Crypto Trading Needs Stronger Global Regulation
Cryptocurrency trading is known for providing exciting opportunities, but it is also an industry where things can change drastically, and trust is frequently the only safeguard. Building trust in cryptocurrency trading is not just important, but crucial, considering the given rise in scams, market volatility, and suspicious websites.
For any newcomer, crypto trading is not just about making a profit, but it is also about figuring out how to stay safe. Your roap to confident trading is this particular guide.
In this guide, you will learn about techniques on how to select safe platforms, identify red flags, and safeguard your assets. With these guidelines, one can trade cryptocurrency with ease without incurring any major losses through scams.
Importance of Using Trusted Crypto Platforms
In the crypto industry, market volatility is rampant, along with other factors like decentralization and a lack of regulation. Given these tumultuous characteristics, establishing trust in cryptocurrency trading becomes essential. This allows traders to interact with platforms, tools, and communities with confidence and make well-informed decisions.
s invest their money in the platforms to buy and trade crypto, trust is an essential factor for both new and experienced investors, as it creates a safer and more sustainable trading environment ensuring the peace of mind of s while trading.
Due to decentralization, the chances of fraud are very high. In 2023 and 2024, several well-known exchanges were targeted in hacks, and these hacks and scams have only increased since. Building trust becomes important here as it reduces the risk of becoming prey to bad actors.
However, traders can keep themselves safe if they choose the platforms wisely. It includes selecting platforms that safeguard your assets, making wise choices, and engaging with assurance in the market. As scams and frauds have increased, it is now imperative to know how we can protect yourselves from such scams and frauds.
Trust is everything, and it is the cornerstone of every successful transaction, whether you are trading your first token or diversifying an expanding portfolio. To understand more about cryptocurrency trading, check out our cryptocurrency trading hub.
Understanding the Basics of Crypto Trading
Crypto trading is nothing but buying and selling of digital assets such as Bitcoin (BTC), Ethereum (ETH) and other altcoins. The main aim of buying and selling these tokens is to make profit.
To make a profit, a must know how to analyze the market trends, study the price movements, and one should know which strategy is to be used at what time on platforms called digital exchanges.
Traders can opt for short-term trading, which is also known as day trading, and traders can also opt for long-term trading, where traders invest in the token and hold on to it for a long period of time. Traders usually make use of charts, indicators, and new guides to make their decisions.
This industry is known to be volatile but presents many opportunities. Due to market volatility, there are ups and downs, and to navigate through these waves, it becomes imperative for beginners to understand the basics.
Choosing Trusted Crypto Trading Platforms
There are platforms that allow you to buy/sell, and trade crypto, and these platforms are known as crypto exchanges. These exchanges are the middlemen that match buyers with sellers and carry out transactions that are secure.
Apart from matching buyers and sellers, the platform also provides access to various crypto tokens, tools for analysis, and, in instances, also provides advanced features like margin trading, staking, or derivatives. If you’re looking for platforms that offer such advanced features, explore our crypto exchange recommendations.
In exchanges, there are two types of exchanges that are available, and they have been listed as follows:
- Centralized Exchanges (CEXs): A company runs the platform and takes care of the funds through custodial wallets. This means that the funds are managed by the service provider by holding on to your private keys on your behalf. The pros here include that these exchanges are easy to use, provide high liquidity, and transactions are carried out quickly. Here, trusting your exchange for security becomes important. Cons include Risks of hacks and loss of crypto funds.
Examples of such exchanges include: Binance, Coinbase, Kraken, and more.
- Decentralized Exchanges (DEXs): In this type of exchange, there is no middleman. Trades are carried out directly between s using smart contracts. The control of your crypto fund is in your hands and in your own wallet. The pros of such platforms include that there is greater privacy, full control of assets, whereas, cons include that these platforms can be difficult to use, may have lower liquidity, and the transaction time is comparatively slower than CEXs.
Examples of such exchanges include: Uniswap, SushiSwap, and more.
