Cryptocurrency Exchange Scams: Spotting Fraud and Staying Safe

When navigating cryptocurrency exchange scams, fraudulent platforms that pretend to be legit trading services. Also known as exchange fraud, they often lure users with fake promises of high returns, fake liquidity, or exclusive token launches. These scams encompass fake websites, cloned apps, and even rogue decentralized exchanges that hide behind anonymity. Understanding that cryptocurrency exchange scams are a subset of broader finance fraud helps you keep a sharper eye on warning signs.

Key Factors That Make an Exchange Trustworthy—or Not

One of the first things to verify is the crypto exchange, a platform where users buy, sell, and trade digital assets. Legitimate exchanges usually display clear licensing information, robust KYC/AML procedures, and transparent fee structures. Another critical entity is exchange licensing, official permissions granted by financial regulators that allow an exchange to operate legally. When an exchange lacks a verifiable license, the risk of it being a scam jumps dramatically. Finally, watch for scam red flags, specific warning signs such as unrealistic ROI promises, unresponsive support, and pressure to move funds quickly. These three entities—crypto exchange, exchange licensing, and scam red flags—interact directly: a licensed exchange reduces red flags, while missing licensing fuels them.

Beyond centralized platforms, many users turn to decentralized exchanges (DEXes) for privacy and control. However, decentralized exchange risks, issues like low liquidity, smart‑contract bugs, and anonymous operators that can disappear with user funds add another layer of complexity. Knowing that DEX risks differ from centralized ones lets you apply tailored safeguards, such as using audited contracts and limiting exposure on newer platforms. By piecing together how licensing, red flags, and the type of exchange relate, you build a practical checklist that protects your assets.
Below this intro you’ll find in‑depth reviews, red‑flag breakdowns, and safety guides covering everything from shady newcomers to the most reliable high‑liquidity services. Dive in to see which exchanges pass the test and how to avoid common traps.