Topic: Newbies - Read before using exchanges or investing (Read 985 times)

1 and 2 are the same: On mobile devices, you download and install aunthentication applications.

SMS code for your 2-factor authentication is bad because the company provides telecommunication service can block SMS from other companies especially from foreign, international companies. Or they can block SMS code because of law enforcements from national government requests.

For applications, consider good open source application.

Try to choose top exchanges in the list of coinmarketcap or Coingecko. Make your investigation by use exchange name and scam accusation, hack, replay attacks, dark markets, shutdowns, and so forth.

Exchanges have relations with dark markets are risky to use. They are always targets to freeze or shutdown from governments.

I want to add a point on OP and it is 2FA. It is a very important point. 2FA provide extra layer of security on your account. There are 3 types of 2FA.
1. Google, Authy or other similar app.
2. Email authentication
3. Phone/Mobile authentication
Among them i prefer Phone/Mobile  authentication. Before depositing in any exchange, we must keep in mind the security of our account in that exchange.

I took this article to bump the topic after a while some time. News for 75 shutdown exchanges in 2020 but no detail for how many victims on 75 exchanges. At the end of article, I quoted too, you can find reasons to not trust on altcoins and tokens.
https://cointelegraph.com/news/75-crypto-exchanges-have-closed-down-so-far-in-2020

Surely this is been written based on the experience of the OP. I am.quite sure if you can list that much about awareness then high chances that OP had been experiencing it in addition to some tha has been observe of course. There are many precautionary measures to users here that should be consider when makingn an investment or exchanging. The forum had great influence into these but I do not what admins stand against battling against this problem. Surely this is a big problem and admin depend on the help of different users around by rewarding merit if it is helpful or not.

The statement is always true. The latest hack on Kucoin is another reminder for people who store all capital on exchanges.

Not your keys, not your Crypto – Kucoin Hacked! $150m Stolen.
Cryptocurrency Exchange KuCoin Hacked
https://twitter.com/kucoincom/status/1309689557206491137 (you can follow-up the hack and security improvement progresses on Kucoin's Twitter)

Most users especially the newbies have the notion that exchanges serve the same or almost same purpose as wallets since, the addresses are similar and it comes with some level of security. It's so wrong! For a fact, exchanges especially the new and not very popular once are always very dangerous as it could be a scam based exchange platform and it's always advised against having a lot of coins on the exchange platform.
An exchange doesn't come with a private key or seed phrase hence, it's vulnerability is always high as compared to wallets so, having a better and more encompassing knowledge of the exchange to conduct trades on is just the key and better still, always stick to old and popular once but, never live huge funds on them as exchanges can be hacked or crash.

It is highly recommended to check the website of the project you want to follow because there are many scammer websites or phishing websites. The most important thing to pay attention to is to check the domain, whether it is the same as the original or not. Because some domains are almost the same but in fact different, the template used is the same.
After checking the website, you can check other sections such as the whitepaper and the project team.

On the number

[1] still many people are storing their funds to exchange in some reasons they are having the mindset of "I need those funds soon I will make a trade and hold into the exchange, for sure nothing will happen to my money"

Which is the very wrong side because you cannot have full access to your account is there is something trouble like having maintenance and you would like to get your money.

Also, some of them are installing an exchange, investment to an unknown platform just they saw on the telegram, and more. Knowledge is the best power to avoid getting trouble.

Also get some trusted wallet like electrum if you want to have a fully access to your funds.

Checking the official website will make you comfortable for exchanging and investing. It is the best thing to do for you to be able to identify whether you are on a good or fake website. We have to be careful when trying both websites because there are many hackers or scammers who made a fake exchanging and investment website. It will lose your money once you bring your money to it.

You may also ask any website that you will go to try here. There are many people here who live so long in the crypto world and they already experienced many things, they might answer the things you want to ask about that kind of website.

Can I add something? LOL

Before using exchanges or investing in coins make sure that your internet signal is strong. I have encountered this kind of problem luckily the transaction was failed and it lead me to redo the process to which give me the chance to make it sure that transaction will going to succeed by preparing a strong internet connection during the transfer of coins. Anyway, it was just a common sense for a user to do but yes just like the case that happen to me where I had a bad experience in the use of internet connection.

If newbies keep doing this when they are dealing with their investments, they will really have a hard time to make it grow in the market.

