Exchanges: What To Look Out For & How To Protect Oneself
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Amidst the sudden delisting of XBY and several other coins from C-CEX, the inability of users to access their assets and exit from this exchange has alarmed many of our investors. That said, one wonders whether exchanges really care about customer satisfaction or simply financial gain. Certainly, any exchange that views their customer’s interests solely as a function of profit is one that new users should be wary of. What danger signals exist to suggest that an exchange is subpar?

Danger Signals:

  • Look for constant downtime via “Under Maintenance” warnings.
    • Warnings of this kind suggest the exchange experiences various network or server instability.  Legitimate exchanges factor redundancy planning and scalability into their network – all of which requires serious investment. Be very concerned if an exchange is continuously going down.
  • Determine if there is anyone you can contact if you have a problem.
    • Customer Support is gone for a three-month holiday, seriously?! Who in the world would invest in an exchange that posts this? This shows limited staff which should concern anyone that has investments in such an exchange.
  • Beware of fake cryptocurrency exchanges.  A good indicator that an exchange is legit is having the proper certification to show that it’s trusted. What you’re looking for is a green “Secure” and “https” to the left of the website’s URL address. These signposts signify that the company obtained proper SSL (secure sockets layer) certificates for their website.
  • Review the actual volume traded on the exchange. An exchange that reports over $3 billion in crypto assets volume is fabricating, so take the time to review whether such details appear legitimate.
  • Do your homework, especially if you are new to the cryptocurrency world. If you have any concerns or questions, take the time to receive community feedback from within Reddit or Discord.
  • Trusted exchanges showcase a voice, typically a CEO or founder who is upfront and willing to answer questions. Leaders of exchanges that hide from their users/customers are hiding for a reason.
  • Beware of exchanges that fail to give you a shutdown notice if your account remains inactive for 6-months.
  • Beware of exchanges that host an enormous amount of coins, as they may lack a vetting process for reviewing legitimate coins. Exchanges that fail to scrutinize what coins they host leave their customers vulnerable to scam coins.
  • Look for compliance documentation that legitimizes the exchange.
  • Be careful of sites such as CoinMarketCap and LiveCoinWatch who report top exchanges by volume, as they also report from exchanges that are faking volume amounts. Check out the Sylvain Ribes article in medium.com.  

Alternatives:

By sitting on a central server, centralized exchanges place your coins at risk, as well as your personal information and passwords. Any such server can be easily hacked and disabled. What are some alternatives?

The XTRABYTES™ team provides its users with a scalable and secure place to hold coins via our secure wallet, one that provides for easy access and backup (whether through secure encryption or a simple paper wallet). All on a decentralized platform, so that no one can hinder access to your coins (not even XTRABYTES).

Likewise, our XCHANGE™ enables users to forgo worrying about hacked passwords and data, as it stores such information in a decentralized manner. Consequently, our platform will be the fastest and most secure network available, with country-specific compliance and governance. ….Stay tuned! It’s coming

Link Source: Business insider, Medium.com Sylvain Ribes,

Would you like to know more?

We don’t just publish articles, XTRABYTES is a whole new blockchain platform that allows DApps to be programmed in any language, utilizing a new consensus algorithm called Proof of Signature. In doing so, XTRABYTES presents a next – generation blockchain solution capable of providing a diverse set of capabilities to the general public.

You can learn more on our website, where you can also help to spread the word through our bounty program and get rewarded in XFUEL, or join our community and hop into the discussion right now!

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About Ashley Norman COO

Ashley John Norman is a Chief Operating Officer at XTRABYTES™, where Ashley, creates and executes the global operational strategies, including evaluating and positioning the strengths of all aspects of the company.

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