Altcoins Talks - Cryptocurrency Forum
Crypto Discussion Forum => Cryptocurrency discussions => Topic started by: Bobcrypto on December 12, 2024, 01:43:21 PM
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I have been using one particular CEX exchange for about two years without issues at beginning, unfortunately, earlier this year, i began to notice certain drawbacks starting from withdrawal delays, that take more than one week; and some users even complaint of more than two months withdrawal delays.
As a good user, i sent mails, but unfortunately no solution. I had complaint that the exchange is likely going insolvent because of too much issues, (especially the inability for users to withdraw their funds), on their Telegram community but i was restricted. However, as at today they had going insolvent.
Now, to detect a crashing exchange, whether Dex/CEX, you will notice two common issues,
1.Scanty users. The number of users on an exchange determined the exchange's revenue capacity to settle operational cost and other expenses.
2 No liquidity, and that is, no 24hours trading volume. Besides this few points that i have stated, kindly give your thoughts on how to detect a likely crashing exchanges.
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If the withdrawal period exceeds more than an hour without logical reasons such as maintenance or suspending your transaction for reasons related to KYC, this is a sufficient reason to stop using that exchange and encourage others to do that.
No matter how bad the platform is, customers should not face problems in withdrawing.
As for the Common factors to know that an exchange is likely going insolvent:
Delayed support team responses or inaccurate responses.
Changing the terms of use without warning users.
Obvious security flaws.
Increasing negative reviews.
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I don't bother to show too much commitment on any exchange that is not functioning the appropriate way because of I don't play with my funds and I will immediately trnasfer my funds and leave the exchange. There are many reputable exchanges out there that needs customers.
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I have been using one particular CEX exchange for about two years without issues at beginning, unfortunately, earlier this year, i began to notice certain drawbacks starting from withdrawal delays, that take more than one week; and some users even complaint of more than two months withdrawal delays.
The moment you discover for this you would have taken your leave, you don't wait till you see the worst happening, instead you take your leave before the worst get unleashed, one thing you should know about centralized exchange is their way of changing of policies and request for kyc information, may be you're unable to fulfill some of the terms for that or they just make some nasty delay without prior notification for such unnecessary delay.
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I have been using one particular CEX exchange for about two years without issues at beginning, unfortunately, earlier this year, i began to notice certain drawbacks starting from withdrawal delays, that take more than one week; and some users even complaint of more than two months withdrawal delays.
As a good user, i sent mails, but unfortunately no solution. I had complaint that the exchange is likely going insolvent because of too much issues, (especially the inability for users to withdraw their funds), on their Telegram community but i was restricted. However, as at today they had going insolvent.
Now, to detect a crashing exchange, whether Dex/CEX, you will notice two common issues,
1.Scanty users. The number of users on an exchange determined the exchange's revenue capacity to settle operational cost and other expenses.
2 No liquidity, and that is, no 24hours trading volume. Besides this few points that i have stated, kindly give your thoughts on how to detect a likely crashing exchanges.
You've said it all. In addition I'll advise you do your research, check out on chain analysis and data from CMC/cg etc. follow sentiments on Twitter.. above all diversify
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Now, to detect a crashing exchange, whether Dex/CEX, you will notice two common issues,
1.Scanty users. The number of users on an exchange determined the exchange's revenue capacity to settle operational cost and other expenses.
2 No liquidity, and that is, no 24hours trading volume. Besides this few points that i have stated, kindly give your thoughts on how to detect a likely crashing exchanges.
Personally, I haven’t used an exchange that has crashed before, so I wouldn’t be able to tell more of an exchange is going to be insolvent in some time to come. I haven’t been more familiar with more exchanges and I’m use to exchanges with reputation and a lot of user base, because those are what will determine more better the potential of the exchange going to insolvent soon or not. Exchanges has there own drawbacks and the way they handle it will reflect more on how trustworthy they can be to use for long. When there is already a lot of complains about an exchange especially when it has to do with withdrawals of funds from the exchange portfolio, it becomes very hard that they’re not going to be bankrupt soon.
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Now, to detect a crashing exchange, whether Dex/CEX, you will notice two common issues,
1.Scanty users. The number of users on an exchange determined the exchange's revenue capacity to settle operational cost and other expenses.
2 No liquidity, and that is, no 24hours trading volume. Besides this few points that i have stated, kindly give your thoughts on how to detect a likely crashing exchanges.
Just as humans cannot detect any color except black with their eyes closed, I believe it is not possible to identify in advance that a centralized exchanger will go bankrupt. This is my personal opinion.
Suppose if we memorize the ftx exchanger incident on the past no one guess that will happened before one day ago at least I don't see in my eyes any people who thought that. And where I want to say the reason is the centralised exchangers don't provide the clear proof of Reserve and on the other sent they spends lots of money for their advertisement and marketing.
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There are different and numerous CEX and DEX out there but the idea is people tend to make use of those with a bigger market and ecosystem and it's very understandable because issues like the ones you mentioned above hardly come up when you make use of bigger exchanges. The actual issue that's common is when you break their rules because on the other hand they usually tend to be very strict about them.
