Not All Bitcoin Exchanges Are Trusted!

By Prashant Jha

We are sorry to burst your bubble but not all Bitcoin exchanges are trusted! Wait what? Why do we say that, you ask? Well, we are here to explain. Oftentimes, what happens is that crypto users blindly trust any exchange that they may have seen online and start trading on them. What is even worse is the fact that they even store their crypto in these exchanges’ wallets sometimes and end up losing a part of their crypto wealth.

You May Also Read: How To Secure Crypto Wallets?

Now, as a recent BitWise report to the United States Securities and Exchange Commission (SEC) stated, 95% of reported exchange volume were fake. Of the data collected from all the exchanges that they surveyed, as much as 95% turned out to be fake and falsely fabricated. Now, if these exchanges can go ahead and fabricate their trading volume, there is no guarantee that they will treat you right otherwise.

Considering how many crypto exchange scams have come to our attention in the recent years, we cannot stress enough on the need to choose a good, reputed, established and reliable crypto exchange for your trading needs.

Now, that we have warned you, we must give you some thumb rules to help you make your exchange choice as well!

Thumb Rules To Choose A Trustworthy Exchange

The following are the thumb rules you must keep in mind while choosing an exchange for yourself:

Research, research, research!

We cannot overemphasize on how crucial it is to conduct thorough research into whichever crypto exchange you might want to use.

You should definitely go through our list of top 10 cryptocurrency exchanges for reference, and we promise you it is going to be your best friend in choosing a proper exchange.

When you have zeroed in on an exchange or two, make sure you research about it across multiple platforms or websites to weed sponsored or otherwise potentially biased opinions.

A New York State Attorney General identified four exchanges (Bittrex, Coinbase, Gemini, HBUS) as safe, so look out for reports such as those.

Beware of Amazing Offers

This advice might sound crazy, why on earth should you be wary of something so “amazing”? Well, you should keep your cool and research first because when an offer sounds to be too good to be true, that is because it probably is untrue to begin with! Steer clear of unrealistically great promotional offers.

You May Also Read: How Do Cryptocurrency Exchanges Work?

Get Into Some Good Old Social Media Stalking

The social media handles of the key people behind the crypto exchange you are about to use, are often replete with a lot of information about their ideology, how their exchanges work, and what their goal is.

Most top bosses of crypto exchanges are usually quite active on Twitter and Telegram, so make sure you go through their profiles and pick up on the hints that might dictate their business decisions in running the exchange.

With these few thumb rules in mind, and the internet handy as your guide, you should be good to go in choosing a crypto exchange you can trust.

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Prashant Jha

As a content writer Prashant believes in presenting complex topics in simple laymen terms. He is a tech enthusiast and an avid reader.

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