Bitcoin Forum

When Binance futures went down earlier today, it reminded the risk of relying solely on a single exchange. Though I didn’t have a position opened on it at that period because i already placed a trade on Bitget at the time but i know those who were stuck. This just shows why you should have options open as a form of risk management because this can happen to any exchange at any time.  

I still stand on ‘no exchange is perfect’ but having a backup to spread your activities on would definitely save some stress when the unexpected happens which is why OKX is my third one. Just like having a diversified portfolio and having multiple investments basket, having different exchanges is a good decision in my opinion. Do you also use multiple exchanges or you stick to one ?
https://i.ibb.co/Ng10vLdk/0-C379-CC9-0217-4-D6-C-9-AC5-3-E8-C699521-C4.png (https://ibb.co/KcNtP9pQ)

Yeah youre right! no CEX is flawless Binance, OKX, Bitget, Bybit, Kucoin and many more theyve all had downtime before. Thats why I always keep accounts on a only limited cex, it’s just smart risk management and same way you diversify assets. Relying on one exchange is not good. But its always better to keep the funds or asset on a non custodial wallet for maximum protection.

Why would someone open a futures position without setting stop loss/take profit? A scenario like this which exchange temporarily maintenance will keep your position still safe because everything is setup.

Also Exchanges maintenance usually undergo on short period of time so it’s not that a big deal unless you are trading futures on x100 leverage.

Although having several exchange account is good to diversify your trading activity and minimize risk in case exchange bankruptcy.

An exchange like Binance will not just go on maintenance without notifying their traders. Those that opened positions.

The exchanges would have shown it as a message displayed on the trading page. I have used Binance before for trading and how I know what the exchange can do.

I have at least 5 exchanges that I am using for trading right now and Binance is still among them but I am not using it frequently.

Absolutely, no CEXs is immune to issues like this, spreading accounts across other platforms is just on point and i agree storing assets on non-custodial wallets is a good move. CEXs should be basically for trading while wallets should perform their functions.

Using centralized exchanges and accounts on those exchanges as your wallets is risky and from using a single exchange to using multiple exchanges, you can not get rid of this risk. It exists when you use CEX and store your bitcoin there because they provide you custodial wallets with which you don't have Bitcoin private keys. While the fact is "It's not your keys, it is not your coins" so hopefully now you see why this practice is very dangerous.

You can only avoid this risk if you use open source and non custodial Bitcoin wallets for storing your bitcoins.

OKX is a centralized exchange and it is not a good exchange with shady KYC and account freezes reported.
OKX frozen my account and required me to KYC with a less than $1,000 deposit. (https://bitcointalk.org/index.php?topic=5458670.0)

Spreading to different exchanges is a must if you are a trader or if you are staking something to make profit, but still it's risky; we don't have full control of them. That's why you don't put much into exchanges if your purpose is to hold.
Since mine are spread out to Binance and OKX and some of them on Bitget, I'm not worried much if one exchange is shut down since I use them to take advantage of earning from doing some tasks and free airdrops and earn from staking. As I do want to grow them each while trading mainly on OKX.

About the issue above about OKX I don't have an issue using it except the last time that I deposited, it wasn't credited to my account due to the minimum deposit, below minimum but they solved the issue after a few months when the minimum deposit was dropped.

There's also a disadvantage of having your portfolio scattered across too many exchanges, although it may look like the advantage is very much tangible but I can assure that for everytime the disadvantage hits, the loss suffered is usually one which causes too much of a damage.  Sometimes you may want some bulk funds and you then have to start moving your asset across exchanges meanwhile if you had them on one you would have simply do your exchange for Fiat at once and get your money but this style puts you in a position where you have to spend more on transaction fees while trying to gather your portfolio together or even liquidating them at the various exchanges where they are.

Mostly if you are a very long term investor, having your portfolio across  all of those places could make sense a little because you will not have to always want to liquidate and suffer the too many expenses that may follow but then it is still good if you have your assets in different place so in cases of compromise, you will still have something to fall back at in the end.

