Open jfabre opened 6 years ago
Hi @jfabre Do share with us the list and the methodology you use to identify them. An option is to add a column in the README or point the user to your list as a reference.
Well I don't have a methodology other than trying them manually and looking for information online.
Bcex for example does fake its volume, just try to trade on it. I did and I managed to block the bots for over an hour and a half on XRP-BTC. Look for the reviews also, they will say the same thing as me. You will see high volume of trading, but they will never close you no matter your price.
Extstock is another I've tried and you need to get validated to start trading with them, did send my documents but the validation never occurred. Asked support about it, no reply. So not sure about this one, but I sure can't do more than that.
Okex has a very bad reputation among a lot of traders. Not sure if it's incompetence or they're really stealing people, but a lot of them have lost money to the exchange.
Fatbtc, fake volume again. https://www.reddit.com/r/PayPie/comments/8hlv8k/why_you_should_not_use_fatbtccom_exchange_the/
What I started doing is review every exchange in this gem that have prices that are out of balance from the rest of them. Sometimes it's because the exchange is doing fraudulent stuff, but sometimes it's just that they have no liquidity which I'm ok with.
If you're ok with that, I could add a pull request that edits the readme or add another file that explains all of this in a more concise manner. So new people trying the gem could at least have an idea to be careful with some of the exchanges listed here. Personally I would just remove the bad exchange, but I get that we're entering a gray area.
@jfabre interesting! Do you have suggestions to have solid ways to identify a fraudulent/scam exchange other than manually trying?
I'm not a professional trader, so it's really hard for me to give sound advice on it.
On a specific pair and exchange:
1- Big spread in the order book 2- lots of transactions with decent volume
These two should be inversely correlated. The more liquidity you have on an exchange the smaller your spread should be. It's an OK indicator to at least figure out that something is wrong here.
It's great that you have so many exchange, but you should sincerely do an effort to curate your list. Some of them, don't have any real volume and run internal bots to fake trades. By adding them to your gem, you're making them look legit.
I'm actually in the process of cleaning every exchange that's fraudulent. If you're interested, I could provide you with a list of names and reasons why I excluded them...