How to Tell a Crypto Platform is Legitimate

Photo by Michael Förtsch on Unsplash

With potential for high returns, it’s no wonder that hundreds of millions of people around the world have purchased cryptocurrency. While this global digital currency isn’t backed by assets, earnings, or cash flow, it has a history of delivering substantial returns. As a result, many people spend thousands of dollars on cryptocurrencies such as Bitcoin, Litecoin, XRP, and Ethereum in the hope that their investments will pay off.

If you’re eager to explore cryptocurrency for yourself, you’ll soon realize just how many platforms offer buying and selling options, and just how many scam sites there are, too. Before handing over your hard-earned money, look for these signs that a crypto platform is legit:

They’re Registered As a Money Service Business

It might seem complicated, but one of the most straightforward ways to ensure a crypto platform’s legitimacy is by looking for evidence that they’re registered as a money service business.

For example, when you’re learning how to get Litecoin on Kraken, you can find information on the Kraken platform that states that it’s registered as a money service business with the Financial Crimes Enforcement Network (FinCEN).  Learning this, you can visit the FinCEN website and use the MSB selector tool to confirm this as the truth.

They Offer Customer Service

When buying and selling cryptocurrency or simply requesting more information, you should find it easy to get the help you need. A legitimate cryptocurrency platform highlights its customer service options and makes them easy to find.

They also typically offer a variety to suit a range of customers’ needs, including phone, email, and web form. Most importantly, the most reputable platforms offer 24/7 customer support, which means you can contact them at any time.

The Company is Authentic

A real, reputable company will be transparent and authentic. When you research a cryptocurrency platform, you should be able to find a clear company name, address, and leadership team. There should also be registered business records. Sometimes, the founders or executives of such companies have verifiable histories, which means you can find information about them on other platforms like LinkedIn.

Research the Reputation

You don’t have to choose the first cryptocurrency platform you find through a search engine. Instead, you can write down the ones that appear and start doing more research on them to establish their reputation.

Check reviews on places like Trustpilot, Reddit, and X to understand real users’ experiences. Take note of specific patterns, rather than individual ratings. For example, if there are several that talk about withdrawal difficulties, that can be a major warning. If there are repetitive, overly positive reviews, they may be fake.

Signs a Cryptocurrency Platform is Fake

There are a number of ways to quickly identify a fake or scam cryptocurrency platform that will take your money and not provide your cryptocurrency:

• No registration as a money service business
• Investment returns are based on how much you invest
• No legitimate contact information
• Promises guaranteed profits
• Pushes urgency
• Poor spelling, bad grammar, and broken links
• Requires upfront unlock or withdrawal fees
• Contacts you at random, often through WhatsApp/Telegram

Don’t lose your hard-earned money to scams. Check these signs of authenticity above and improve your chances of investing in cryptocurrency with a trusted, reputable platform.