I’ve also been using it for some years now, got no issues probably because i don’t trade much on it. About the airdrops and staking, do you earn from them on Bitget, i’ve always considered joining but never really did. I diversify across all these exchanges majorly for trading and risk management

I earn some airdrops by doing some easy tasks, so yes, I earn, but some of them are not worth holding. Sell them early if you want to make a profit rather than waiting long until the price is not worth selling.
About staking, yes, not much, but it's growing, and honestly, I'm not confident to hold this since I don't have full control of my wallet. That is why I only put an amount that I can afford to lose in multiple exchanges while earning from their offers.

Thanks, will start checking them out and just like you said sometimes it’s best to just sell early to make much profit

I am sure we could make a lot of money if we just use single exchange, because that way we focus all of our money into a single place, then we could make a lot of money and if we can get a greater return then it shouldn't be that weird. People do not realize how difficult it is to take that risk but beneficial it is.

It is true, when you put all your money into a single place, you are also taking a huge risk as well because if it's gone, then all of your money is gone with it. But the return is a lot better as well, that is the point. So you take your choice, if you believe in the exchange then you should do it. I trust Binance and that is why I do not use any other exchange at the moment and I make money that way.

To have top scale protection on your assets you should be keeping them on a private wallet so you don’t get swept away by unexpected losses when you have them on an exchange.
But for the OP it’s about trading not funds protection or security. The OP is recommending trading not only on one exchange and there is sense in that.

I mostly stick to one but I have my other accounts ready from the other exchanges if ever there are some opportunities that I can see. If the other exchange has a better rate when I am about to sell, that's where I'll transfer the crypto that I am about to sell. Other than that, there is no other reason to have accounts in different exchanges. The next risk to it is if you made an account to another one that's unknown and yet proved their reputation.

We should know what an exchange is and try to understand why we often warn that people should not leave their digital assets on a centralized exchange, instead in non custodial wallet, having a multiple exchange also has more implications, but some think less of paying attention to all these, not even traders that often make use of an exchange, they have to understand the risk in using one.

By unexpected losses do you mean theft attempt or hacks from a third party? If yes, you are right. As a trader, only have money for trade in the exchange and by the time you are done trading you send them back to your wallet.

I know many persons would complain about the fees during these process. Since spending fees every time you end trading, you can do it weekly, at the end of each week you send the profits to the wallet and leave only the amount you want to trade with.

I was thinking you would say the use of stop loss should be  important to a trader so that even if they have open trade and something like hack happens to the exchange, the trader already knows how much could be lost because of SL used or incase of profit, TP.

Whatever has advantage also has its own disadvantage. Don't you think having multiple options for trading can also increase your risk appetite because you can as well transfer funds to all accounts and tempted to trade them simultaneously or enter trade in one account because the other account is losing. It is dangerous and moreover you are still talking about CEX. Exchanges will not at their own volition cause something to happen without informing their customer.


The risk of something going wrong with an exchange should not be a reason enough to run multiple trading account, it is going to be stressful and confusing.

Don't rely too much on an exchange because you could lose your money if you are not careful enough to stay safe while trading or holding on an exchange. Whether you use a single or multiple exchanges, you can still become a victim when they freeze your account for no reason. I have seen cases of exchanges freezing users funds for no reason giving unnecessary excuses. If you take a look on X or Google people that have lost their assets just because they are keeping their funds on exchanges without the knowledge of using non custodian wallet that is absolutely safe.

I mostly use 2 of the top CEXs + HyperLiquid and maybe defidotapp because it's the newest addition. I do agree about the notion that putting all eggs in one basket is inherently wrong. There have been periods of wild volatility and market swings where Binance and Bybit went down at the same time because of an AWS ussue iirc.

The only problem is that if you've an active position in whatever exchange that goes down, you're fucked anyway unless you open a delta neutral trade on secondary exchange of choice mitigate the losses of not being able to manage trades on the down exchange.

