Some Warnings About Personally Investing in Crypto Exchanges

• Author: Jessica Williams
• Posted: 2024-06-11

Cryptocurrencies have really taken the world by storm over the past few years. It all started with Bitcoin, but now you can find dozens upon dozens of viable currencies out there that are 100% digital crypto options. For many people around the globe, this is a great way to invest in their future. You won't have to put in a lot of money, and with any luck, your crypto rises in value and makes you a lot of money with minimal investment. Sure, many of them crash and burn, but the initial investment is so low that it's still a method that's gaining massive popularity. And the more popular it becomes, the more the digital currency is worth. Though before you start investing your money, you should be warned about how some of these crypto exchanges act.

The big exchanges that dominate the market are worth billions upon billions of dollars, and they aren't known at all for being hospitable to their customers. Crypto.com, for instance, is dealing with a few different class action lawsuits at the same time. The basic gist is that this exchange is locking people out of their accounts, without any real reason, and refusing to let them back in. This is a very common thing among a lot of crypto exchanges now. There are over 50 different exchange companies that are dealing with class action suits and government fines because they won't allow their members to access their profiles. These crypto companies don't seem to care. They're rich at this point, and they're just paying teams of lawyers to handle these suits. They're not even batting an eye lash.

Why are these exchanges acting this way? It's speculated that their main goal is to control the crypto market on their own, thus keeping the prices stable. The thought is that if they let you access your account whenever there's a market surge, you're going to just dump your coins and thus drive market value down. You may personally benefit financially, but the market will be affected. These exchanges are confident that they're doing the right thing here.

So, the point is that if you're going to invest in crypto, you want to be very careful of which exchange you go with. They might just decide to lock you out, and then there's absolutely nothing you can do to get your money. Here are a few things to keep in mind.
 

Research the Site First

Never invest in any site that's already dealing with controversy and lawsuits. They're highly unlikely to change and, at worst, will just take the money they've made and shut down. Always research to make sure you're investing your capital in a fair and reputable site that's going to allow you to access your money at any time you wish to do so. There are plenty of these sites, so it isn't hard to find a good one.
 

Follow the Rules, There and Elsewhere

Follow the site's rules, to the letter. If you commit even the smallest infraction of the rules, they may lock you out, and you may be months or even years getting back into your accounts. This also goes for life in general. Like some employers fire employees over social media posts, a crypto exchange may decide to lock you out or even delete you based on issues you're having financially with the IRS or banks in general. You should focus on keeping your finances in perfect order if using an exchange.
 

Diversify Your Portfolio

You should also really diversify all of your investments. If you have $50,000 to invest, there's no reason that you should put it all into crypto, or especially with a single crypto exchange. Look around for other options where you can invest. IRAs and precious metals and other traditional sorts of investments are great to give you access to different streams from those investments. Putting all of your eggs in the crypto basket could lead to some serious issues that you definitely don't want to deal with. There seems to be nothing that will change the minds of these exchanges. They lock users out and don't care.

There's nothing at all bad about investing in cryptocurrencies. It might be a very wise investment for your future. The issue here is in choosing the right crypto exchange. Be very cautious about any site you sign up with, and make sure you do your research.