Another reason why people go for bigger CEX is the idea of have flexible options ranging from P2P transactions to trading regular crypto pairs. Most times smaller exchanges don't offer these and when they do they likely charge heavily for fees.
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Suppose if we memorize the ftx exchanger incident on the past no one guess that will happened before one day ago at least I don't see in my eyes any people who thought that. And where I want to say the reason is the centralised exchangers don't provide the clear proof of Reserve and on the other sent they spends lots of money for their advertisement and marketing.
There are indicators that the platform is not going in the right direction, and since you know these indicators, it is better not to wait and withdraw immediately. As for the exact date of the platform's collapse, it can only be known with information that is often not available to the public.
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Since we are all based online and there is no way for us to personally go to an exchange's real office if there is one, withdrawal issues can be the biggest reason that I would consider the most vital red flag for an exchange. To me, an hour delay can already be unacceptable and definitely a week can already be so unbearable enough to call an exchange a big scam. This is one of the many risks while we are using a CEX and that is why we have to be careful and if possible to deal with only reputable ones with good track record of not letting their customers down a lot. In an insolvent exchange, instead of us exchanging our digital assets into another asset we are being shortchanged. Based on my experience, TOKPIE can be considered as a bad exchange not worth of anyone's trust.
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There are indicators that the platform is not going in the right direction, and since you know these indicators, it is better not to wait and withdraw immediately. As for the exact date of the platform's collapse, it can only be known with information that is often not available to the public.
I will not disagree with you that there is no indication before a centralized exchanger goes bankrupt, there will definitely be some indication but people will not have the confirm news. Suppose there have been many issues with Binance before, especially the jailing of Binance's Ex ceo CZ when got arrested which was a big shock to Binance users but in that case Binance survived. On the other hand, FTX exchanger only went bankrupt after a small announcements.
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Now, to detect a crashing exchange, whether Dex/CEX, you will notice two common issues,
1.Scanty users. The number of users on an exchange determined the exchange's revenue capacity to settle operational cost and other expenses.
2 No liquidity, and that is, no 24hours trading volume. Besides this few points that i have stated, kindly give your thoughts on how to detect a likely crashing exchanges.
Can you share with us what exchange you're talking about? I mean, this can save others who have not yet deposited on that exchange from extra problems. Overall, delaying withdrawals for months is really a big problem, and it raised concerns about their liquidity. Did they just have their audit of reserves or not? It must not be any of the Tier 1 exchanges!
I was using Binance and Kucoin at the time mainly, and they both had their audit of reserves. Overall solvency of a good exchange is not healthy for the overall market, it can dump it. I think liquidity is the main reason for the solvency and if the exchange has that problem then it's time to leave it.
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There are indicators that the platform is not going in the right direction, and since you know these indicators, it is better not to wait and withdraw immediately. As for the exact date of the platform's collapse, it can only be known with information that is often not available to the public.
I will not disagree with you that there is no indication before a centralized exchanger goes bankrupt, there will definitely be some indication but people will not have the confirm news. Suppose there have been many issues with Binance before, especially the jailing of Binance's Ex ceo CZ when got arrested which was a big shock to Binance users but in that case Binance survived. On the other hand, FTX exchanger only went bankrupt after a small announcements.
FTX was deliberately done. with just a simple dare of CZ the exchange went panic but they market needs a reason to crash. but if its a small exchange that won't affect the market when it suddenly disappear, the business will try to save itself. i would be surprise if the small exchange will start advertising in a sneaky manner. it could be an indicator.
you could also look at it as indicator that they are insolvent if this small unimportant exchange will request another KYC verification which the purpose is to just see whether users really are compliant. they seize the coins of those who are not compliant and lie about their identity.
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Low users and lack of sufficient liquidity are not necessarily an indication of the failure or bankruptcy of an exchange, especially if it is new. I have used exchanges with few users and low liquidity many times, but I did not suffer from withdrawals or loss of funds. But of course, it is better to stay away from such exchanges.
On the other hand, there are exchanges that were large and had a good reputation and high rank in the market, but they were still down and users' funds were lost either as a result of bankruptcy or hacking, so it is better in general to stay away from centralized platforms.
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I have come to realise that ones the customer support service of any organisation begins to delay in responding to customers complaints, that alone is a big red flag to move out of leave them because of you still remain there waiting to see the end, you might get trapped. This was the case of OP, if OP had known he would have withdrawn all his funds immediately he began to note those observations but however, I believe the ones such begins to happen and the cex puts withdrawal on hold, then you know they are in to a possible financial crises which they do not want to say just not to scare away their customers but they forget that the same strategy or measures implored will still make their customers sceptical about their actions and raise alarm on their observations about the cex approach.
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FTX was deliberately done. with just a simple dare of CZ the exchange went panic but they market needs a reason to crash. but if its a small exchange that won't affect the market when it suddenly disappear, the business will try to save itself. i would be surprise if the small exchange will start advertising in a sneaky manner. it could be an indicator.
you could also look at it as indicator that they are insolvent if this small unimportant exchange will request another KYC verification which the purpose is to just see whether users really are compliant. they seize the coins of those who are not compliant and lie about their identity.
I also mean that by the "small announcement" the announcement was the CZ step on the investment on FTX exchanger. But what I think about the FTX exchanger even if CZ don't do anything like that I would say in the future once a time FTX will crash because the way they run their business wasn't say that they won't go through the bankrupt.