Nothing is safe. That is the reality, and we can't change that, no matter what we do. What we can do is prevention and use the exchange for trading purposes, not as a storage wallet. Because I know that this is a common practice of some traders, and they should realize the risk attached to this idea, because a sudden collapse can't be reduced. We'd rather be more cautious than be sorry.

Aside from that, use a reputable exchange as much as possible because they will inform us once there is something wrong with them. At least, we still have time to withdraw our funds.

I've never been able to stick to one—no pun intended lol — as I like to shift liquidity in other platforms and most importantly, use cases matters very much like xyz coin is only at abc exchange.

Above all, there is always a risk of exploit in any centralized platform thus it's good to go multiple. I also believe your volume matters too when it comes to being on an exchange's radar, thus the reason why I like shifting liquidity in other platforms so it's not concentrated in one single platform. Overall, I think pros outweighs.  :D

Well I do think you are right about this. It is good for us to have more then just 1 crypto exchange if we need to make a trade. If we only have 1 exchange we can miss out on making some profit.

For me I do only have Binance and Coinbase. I do remember I wanted to make a small trade for some profit and Coinbase website was down. After this I put some coins in my Binance account so if it did happen again I could make the trade.

I agree with you that just as you diversify your assets it's required as well to do same for the exchange used, cause of unforseen circumstances like what happened before, so spreading out on ones exchange is an advantage in making sure you're not stuck to one exchanges and have a loss.

How does having a backup exchange help when you have an open position on futures? If exchange goes down and you are near to liquidation level, then you'll get liquidated and that will be the end of the story. That is the reason why I do not trade futures anymore, especially with leverage. In 2021, when China banned Bitcoin mining and Elon Musk also ruined everything, Bitcoin's price crashed and there were so many people trading on Binance that it was offline for a few hours. At that moment, my friend had opened a long position on one coin and he got liquidated despite the fact that it wasn't his fault, it was Binance that couldn't work but he lost money and Binance didn't recover anything.

That's why we can't overemphasize the use of SL (Stop Loss) and MM (Money Management). Without those two, no matter how good one tends to think one is trading, it's just a matter of time before one burns that account and several others.

The idea of having more than one exchange accounts is better than having one but that's not to say it's a wise decision to spread oneself think by operating several exchange accounts. Maybe two or three, and at most four accounts will be okay to operate at once. I said four exchange accounts because there are certain exchanges where coins/tokens one wants to buy aren't listed. No exchange has all coins and tokens. For me, having Trust Wallet and Phantom wallet is a must for anyone trading in this industry.

No exchange is flawless though but I haven't experienced downtime while trading futures with Bitget even when the market goes crazy that's why I stick to them till this time.. anyways yeah diversifying is key and to be safe your suggestions are valid.

Thats a solid point. Bitget has indeed built a reputation for being stable even when the market is extremely volatile, and I can see why that reliability keeps you loyal to them. Its definitely a big advantage when an exchange doesnt freeze or lag during critical moments, since that can make or break a trade. Still, like you said, no platform is 100% flawless, and thats why having backups and diversifying across different exchanges is a good safety net.

At the end of the day, its all about reducing risks wherever possible while making sure you’re comfortable with where you trade. So I have binance, kucoin, mexc, bybit and some cexes but Id still keeping my biggest chunk of assets on non custodial wallets.

Regardless of which exchange you use to avoid downtime, Stop Loss and Take Profit are the best way to keep your assets within a target range. Holding trading assets on multiple exchanges is advantageous, allowing you to capitalize on price differences, as these differences depend on active trading volume. However the risk remains the same: you're risking your money on each exchange without a withdrawal plan.

Non custodian wallets has always been best to hold funds that's not protected to execute projects in the short time if truly want to stay psychologically healthy and safe wise with our funds secured in the long with the amounted attempts of scammers invasions on the centralized exchange.
And while exchange may offer these trading features services, traders should always consider the platforms reputations taking users conveniences a prior. I've only used few few exchanges as Binance, Bybit and Bitget for my trades and I'm much comfortable with them because they usually send alert messages whenever they want to do technical or system services in their platform. That'll help users to migrate to other convenient platforms to do their trading tasks with an early inform so that users doesn't get trapped.

