Crypto Exchanges to Avoid – Spot the Red Flags

When navigating the world of digital assets, knowing crypto exchanges to avoid, platforms that lack proper licensing, proof of reserves, or robust security measures can save you from costly mistakes. These risky venues often operate without regulatory oversight, making it easy for users to fall victim to fraud or sudden shutdowns. In short, if an exchange doesn’t publish audit reports or hold a recognized licence, it belongs in the avoidance list.

One common red flag is the absence of proof of reserves, a transparent snapshot showing the exchange actually holds the assets it claims. Without this, the platform can run a classic “exit scam” – taking all user funds and disappearing. BITCOINBING, a 2025 review highlighted its missing licensing and lack of independent audits, branding it a high‑risk exchange. Similarly, the Bibox, exchange review noted questionable fee structures and a middling trust rating, urging caution for new traders. Both examples illustrate how regulatory compliance influences exchange safety and why users should verify these credentials before depositing any funds.

Key Checks Before You Trade

Evaluating an exchange requires a simple checklist: verify its licence, search for third‑party audits, check if it offers two‑factor authentication, and read community feedback on platforms like Reddit or Trustpilot. If the exchange is listed on government blacklists or flagged by financial watchdogs, it’s a clear indicator to stay away. Remember, a reputable exchange often publishes its security roadmap and engages with regulators, which helps build trust. By applying these criteria, you’ll quickly separate legitimate platforms from those that belong on your “avoid” list.

Below you’ll find a curated collection of articles that dive deeper into specific exchanges, airdrop safety, and broader crypto security tips. Each piece breaks down the risks, offers step‑by‑step verification guides, and points you toward safer alternatives. Let’s get you equipped with the knowledge you need to keep your crypto safe.