Fraudulent exchanges lure users with promises of attractive features or lower fees. Once users deposit their cryptocurrency, the exchange either shuts down or steals the funds, disappearing with the money.
How to Avoid It
- Use Reputable Exchanges: Choose well-known and established exchanges with a solid reputation.
- Check Reviews: Look for reviews and feedback from other users to gauge the exchange’s reliability.
- Verify Security Measures: Ensure the exchange has robust security practices, such as two-factor authentication (2FA) and cold storage for funds.
