Cryptocurrency is a very popular topic these days. It’s also a very lucrative market. Many people want to get into the crypto business, but they don’t know how or where to start.
A crypto exchange is a platform that allows you to buy and sell cryptocurrencies using fiat currency or other cryptocurrencies. You can trade one cryptocurrency for another cryptocurrency or you can exchange your fiat currency for bitcoin or ether (the two most popular cryptocurrencies). These transactions take place on the cryptocurrency markets based on the prices.
Check the Fees Charged
Aside from their website, what you can also do is check out the fees charged by a particular exchange. If many exchanges offer competitive rates and low transaction fees, then it is likely to be legitimate.
Checking out how much they charge for trades or deposits and withdrawals is another way of telling if an exchange is fake or real. If they have excessive charges (like 0.2% per trade), then it’s probably not worth your time.
If an exchange charges monthly fees on top of all these other things mentioned above, then it could be a sign that the exchange is neither legitimate nor honest with its users. You should avoid these kinds of platforms altogether, as they will only cause harm in the long run.
Find Out About Available Payment Methods
To find out about the exchange's payment methods, you can use the information below:
Fiat payment options. Crypto exchanges that accept fiat currency are considered to be more legitimate. They have a proven track record of providing financial services to individuals. It is important to note that some exchanges don't allow users who want to pay with credit and debit cards. Instead, they only accept bank transfers as a way of paying for cryptocurrency transactions.
Mobile apps and live chat features. A crypto exchange will usually have a mobile app so that users can access their accounts even when they're away from their desktops or laptops. It makes this option convenient for people who travel frequently and want to keep track of their investments at all times. Some crypto exchanges also have live chat features where customers can get help from customer service representatives 24/7 if needed. It is another indicator of legitimacy since these companies are willing to assist whenever necessary (unlike scam-ridden operations).
Check for Reviews
Google is your friend! If you're not sure whether or not an exchange is legitimate, just check their reviews. The best place to start is with a simple search for the company name along with "reviews."
Check out their website and social media accounts. Just because a crypto exchange has a flashy website doesn't mean it's legit (we'll talk about that later). But if they have active social media accounts that are constantly being updated and responding to customers' questions, it's probably safe to assume they're at least trying to be transparent.
Look around Reddit and Quora for reviews from other users who have used these exchanges before. You'll probably find some helpful information there regarding any potential red flags that may indicate fakeness.
Lastly, don't forget about Twitter! Some companies will even advertise giveaways on this platform to attract new customers; however, if something sounds too good to be true then it probably is.
Make Inquiries About the Team Members and Partners
You can start by checking if they have a verified team. There are many fake teams out there, so you should be careful when choosing which one to trust. It's best to check their LinkedIn profiles and read through the comments people leave on their profile posts. If they have over 5 years of experience in the industry and have worked with big companies then chances are they're not faking it!
Another way to verify whether or not an exchange is legitimate is by checking if their partners are verified. Most real exchanges will have several popular partners. Do make sure you research each partner thoroughly before signing up for services from them!
Double-Check Security Measures
To determine whether or not a crypto exchange is real, you should check its security measures. A good example is a need for two-factor authentication (2FA). This means that even if someone gets access to your login credentials, they won't be able to log in unless they also have your phone or tablet with them.
A secure website is one of the most important things when it comes to being sure that an exchange is real. You may want to check this by looking at whether it's been around for a long time, if there are complaints about it online and if its domain name has been registered securely (not by just anyone).
The next step would be checking how secure the login process itself is. Are there any visible differences between how different users log in? Are there any pop ups asking for additional information from customers who try accessing the site? Does it require additional verification steps before allowing users into their accounts? Do all of these processes seem trustworthy without any issues present?
A Real Crypto Exchange Will Always Be Client-Centric
Take note that a real crypto exchange will always have client-centric, transparent, and safe policies. If you are an investor then these factors should be of great concern to you.
Client-Centric Policies: A good cryptocurrency exchange will ensure that its clients are well informed about the platform they are using. They will always provide answers to any questions or concerns regarding the services being provided by them via email or chat support after every transaction made on their platform.
Safe Policies: A fake crypto exchange doesn’t care if one day their users lose all of their money. They don’t care about anything except making more profits for themselves. They just want people to keep coming back so they can make even more money from them in the future! But this is not how a real crypto exchange works!
Conclusion
The cryptocurrency industry is a fast-growing field with many opportunities to make money. However, to invest safely and avoid being scammed by fake crypto exchanges, you must be diligent in your research.
The key thing here is that a real crypto exchange will always have client-centric, transparent, and safe policies that are adhered to at all times by the company itself. It is something you should look out for when choosing an exchange to do business with.
