"This small exchange offers 50%, much more cost-effective than large exchanges!" "Trading on this small platform has no fees and gives away tokens!" Have you ever been attracted by such 'benefits'? Many newcomers choose to trade on unknown small exchanges just to grab a small advantage, only to end up losing their principal. Since 2025, more than 20 small exchanges have gone bankrupt, with countless users' funds vanishing, and no complaints can be made.
I must emphasize today: In the cryptocurrency world, the first principle of choosing an exchange is safety, not profit. Those small exchanges that offer you commissions and waive fees are not 'benefit stations' but 'fund harvesting machines'. Their profit model does not rely on trading fees but on absconding with users' funds. Most of these small exchanges have no regulatory licenses, lack a formal risk control system, and even their basic servers are unstable, potentially going bankrupt at any time.
Many people choose small exchanges because they think 'large exchanges have high fees, small exchanges are more cost-effective'. But you should do the math: if you trade on a small exchange, although you save 1% in fees, if the platform goes bankrupt, you will lose 100% of your principal; while trading on a large exchange, although the fees are a bit higher, your funds are safe. This calculation of the trade-off should be clear enough, right?
Here comes the valuable information: I will teach you three tricks to choose a safe exchange and avoid the pitfalls of small exchanges:
First, prioritize choosing large exchanges that have regulatory licenses. Reputable large exchanges will have clear regulatory licenses, such as the SFC license from the Hong Kong Securities and Futures Commission or the MSB license from the United States. These licenses are not easily obtained; they require the platform to have a complete risk control system, sufficient capital reserves, and compliant operating procedures. You can check the license information on the exchange's official website or verify its compliance status on third-party platforms like CoinGecko or CoinMarketCap.
Second, check the exchange's liquidity and transparency. A safe exchange must rank in the top 20 in trading volume within 24 hours, and trading data must be public and transparent. Small exchanges with insufficient liquidity may encounter situations where you 'want to sell but can't', resulting in extremely high slippage; you might think you can sell for $1, but the actual transaction price is only $0.80. Additionally, the trading data of small exchanges is not transparent and can easily be manipulated; the platform can fabricate trading data to attract users.
Third, test the security features of the exchange. After registering with the exchange, make sure to enable two-factor authentication (2FA), such as Google Authenticator, and set up a withdrawal address whitelist. Two-factor authentication can effectively prevent account theft, and a withdrawal address whitelist can prevent others from transferring your funds to other addresses. If an exchange doesn't even have two-factor authentication, or if the withdrawal process is extremely simple, you must be cautious; such platforms have a very low safety factor.
Let me share a real example: In 2024, a small exchange attracted users with the gimmick of '80% rebate', quickly drawing over ten thousand users to register in just one month. Just when users thought they could earn high commissions, the platform suddenly closed the withdrawal channels, and the official website became inaccessible, with the founder absconding with 1 billion in user funds. These users reported to the police, but since the platform had no regulatory information, the police couldn't even determine the founder's true identity, and in the end, it came to nothing.
Finally, let me say something from the heart: Your funds are hard-earned, don't place them in an unsafe environment just for a small profit. Choosing an exchange is like choosing a bank; make sure to select a reputable and strong one. If you currently feel helpless and confused in trading, and want to learn more about the cryptocurrency world and access cutting-edge information, follow me @标哥说币 .
