Bitcoin Forum

Hi,
I'm attempting some margin trading on an exchange for a few days, I'm wandering what the best practice is when you decide to go to bed.
Should you leave the coins on the exchange, or pay the fees to withdraw to an external wallet and then move them back in the morning?
Thanks.

Its will be more efisien just keep it on the exchange , and make sure you already turn on all security features in that exchange, like use private and unique email address, turn on 2 FA, and to avoid phising link always log in from bookmark link.

Personally if I would just use the funds the following day, I would leave it as I only allocate a small percentage of my funds for trading anyway. Sure if I lost those funds it would hurt for sure, but it's nothing really life wrecking.

Pretty much completely up to you. Is it a big amount? If so, I would probably withdraw it because I'm paranoid. If it's not that much then leave it. Just make sure you're using a secure password and activate 2fa.

For better withdraw only the profit and for the initial balance keep on the exchange,  and make sure use trusted and legit exchange and they never get any issue of hack.  I been use exchange of Bittrex and Poloniex in more than 2 years and i leave some balance there in that times,  and untill now all balances is safe. 

The best practice is not to leave your coins in an exchange, specially if its a big amount. Prevention is better than cure so my advise is to take your money out so that you will have a good night sleep. Chances are, if the exchange is hack then you are still safe because you still have your money in you wallet otherwise your money is gone for good, just saying.

You need to consider what exchange it is that you are using and how much you trust them, then also how many coins you have within that exchange. If you only have $1000 it makes no sense to pay around $10 every day to remove them because that will eat away all your profit.. If you have $100k then it may be more worthwhile as it's such a lower percentage.

There are risk of losing your funds if you kept it in exchange. However, it depends on the amount. If the amount is small and doesn’t justify paying the withdrawal fees, it will make more sense to keep in exchange.

Some exchanges charge for every action, even setting up and cancelling orders. But all charge for withdrawals and deposits. So withdrawing your assets regularly could cost quite a bit especially when your profit ratio is not too high.

There is also the security risk with leaving your assets when not actively trading.
Weight the risks and losses in each situation putting the security of the exchange into consideration.
You decision would not always be the same.

If you have the intention of going for trading the next day so you need to leave it in the exchange itself because withdrawing will leads to transaction fee and withdraw fee and in some exchange you need to pay deposit fee again if you want to deposit in the next day so just keep it in the exchange hope that exchange will not get hacked overnight. :D

It depends which exchanger you choose to trade. Like I kept some coins 900 USD worthy in Binance to trade, still, I haven't withdrawn them, they are safe in Binance exchange, the same thing I did in bancor exchange. So. if you trade in well-reputed exchanges which have strong security options then I think you can keep your tokens there. No need to spend some extra fees.

Binance have a track record of dealing with security risk and refunding victims when there are any breaches but as always you can't be certain that a major exchange is fully safe, many people did that with mt.gox and look how that ended up. If Binance lost all users funds they'd be in no position to repay the victims.

I don't think you should consider keeping or withdrawing while you continue doing that daily. If you want to know weather you should cash out all your trading into btc and not trade while you sleep that might be a good idea since all kinds of crazy stuff may happen but if you are looking to withdraw while you will once again trade there next day than it is just futile withdraw/deposit fee's you pay and definitely should not do it.

Only withdraw when you want to get out, while trading its useless. However like I said previously definitely try to be on no trades while sleeping because market won't wait for you to wake up.

Withdrawing daily sometimes is not always the thing, as what is important is to even make your account secured and at least have some little trust on the exchange you are using, which if you know the trust is shaky, you should not even be using it in the first place. The reason why I said little trust is because no exchange can be trusted completely, bullshit happens and you really want to be sure you are not trading with what you cannot afford to lose. Most of the time, the choice is always left for you but the only thing I will advise not to ever do in margin trading is to leave a position overnight without at least setting a stop loss as that would be a terrible idea.

Bitmex is considered a safe exchange; dunno abt others, but it also depends on how much u have; if the withdrawal fees are peanuts; then u may withdraw.

Keeping coins in an exchange overnight is something that should not even be a thing as long as what you have on the exchange is your trading fund, why will you want to be moving it around.

Just make sure your funds are secured by at least making sure you are using the additional securities present on the exchange like 2FA to secure your account from getting hacked, but most especially, always make sure you are on an exchange with something you can afford to lose, because anything can happen and since it is a centralized exchange, you really may lose everything if something terrible happens.

There is no sense to withdraw your coins from exchange overnight if you are intending to trade with them the next day.
It is true that exchanges can be hacked but good exchanges will refund if that happens.  Always keep only the amount
you will be trading with on exchanges.

I would not recommend withdrawing often as most exchanges require you have withdrawal fees.  I think most people only leave a small portion of their total coins on a margin exchange, and remove profits at a regular basis.

If you don't take profits occasionally, it can be easy to be tempted to use all of your funds on an exchange - which could end up very bad on leverage.  Preserve your profits - if you get them.

Just use 2FA for a better quality security protection if you can't use 2FA probably your account is endanger, I use bitmex for margin trading and i dont have any problem on that exchange but KYC is a mandatory.

Agree with guys. Anything could happen, and if I were you, I wouldn't keep the coins on the exchange. If only it has a cold storage like CEX (https://cex.io/) or similar to it. Even so, I would probably be afraid of leaving my coins on the exchange and rather withdraw them.

If you are a trader i don't think there is need to be moving the coins from exchange to your private wallet daily.  The risk of living you coins in exchange is understandable and millions of dollars has been lost to scammers and hackers through that but I believe that the whole system is full of risks and your private wallet can still be hack if you did not carefully keep them.  I have left some of my coins at poloniex for more than a year now because it is safe and I don't need to be afraid of hackers because the system is secure.

