Topic: When will you start losing trust for an exchange? (Read 184 times)

Making huge funds for ourselves will become very straight and convenient for us. Exchanges are complicated at this particular present frame in time. We should always apply caution when dealing with the system because the slightest mistakes will issued out losses which will become one of the devastating scenario to witness in the space. I know how careful I can be but when it comes to profits and losses, ensure that your profits percentage surpassed your losses ratio.

Well aside from the exchange don already start to dey get small small complains how person wey carry know wether dem go mismanagement people funds until dem actually do so if you ask me, I think e go dey hard sef to even know exchange wey get motive to run with people money, I mean lets take a look at FTX wey crash with plenty people money wey dem come talk say na scam plan, dat exchange been get reputation well well and e no take series of complaint before the actual scam happen because I believe say if to say coma been don dey come out people for clear their funds well well before e crash abi dem claim say na hack.

Exchange get trust base on how smooth their operation dey go when people dey use their platform and if I see any exchange like binance wey things dey go well watin or how person wan come take doubt or lose faith except of one kind saga play out like the time wen dem force the CEO to actually step down as CEO.

My red flag alarms start going off when there's increasing reports about delayed withdrawals, little to no resolution of customers complaints — or any other sketchy moves like that, I'm running ASAP. That's what happened with FTX. Before the public knew the real details (mismanagement of user deposits), there were more reports of delayed withdrawals: from lightening fast to several hours? And customer support became non-existent too. That's everything I need to observe and I'm out.

OP, from the very first moment I discovered that exchanges are third parties holding the keys to your wallet, I just forgot and ruled out trust in them  because they would lookout for signs and fault to hold your currency without you assessing it. They are centralised and are controlled by the government and this alone should tell you that they can easily betray and dance to the tone of the government to favour them ignoring the fact that the community made and supported them all through their little ways.
Never trust exchange with your funds and wallet or something important to you.

There is no trust in any centralized exchanges because anything can happen at anytime. And that is why there a saying in the forum " ot you key and not you bitcoin". Meaning you don't have a control over your coins in the exchange. The owner of the exchange can lock or freeze your coins at anytime. Therefore don't keep you coins in the exchange for a long time because you might lose your coin. And you can see what is happening in the country . If to say di exchanges stopped their operation straight as federal government dey worry them many people for loss coins well well but na only the p2p dem dey delist and you can send them to another Wallets.

Me I no trust any exchange and exchange na to buy or sell immediately as I send di coins to the platform and I ko dey keep there for a long time. One of my neighbor e don lost 0.05858 bitcoin in exchange. Dem freeze di coins and di site stopped working, the app w no dey open again and they removed it from play store na so him lost everything. So I no dey advise anyone to keep for exchange. Always use self custodial wallets to store your coins.

We do not have a choice right now since there is no one strong enough to support crytoners in the government offices. All we can do right now is to hope that things get easy for us and solutions should come for us. We cant blame it on exchanges and we cant lose the rust we have for them because it is not their fault that things are not going well for us in the system. These exchanges are trying to save their Businesses and they are maintaining safety by taking the actions we see them take.

This is the first reason I'll always note out for me to lose trust in an exchange, a good exchange is suppose to be transparent and manage the asset of customers properly not coming up with unnecessary policies that would make customers lose their asset. Another thing is poor customers service, I know network issues and congested customers complain makes it a little difficult for exchange to carry out good customer services but some exchanges are very poor and their customer service is usually unavailable to attend to customers at the very point when they're deeply in need of assistance to attend to issues that could make them lose funds. Another things I won't tolerate is an exchange that permits government officials to operate in their P2P services and reveal bank details of customers to the government.

Mismanagement of people’s funds is the strongest reason that many people will lose interest or trust on an exchange, an example is the FTX saga, when they mismanaged the customers fund. The other thing that an exchange can do to lose interest or trust of an exchange is when the exchange reveals the customers KYC willing to the government, this will create a distrust by the customers to be exchange. Although once you do KYC you shouldn’t expect those to save from the public, as even a hack on the platform can cause details to be reveal but if people find out that the exchange sells out or reveals the details to the government or other parties then it will definitely make people lose interest on them

Well, for me I could consider that I have little trust for an exchange when it no longer serves my purpose of P2p, affordable fees and rewards for completing simple trading task.  It's not as of I am the best in the game, but since others can perform better and suit my own goals within my country that has chosen to not accept cryptocurrency, any exchange that does well to satisfy my strategy of investment is the most trusted exchange for me at the moment.

Let us be realistic here, is there really any need for one to trust or distrust an exchange?

Personally I don't see any reason for saying you trust or you do not trust and exchange because basically we all know that and exchange is not a wallet for storing your crypto assets or bitcoin specifically. It is just a medium that has been created to bridge the relationship between a customer and a seller, it was initially created to cope or help resolve the issues of being scammed as a result of P2P transactions with customers whom are not known except for having a direct chat on any of the medias so the exchange only comes in between these two people to help as an excrew or help people transact without any misunderstanding.

