Topic: Newbies - Read before using exchanges or investing (Read 1028 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.

Another thing to always do is always make a test deposit first. Then your larger deposit afterwards. You should probably make a test withdraw from the exchange. This can be bothersome though if they withdraw fee is high. If you dealing in a large amount of crypto then you definitely should do a test withdraw. Always check your address and the address you sending to. This is also another reason you should make a test deposit/withdraw. So you deposited.withdrew to the same address again twice in a row and the chance of making the same mistake twice is little.

I still read newbies not doing research about an exchange and the newbie only mention that he/she is interested to invest in the because it is interesting and I only advise not to invest in it instead do a research about it and you'll surely can decide if it is worth it to invest or not. Do research is number 3 in your list and it's important that we must do it just like the rest of it.

Thank you @DdmrDdmr and @CryptopreneurBrainboss! Now I understood about Coin Mixing.

Mixing service are platform used for mixing coins (most especially bitcoin) to make them untraceable. For more detail information read below.

edit: @DdmrDdmr beat me to it 

Take a look at these threads:

What is Bitcoin Mixer?
List Bitcoin Mixers Bitcoin Tumblers Websites

A Mixer basically has the goal of disassociating even further your crypto assets from you (primarily BTC, but there are others available such for ETH for example). They use various techniques, but the at the core they attempt to break any connection between your addresses that send coins over to the service, and the addresses you receive the coins back on. A couple have been seized over the past year or so, and there’s a well known one that has been offline or non-accesible for some hours now (502 - bad gateway) ...

Rather, we should not keep our coins on exchanges only. We should create a cold wallet and store our coins there. We will have full control of our wallet.


We can use hardware wallets where you will have access to your private keys. It is safe, unless you loose it.


I didn't understand this point. What is mixing service platforms?

Thanks.
I would like to give explanation: that point focuses on altcoins. Withdrawal fees with altcoins are cheaper.
BTW, you remind me that it is important point that I forgot to write in OP.

Depends on how small the withdrawal is. Most exchanges have a minimum and you can't withdraw below that minimum.
Also you will be paying double fees for 2 withdrawals. For example the withdrawal fee is 0.0005 BTC on Binance - more than $5. It is not exactly cheap if you are not dealing with a lot of money.
Their withdrawal limit is 0.002 BTC - more than $20. If it is a small amount the user might not be able to respect these limits to make two withdrawals.

OP updated with the point [8], please check and let me know if you have something to contribute and improve my thread.

If you decide to keep investing,
Always de-authorized any online wallet do you used !

My friend forget to de-authorized the blockchain wallet eventhough he accessed through his personal laptop at home.
The fact is the hacker still able to stole it

One more recent thing that is going on is if you sent 1 eth you will get 'x' amount of BTC in your account kind of scam. Even In such cases kindly do not invest if you are not assured about getting funds later. I would say do not step on such news just because of greed.

Example of such cases:
https://bitcointalksearch.org/topic/m.52105798

The point is do not invest your funds with zero knowledge. Invest time in reaching end to end info before you invest in anything.

Basically, do not fall for fake investment plans and lose your hard earned funds.

This is important to verify. I’ve just come across a case on my local board of a person using an android wallet called “Bitcoin Wallet”. The app now crashes every time he tries to use it, and only (fortunately) allows him to create a backup. He’s tried all sorts of things to get it working, but still cannot (and is wishing to dump the wallet once he gets access to his funds).

The thing is, the wallet does not seem to provide a menu accessible way to see or export his private keys, and is therefore stuck. I’ve located a thread where some members point to developments that allow you to export the private keys from the backup through third-party open source software. Risky as it could turn out to be, it seems that he has no other alternative than to give it a go, since apparently there is no built-in way to see them (and the App crashes constantly).

This is right on point as new scams crop up, and even old ones resurge most times there are risks pertaining to a spoofing attempt to steal private crytographic keys, fake wallet set up to trick users. And many times when things look good and you then think it's safe simply because the exchange is probably a good one, don't forget that they can also be victims of hacks which has happened so many times. As a newbie like myself this is something I've learnt not to do in my few days of reading the on the forum.

There is something to watch out for at every turn and so carefulness comes in.

can we actually say exit scam on BitBlender? they did give users a few days to withdraw, didn't they?
and BestMixer.io had no feature on storing coins (cmiiw), they mixed and only delayed sending out coins
but I do agree, if the mixer allows storing coins, best to withdraw it within a few days

Exactly! At least, if I do research on exchange reputation and its current situation (deposits, especially withdrawals); then I have likely been safe in very short term. You are right that exchanges can turn into scam or can be hacked within seconds, no one knows.
Investigate first, have detailed plans to withdraw after buying coins on exchanges (preparation on wallets on your devices), and set up plans to withdraw, 5 minutes or longer.
BTW, I want to add one more point:
- After buying, it will be safer to withdraw small amount of coins to test withdrawal on that exchange for the coin you just bought.
- If small withdrawals get first confirmation, let's move all rest of your coins.

i just want to add something to this point. part of the risk is not a matter of length of time, it is the matter of storing coins on exchanges. in other words when you are depositing your coins on an exchange even for a single second, as soon as that deposit is confirmed you are at risk of losing your money. the exchange can scam you that very instant.
which is why if you want to start trading, you should also consider this risk among other risks involving trading.

Sorry. I wrote it in another thread, and forgot to wrote about that step in this thread.
Yeap, it's great.