Not having an idea, a plan, and a strategy is really not a guaranteed move in investments. It does really take a lot of courage, knowledge, and idea so that you are prepared in any circumstances that you might encounter in the market. It is not that hard to make a research, spending time knowing the things that you should know more before engaging in the market.

Especially in trading, focus on doing technical analysis when you want to make it profitable.

With the bull market, and the crazy greedy DeFi, more new exchanges will be born. Big exchanges need to be born and build up their exchanges,volume, and reputation but new exchanges have more risks than old big, reputable exchanges.

It is normal to see more new exchanges in bull market, and they are more easily to list new coins or new tokens (that we have too many latest months). You can see how DeFi tokens are listed. Many of them will be listed on new exchanges.

New exchanges, new coins, new tokens, I warn you that risks are multiplied x2, x3.  You must be aware of risks from scam exits from new exchanges and new projects.

Generally, risks are existing on all exchanges and you never should use your account on exchange to store all of your crypto.

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It is time to seriously protect your capital. Manage your way!

Quoting entire OP is the worst thing to do when you want to reply to OP. My OP does not contain many images but for OPs do contain dozen of images (or large ones), quoting OPs like this is annoying.
[TIPS] to avoid pyramid quotes (for Newbies)
or Steamtyme's video - Using and trimming quotes

If you want to reply to me, just do this:

Every newcomer should have a good idea about investing before using or investing in the exchange. Before investing and exchanging, you need to research and practice how to do it. Otherwise, investing in new ones will bring many risks. Knowing which side to exchange at, then exchange it. Without investing without knowing the reason, it is very harmful to the new one and a half. You can even lose the money you invest.

In my opinion, every newbie should read well before using or investing in Exchange. Because they are new to crypto. If they do not know how to invest, then they will suffer a lot if they do not invest. Therefore, before investing or investing, you should do thorough research and research on the side where to invest and then invest. This will help you to avoid some of your losses.

If you’re planning on HODLing your funds for any length of time, the safest place to do it is in a hardware wallet. There's an interesting article here: https://medium.com/cobo-vault/so-you-bought-some-crypto-on-an-exchange-what-next-815df6bed6c8

Today, I added a new point in OP:

[9] Pay your attention on very early signals of scam exchanges

I meant, when one legit exchange starts to turn into a scam one, it usually shows very early signals. They are sort of very strange requirements and abnormal responses to their customers' supports, something like that. When you see it, I believe it is very early signal of highly potential scam exit.

A legit exchange can turn into a scam one in a minute. They can do it instantly if they want (with so many faked, nonsense accuses).

There is a very good example for the point #9: the Crypto Bridge exchage: https://crypto-bridge.org/

I will give you a very brief summary on their scam progress.

1) They required KYCs on US citizens
https://mastersofnodes.com/cryptobridge-applied-kyc-for-us-citizens/
https://medium.com/@JimmyMcShill/bypassing-cryptobridge-kyc-a3b3cf22b0f3
Fortunately, US citizens allowed 2 weeks to withdraw money from Crypto Bridge (that time) if they don't want to do KYCs. It's good, IMO.

2) They required KYCs on all users (not only US citizens) and KYCs (this time) will be verified by a third-party company - Fractal ID.
Crypto-bridge.org KYC scam !
It is terrible to see they announced KYC requirements on 1st Oct 2019, then instantly disabled accounts that did not verify with KYCs. Without a transitional period for their users.
This time, it is terrible! You don't verify KYCs, you lose your money!
It is your responsibilty, not Crypto Bridge's.  

3) They announced to shut down the exchange:
But at least, to be honest with you, I still respect them because they announced that any social media accounts from now on are faked ones (they closed all their social media accounts). At least, they don't let their customers get scammed by the other scammers. At least, at somewhat extents they still care about their customers. At least they still allow their customers a period of 2 weeks to withdraw money.

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In a nutshell, all things have gone with a process, and if you are aware of very early signal (with KYCs on US citizens) and if you are non-US citizens, you had a great chance to withdraw your money in February or March, without KYCs.

It i important to have guardian who is well equiped in this field so that they can guide you a a newbie and thus you won`t have to experience huge losses when making investment

Yes, it is, but it is not financial benefit to do if you don't have plan to move significant fund. If moving minor fund, there is only one option, making deposits at once, but do remember checking deposit address carefully before click on Send.
It is important to do trial deposits if someone have plan to move significant funds, as well as withdrawals too. I agree.