How You Can Spot Fake Crypto Exchanges

The growing popularity of cryptocurrency has increased, not only the number of investors but also real and fraudulent cryptocurrency exchanges. According to statistics published by Chainalysis, a Singapore-based Blockchain data firm, Crypto criminals managed to steal a record $14 billion in 2021.

In the midst of all of this, crypto industry professionals recently proposed methods for investors to identify such fraudulent exchanges.

How Do You Spot Them?

A crypto exchange fraud might be so intricate that you may not discover it. However, if you can avoid the red flags, you will be better able to protect yourself against their schemes. Here’s how to identify them.

Unbelievable investment return

A fake cryptocurrency exchange may promise you a huge investment return. This is frequently the primary reason people are drawn to and eventually duped. But remember that if something appears too good to be true, it probably is.

Guaranteed returns, particularly those promising outstanding returns in the early days or weeks after enrolling on the exchange, are a dead giveaway of a scam. Remember the cryptocurrency market is volatile. You never know how much you’ll win or lose or whether you’ll continue to win or lose. The most you can do is control the risks.

Spam

Most scammers send excessive messages or emails. Most of them are likely to be relentless in requesting you to recharge your wallet. This clearly indicates that the exchange is attempting to collect funds that might be misappropriated.

If an exchange shows this pattern, you should be cautious and do additional research. Do not deposit any funds unless you are certain that this exchange is legitimate.

Unusually high fees

It is not uncommon for a bogus cryptocurrency exchange to charge unusually high enrollment or withdrawal fees. In most cases, these fees are not disclosed in advance. The scammers charge exorbitant fees to collect as much money as possible before fleeing and closing their business.

A high withdrawal fee also acts as an impediment to the withdrawal process, causing you to give up on your money. If you notice this behavior in your dealings, run and notify authorities.

Questionable user interface

Although most phony exchanges have a user interface close to the genuine one, there are usually some differences. These scams may leverage tried-and-true social engineering strategies to dupe unsuspecting individuals into investing.

Always use Windows 10 defender to remove Malware. This part of the process will help you determine which sites are nefarious, so next time you can stay clear.

How to Protect Yourself

Don’t invest more than you intended

Besides being a scam, the problem with bogus crypto exchanges is the seemingly limitless number of payments they require. If you experience this type of demand, resist the need to make additional deposits or larger investments than you planned.

Legitimate transactions do not force you to pay money that is not disclosed in advance. It’s always a good idea to have a plan and risk tolerance so you don’t spend more money than you can afford to lose.

Use trusted exchanges

Comparison sites are a great place to start to see if an exchange is trustworthy or not. In SE Asia in places like Thailand, you can use sites like Bitrawr to find the best place to buy crypto. You should do this in other areas too, from car insurance to even online gambling.

For the latter, always use reputable places that check for the best online gambling sites (เว็บพนันออนไลน์ที่ดีที่สุด). These platforms do all the hard work for you, finding a great welcome bonus and offering an extra layer of trust with honest reviews. You should always stick to names you know in this regard, even in crypto.

Other trusted crypto exchange such as CoinEx offers a great opportunity to jumpstart your trading career. CoinEx’s core staff members come from world-class internet and finance organizations, including early cryptocurrency adopters and individuals with extensive experience in global operations and industry services.

Be cautious of cryptocurrency investment opportunities

If the exchange approaches you with an investment offer, be cautious and undertake preliminary research. Check to see if their email address is valid and spelled appropriately. Be careful of unsolicited offers or phone calls offering investment or purchasing advice for cryptocurrency.

If such calls come from an unregulated bitcoin exchange, it could indicate that something unlawful is going on. The same applies even if you opt to trade cryptocurrencies using a broker.

Scams involving cryptocurrency are nothing new. Despite several measures and warnings to limit the risks of scams, fraud still occurs. The strategies become more inventive with time, making them more difficult to detect. They may imitate a well-known exchange to fool traders into believing their site is trustworthy.