Proper risk management is a huge help for us traders and holders. As investors, we should always be aware of the unexpected things we might face,
especially given the current market situation.

It's likely that we won't see the true direction of Bitcoin's price for another two days, given the circumstances we're facing right now.  That's why if we're using an exchange,
we have to make sure we're fully prepared. For instance, I think Bitget is a solid option.

Non-custodial wallets give complete control over funds and limit exposure to risks common with centralized exchanges frequent hacks scams and sudden restrictions make them a strong choice for long-term security.
Choosing reputable exchanges is crucial even when convenience and trading tools are available platforms that provide clear communication about technical updates and maintenance like binance bybit and bitget enable users to move funds or adjust positions in time reducing the chance of being caught off guard. Using secure wallets alongside trusted exchanges creates a balance between accessibility and safety it promotes informed decision making while protecting funds and reducing stress and potential losses.

Non-custodial wallets also support responsible fund management and minimize dependence on third parties this approach shields against unexpected platform shutdowns account freezes or regulatory changes that may impact centralized exchanges keeping track of exchange announcements and system updates ensures users can respond quickly, overall a system that combines long-term storage in non-custodial wallets with selective trading on reliable exchanges strengthens both security and flexibility it allows engagement in trading opportunities while preserving financial safety and peace of mind.

Even though Bitget has been working to improve its reputation, I still can't accept it as my primary choice. I have no issues with Bitget; I still use it occasionally when I need low-volume tokens markets to make a small profit from pump and dump scheme . Currently, I mostly use Binance and OKX. Before, Bybit was hacked I mostly use them as alternative, because of that case it's been a few months I'm not open Bybit anymore.

You are right about all this you said here especially if you have so many activities you are using this exchange for, because sometimes an unexpected issue might arise which might get you stranded if you have no other options, so having more options when using exchange services are very important, in other not to be disappointed in the future.
I wouldn't say it's multiple because they are just two, I am using only bybit and bitget since they support p2p services in Nigeria. So it's only two exchange accounts I have as of today.

You should always choose top tier exchangers for trading because they have high liquidity for each coin, due to which you can exit your trade at any time. In futures trading, when trading with leverage, there is already a lot of risk and if you use an exchanger where liquidity is low, then you will have to accept a big loss at the time of exit. Because there will be a big difference between the buy and sell orders of the coin because there are fewer traders there. So far, I use Binance the most and this exchange is enough for trading so far. Because the liquidity of all the coins listed here is very high.

As a rule, tokens are not listed on all exchanges, and this is the reason that I have several accounts on different exchanges. In addition, due to the difference in the price of a coin on different exchanges, you can engage in arbitrage trading and this provides an additional opportunity to make a profit by buying a coin on one exchange and selling it on another at a higher price. This does not happen often, but it is necessary to be always ready so as not to miss such an opportunity.

As a trader you may need multiple exchanges based on the reason explained in the OP, and it could be an advantage in situations such as that. That said, there are also some disadvantages, if you have multiple exchanges, it basically means you have submitted KYC in multiple platforms and that is not so good for privacy. It also multiplies your chances of being a victim to a data breach, which could lead to a series of phishing attacks and if possible physical attacks.

Even better if you also utilize perps from dex instead of just solely relying on cex perpetual market.
These kind of error doesn't happen to binance only. I've used many centralized exchange, some of them got error at some point.

Although even by using more than 2 exchange you can already mitigate the risk most of the time, but a transparent, on-chain perpetual market is good to have in time like this.

I've never encountered a problem like this because I usually set stop-loss and take-profit limits when opening futures trades on a particular exchange, so maintenance downtime doesn't affect anything. Relying on a single exchange does carry significant risks, especially for those who actively trade or hold assets on that exchange. If the case involves holding assets, an exchange might not be the right choice. However, if you're a trader, choosing an exchange with a high level of credibility is probably better, even though no exchange is perfect.

