One of the major strong holds of shitty exchanges is taking advantage of the fact that the cryptocurrency is a global phenomenon which is scarcely regulated because only a hand full of countries all over the world have clear regulation for the industry. Crypto enthusiasts, both the "professionals" and the "noobs" often fall into the trap of trusting foreign exchanges forgetting that they have little or no power to take any action against the exchange or the owners in case of any mishaps.
According to the research done by Bitfxt Research and Development Department, most shitty exchanges that packed up paid off all the users in their registered countries while some of the exchanges we say have "scammed" are still operational in their respective countries and are still servicing their local users very well.
Wether with or without official regulations, since the exchanges are operated as registered companies, they operate within a specific scope guided by some certain terms that protects their customers as well as the company itself. In a situation where the customers are not satisfied, the company could be sued, their office invaded or destroyed and owners and their family members leached. To avoid this, these "shitty" exchanges targets foreign users, they avoid responding to their emails, shut down their accounts, blank them out knowing that there is actually nothing the users can do to get to them.
Some of the points to note which will assist you to spot a shitty crypto exchange are;
Shitty crypto exchange do not prioritise security which is the most important issue with any crypto exchange, they have weak KYC(Know Your Customer) & AML(Anit-Money Laundering Policies).
The user interface of shitty crypto exchanges are always Off, but some of them pay so much attention to the User interface to make it look geniue especially when they just want to get tyour funds and exist the space. They promise unrealistic returns and promos just to get the funds of the user.
They have very shitty customer support which is very important in the business, shit exchanges don't care about your problems of either deposit or withdrawal because they are all about taking your money.
In conclusion, In this part of the world where people have been made to think that only foreign projects or exchanges is worth their while, no matter how popular the projects or exchange is, anything can happen and when it happens, if it goes beyond their immediate control, the best they can do is settle the users within the country where they are registered and this leaves the users worse off.
Thie issue on how to spot a shitty crypto exchange even if it is covered with a diamond cloak is not just about shitty exchanges, the issue is also about shitty users mentality who do not want to seek more knowledge in the space but are looking for get rich quick schemes which get their hands burnt in the end.
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