Exchange Due Diligence: How to Spot Safe Crypto Platforms and Avoid Scams

When you’re picking a crypto exchange, exchange due diligence, the process of verifying an exchange’s security, liquidity, and legitimacy before depositing funds. Also known as crypto platform vetting, it’s not just a step—you need to treat it like a safety check before crossing a busy street. Too many people jump into exchanges because they’re popular, have low fees, or run flashy ads. But popularity doesn’t mean safety. In 2025 alone, at least three major exchanges collapsed after hiding liquidity issues, ignoring audits, or outright stealing user funds. You don’t need to be a tech expert to protect yourself—you just need to ask the right questions.

Start with crypto exchange review, independent evaluations that dig into fees, withdrawal times, and past security incidents. Also known as exchange audit, these aren’t marketing blurbs—they’re forensic reports. Look for reviews that show real withdrawal tests, not just screenshots of account balances. Check if the exchange has ever been hacked, and how they handled it. Did they reimburse users? Did they shut down? Did they disappear? Sites like ours don’t just list features—they dig into the aftermath of failures, like what happened with Bittrex, a once-trusted exchange that entered liquidation in 2025 after regulatory pressure and internal mismanagement, or how Abelo.Finance, a platform flagged as a likely scam in 2025 due to fake trading volumes and anonymous team members vanished overnight. These aren’t outliers—they’re warnings.

Then there’s the non-custodial wallet, a wallet where you control your private keys, not the exchange. Also known as self-custody, this is your last line of defense. If an exchange freezes withdrawals or gets hacked, your coins are gone if they’re sitting there. But if you move them to a wallet you own, you’re no longer at their mercy. That’s why every serious trader uses a non-custodial wallet for long-term storage—even if they trade on a centralized platform. It’s not about trust—it’s about control.

Exchange due diligence isn’t about finding the biggest exchange. It’s about finding the one that’s transparent, stable, and accountable. You’ll find detailed breakdowns of platforms like Bitfinex, KoinBay, RuDEX, and Huobi Korea below—each reviewed not just on features, but on what actually matters: Can you get your money out? Do they publish proof of reserves? Is their team real? Are they complying with regulators—or hiding from them? We’ve covered everything from how Bybit blocks US traders with geofencing, to how Algeria’s crypto ban forced users to rely on peer-to-peer networks. These aren’t just stories—they’re lessons. And the next exchange you use? It could be the one that either protects you—or takes everything.