Moving your coins everday before going to bed will charge you on each transaction and if you count fee for a month, it sums really decent amount.
Sometimes it is bettee to keep your coins on exchange unless you are not planning to come back tomorrow because spemdimg $3-$5 everyday on withdrawals matters

I leave them in the exchange, but If you're not in a position (yes, I open position and sleep haha, but I order stop loss etc.) and if you have a lot of monet there, I think you should withdraw it to your wallet. That is safer.

Because there is always a possibility that exchange can be hacked, exit-scammed etc. Never trust them so much.

I just put my funds inside the exchange that I trust since I know a lot of people also do that and don't mind if they lose it or not since they only trade the funds they can afford to lose.

That's what I think it should come down to--as well as whether you trust the exchange you're using or not.  I would be perfectly fine with leaving funds on Coinbase or Binance overnight (or even longer), but if it was an exchange like Yobit or one of the sketchier ones, I'd definitely move the coins to my own wallet.

I haven't heard of an exchange pulling an exit scam lately, but I have little doubt that what Cryptsy, Mt. Gox, and the rest of them did will happen again.  People's paranoia about leaving funds in an exchange wallet isn't exactly unjustified.  It's smart not to if the fee to withdraw your coins is reasonable enough.  Sometimes it would cost more than it's worth to move what you have off the exchange, but then you run the risk of getting scammed.

One word of advice to OP if he hasn't figured it out yet:  choose the exchange you're going to use wisely.  I don't even know how many there are out there, but it's a lot and ones like Yobit have been known to screw their customers over.  Even if your coins are safe overnight, there can be other problems that pop up, like "wallet maintenance" or them not paying proof-of-stake earnings on coins you own.  I've seen that happen.

I definitely think you should avoid trades overnight but thats just me.. its such a scary thing even if you set an alert to be awoken at 3 or 4 in the morning and aren't really awake enough to grasp whats going on and have to make an immediate decision... but I see the other side too where sometimes trades take longer than that to play out, and you shouldn't be so scared out of your position...  I think the easiest solution is play the extremities and avoid the dumb zone in the middle... like only go long below 6100 and only go short above 6800 and play on small margins... then it makes it a bit less stressful even if you hold your position through the night.

Never keep your coins on an exchange for more than a few weeks, you're likely to eventually get hacked and lose your money. Almost all small exchanges experience some sort of hack or breach, even the big ones do from time to time. The only way to be safe is to pull it out regularly. Also, only keep in what you can afford to risk, not your entire balance.

It's not necessary to withdraw to an external wallet every time only if you are not planning hold for a long time. Also you can miss good orders while you wait deposit.

This depending on the which trading platform that you want to use, if you want to do margin trading in crypto exchange  will be more risky to keep there  because issue of hack, so for the better withdraw everytimes  you make profit, but if you want to do margin trading on the Meta trader platform that will be less risk because our ID registered on the platform and for withdrawal request should be the same with that ID.

Keep the coin only when you make open potition and if you want to take rest from trading is better withdraw all of the fund to personal wallet. This way is more safe than sorry because no body know later that exchange is safe, just like cryptopia been hack since more than 4 years operated.

I guess there will be no special cases are needed for the reason of margin trading for whether to keep your coins within exchange overnight or not. You may simply go for your usual practice of what you do with your capital. I do trade only with few major exchanges like bittrex and binance, still I do not prefer keeping my funds there hence I do withdraw time to time and will go for re-depositing whenever needed. At the same time, right now I am having more than one bitcoin in bittrex. I have bought TRX for airdrop and until last night I did not receive my share of airdrop and hence still holding there.

If you are an active trader and you are trading with highly reputed and old exchange then you may not go for daily moving out your funds. I am not active trader hence I do not keep funds within exchanges for longer time.

Withdraw it to personal wallet if you want to take a rest from trading but if you want to do trading all the times just left there and remember to turn on all features of security like 2 step verification and use privacy email address. And if you want to make deposit in big amount is better use 2 different platform.

I always leave it stored in exchange. What you really need to pay attention to is how you choose the right exchange because when you trade in an exchange that has good quality you will always feel comfortable and safe. Choose quality exchanges and don't save large assets in an exchange that doesn't have a good reputation. believe that as long as you save in the right exchange, all the assets you have will be very safe. See the historical record and you will feel confident.

When holding coin in a exchange it is better to choose a most stable one, whether you have a large amount of coins or even a good amount it is better that you can sleep without thinking of your holdings, it happened to me before that my holdings on exchange got delisted so it is a lesson for me.

It's depends on how much leverage you are given and what risks you are taking.

If you use an exchange like Coinbase or Binance there is no leverage at all, so you need to leave more coins on the exchange.

If you use an exchange like Bitfinex or Kraken which has leverage up to 3.3-5x then you can leave a little less in cold storage.

If you use a derivative exchange like Bitmex which has 100x leverage then you can mostly leave all your coins in cold storage and trade with a small stash.

This is the reason why the derivative exchanges and future exchanges are so popular these days.

If you are unsure about the consequences. Better to set a stop loss or stop limit. Make sure to double check it before going to bed. At least, when you do the stop limit/loss, tendency is it will save you from losing big or gain at least profit if it went on your way.

You can keep on exchange if you already make open potition,  but dont use all of your Bitcoin to trade in margin  platform because by use leverage the risk will be very high and also keep on exchange is mean you not really become owner of that coin because you dont have the private key.  If you want to hold Bitcoin for long term is better keep on personal wallet so you have full control with it.

if I become you I will make a withdrawal of the assets that I have. I am now worried to save the assets that I have on an exchanger.
I prefer to play some ltcoin as a withdrawal deduction rather than having to save the coin on an exchanger.