I Vet Every New Exchange with the Same Method — Here It Is
I have been trading since 2018 and have opened accounts on 12+ exchanges. Some turned out great, one shut down a year later (I withdrew in time). The difference between "reliable" and "risky" is often invisible at first glance — both have a polished website and ads. So I developed my own 15-minute check, which I run before the first deposit on any new platform. Here it is in full.
Exchanges That Already Passed
Check 1: Proof of Reserves (5 Minutes)
Proof of Reserves (PoR) is public evidence that an exchange actually holds user funds rather than using them for its own operations (as happened with FTX).
- Look in the site footer or search "[exchange name] Proof of Reserves"
- Check the last update date — should be no older than 1-3 months
- Check whether the audit is done by an independent firm (not the exchange itself)
If there is no PoR at all, or the last update is a year old — red flag.
Check 2: Test Withdrawal (10 Minutes + Wait Time)
The most important check before a large deposit. Sequence:
- Deposit a minimum amount ($20-50)
- Immediately try withdrawing a smaller portion ($5-10)
- Time how long the withdrawal actually takes
Normal for major exchanges: 1-15 minutes for USDT via TRC-20. If a withdrawal sits "processing" for over an hour with no explanation — that is a signal not to trust larger amounts.
Check 3: Real Fees (5 Minutes)
Ads show "fees from 0.1%" — that is the baseline. Real fees depend on operation type:
| What to check | Where to find it |
|---|---|
| Spot maker/taker | "Fees" → "Spot" in settings |
| Futures maker/taker | "Fees" → "Derivatives" |
| USDT withdrawal fee (TRC-20) | Withdrawal page — shown before confirmation |
| P2P spread | Compare the P2P rate with the market BTC/USDT rate |
Check 4: Support and Reputation (5 Minutes)
- Test support contact — ask a simple question via chat before depositing. Response speed and quality reveal company priorities.
- Search "[exchange name] scam" or "[exchange name] withdrawal problem" — review the first 10 results. Isolated negative reviews are normal for any large company, but mass complaints about being unable to withdraw are a signal.
- Time on the market. Exchanges that survived the 2018 and 2022 bear markets (Bybit since 2018, Binance since 2017, OKX since 2017) have passed a stress test of time.
Check 5: Regulatory Status
Look for licence information in jurisdictions where the exchange is officially registered (e.g. MAS in Singapore, FCA in the UK, or VASP registrations across EU countries). Regulation does not guarantee 100% safety but means additional reporting and reserve requirements.
How These Criteria Apply to Major Exchanges
Bottom Line: 15 Minutes Worth Your Deposit
Before any new exchange: PoR (5 min) → small test withdrawal (10 min) → real fees (5 min) → reputation search (5 min). If all four check out, the deposit is safe.
If you just want to get started without doing your own check — registration guide for vetted exchanges. Common registration mistakes — 7 mistakes.