Cryptocurrencies, such as Bitcoin, have skyrocketed in value this year. It has made them the hottest investment opportunity ever for criminal minds too. Criminals are realizing that cryptos are a perfect vehicle to carry out financial crimes and launder money. Those who possess digital currencies can also use them to buy goods or services without being tracked by banks or authorities.
Cryptocurrency trading has become so popular that some scammers have even started their exchanges where they lure unsuspecting people into losing all their cash. How do you know which cryptocurrency exchange is legitimate? You don’t, at least not until you learn how
Confirm the identity of the exchange.
One way to identify scam exchanges is to look at who runs the operation. Does the exchange have a real-world identity? For example, some scam exchanges are run by anonymous companies. You can check if the exchange is a real, registered company by contacting their registered address or by searching for the company name on Google. If the company has a real-world identity, you can trust the legitimacy of the exchange more.
Customer Support Effectiveness.
Trading Cryptocurrencies is a high-risk, high-reward activity. Your investment could skyrocket in value in a matter of days, or it could plummet to near-zero in a matter of hours. If you lose all your money, there isn’t much you can do to get it back. In such cases, you must have customer support that can guide you through the process of getting your funds back. There have been numerous instances of exchanges shutting down without giving any notice to the customers.
It’s better to be safe than sorry. When you invest in an exchange, you need to be able to reach the owners. You can contact them on social media or email accounts to ask them to help you get your funds back. It’s better to be safe than sorry. Among the exchanges with the most reliable customer support is Immediate Edge. Visit here to access its website and start trading on the most popular online crypto exchange today!
Reviewing Trading Volume and Confidence.
When people decide to invest in Cryptocurrencies, they look for an exchange with high trading volume and high confidence levels. They look at volume from different trading pairs to decide if an exchange is legit or not. You need to look at trading volume in terms of the actual number of coins being traded daily. If the trading volume is less than 50 BTC, then that exchange doesn’t have a large trading volume to support the amount of money being traded. That doesn’t mean the exchange is a scam, but it’s a red flag. It means that the exchange hasn’t attracted a large number of traders yet.
It’s also important to look at how confident traders are in the exchange. If most of them are negative, then that’s a big red flag. It means that the exchange is full of scam coins, and even the creators of the exchange are worried about the safety of their money.
Looking for Proof of work.
Another way of identifying scam exchanges is by looking at the proof of work or the proof of ownership. If the exchange claims that they are working on the proof of work, then that’s a big red flag. Proof of work is not an easy thing to create, and it takes a lot of computing power to create. So, if the exchange claims that it has created a proof of work, it’s probably a scam exchange.
Another way to check if the exchange has proof of work is to look at the proof of ownership. The owners of the exchange should own the addresses where the exchange’s funds are held. If they don’t own that address, then they don’t have proof of ownership.
It’s important to keep in mind that the vast majority of exchanges are real and legitimate. It’s only a very small percentage of them that are scammers. To minimize your chances of falling victim to a scam, you need to follow these expert tips on how to identify a scam exchange. Remember, there are no magic solutions to avoid getting scammed. You simply have to be cautious. And of course, you can always contact experts if you have any questions.
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