Here is one of the most recent examples of why storing all your cryptocurrencies in an exchange is not a good idea for your money. I think we all know by now what had happened to QuadrigaCX and how it had devastated a lot of investors from their exchange. It was not due to a hack nor a system malfuction but the simple reason of the owner dying whom they stated is the only one who have access to their cold wallets. Not unless you are into day trading it's really a good practice sending the cryptocurrencies you own to wallets you have full control with, there's really no reason why you need to hodl those coins on an exchange for too long when you can create crypto portfolios on third party apps or even in Excel/Spreadsheet.

Best thing is always going the official website of the interest coin, they have always their official wallet or recommended wallet/s.

Good practice is to turn off your internet connection when testing. Even its desktop or in mobile devices.

People say:
"Not your keys, not your bitcoin"
"Not your keys, not your crypto"
This is true not only for bitcoin, but also right for altcoins.

From that, I will give you some points, that will play vital roles to keep you safe in crypto.

[1] Don't store your coins on exchanges for too long. It is the most stupid mistake
[2] Don't use wallets that you don't have full control of wallet's private keys.
[3] Do your own research on your interest coins, to find out about their wallets, and choose best ones in case you buy them and withdraw coins from exchanges
[4] Read tutorials on how to verify wallet (if possible), backup seeds, private keys, wallet backup; and steps to recover wallets
[5] Testing seeds, private keys, wallet backup first, and only deposit money in those wallets when testing results are good
[6] Don't use masternode / shared masternode hosting services
[7] Don't store your coins on mixing service platforms for too long. Withdraw them immediately after mixing process finished
[8] Check KYC requirements on exchanges that you have plans to buy coins on their platforms
[9] Pay your attention on very early signals of scam exchanges

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[1] Don't store your coins on exchanges for too long. It is the most stupid mistake
Risks of hacks, exchange scam exits. Big exchanges can be hacked, big exchanges can do scam exits. Take care of your coins is better.
Read more:

• Mt. Gox
• QuadrigaCX
• List Exchanges Hacked 2011 / 2019

[2] Don't use wallets that you don't have full control of wallet's private keys
You should read about custodial and non-custodial wallets.
I suggest you to choose non-custodial wallets to have full control of your private keys. No one can steal your bitcoins, ie. if you don't lose your private keys. It means you have to take care of your private keys, and your computer security, nevertheless.

[3] Do your own research on your interest coins, to find out about their wallets, and choose best ones in case you buy them and withdraw coins from exchanges
This step will help you having good preparation for what you will do next after successfully buying your interest coins.
You will know which wallets to use, where to download, how to install, backup, recover, and testing all those steps on your computers.
How to search?

• If your interest project already listed on coinmarketcap.com (~ CMC) > Start from CMC to get official website, github, etc. of that project
• If your interest project has not yet listed on CMC, and you know official website of that project > Start from official website to get other things
• If your interest project has not yet listed on CMC, and you know official website of that project > Start doing your own research from Google, with higher risks. This is last option you should think of.

Benefits:
It will save your time. The more time you save after buying coins on exchanges, the more security and less risks you will have, because you can move your coins from exchanges to wallets under your control after a few minutes.

[4] Read tutorials on how to verify wallet (if possible), backup seeds, private keys, wallet backup; and steps to recover wallets
Using non-custodial wallets don't mean that you are totally safe, because it depends on your computer security, and wallets you download are official, and zero-threats/malwares or not.
Reading how to verify wallet (to check it is official or not) is very important and vital. Doing this before using that wallet for transactions.
Appreciated help from @DdmrDdmr to remind that verify wallet quality and functions is important to, in case wallet has poor quality, and bad functional operation, you don't lose your money.

Read more:

• Electrum wallet - Update safely and avoid phishing wallets?
• Issues if wallet crashes (DdmrDdmr)

[5] Testing seeds, private keys, wallet backup first, and only deposit money in those wallets when testing results are good
After verifying wallets (if that feature is available), and installing wallet on your devices, and doing back ups (in the [4] step). Now, it is time to test those backups on same devices or on other devices.
Checking all of those backups to make sure that in case your devices broken technically, you will be able to recover your wallets (there is no mispelling on seeds, private keys, etc.)
Read more:

• [Guide] How to create your customized Bitcoin-Address (vanitygen) – step by step

[6] Don't use masternode / shared masternode hosting services
It is nearly the same as storing coins on exchanges for too long; and you don't have control of your money.
Read more:

• GINcoin: Shutdown their masternode hosting service, without announcement in their ANN thread or on their website. They only announced it in their Discord.

[7] Don't store your coins on mixing service platforms for too long. Withdraw them immediately after mixing process finished
It is nearly the same as storing coins on exchanges for too long.
Read more:

• BitBlender: likely scam exit
• Bestmixer.io: suddenly shutdown by Dutch FIOD.

[8] Check KYC requirements on exchanges that you have plans to buy coins on their platforms
This step is another must-do thing. It is ridiculous that your original aim to create accounts on exchanges is to buy your interested coins, and withdraw them to store in wallets you have control on private keys; but at the end you are unable to withdraw due to failed KYC.

It ensures that if you don't want to do KYC, you will not create account, and send your funds (bitcoin, fiats, whatever) to those exchanges; then you will have to mandatory do KYCs (that what you never want to do at starts).

In addition, it also ensure that on exchanges that KYC is mandatory to be able to withdraw money, you have to successfuly do KYC verification first, before send your fund to your accounts on those exchanges.
Sometimes, I saw people complain that they failed to do KYC verifications. There are some reasons:

• ID cards, photos, ie. blurred
• Their nations in which they live listed in exclusive nations of exchanges

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

To save space in OP, you can read more details on Crypto Bridge with my summary here