Swapping on smaller instant exchanges — what should I check first?

[Localhostspeed]

All exchanges that froze your finds are a red flag and I'd avoid them. If you can and want to trade I'd suggest going through a reputable exchange that does KYC. If you want to stay completely anonymous then I'd suggest try to find Bitcoin ATMs either in your country or another that supports them, and send the Bitcoin to the exchange, trade it for your cryptocurrency of your choice, and then back to your wallet.

Most exchanges that are kyc can seize your funds, even if you do kyc with them, they are going to freeze your accounts and your kyc is what they are going to use to further do an investigation if they are suspicious of your deposit. I don't know what you are telling him to go and use centralized exchanges when they are the causes of why funds are AML compliance, they can seize your funds if they see anything that is suspicious unless you are buying fiat from your bank transactions.

Some instant exchanges don't ask for kyc but they can ask you for information to clear yourself before you can be able to access that money. The ATM you also suggested have terrible fees, except if in his country theynhave good services. My best advice is decentralized p2p, they have good buyers, even though the fee rate to local currency might be higher, but you have nothing to worry about coin freeze by anyone.

[Johnlomape]

Hi everyone. New account, been reading for a while. I want to try one of the smaller no-KYC swap platforms for a Monero swap, but I keep finding horror threads about funds sitting "frozen by the liquidity provider" for months. Is that just how this industry works, or is it a red flag for specific platforms? What would you check before sending anything non-trivial through an instant exchange? I'd rather learn from people who've been through it than find out the expensive way. Any advice welcome.

Asking this kind of question is good so that you can understand how the swapping system works so you don't end up using the wrong exchange that will freeze your token making it hard to recover it. There are so many No-KYC exchanges you can use and you are not going to have any issue with your fund. In most cases, if you' transaction is suspicious the exchange can return it back to you instead of locking fund that does not belong to them. You will have to choose good exchange not the bad ones that can do anything to hold your fund.

[AVE5]

Hi everyone. New account, been reading for a while. I want to try one of the smaller no-KYC swap platforms for a Monero swap, but I keep finding horror threads about funds sitting "frozen by the liquidity provider" for months. Is that just how this industry works, or is it a red flag for specific platforms?

Note that despites the platform being unregulated and relatively processes its transactions protocols through the decentralized network blockchain since it also holds stable coins.
With how scammers had diversified in schemes, there's need to be very careful so that we don't fall victims over them that tends to disguise itself and not being entirely transparent with their terms.
So there's every need to consider using licensed platform because there you can build trust with also need to check on their reviews to know their visions and as well rates their reputation.

[boyptc]

In most cases, if you' transaction is suspicious the exchange can return it back to you instead of locking fund that does not belong to them. You will have to choose good exchange not the bad ones that can do anything to hold your fund.

They can block the transaction and don't try it again if that happens. And they only usually do that if they find something suspicious within the source of the fund and traced it through the sender.

I haven't encountered any problem with that but this can also happen in the bigger exchanges that OP if ever he's still interested with, needs to know.

If you want to stay completely anonymous then I'd suggest try to find Bitcoin ATMs either in your country or another that supports them, and send the Bitcoin to the exchange, trade it for your cryptocurrency of your choice, and then back to your wallet.

But be ready for the higher fees if transaction will be through that.