The amount of money that FTX exchanger showed in their proof of reserves was much less than the amount of money in their reserves and what was more interesting was that they spent a lot of money on their marketing and various activities from which they went through a lot of losses due to not getting the expected results. And the main reason for their crash was an announcement by CZ.
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I have been using one particular CEX exchange for about two years without issues at beginning, unfortunately, earlier this year, i began to notice certain drawbacks starting from withdrawal delays, that take more than one week; and some users even complaint of more than two months withdrawal delays.
Be it an exchange, casino, or any other online service, immediately you start seeing that they are having a lot of users with unresolved complaints; that should be your indication to start considering exiting for another service provider before you become a victim too. Red flags should not be tolerated.
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Be it an exchange, casino, or any other online service, immediately you start seeing that they are having a lot of users with unresolved complaints; that should be your indication to start considering exiting for another service provider before you become a victim too. Red flags should not be tolerated.
You're right, it's about how a service has a complaint and then they can address the problem or not.
Because several times I got stuck on an exchange that frustrated me because withdrawals that could not be done quickly for some reason that certainly did not have to happen.
It took me more than 24 hours to make a withdrawal, even though the account I was using did not violate anything and the funds I wanted to withdraw were emergency enough for me to use on other investments.
I then left the CEX and promised not to use it again because it was an indication that the CEX would go bankrupt or become a scam eventually.
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I have been using one particular CEX exchange for about two years without issues at beginning, unfortunately, earlier this year, i began to notice certain drawbacks starting from withdrawal delays, that take more than one week; and some users even complaint of more than two months withdrawal delays.
Be it an exchange, casino, or any other online service, immediately you start seeing that they are having a lot of users with unresolved complaints; that should be your indication to start considering exiting for another service provider before you become a victim too. Red flags should not be tolerated.
The fact that many people wrote complaints with no sign of them being handled by a service is an encouraging indicator. While consuming platforms we are supposed to make sure that the concerned platform has a good reputation and can actually provide good support. If such marks of nonchalance are noticeable, the search for a more trustworthy option is the correct approach. We do not have to wait when all the problems start to impact, but we should always make assessment of the services we are utilising. By taking this step there will be a likelihood of managing risks and make the experience safe and comfortable.
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When there are no new listing on the exchanges be it Centralized or Decentralized you should avoid such exchange because there is every likelihood the exchange will soon cease operation. Most times when they start charging exorbitant fee when making withdrawal, and also delaying our payment as you have already outlined before they we should be careful while dealing this exchanges. It's better to avoid than falling for them at low cost.
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As for the Common factors to know that an exchange is likely going insolvent:
Delayed support team responses or inaccurate responses.
Increasing negative reviews.
I consider these two as a big concern; exchanges live on feedback and reviews; once the negative reviews keep coming, that's a sign that something is wrong or amiss.
OP did not mention the exchange when he should; this is to warn other users so they will avoid this exchange, but what I'm sure of is this exchange is not likely to be on the top 20 exchanges, to avoid this, we should only pick the top exchanges in the industry.
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Besides this few points that i have stated, kindly give your thoughts on how to detect a likely crashing exchanges.
Despite what everyone says, it's pretty hard to tell so, just look back from Bitcoinica days to FTX, so the thing is:
- a crappy exchange in danger of being insolvent would show enough signs not to put your money there in the first place
- an elaborate scam that uses users's money for their plaything will probably go undetected until it's too late, see MtGox, Celsius, FTX.
And signs like users complaining that they can't withdraw their money means it's pretty late to do anything.
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I have been using one particular CEX exchange for about two years without issues at beginning, unfortunately, earlier this year, i began to notice certain drawbacks starting from withdrawal delays, that take more than one week; and some users even complaint of more than two months withdrawal delays.
As a good user, i sent mails, but unfortunately no solution. I had complaint that the exchange is likely going insolvent because of too much issues, (especially the inability for users to withdraw their funds), on their Telegram community but i was restricted. However, as at today they had going insolvent.
Now, to detect a crashing exchange, whether Dex/CEX, you will notice two common issues,
1.Scanty users. The number of users on an exchange determined the exchange's revenue capacity to settle operational cost and other expenses.
2 No liquidity, and that is, no 24hours trading volume. Besides this few points that i have stated, kindly give your thoughts on how to detect a likely crashing exchanges.
The first rule should be to see how much liquidity a exchange has we can check it from any tracker like CMC and CG. Following the sentiments on twitter is not good because that's exactly where these exchanges shill their project to get the attention they will say we don't require KYC and with $10k plus deposits we will give huge rebates etc.
All these offers are phishing offers so never deposited huge funds on such exchanges and regularly track the reserves of an exchange where you have been holding your funds. However, we should not hold our funds in one exchange because of the solvency issue. The golden rule here is we don't own the keys we don't own the funds so for trading we should choose tier 1 exchanges, and for holdings wallets should be chosen.
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I would say recent exploits on the platform as another factor for an exchange's potential insolvency or bankruptcy. You can monitor how they handle the refund procedures and if they come up with excuses, then you can assume. It still depends on the significance of the amount stolen to their total reserves though.
