With the massive growth of blockchain and cryptocurrencies, there is a surge in the number of crypto exchanges. But with their unregulated nature, it is difficult to know if they are legit. Here are some simple ways to check if they are legitimate:
- Check for any public records or reports that rate them and whether or not they have been in operation for a while.
- Check the reviews on niche blogs and news sites and see if anyone has posted about it being a scam or not.
- See what people say on Twitter, Facebook, Quora and Reddit about its legitimacy.
Cryptocurrency has been a major topic of discussion for a long time. It is now becoming a reality as more people start using it as an investment tool and as a means of payment. However, with the growing popularity of cryptocurrencies, scammers also find ways to take advantage of this hype and promote scams. The legitimacy of any crypto exchange is determined by several factors such as:
- if the exchange has been operational for at least three years;
- if it’s registered and regulated by the country’s authorities;
- if it has no history of hacking incidents and illegal activities;
- if there is no history of fraudulent activity or marketing campaigns that falsely claim that the company provides crypto trading services.
The same rules apply to any institutional or non-institutional cryptocurrency exchange that offers trading services to its clients
Every crypto exchange will have a verification process and they will be different for each one. They will most likely ask you for your ID and proof of address, but the specific requirements may differ. Make sure to read their FAQs and follow their terms and conditions before signing up!
Most exchanges offer a verification process that usually involves filling out an online form with your personal information such as your name, date of birth, country of residence, address, phone number, email, social media account names etc. The more detailed you are with your personal information the better as they may need to contact you if there is any issue with your account.
Some crypto exchanges might ask you for scans of your driver’s license or passport which is standard procedure in many countries before doing business. But make sure to check their terms.