption. It just tells you it's not a platform you can trust, at least that's what I'd think if I noticed that my exchange does something like that.

This is something that is difficult for beginners to know, especially regarding internal corruption, so at best the best advice would be:

 - Withdraw your profits as soon as possible, so that the funds allocated for trading are the ones available on the platform.
 - Follow the news (it is better to register in a bot to follow it) related to the platform and if you find a lot of complaints, withdraw your balance.
 - If the platform starts giving false or exaggerated promises, it is better to look for alternatives.

[Z-tight]

In the end, it's just about doing your due diligence, and making sure that whichever platform you use, you've made sure your assets would be safe there.

If you intend to use an exchange like a bank and store your funds in it, then your funds can never be safe there, any exchange can collapse, even the 'biggest' exchanges get hacked. However, even if they don't get hacked or experience any security breach, they could confiscate your funds, not your keys, not your coins, so look for a good exchange, but to trade only.

[Catenaccio]

This is something that is difficult for beginners to know, especially regarding internal corruption, so at best the best advice would be:

By sharing Exchange graveyard, I strongly hope that it can help newbies to know about more dead exchanges as well as death reasons, and help newbies to avoid dangerous practice like storing fund on centralized exchanges, and doing KYC on those platforms.
Why KYC is extremely dangerous – and useless
21 tips for securing your bitcoin.

Reminders on this risky practice
Reminder: do not keep your money in online accounts

Recent events should make everyone withdraw all their coins to their own wallets: Part 1
Recent events should make you withdraw all your coins to your own wallet: Part 2
Recent events should make you withdraw all your coins to your own wallet: Part 3
Get your coins out of custodial wallets now: Part 4

[Solosanz]

Is this a new thing?

I guess in any centralized exchanges, there's always a manipulation behind it, unfortunately Binance get caught for doing this shady practice. If Binance can did this and you really want to avoid the manipulation, better to avoid all centralized exchanges.

Using DEX or P2P exchanges will be the solution.