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I would say recent exploits on the platform as another factor for an exchange's potential insolvency or bankruptcy. You can monitor how they handle the refund procedures and if they come up with excuses, then you can assume. It still depends on the significance of the amount stolen to their total reserves though.
Classic problem with exchange when closing the market operation will announce about bankruptcy, I think can't acceptable reason exactly last exchange scam FTX announced about their bankruptcy for easily not refund the user assets.
Not difference yet with scam or bankruptcy because the exchange not refund the member assets, difference with some exchange bankrupt like bittrex but have deadline around five months later for user withdraw their fund although market not allow for trading.
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I consider these two as a big concern; exchanges live on feedback and reviews; once the negative reviews keep coming, that's a sign that something is wrong or amiss.
OP did not mention the exchange when he should; this is to warn other users so they will avoid this exchange, but what I'm sure of is this exchange is not likely to be on the top 20 exchanges, to avoid this, we should only pick the top exchanges in the industry.
Yes this too is another point. I think generally be it an exchange or not it's very important to check for the reviews on a particular service or app before making use of them. Also just like bad reviews shows that such an app or service isn't worth it, sometimes too few reviews could be a a possible sign too that their offers isn't good enough since we have also seen cases where some developers pay to get reviews.
Generally it's not even safe to make use of an exchange that is too low on popularity. Aside from risking your funds you also face the threat of risking your privacy and data via the KYC you may have gone through.
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I would say recent exploits on the platform as another factor for an exchange's potential insolvency or bankruptcy. You can monitor how they handle the refund procedures and if they come up with excuses, then you can assume. It still depends on the significance of the amount stolen to their total reserves though.
Classic problem with exchange when closing the market operation will announce about bankruptcy, I think can't acceptable reason exactly last exchange scam FTX announced about their bankruptcy for easily not refund the user assets.
Not difference yet with scam or bankruptcy because the exchange not refund the member assets, difference with some exchange bankrupt like bittrex but have deadline around five months later for user withdraw their fund although market not allow for trading.
It is better to choose the best exchange currently and has a good reputation like binance to store our crypto assets to be active in trading.
because if we use an exchange that does not have a good reputation, we may lose our funds. FTX is an example in the past, and we should be careful in choosing an exchange.
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I would say recent exploits on the platform as another factor for an exchange's potential insolvency or bankruptcy. You can monitor how they handle the refund procedures and if they come up with excuses, then you can assume. It still depends on the significance of the amount stolen to their total reserves though.
Classic problem with exchange when closing the market operation will announce about bankruptcy, I think can't acceptable reason exactly last exchange scam FTX announced about their bankruptcy for easily not refund the user assets.
Not difference yet with scam or bankruptcy because the exchange not refund the member assets, difference with some exchange bankrupt like bittrex but have deadline around five months later for user withdraw their fund although market not allow for trading.
It is better to choose the best exchange currently and has a good reputation like binance to store our crypto assets to be active in trading.
because if we use an exchange that does not have a good reputation, we may lose our funds. FTX is an example in the past, and we should be careful in choosing an exchange.
Selecting an exchange that will store the cryptocurrency requires us to pay much attention so that we do not encounter unpleasant shocks. This means that a good reputation on such a platform should give a measure of experience that many people have tried and thus gives that feeling of safety while handling our resources.
To solve for trust issues related to platform management failure or loss of funds on the chain, utilising an exchange with already a large reputation and trust from users worldwide is beneficial. However, we must still be careful because practise demonstrates that not all platforms are safe. Thus, selecting a reliable location, we can devote more time to correct and safe business and investing strategy.
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I would say recent exploits on the platform as another factor for an exchange's potential insolvency or bankruptcy. You can monitor how they handle the refund procedures and if they come up with excuses, then you can assume. It still depends on the significance of the amount stolen to their total reserves though.
Classic problem with exchange when closing the market operation will announce about bankruptcy, I think can't acceptable reason exactly last exchange scam FTX announced about their bankruptcy for easily not refund the user assets.
Not difference yet with scam or bankruptcy because the exchange not refund the member assets, difference with some exchange bankrupt like bittrex but have deadline around five months later for user withdraw their fund although market not allow for trading.
It is better to choose the best exchange currently and has a good reputation like binance to store our crypto assets to be active in trading.
because if we use an exchange that does not have a good reputation, we may lose our funds. FTX is an example in the past, and we should be careful in choosing an exchange.
after FTX collpse that's when Binance also suggested the SAFU AFAIK.
it should have been implemented already where exchanges have their funds for public to know whether they have it for security of their users. but there is no authority that will coerce exchanges into revealing what they have though.
Binance eventually benefited to the FTX crash making them looks like the most trusted exchange.
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after FTX collpse that's when Binance also suggested the SAFU AFAIK.
There's already SAFU before FTX was created, if that's what do you mean by "suggested".
...Binance eventually benefited to the FTX crash making them looks like the most trusted exchange.
Actually, they are (most trusted exchange), to begin with, and they are already the largest exchange by volume even before FTX was created, they just got lots of issues lately but it looks like they never got affected it all.