Arbitrage trading is another solid reason to use multiple exchanges. For instance, this happened to me last year when one of those TG airdrop listed, the price was on Bitget was a little bit higher than that of OKX. I had to start arbitrage trading when I realized the difference in the listing price across the two exchanges. And yes, opportunities like that don't appear often but we should be able to maximize it when it comes

I still believe there are traders who leave their assets on the exchanges, although it may not be a large amount for traders. They do not want to be burdened with withdrawal fees that would become quite uncomfortable if done continuously at the end of the trading session.

I think it's very reasonable for traders nowadays to have several exchanges that are indeed their favorite places to trade, whether for the purpose of taking advantage of them to make a profit or simply because they are comfortable choosing one or several exchanges for other reasons.

That certainly exists, and we ourselves may even employ such a strategy because it's impossible to withdraw all our assets at the end of a trade due to the inconvenient withdrawal fees for each transaction. While this may seem reasonable, everyone has their own perspective, but when it comes to asset storage, we must agree that exchanges are not a safe place to store them. A small amount of our assets are certainly stored on exchanges as part of our transactions, and perhaps when trading, we don't have the hassle of transferring them from our wallet to the exchange every time. In my opinion, that's perfectly normal and not a major issue.

I did not know Binance futures went down. I don't trade in future but if the same thing happens to spot trading, then I will be angry if a coin meets my entry and my buy limit does not trigger, although this usually happens on Binance let's say if a big number like a multiple of 5 is used as buy or sell price, for example 5,0.5, 0.005, etc. These numbers are too exposed, and especially on Binance, market makers manipulate the order book to either pump high or dump high, like sudden movement around these numbers, especially around the new candle formation.

KuCoin and some other exchanges are better in this case and sometimes we can even get better rates on other exchanges, but on Binance, we don't have a chance to get anything a bit cheaper, although few cents don't make much difference.

I fully agree with that. No exchange or any program or establishment can be perfect, so the best ones could disappoint you when you need them most. If not the technical failure that you emphasised in this thread, it could be some other poor service or manipulations.

I've caught exchanges manipulating the market price just because they want to "bucket chop" the trader, which is off. They hunt stop losses too. So if you divide the money in exchanges and one disappoints you, the other might still save the day.

Lastly, those whose accounts were frozen didn't expect it. Even if the account is later unblocked, what about the many times wasted? We have many more reasons why our exchanges shouldn't be limited to just one.

You know that’s actually why I started using Bitget more often. The order book feels less manipulated and the fees are abit better too. And I recently just found out about there rewards programs which I'd start taking advantage of. So for me, even though I use Binance also, the former just feels smoother and fairer

You can trade in two exchanges but I suggest you be careful. That may effect to your emotions. You need to have more skills to control and check all your account in the exchanges. You need to take action if your trading is almost liquidated.

Trading in one exchange can reduce your stress so this will not suggest to those who don't have much skills. But I suggest you not to participate in the trading competitions because that is difficult to compete with other traders.

Though I am not a future trader, this problem would happen in spot trade as well. Those that are related to the internet can't assure uptime always; there might be something happening or maintenance mode as well. Usually I don't rely on a single exchange and don't store funds there. I move the funds to my hardware wallet after buying from the exchange. And if I need to sell, just move to the exchange, but don't rely on a single exchange. Always use multiple exchanges for that.

Just a few days back I sold and rebought my Ethereum. I send two different exchanges to sell my Ethereum. Once I bought back then, funds were sent to my hardware wallet. I can't really trust a single exchange when the funds are big. Because I have suffered before from Binance about freezing funds, though later they unfreeze and release my funds.

You are correct that no exchange is flawless, that is why the advice is given not to store your coins in an exchange, none custodial wallet which you have a total control over is best. For traders the same thing applies, no trader should depend only on one centralized exchange for their trading, whatever happens to that exchange will affect their trade and coins. Since we have more than one reputable exchange it makes sense to use more than one to be sure that no matter what can happen to one you will still be moving on with your trade. Mentainance, hacks or bankrupt can disrupt trading in a perticular exchange, it doesn't need to disrupt your trading if you are using other exchanges also.