Amongst these two, CEX can be used for convenience, transaction speed, and for its traditional trading features, whereas DEX can be used for privacy, more control over funds, and early access to new tokens. One can use either of these platforms depending on their preferences. Moreover, there are many experienced traders who use both of these platforms, depending on the situation.
Evaluating the Reliability of Crypto Platforms
It is important to choose a trusted trading platform as it affects the safety of the funds of , and the security of the ’s personal data, and hence it becomes imperative to the platform’s trustworthiness. We have listed below how you can the platform’s trustworthiness:
- Licensing and compliance: While you choose a platform, make sure that the platform has valid registrations as per international regulatory standards. If the licenses are from well-known agencies or authorities, it adds credibility to the platform (such as FinCEN).
- Security features: The platform should have features such as 2FA, cold storage, and insurance. s should also check if the platform has had any security breaches and how they were handled.
- Transparent fees and -friendly: Choosing a platform that provides clear information about fees is important, or else the may incur a loss due to hidden charges on transaction fees.
- Reputation and Reviews: It is important that the runs a background check by looking up for , reviews, and the platform’s track record. One should avoid platforms that have frequent complaints and unresolved issues.
- Liquidity and Volume: High trading volume ensures fast transactions and makes sure that the prices of the token are stable.
- Customer : Check for reliable customer . This is an important factor to check for because customer service may come in handy at the time of emergencies and market volatility.
Spotting and Avoiding Crypto Scams
With every ing year, scams are getting more and more sophisticated. One mistake and all your gains can vanish. There are various ways in which bad actors carry out scams. There are fake phishing platforms to phishing schemes, and fraudulent tokens that can deceive investors.
Learning to spot and avoid scams is something that a beginner and a seasoned trader should know to protect their funds, their data, and their peace of mind.
How to Spot Crypto Scams
- Too-Good-To-Be-True Promises: There are scams titled as “Guaranteed returns,” “double your crypto in a day,” or high-yield investment programs (HYIPs) that are big red flags. The moment you click on the provided links, you lose everything from your wallet.
- Fake or Impersonated Platforms: Scammers have come up with this new idea, where they clone the real websites, social media s, and approach s. For example, you search for “Binance ” and then click on the link provided, but the URL is “binanc3.com” instead of “binance.com.” This is a phishing clone. Similarly, recently hackers cloned Coinbase’s customer and reached out to Coinbase’s s and drained their wallets.
- Airdrop Scam: These kinds of scams trick s into connecting their wallets or revealing sensitive information for free tokens. For example, the Uniswap airdrop scam was carried out, where s were brought to a fake website and were promised free UNI tokens. When the s connected their wallets, malicious contracts were triggered, and this allowed scammers to drain funds.
- Pressure Tactics: Scammers ask you to act fast or offer you a limited-time deal to make you rush into a decision.
- Unverified Projects or tokens: A few tokens are launched that do not have any team, whitepaper or use-case and usually are pump-and-dump schemes or rug pulls. For example, scammers launched a token called SQUID (inspired by Netflix series Squid Games). The token quickly gained attention and popularity and it turned out to be a rug pull.
- Requests for Private Keys or Wallet Access: The most basic rule in the crypto industry is that none of the platforms can ever ask for your private key or seed phrase. If they do, it is a scam.
- Poor Website or App Design: Scam platforms usually do not spend in their websites or their apps. The websites are poorly designed, there will be spelling errors, and such small things will instantly make you doubt the legitimacy of the platform.
- No Community or Social Proof: Check for genuine community presence on various platforms such as X (formerly known as Twitter), Reddit, or Discord. If there is no presence on these platforms, it is a big red flag.
The only way to protect investors from such scams, frauds, and bad actors is to take precautionary measures. These precautionary measures have been listed below:
- Do Your Own Research: Before investing or sending money on the platform, all the necessary information needed to assure the legitimacy of the platform, the project, or the person.
- Use Trusted Platforms: Use platforms that are well-known, hold licenses according to regulatory guidelines, and have a good track record.
- Enable Security Verification: The 2FA feature should be activated the moment you create your wallet. Avoid public Wi-Fi and keep all your devices secure.