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Actually, they are (most trusted exchange), to begin with, and they are already the largest exchange by volume even before FTX was created, they just got lots of issues lately but it looks like they never got affected it all.
It has never been affected by any legal problems experienced when it comes to dealing with the SEC in the US, but Binance still stands firm.
Many of its competitors in the past such as FTX but could not surpass it.
I am an early user of binance and I know how binance has grown to this day.
In the past Binance may have had signs of going bankrupt when the brand was hacked and such, but they still survive today and are even the number one exchange that has never been bothered by anything anymore. They have SAFU funds that will secure all the user's money in it and they have many partners around the world.
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Actually, they are (most trusted exchange), to begin with, and they are already the largest exchange by volume even before FTX was created, they just got lots of issues lately but it looks like they never got affected it all.
It has never been affected by any legal problems experienced when it comes to dealing with the SEC in the US, but Binance still stands firm.
Many of its competitors in the past such as FTX but could not surpass it.
I am an early user of binance and I know how binance has grown to this day.
In the past Binance may have had signs of going bankrupt when the brand was hacked and such, but they still survive today and are even the number one exchange that has never been bothered by anything anymore. They have SAFU funds that will secure all the user's money in it and they have many partners around the world.
Agreed, different situations demonstrate that Binance has always been ready for various situations and always keeps the confidence of users from different countries. That protection measure like theirs was one of the vital assurances that many exchanges such as Binance relied on when many others had fallen. Honestly, many of those who have adopted this platform for quite a while must agree with me that this has not only brought size but also the opportunity to continue learning on their effectiveness of their security for their clients. Of course Binance will not stay passive, they keep developing, being transparent and making more partners around the world, this is a brilliant chance for the Binance to remain a leading company in the world of cryptocurrency.
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Honestly, many of those who have adopted this platform for quite a while must agree with me that this has not only brought size but also the opportunity to continue learning on their effectiveness of their security for their clients. Of course Binance will not stay passive, they keep developing, being transparent and making more partners around the world, this is a brilliant chance for the Binance to remain a leading company in the world of cryptocurrency.
y Binance's development was quite drastic and even when it became a new CEX that might be almost the same as other Cex,
but Binance proved that they could survive and thrive to date.
Security, innovation and how to keep customers comfortable are things that binance maintains.
Now being a top tier 1 exchange with a large volume makes Binance a role model for all cex today.
CZ has also been really very instrumental to the development of binance until now, he is a man who has always been optimistic in everything despite some of the problems faced a few months ago.
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I don't bother to show too much commitment on any exchange that is not functioning the appropriate way because of I don't play with my funds and I will immediately trnasfer my funds and leave the exchange. There are many reputable exchanges out there that needs customers.
Agree. I also stay away from those exchanges that has features and services that is I am not a fan of that is why I only chose top exchanges not unless I am trying to buy coins that are not listed yet on top exchanges. Lately, I use Binance and Bybit for my practice trades I also use OKX but my app is dormant now but it is one of my option. For dex's of course the top one's are the best for volume and liquidity.
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I don't bother to show too much commitment on any exchange that is not functioning the appropriate way because of I don't play with my funds and I will immediately trnasfer my funds and leave the exchange. There are many reputable exchanges out there that needs customers.
There are a lot of exchangers in the market but since you have to deposit money there you should not play with your own money. Always use reputable exchanges for trading. But if any tokens are available for free from events like Airdrops then they can be exchanged on any exchange but for fund safety one should always hold funds on reputable exchanges. Exchanges try to attract users with events like launchpool. HOTBIT was once a pretty good exchange they scammed. So you should never play with your money
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I don't bother to show too much commitment on any exchange that is not functioning the appropriate way because of I don't play with my funds and I will immediately trnasfer my funds and leave the exchange. There are many reputable exchanges out there that needs customers.
There are a lot of exchangers in the market but since you have to deposit money there you should not play with your own money. Always use reputable exchanges for trading. But if any tokens are available for free from events like Airdrops then they can be exchanged on any exchange but for fund safety one should always hold funds on reputable exchanges. Exchanges try to attract users with events like launchpool. HOTBIT was once a pretty good exchange they scammed. So you should never play with your money
There are lots of exchanges out there but I usually use coinmarketcap and coingecko to access good exchanges irrespective of the fact that they can not be trusted with assets, they are just what they are to help exchange your assets and as such, one needs to be very careful enough to protect their assets by withdrawing to their private wallets all their investments and profits after trading so as not to be taken unawares. Big exchanges that we know could not guaranteed their customers assets even with their sophisticated hard wares, they suffered hack and this should be an eye opener to all to know what best to do when it comes to sensitive things of this nature.
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I don't bother to show too much commitment on any exchange that is not functioning the appropriate way because of I don't play with my funds and I will immediately trnasfer my funds and leave the exchange. There are many reputable exchanges out there that needs customers.
There are a lot of exchangers in the market but since you have to deposit money there you should not play with your own money. Always use reputable exchanges for trading. But if any tokens are available for free from events like Airdrops then they can be exchanged on any exchange but for fund safety one should always hold funds on reputable exchanges. Exchanges try to attract users with events like launchpool. HOTBIT was once a pretty good exchange they scammed. So you should never play with your money
We have to choose an exchange that has a good reputation, don't put our funds in an exchange that doesn't have a good reputation, because we have to be careful with our funds.
