Signs to detect a fake crypto Exchange

[rodskee]

one more thing to look out for is the age of the exchange. be wary of exchanges that have only existed for a few months. even be more careful when you are one of the first few customers. scammers don't often last that long since they want the profit asap and they dont want to spend even more money anymore. the most it will last would probably be a year.

[Somegory]

That Fake trading volume is impossible to detect, especially for newbies who are new to crypto, how will they figure it out? It's near impossible to do, until all available volumes got drained and nothing is left.

The funny part is you will still be able to trade even with that fake volume because some people will believe that they are real, deploying capital into a project brings volume normally unless no one is buying, that's the trick.

Some Devs are also responsible for pumping their own coins, fake volumes don't always last longer, they are based on short time, my advice on this is to avoid not very good projects all together, 10million trading volume today can turned 500k volume tomorrow.

Stick with reliable crypto projects only.

[taufik123]

I was once on an exchange that really made it difficult for me to withdraw, had about $200 that was originally a sale of Coins I got in the past and was only listed on 3 exchanges.

The deposit was done smoothly, but after wanting to withdraw USDT there were many interruptions that occurred,
I couldn't make a withdrawal because the network was busy, even though everything was normal and contacting CS also had no answer for several days.

Until the time there was a CS who replied that the withdrawal was still suspended and still had to wait again. I don't know why it could be so,
but currently the Exchange is very quiet of users, there is no liquidity coming in and finally it is closed.

The importance of choosing the recommended exchanges, do not choose an exchange that is unclear and quiet users, it will only be an Exchange that is abandoned in the end.

[AmoreJaz]

one more thing to look out for is the age of the exchange. be wary of exchanges that have only existed for a few months. even be more careful when you are one of the first few customers. scammers don't often last that long since they want the profit asap and they dont want to spend even more money anymore. the most it will last would probably be a year.

If they are at early age, for sure, they have very small liquidity and would be hard to execute a trade of your price because it might take long to happen. So it is like waiting in vain. Better trade in bigger exchanges with known reputation so you won't  have trouble waiting for your funds.

Just few warning signals in my opinion -
> offering too-good-to-be-true perks
> very little liquidity
> no one is talking about this exchange
> someone is creating a hype out of nowhere

[SilverCryptoBullet]

If they are at early age, for sure, they have very small liquidity and would be hard to execute a trade of your price because it might take long to happen. So it is like waiting in vain. Better trade in bigger exchanges with known reputation so you won't  have trouble waiting for your funds.

New exchanges can not compete with old and biggest exchanges in trading volume as well as available trading pairs and in this high competitive exchange industry, it's really challenging for new exchanges to attract people as their new users. They usually have to do marketing programs that again less likely are better than marketing programs from biggest exchanges. Many disadvantages for new exchanges while with users, they don't have to take high risk by storing their money on new exchanges.

All centralized exchanges are risky but old and biggest exchanges can be safer than new and small ones.
Reminder: do not keep your money in online accounts.

[tabas]

If they are at early age, for sure, they have very small liquidity and would be hard to execute a trade of your price because it might take long to happen. So it is like waiting in vain. Better trade in bigger exchanges with known reputation so you won't  have trouble waiting for your funds.

That's why they have to invest into marketing and attract traders to come to them and create more liquidity. This can be done through trading competitions and having makers/traders fee lesser or even for free. There's no shortcut to it and like the old good exchanges today, they went through from the beginning and they did all they can. But to fake such data, that's not cool and those exchanges which have no plans to stay and are only waiting for someone's huge deposit, they'll do all of the tricks they can and that's why these days it's better to rely on reputable exchanges.

[Zaguru12]

an not compete with old and biggest exchanges in trading volume as well as available trading pairs and in this high competitive exchange industry, it's really challenging for new exchanges to attract people as their new users. They usually have to do marketing programs that again less likely are better than marketing programs from biggest exchanges. Many disadvantages for new exchanges while with users, they don't have to take high risk by storing their money on new exchanges.

It’s actually a similar pattern that they used like the older exchanges actually use to grow up too. Yes it will be am untrustworthy exchange to so many traders. But I would say there are no many challenges to actually get new customers by trades today because this days all new exchanges can capitalize on is actually to bait all this greedy trades to their exchanges and that’s exactly what almost all the exchanges does this days.

In the past most of the new exchanges start off as decentralized exchanges without asking for KYC or do partial KYC and this is how most exchanges got new customers in the past. Now it’s easier they just need to provide traders with offers like high leverages and low fees and many traders will flock to the exchange