What I'm saying essence is why try to build trust or trust an exchange? When you can practically hold your crypto asset in a non-custodian wallet which gives you the power to handle all your crypto assets without anyone's intervention or decision for you. You have Electrum, Sparrow wallet, Blue wallet etc as wallet not exchange to hold you assets but you can use exchanges to sell or buy, if you have any issues you can move to another exchange without a second thought because you don't store your assets there so the trust case to me is not supposed to be a problem.

The main reason wey go make me lose trust for exchange nah say the money wey I put there, the exchange freeze am for no reason. Nah only money dey make person like or hate something, the important thing nah say the reason be good or bad.
Sometimes you gets listen from others story before you make your choice, if you hear say exchange lock person money and em no go fit use an again, then you go decide wether you go still dey use the exchange again or not. But the truth be say nah only lonely matter go make person dislike something (exchange or no exchange).

There are so many reasons why some people prefers or trust some exchanges to another. But the truth is that exchange are not to be trusted enough to leave reasonable amount of funds in them. You can trust to use them for your trading activities but avoid using their wallets as a storage would help you prevent any future losses. Just like you stated, the common reason why people losses up trust in exchange is because of mismanagement of users funds.

Since I joined this forum, I have heard of some exchanges that stoped functioning for some time, maybe due to hack or something, later on resumed business but didn't return the users funds to them. This can cause mistrust from other users. Also, I can mistrust an exchange, when their customers service doesn't respond or handle cases on time or at all. Most especially when you are trading p2p. Once I find a fault that makes on an exchange and other users have complained of same, I stop using it to avoid being a victim.

Haven't you read or heard about the great Mt Gox exchange? The biggest exchange by volume in 2014 that misplaced over 750k BTC customers' funds? And there's also Bitfinex who also lost tons of customers' funds to hackers and were only able to get back a few. From hacking to mismanagement and operating Ponzi schemes with customers' funds have been part of crypto exchanges' history and that's why we can never trust our funds on these exchanges.

So many exchanges have gone out of business over the years for mismanagement of funds, poor security and not being able to store customers' money properly. There's also the case of Gerald Cotten the CEO of QuadrigaCX exchange who died with customer's funds in his cold wallet and no way to access it.

There are different reasons one can lose interest or trust in using an exchange some of the reasons are being discussed by other members. Firstly i consinder how reputable the exchange is then i lose interest in an exchange when they demand high transaction fee or high gas fee, also when their kyc procedure is too demanding. I wouldn’t want to include conversion rate because everyone wants high conversion rate.

It seems you have listed all the reasons why someone should stop using a particular exchange, I will like to emphasize more on this withdrawal fee just imagine where you have $100 in your wallet and the gas feel is about 10 -20% I mean this reason is enough for someone to stop using a particular exchange because it's as if you are working for them.
Transaction delay, I think this is also one of the reason why someone can stop using a particular exchange, let's say you have an important thing to do with money and you don't have cash and you want to transfer money from your wallet and after the transaction you now see that the transaction is taking a long period of time to arrive, no be person go tell you to stop, to use that exchange because of time wey e dey take for transaction to arrive.
Another one na too many procedure, e get some exchange wey you go enter like this some of them go stress person like mad and some of them before you go do transaction you go see steps and procedure tire all in the name of security reason this na the reason(s) wey fit make person stop to use a particular exchange.

How about FTX?

Exchanges cannot mismanage our funds, but they can be hacked or demand from us some kind of annoying KYC informations upon our account, also, they can reveal our private and personal information to a third party and they use such by themself against us a they may wish, lastly, if anything should happen to the exchange like bankruptcy, our money with them are gone.

Here are some of the things that can make someone to lose trust for an exchange:


1 High fee can make many people to lose trust in an exchange because they will like to switch to another exchange which their fee is very low for them to be comfortable, whenever they want to carry out their transactions and it will enable them to earn surplus profits.


2 Mismanagement of customers money, it can cause customers to lose their trust in an exchange because they trust the exchange before storing their money, and the moment they discover that their money is no longer safe in the exchange, they will begin to find another alternative exchange which are good in managing customers money.


3 Team behind the exchange, can make customers to lose trust in an exchange because once they discovered that the team behind the exchange are scammers, their customers will like to withdraw their coins from the particular exchange before anything will happen to their coins in the future.

The reason I lost interest on some exchanges was high rate of asset seizure. I was using Hit BTC before but when I came to this forum and read about people complaining, I stopped using the exchange.

Another reason is high withdrawal fee. This was the main reason I finally left HitBTC fee years ago.

High trading fee. Most exchanges that are common have similar fee now. But for the ones that has higher trading fee, I left them for a lower trading fee exchanges. I noticed something like this on BitMex.

Another reason is unfavorable rate. The reason I left Luno for crypto/naira exchange.

Dubious activities. The reason I left Quidax few years ago.

Exchange is a platform for assets storage and for execution of p2p transactions. So, It's unnecessary to pinpointing further errors from the he exchange after considering the legal and mismanagement errors.