I choose binance, kucoin and some top exchanges in trading and so far it has been safe.
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Now, to detect a crashing exchange, whether Dex/CEX, you will notice two common issues,
1.Scanty users. The number of users on an exchange determined the exchange's revenue capacity to settle operational cost and other expenses.
2 No liquidity, and that is, no 24hours trading volume. Besides this few points that i have stated, kindly give your thoughts on how to detect a likely crashing exchanges.
Just as humans cannot detect any color except black with their eyes closed, I believe it is not possible to identify in advance that a centralized exchanger will go bankrupt. This is my personal opinion.
Suppose if we memorize the ftx exchanger incident on the past no one guess that will happened before one day ago at least I don't see in my eyes any people who thought that. And where I want to say the reason is the centralised exchangers don't provide the clear proof of Reserve and on the other sent they spends lots of money for their advertisement and marketing.
Exchange is very important for all crypto users in crypto currency would. Because we could get best profitable for this platform. So I believe that exchange should be secure for cryptocurrency traders or investors. But we can see that some exchange could be insolvent in crypto currency would. So I believe that it's very upset issues for cryptocurrency world. So I think that some reason will be for this time. I think that scanty users or liquidity also be main reason for insolvent crypto exchange. So I think that we should be awareness for this reason.
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Exchange is very important for all crypto users in crypto currency would. Because we could get best profitable for this platform. So I believe that exchange should be secure for cryptocurrency traders or investors. But we can see that some exchange could be insolvent in crypto currency would. So I believe that it's very upset issues for cryptocurrency world. So I think that some reason will be for this time. I think that scanty users or liquidity also be main reason for insolvent crypto exchange. So I think that we should be awareness for this reason.
Everything you said is correct, exchange is very important yes exchange are very important for the day trader or the short-term trader it cost lowest trading fee but also they were very risky as well becuase of they are centralized. As I have already mentioned in my previous post they got insolvent for lots of cause such as their activity and their proof of reserve are not clear to the people and I also think these are the cause for their insolvency not only the scanty users or the liquidity,
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Now, to detect a crashing exchange, whether Dex/CEX, you will notice two common issues,
1.Scanty users. The number of users on an exchange determined the exchange's revenue capacity to settle operational cost and other expenses.
2 No liquidity, and that is, no 24hours trading volume. Besides this few points that i have stated, kindly give your thoughts on how to detect a likely crashing exchanges.
Just as humans cannot detect any color except black with their eyes closed, I believe it is not possible to identify in advance that a centralized exchanger will go bankrupt. This is my personal opinion.
Suppose if we memorize the ftx exchanger incident on the past no one guess that will happened before one day ago at least I don't see in my eyes any people who thought that. And where I want to say the reason is the centralised exchangers don't provide the clear proof of Reserve and on the other sent they spends lots of money for their advertisement and marketing.
Exchange is very important for all crypto users in crypto currency would. Because we could get best profitable for this platform. So I believe that exchange should be secure for cryptocurrency traders or investors. But we can see that some exchange could be insolvent in crypto currency would. So I believe that it's very upset issues for cryptocurrency world. So I think that some reason will be for this time. I think that scanty users or liquidity also be main reason for insolvent crypto exchange. So I think that we should be awareness for this reason.
We must be able to choose a good exchange for exchange and trade there, see fundamental and team behind their project. If I prefer to choose the top exchanges such as binance, Bybit, Coinbit, OKX, Kraken and Kucoin. Maybe everyone has consideration in choosing a stock exchange, and it is adjusted to our choice.
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We must be able to choose a good exchange for exchange and trade there, see fundamental and team behind their project. If I prefer to choose the top exchanges such as binance, Bybit, Coinbit, OKX, Kraken and Kucoin. Maybe everyone has consideration in choosing a stock exchange, and it is adjusted to our choice.
Even thought the most valuable tips will be try to not use the centralised exchangers for holding bitcoin or the others cryptocurrency. In case of long term holding we must should use the decentralize wallet like if the fund is big then people should use the hardware wallet for holding his asset.
Although we don't have any other way to use the centralised when we are exchanging our cryptocurrency by the low fees. And the features we will find on centralised exchanger that not gonna see in the this centralised exchanger and also the trading fees.
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We have to choose an exchange that has a good reputation, don't put our funds in an exchange that doesn't have a good reputation, because we have to be careful with our funds.
I choose binance, kucoin and some top exchanges in trading and so far it has been safe.
I fully agree with you, it's not at all a good decision to keep your funds in an exchange that's not good in reputation. I know that it's best to keep your funds in a personal wallet whose keys are in your control but when you're into trading then no matter what you'll have to keep some funds in your trading account and for that I believe Binance is a good platform. I have been using Binance from 2017 if I remember it correctly and so far I haven't face any issue with it.
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When we are using an exchange which does not have a regular or rapid response team that support their users from the platform, either by email or through the number provided by the gambler as well as the user profile message, then we may have to check on what's more good for us, because no reputable gambling platform will be holding down on their users right and denied them of it all because of their own selfish interest.
