Cryptocurrency Q&A Is a token listed on a centralized exchange a scam?

Is a token listed on a centralized exchange a scam?

MysticStar MysticStar Fri Dec 13 2024 | 7 answers 1262
I'm considering investing in a token listed on a centralized exchange, but I'm worried it might be a scam. Can tokens listed on centralized exchanges be trusted, or are they potentially fraudulent? Is a token listed on a centralized exchange a scam?

7 answers

KatanaSharpened KatanaSharpened Sun Dec 15 2024
On the other hand, tokens listed on centralized exchanges undergo rigorous Know Your Customer (KYC) procedures. This adds a layer of trust and security for investors, as it ensures that the token issuer has been properly vetted.

Was this helpful?

319
34
Silvia Silvia Sun Dec 15 2024
When evaluating a token, it is crucial to examine the number of exchanges that host it. This can provide valuable insights into its legitimacy and market presence.

Was this helpful?

385
53
HanjiArtistry HanjiArtistry Sun Dec 15 2024
If a token is only traded on a limited number of decentralized exchanges (DEX), this should raise concerns. Such a scenario often indicates a potential scam, as legitimate tokens typically have wider distribution and availability.

Was this helpful?

118
88
LightningStrike LightningStrike Sat Dec 14 2024
BTCC's services include spot trading, futures trading, and a secure wallet. These features make it an attractive option for both casual and professional traders alike.

Was this helpful?

167
32
Chiara Chiara Sat Dec 14 2024
The reputation of the exchange also plays a significant role. Tokens listed on well-known and established centralized exchanges are generally perceived as more trustworthy.

Was this helpful?

172
21
Load 5 more related questions

|Topics at Cryptocurrency Q&A

Get the BTCC app to start your crypto journey

Get started today Scan to join our 100M+ users

The World's Leading Crypto Trading Platform

Get my welcome gifts