- Bookmark Official Websites: As stated above, clone websites are created, and hence, s should not rely on search engines or ads to find platforms. It is better to bookmark official websites and use those links when needed.
- Ignore Random Messages: Any random messages, DMs on Telegram, X (Twitter), or email that offers investment advice or airdrops should be avoided.
- Check Smart Contract Code (For DEX Traders): Use tools such as Etherscan, BscScan, or Token Sniffer to get to know about unknown tokens.
In the end, trust your instincts. If something feels off, shady or rushed, take a pause, the information and then proceed.
Protecting Your Trades
While investing, one should take measures to protect your trades and assets. A few tips and tricks have been listed below that every investor should follow:
- Use Secure Wallets: Crypto should be stored in hardware wallets such as Ledger Nano X for cold storage. In this way, your crypto is out of reach from online hacks. Keep small amounts in hot wallets for quick trades.
- Enable Two-Factor Authentication (2FA): Activation of 2FA on your exchange s. With this there is an added layer of protection as a second code is required to access the funds.
- Practice Technical Analysis: Instead of making uninformed decisions, s should study trends, patterns and then invest. When you study the pattern and trends, it helps you enter and exit the market at the correct time. To know more about indicators and technical analysis, visit our technical analysis guide to provide an edge to your strategy.
- Avoid Public Wi-Fi & Phishing Links: s should only trade on secure and private internet connections. Before clicking on any of the links and making payments, double-check the URLs and never click on suspicious links or messages, especially about giveaways or requests. Trust your instincts.
Navigating Regulations in 2025
The inception of cryptocurrency was observed in 2009 without any clear regulations. In the beginning, crypto was decentralized, anonymous, and outside the reach of the governments. Due to these characteristics of the industry, it attracted many investors along with bad actors and illegal activities.
As time ed by, concerns about money laundering, fraud, tax evasion and consumer protection were raised and the governments around the world decided to intervene.
Key Moments in Crypto Regulation
From 2013 to 2017, the government along with the regulators around the world started issuing warnings to the investors about the risks of cryptocurrencies. In the U.S., the Securities and Exchange Commission (SEC) started to crackdown on fraudulent Initial Coin Offerings (ICOs). China banned cryptocurrencies in 2017 to avoid illegal activities such as money laundering.
From 2019 and 2021, Anti-Money Laundering (AML) and Know Your Customer (KYC) laws became applicable for exchanges, and identity verification was made mandatory for s. The Financial Action Task Force (FATF) issued international guidelines and asked countries to implement these guidelines to standardize frameworks.
Meanwhile, the U.S. and EU then started having a close watch on stablecoins and decentralized finance (DeFi) platforms.
From 2023 to 2025, there have been several changes to these crypto regulations. The European Union has ed MiCA (Markets in Crypto-Assets), which is the first crypto legislation. In the U.S. FinCEN executed stricter rules on registration, reporting and AML compliance.
India has also brought crypto under Prevention of Money Laundering Act (PMLA), where the exchanges have to follow strict audits and reporting procedures.
This summarises how there has been a shift towards a regulated crypto industry over the years and how slowly and steadily crypto is being included as a part of regulated financial systems.
How to Navigate Crypto Regulations in 2025:
- Use Regulated Platforms: Make sure that you use exchanges that are ed with FinCEN (U.S.), are MiCA compliant (UK), and are aligned with PMLA (India). These platforms should follow strict security, transparency, and consumer protection rules.
- Complete KYC: The should complete the KYC formalities before trading on well-recognized exchanges. This has become a standard practice within the industry to prevent misuse.
- Pay Attention to Tax Laws: The s should be aware of the local crypto tax laws and should abide by them. Use platforms or tools that help you track and report taxes legally.
- Follow Local Regulations: The s should be aware of the local crypto regulations. This will help them avoid penalties or restrictions of the .
- Avoid Unregulated Platforms: Check if the platform is through with its KYC process, does not have unclear fees, and is safe to use.
It is important to follow the rules and regulations that have been established for the crypto industry as the industry is becoming legitimate and stable as it is slowly getting included in the financial systems. Knowing the rules will help you trade better without any consequences.
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