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There are a lot of exchangers in the market but since you have to deposit money there you should not play with your own money. Always use reputable exchanges for trading. But if any tokens are available for free from events like Airdrops then they can be exchanged on any exchange but for fund safety one should always hold funds on reputable exchanges. Exchanges try to attract users with events like launchpool. HOTBIT was once a pretty good exchange they scammed. So you should never play with your money
Every single market is flooded with a lot of brands and different organisations or institutions, and same is for the case of exchanges. There are a lot of scam exchanges out there. Some even extort their traders with unnecessary fees and unfavorable trading benefits. I think one of the major ways to spot exchanges of low potential and possibly fake ones is to observe their fundings and also potential hodling and gross value.
Most of these big exchanges have a huge ton of Hodling especially in highly valued currencies like bitcoin Most especially and also Ethereum most times. To an extent some do have USDT hodlings too to also facilitate changes in dynamic rates.
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Some additional things that might be able to continue from the two points you mentioned...
3. There is no quick response from customer service for customer complaints, I'm sure some people must have experienced problems and the only solution is to chat directly with customer service to solve the problem... So a good exchange should also have good customer service quality.
4. Good UI. Although this is rarely considered, a good UI is one form of marketing strategy to make users comfortable... when users feel comfortable, that will make the number of users grow... that way the sustainability of an exchange will continue because it has a strong user base.
5. Good history and reviews... I am quite sensitive to user reviews, the better the platform rating based on user assessments, the more I trust the platform... but it also needs to be studied, whether it is a fake review or a real review... you must have understood this, right?
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When we are using an exchange which does not have a regular or rapid response team that support their users from the platform, either by email or through the number provided by the gambler as well as the user profile message, then we may have to check on what's more good for us, because no reputable gambling platform will be holding down on their users right and denied them of it all because of their own selfish interest.
I think OPs emphasis here is all about CEX and not casino. Although casinos are not left out of this as they mostly exhibit this act so frequently that their customers have no option than calling them out publicly to rectify their lapses. However, any of such organization which customer care fails to respond to their client within a short time interval would have themselves to blame because people do not joke with their funds when it comes to business or investment. Every investor or participants want to get insight on happenings as it relates to their participation on that platform so withholding information or ignoring them shows that you are not transparent and that alone could trigger them into actions in calling out the organization.
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When we are using an exchange which does not have a regular or rapid response team that support their users from the platform, either by email or through the number provided by the gambler as well as the user profile message, then we may have to check on what's more good for us, because no reputable gambling platform will be holding down on their users right and denied them of it all because of their own selfish interest.
I think OPs emphasis here is all about CEX and not casino. Although casinos are not left out of this as they mostly exhibit this act so frequently that their customers have no option than calling them out publicly to rectify their lapses. However, any of such organization which customer care fails to respond to their client within a short time interval would have themselves to blame because people do not joke with their funds when it comes to business or investment. Every investor or participants want to get insight on happenings as it relates to their participation on that platform so withholding information or ignoring them shows that you are not transparent and that alone could trigger them into actions in calling out the organization.
because basically transparency in CEX, DEX exchanges and even in gambling is highly prioritized because with transparency everything will be fair and no one will be harmed, here the platform owner must always be active in responding to complaints from its users, with little response from the platform owner will make the reputation of an exchange bad and over time it will be abandoned by its users
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When we are using an exchange which does not have a regular or rapid response team that support their users from the platform, either by email or through the number provided by the gambler as well as the user profile message, then we may have to check on what's more good for us, because no reputable gambling platform will be holding down on their users right and denied them of it all because of their own selfish interest.
I think OPs emphasis here is all about CEX and not casino. Although casinos are not left out of this as they mostly exhibit this act so frequently that their customers have no option than calling them out publicly to rectify their lapses. However, any of such organization which customer care fails to respond to their client within a short time interval would have themselves to blame because people do not joke with their funds when it comes to business or investment. Every investor or participants want to get insight on happenings as it relates to their participation on that platform so withholding information or ignoring them shows that you are not transparent and that alone could trigger them into actions in calling out the organization.
because basically transparency in CEX, DEX exchanges and even in gambling is highly prioritized because with transparency everything will be fair and no one will be harmed, here the platform owner must always be active in responding to complaints from its users, with little response from the platform owner will make the reputation of an exchange bad and over time it will be abandoned by its users
Yes of a truth transparency is highly prioritized by investors and participants and that has to do with credibility and reliability when this is compromised, such CEX or Casino might me on a brink of collapse because her members would run away from them and would go as far as letting other community members know about their ordeal with such organization and when that happens, it is a bad one for them as their reputation would be tarnished.
It is good that such organization always have an active representative or a team member who is dedicated to always respond to customers complaints even if they can not be able to do that, they could hire someone to help them always receive complaints from their users just like organizations on this platform does, they have representative that help them communicate with members here and that has been very helpful to both parties as it helps reduces long protocol with ease and guarantee confidence on the part of the organization as they are always on the lookout for their members.
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because basically transparency in CEX, DEX exchanges and even in gambling is highly prioritized because with transparency everything will be fair and no one will be harmed, here the platform owner must always be active in responding to complaints from its users, with little response from the platform owner will make the reputation of an exchange bad and over time it will be abandoned by its users
But do you know the worst thing in this space? Most of the centralised exchanger are not have their transparency in their services like we always see the newses about sue against the Binance actions because of violent the laws.