No exchange is completely reliable, anything can happen to any exchange at any moment. If you are a trader, having accounts in different exchanges is not something bad, but you don’t have to trade on different exchanges at the same time, it doesn’t make sense to me. You might have account in different exchanges, if you notice that a exchange is having issue, you can just switch to another one pending when the previous one which you were using will be back, but if you decide to trade on two different exchanges at the same time, then you might end up getting confused.

I have lots of exchanges, and I don’t think there is anything wrong with that, but if you are trading, just make use of one exchange, and you should know that whenever you won’t be trading for some time, make sure you don’t leave your money on exchange, make sure you withdraw your money immediately because anything can happen to the exchange, and you can lose your money, no exchange is too big to be compromised.

Okex have many rules that chases away customers from their exchange for long, imagine deposit of Bitcoin and other coins less than $10 won't be reflected in your balance even if a consecutive deposit less than $10 totaling $15 in total (for instance) won't still be reflected.

There restrictive policy doesn't favor low balance account many times, I don't trade on okex because of these red flag.

You're right about using multiple exchanges, but I'd add that the choice of each platform should be for a specific benefit, not just for diversification.

I also used OKX for a while, right up until their founder disappeared with the wallet keys and they froze withdrawals for a long time. I started way back with BTC-e, but luckily left before the US seized their servers.

These days, my setup is more strategic. I use Deribit for options and futures, which helps me hedge my spot positions. For buying actual crypto, I use the Cryptomus wallet and exchange because they have the lowest fees and many of my crypto business partners are also their clients, so I even get cashback

You are right, most people use multiple exchanges, very few people stay in just one. I use multiple exchanges so that my money is less at risk, when I put all my assets on one exchange, if it gets hacked, all my money will be lost. So if I collect my funds on multiple exchanges, if one day it gets hacked, I will not suffer much.
However, I use a few popular exchanges, the top exchanges are very unlikely to be hacked, and their security is very strong. However, one place to collect and keep your funds safe is a wallet, the chances of hacking are much less here, wallets are safer than exchanges.

Ftx was a top exchange, but it went bankrupt due to mismanagement, Binance is a top exchange, but it has been hacked in the past, Bybit is also a top exchange, but not so long ago they were hacked and lost $1.5 billion dollars, i can give you many more examples of this. Of course i know it is best to use "top" exchanges, but i disagree that it is unlikely they get hacked, many of them do not pay as much attention to security as you think they do, they are all about making money and that's most important for them.

Not putting all your eggs in one basket has always being my slogan when investing and this isn't just particular to the crypto industry. I don't have only one wallet or use only one exchange as others advice. Sure there's a particular one I'll be using more often but there are always others ready to be utilized when things aren't going so great with the other. My most recent exchange that I use more often is bybit. I was a big fan of Binance before but recently they haven't been giving me the services I want. OKX I have heard alot about but I haven't used that exchange before. Kucoin was another alternative I used to have for Binance but now it has to be Bybit.

We ought to use these exchanges with caution whether for peer to peer transactions or trading. These are the two reasons I am using an exchange which are mostly normalized but it would not make a sense when we try to keep our crypto portfolios on exchanges when we don't even have access to our private keys or seed phrases.

Understanding the safety attached to using a decentralized wallet to keep our crypto portfolios is very crucial and we should never see it as a joke. Users' funds are been locked up on exchanges forever without having access to them and that should sound as warning to everyone that have crypto exchanges as backup.

That's a big problem if you open positions and wait till the position is filled. I never do that and therefore I never experience this problem. Instead, If I am going to buy or sell, I deposit my coins, make the trade and immediately withdraw them to my cold wallet. That way I will almost never get affected by them exchange hacks or some other unexpected issues.

There are also those instant swap services on oragefren.com and they work great too. Tbh, when they exist I don't even feel and need to use binance or a similar centralized exchange. They are definitely not worth the risk you are taking.

