Crypto Exchanges and Wallets: How Not to Lose Money

In crypto the cost of a mistake is higher than anywhere else: transfers are irreversible and scam projects are everywhere. Before trusting a platform with money, it pays to do some checks.

Crypto has a hard rule: a transfer cannot be undone. So all the checking is done before you press "send".

Reputation and project history

Look up the platform in the "Cryptocurrency" section: rating, reviews, how long it has operated. A young project with aggressive ads and promises of high returns is the classic portrait of a scam. Pay special attention to reviews about withdrawals.

Signs of a dangerous project

• guaranteed returns and promises of "x10";
• an anonymous team with no public faces;
• a complex multi-level referral program;
• a recently registered domain;
• pressure: "buy now", "few spots left".

Technical checks work here too

Domain age, SSL and blacklists are just as useful for crypto sites. A fresh domain for a "major exchange" is a reason not to register at all. See "Why Check Domain Age, SSL and Blacklists".

Exchange and wallet: different jobs

An exchange is for trading

Use an exchange to buy and sell. Keeping large sums on it permanently is risky — the platform effectively controls the funds.

A wallet is for storage

For long-term storage use a non-custodial wallet where the private keys are yours alone. Never share your seed phrase — no support team ever asks for it.

Checklist before signing up

1. Find the platform in the catalog and study its rating and withdrawal reviews.
2. Check the domain age and SSL.
3. Make sure the project has a public team and documentation.
4. Enable two-factor authentication right after signing up.
5. Don't keep more on the exchange than you are ready to lose.

In short

Safety in crypto is discipline: check the project, don't believe in easy money, separate trading from storage, protect your keys. Related signs of fraud are covered in "How to Spot a Scam Website".