And if we saw all other centralised exchanger we will must see all of them don't have the correct proof of Reserve. And that is why I always try to avoid my fund holding on centralised exchanger and as well also afraid about investment on their native coin.
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But do you know the worst thing in this space? Most of the centralised exchanger are not have their transparency in their services like we always see the newses about sue against the Binance actions because of violent the laws.
And if we saw all other centralised exchanger we will must see all of them don't have the correct proof of Reserve. And that is why I always try to avoid my fund holding on centralised exchanger and as well also afraid about investment on their native coin.
Wanting to invest in the exchange's native coin is an option, but if you look at tier 1 exchanges like Binance with BNB which was originally still under $50 but now reaches ATH $700++, of course the coin makes quite good profits.
But yes about storage it is not recommended to use Exchange storage because we do not have full control and about SAFU funds this depends on each exchange.
Not only about the vulnerability of the exchange service, but the security of the account we use is whether we are good enough to do our own security on the device used, because most hacks are carried out on user devices that take advantage of login loopholes to drain the target account.
I always use a hardware wallet for the main coins I hold and it is the best option, because of the double security and will not be exposed by scammers.
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Wanting to invest in the exchange's native coin is an option, but if you look at tier 1 exchanges like Binance with BNB which was originally still under $50 but now reaches ATH $700++, of course the coin makes quite good profits.
It is undeniable that native coin exchanges usually provide their own benefits for investing, especially if the exchange is really increasing, top exchanges. But once again, you really have to be careful in investing in exchange coins, because we also have to understand what kind of exchange is likely to have high potential to increase too. So yes, there must be certain considerations. However, if it is a top exchange, it might provide quite high benefits and potential, as long as the exchange is still operating. And usually when we have the coin, there are many offers and discounts from the exchange by using the native coin from the exchange.
But yes about storage it is not recommended to use Exchange storage because we do not have full control and about SAFU funds this depends on each exchange.
Exactly, especially for long term, it is not recommended to store in exchange wallets, it is quite risky. However, if for short term and especially trading, yes, inevitably in exchanges to save transfer fees. but it is better not in too large an amount.
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Delayed withdrawal is a red flag, I wouldn't dare to use that exchange anymore because we never know when they will halt all their operations and more likely it's going to be indefinite since once they fall it's not really possible to get back into this business because users will lose their trust over their operations and handling crypto assets.
Hack is a different matter which also can cause an exchange to go offline so I would be looking for how their operations when it comes to security for funds, customer support.
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Delayed withdrawal is a red flag, I wouldn't dare to use that exchange anymore because we never know when they will halt all their operations and more likely it's going to be indefinite since once they fall it's not really possible to get back into this business because users will lose their trust over their operations and handling crypto assets.
Hack is a different matter which also can cause an exchange to go offline so I would be looking for how their operations when it comes to security for funds, customer support.
I have this believe that any exchange that delays withdrawal for more than 24 hours without any tangible information is likely facing a financial crisis and as such is a red flag except in situations of high gas fee but even at that, they also increase the gas fee to meet with the current demand and should not delay but however, if such happens, you do not need to wait for anybody to tell you to move out of the exchange before you start hearing stories that touches the hearth.
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Not only about the vulnerability of the exchange service, but the security of the account we use is whether we are good enough to do our own security on the device used, because most hacks are carried out on user devices that take advantage of login loopholes to drain the target account.
You are right. Even anyone want to investment on the exchangers native coin then there will be only one option that would be the BNB from binance. Although after the FTX incident I have to double re-thinking about the every single investment on the exchanger native coin.
And about the security it is also a major issue now because we saw lots of the exchangers were hacked and stealed a big amount of crypto from them.
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Exactly, especially for long term, it is not recommended to store in exchange wallets, it is quite risky. However, if for short term and especially trading, yes, inevitably in exchanges to save transfer fees. but it is better not in too large an amount.
Yes, it is also very necessary to keep funds on the exchange for trading purposes, only for the short term and only in the trading session only.
When the trades made have made a profit, it is better to withdraw the main capital so that the funds used for trading are only left from the profit.
I also choose top exchanges like Binance and my local exchange to trade on because there is a guarantee of security and refunds in case something goes wrong.
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Now, to detect a crashing exchange, whether Dex/CEX, you will notice two common issues,
1.Scanty users. The number of users on an exchange determined the exchange's revenue capacity to settle operational cost and other expenses.
2 No liquidity, and that is, no 24hours trading volume. Besides this few points that i have stated, kindly give your thoughts on how to detect a likely crashing exchanges.
If made simpler, actually low liquidity already indicates that the number of users is starting to decrease... we can prepare ourselves for the worst possibility, namely the exchange runs away with fraud or will close its services properly... rather than risking assets in other people's wallets for too long, it is better to move them as soon as possible to a safe place.
That's why we should stay on exchanges that have good liquidity and ratings from users... CMC has a list, just sort them by rank... the lowest rank currently is Flybit, WazirX and PowerTrade, the total trading volume is $0... very worrying, isn't it?