The cryptocurrency market is growing at a rapid pace, and so are the number of fraudulent exchanges. You must do your research before trading any digital currency, which is why we have listed some reliable resources to help you find out if a Bitcoin trading exchange is legit. If you trade Cryptocurrencies, you need to be extra careful.
An exchange that claims it supports consumer protection may be just an advertising scheme; an exchange that says it has excellent security measures may have lax security procedures, and an exchange that says it has a low-risk environment may have high operational costs and limited access to markets outside the country. Let’s take a look at how you can find out if a Bitcoin trading exchange is legitimate:
Research the Exchange’s History
You don’t want to just blindly trust your new trading exchange. Instead, try to learn as much as you can about the history of the platform. This will help you determine if the exchange is trustworthy and has a clean track record. If a platform has a bad track record, it may be unwilling to cooperate with law enforcement, which will put your money at risk.
You can research an exchange’s history by looking at the exchange’s website, the exchange’s forum posts, Google search results, and trading regulatory compliance records. First, make sure the exchange’s website is easy to navigate and has no major security flaws. You can access the website via a web address. Next, use the website’s search function to see if any negative news articles or reviews about the platform appear in the first few hits. If the first few results are negative, that may be a red flag.
Find Out If an Exchange Requires Deposit
Before you enter your credit card information and send funds to an exchange, make sure you know if the exchange requires a deposit. Most legitimate exchanges do not require a deposit, but if an exchange does, it should be mentioned on its website.
You can also call the exchange’s customer support team to confirm this. You can research a trading exchange’s deposit policy by looking at its website, the exchange’s forum posts, Google search results, and trading regulatory compliance records.
Look for Signs of Shady Behavior
If you are serious about finding out if a trading exchange is legit, you need to look for signs of shady behavior. A trustworthy exchange will not seek to trick or scam its users. A trader may be able to spot these signs by looking at the exchange’s website, the exchange’s forum posts, Google search results, and trading regulatory compliance records.
You can look at the exchange’s policies, licenses, and audits to determine if the exchange is a fraud or scam. If the exchange is in a shady industry—such as binary options, forex, or illegal activities—you need to call attention to that.
Look at the Trading Fees and Commissions
A reputable exchange will not charge excessive trading fees or commissions. A trading exchange should charge a flat fee that is a percentage of the total traded amount. If the exchange charges additional fees for various trading activities, that needs to be clearly stated on the website. You can research a trading exchange’s trading fees by looking at its website, the exchange’s forum posts, Google search results, and trading regulatory compliance records. When you cilck here you’ll access the most reliable trading platforms offering a standard pocket-friendly trading fees with no additional charges.
Confirm Who Owns the Exchange
Before you send any money to a trading exchange, make sure you confirm who owns the exchange. If the exchange claims it owns the assets, but the exchange itself is the asset, then the exchange is lying to its customers. You can research a trading exchange’s ownership information by looking at the exchange’s website, the exchange’s forum posts, Google search results, and trading regulatory compliance records.
Conclusion
When you first get into the world of cryptocurrency trading, it can be an intimidating, confusing, and even intimidating process. If you are feeling overwhelmed, it’s a good idea to seek out reliable resources and information to help you navigate the cryptocurrency world. The most important thing is to be safe and cautious when trading.