With regards to getting screwed, the history of exchanges getting "hacked" and all the crypto disappearing should speak for itself, and with regards to transparency, just look at Tether as an example of how you can avoid it.

Sure, it happens with banks, too. I still have no clue how Wirecard managed to do what they did, without getting caught, in face of credidble reports of malfeasance. But in general, it has become much, much harder to wrong others, or to be reckless. And that is because of the regulation everyone keeps decrying, as if somehow they were the subject of it.