Proof of reserves is designed to get exchanges demonstrate transparency by proving that customers deposits are safe in their possession. In an industry riddled with uncertainties and fraud, the need to reassure investors that their funds are safe cannot be overemphasised.
In a bid to raise transparency and trust in cryptocurrency exchanges Proof of reserves allows customers and auditors to indeed verify that exchanges retain the funds they deposited in them.
Unfortunately only a handful of exchanges currently offer any kind of proof of reserves for their customers; while some cite security, cost and competitive disadvantages for their failure to release their proof of reserves, the bold ones have gone on to release theirs.
As a trader, do you feel safe using such exchanges that haven’t released theirs or should the more transparent ones be given preference?
I think you are referring to liquidity but using another term of POR. I had some discussions on this topic before. Well here in your case. People prefer to chose exchanges on many factors. Because there are those people who like DEXs over CEXs and vice versa. Then comes the factors on which they chose qhixh DEXs or CEXs they should select for trading purposes.
1. The one on which the token they want to trade is listed.
2. That exchange must have liquidity to execute the trade.
3. Mostly select only those exchanges either they are cexs or dexs which are most famous and are in the market for longer period of time.
Except above many other factors are also keep in mind but that depend on person to person. Overall, the liquidity details are only available if they approve POR we can see the liquidity of a exchange on many websites like CMC or coingecko etc.