Dear Crypto-Community:
Lately I have been receiving emails and calls regarding scams and other difficulties. Please read my comments below and make your own suggestions so that we may try to help keep people from getting hurt.
1. Do not keep any meaningful amounts of crypto currency in trading exchanges. Make your trades and then secure in a wallet.
This is a fundamental rule that should be applied no matter the amount of funds you have that you cannot afford to lose but if otherwise, you can just go ahead. Issues still arise today on several users not getting their due forks in due time while some other exchange sites change their policies at will.
2. If you make large deposits or withdrawals from any account you are raising a red flag. You will likely find that the larger the transaction, the more identity information the exchange or wallet requires in order to comply with AML laws.
This is something that most exchange sites always put in the KYC policies depending on how much you want to withdraw and trade in. Higher amount means higher information you must be willing to share
3. If the exchange or account is a smaller company and you make demand for a large withdrawal you may find that your withdrawal will be delayed. If the company is over-extended or a scam or ponzi then your account may be "frozen" and your demands for explanation go unanswered.
Be sure of the exchange site you want to visit there are several ones that have proven themselves that you can choose from.
4. As to cloud mining, you do take more risks that difficulty will rise faster than the ability of your investment to give you a true ROI. This is also an area that seems to have more scams.
This is the most lucrative scams, want to waste your money, this is one sure way to lose it.
5. If the company you have funds in does not have a verifiable physical address in the country that you live in, you will likely have no legal recourse for any rip-offs.
This I will have to agree with you.
6. Be aware that fees in many exchanges and wallets seem to be creeping up. You may start with $30, U.S. in BTC and by the time it is sold and reaches your Bank as U.S. Dollars it is reduced to $22 U.S.
This is key before you start shouting scam all over the place.
In all this is something a newbie should read and digest before engaging in any transaction via exchnage sites as well as cloud mining services. Mere reading can save a lot of heart breaks.