Either use decentralized exchanges like bisq and if you can't for some reason, at least use automated no-KYC exchanges. eXch is gone now but the other alternatives are not bad either.

That is the problem we position traders are having. But I have not used an exchange that was hacked before except Bybit. And at the time  Bybit was hacked, I did not have any positions opened and neither did I had money on the exchange at the time.

If I want to trade with $1000, I prefer to deposit $100 on the exchange and use 10x and ready to deposit more fund if the trading is going against my position. I also have more than one exchanges.

you are right bro!! spreading across exchanges is smart move and it should be a must!! but like you said, it still carries risks since none of us actually own or control those platforms to begin with. that is why it is always better to only keep what you need for trading or staking on exchanges and move the rest into selfcustody wallets to avoid stories that touches the heart. at least that way you reduce the damage if anything goes wrong in the future. i also like using multiple exchanges because each one has its own advantage in a way!!! some give better liquidity, others have good promos or airdrops opportunities. but i don't treat them as tools for storage at the end of the day.

There's nothing wrong if you will not stick with the single exchange the perks of different exchange varies so its up to you if you will open different account before ive been using with the Binance smoothly without an issue not until my country banned with the use of the Binance but apparently there are other exchange gives an opportunity to me so i ended up use other exchange again theres other CEX right there have an issue reason why not recommend to store most of your funds into their platform, have a risk management that you are willing to lose. Just a small amount use for trading is enough for me to hold with the CEX unused funds must need to keep safe into the hardware wallet to make sure its not prone at risk.

Due to various considerations when trading, we sometimes need to store our assets on an exchange. This is sometimes due to cost considerations, but always choose an exchange with a well-known reputation. While there are no guarantees regarding security, we should trade on more than one exchange. Exchanges often experience problems when prices fluctuate often experiencing maintenance, and so on which can cause us to miss opportunities to sell or buy.

However we all agree that exchanges are not a safe place for long-term storage, whether small or large amounts. If you're planning to store your assets long-term, try to keep them in a wallet you can control. As many people say, "not your wallet, not your assets."

Yeah, of course, some exchanges are used for trading, but I never put a lot of money in exchanges because it's too risky... so even if I trade, it's with a small capital of less than $500, but even that is rare.

I have a friend who always uses one exchange for futures trading, and he refuses to switch to another exchange he keeps tens of thousands of dollars in it, even though I've told him not to keep money in the exchange but he says it's just to maintain the margin so he doesn't get liquidated if the open position reverses direction.

The possibility of that exchange exit scamming is the only reason why people suggest using more than one. If you have been in the crypto long enough, you have seen plenty of exchanges exit scam and take all your money with them too. Most recent huge one was FTX I believe, and they took out billions from people and then they used that some bad way, and sad thing is, even they do not have it, they lost others money on their own investments.

In other words, if you use just one exchange, you are letting that exchange decide your moneys future. I do use a single exchange most of the time, just Binance, because I trust them. But, I do keep most of my money in noncustodial wallets, so that if anything happens, I am fine. I just send whatever I want to trade with there.

Don't even need the exchange to do exit scam.
There are tons of cex locking people's account which got funding in it. It's good to always have a backup while our accounts are on process of review so that we can resume our trading.

There are many reason why using multiple exchange is better besides this one security concern as well such as events.

As a trader is advisable to spread and trade in order exchange and not focusing in only one exchange however the reason why some people focus only on one exchange is because they usually forget things easily so they prefer only focusing on one exchange so they can remember their password and not forget if they had an outstanding deal in that exchange, but with what the op has just stated out shows that it is very important to trade with different exchange and not relying on just one especially when you are a trader that focus mainly on trading I uses it as a source of income because if such a thing happen in binance it means you can't trade for some time and it will affect you financially but if you have other places you trade and one is undergoing some kind of reconstruction you can still use the other one and make your money for the day or for the week as usual, but I still don't advice using trading as only your source of income.

Of course, we should use popular and top exchanges to avoid unnecessary problems. But it should be noted that while top exchanges are more secure, that doesn't mean they can't be hacked and if I'm not mistaken, Binance has been hacked in the past. Therefore, do not be too subjective just because we are using reputable exchanges.

To be fair, personal wallets and exchanges both have their own risks and if we are not careful, our wallets can be hacked at any time. Personal wallets are safer because they are more private, if we don't make it public or show it off, no one will know about it. Meanwhile, exchanges are at higher risk, simply because they are public organizations and are always targets for hackers.

It is really not recommended to only use Exchange as storage, especially with tens of thousands of dollars.
Type the Exchange is hacked there are some big problems such as FTX it will be very troublesome and it could be that the balance is lost or frozen and I don't know when it will be replaced.

I myself even have accounts on all the Exchanges so it's not just one exchange, there are several other exchanges that I try
and see which ones are better about the service and how secure and how secure is it for the users when there are issues like hacks and such.

I often use a local exchange like Indodax even though there are some taxes that need to be paid for each transaction,
but it is quite safe and the local exchange has appropriate regulations so that we as users do not make illegal transactions.

However, the best for fixed storage is a personal wallet or Hardware wallet with double security that is able to store assets quite easily and avoid hacking and the like.

Having a backup exchange will also mean that you'll have to divide your funds in both the exchanges which will force you to decrease the sizes of trade. This does not mean we have to put all our eggs in a single basket but we have to select the basket wisely. A good exchange can be reliable but nothing in this world is perfect so be ready to face some downtime. Talking about binance, it has never let me down. Even for some kind of maintenance, they do notify users in advance so we can plan the trades accordingly.

Choosing multiple exchanges will also make us pay double fees which for small traders can not be a good option. I'll say thoroughly do your research before choosing the exchange and stay up to date with their socials & alerts. Exchanges like binance can be trusted because they are backed by some or the other financial tool.

Doing this is fine and you don't have any risk because if the exchange was to seize your money, they're only seizing the ones that you sent to them and you still have other coins in your non custodial wallet. This is what I do too and that's what I don't have any fear with exchange crashing and are getting hacked. Exchange aren't designed with good prevention measures to stop hacking from happening and that's why they shouldn't be trusted to help keep our coins safe. It's our personal wallets that should be used for keeping our cryptocurrency safe.

It is a very nice idea not to put all your eggs in the same basket due to the high risk of relying on a single basket. When we lose that basket, we shouldn’t lose everything.So, as a trader, I also don't abide by using only one exchange to trade, no matter how reputable the exchange may be because anything can still happen.

But the point is,what about those who are small traders, meaning those trading with a little amount of money? For this kind of trader, using multiple exchanges may not be beneficial. It could even be stressful for them.So, for small traders, I think using a single, reputable exchange is the best option. But as they grow, they can start trading on multiple exchanges.

Small trader can still use multiple exchange for trading coins they find to be promising that's not on the initial exchange, for example, $20 trader can actually move this amount of money from one exchange to another looking for the best coin that actually do 10X based on the research done so far.

For example, if you're trading a coin on exchange A but it's not available on exchange B, there's no problem using multiple exchanges.
I sometimes do the same thing, where if the coin I'm looking for isn't available on Binance, I'll move some funds to another exchange to trade it.
Traders have their own ways of evaluating coins and exchanges, as long as they have a good reputation.

You are a spot trader is the reason you are able not to have any money on an exchange. All you will need to do is to send coin to the exchange, convert the coin to another coin and withdrawal the coin that you converted to. But if you are a margin or a future trader, you will need to have money left on your trading account because that is what makes leverage trading works. Your friend is very correct but I will prefer not to use only one exchange for it.

So, how do you trade in the crypto market in many exchanges, although the price in each volume exchange can change and also the price is also not the same, but it should not be done in many exchanges, it is more risky than using just one exchange.

For this reason, if you can overcome the risk of trading on well -known exchanges and see trading activities, for that binance I think is not a problem in the trading method.

The main risk is that you can lose your funds if the exchange decides to run and steal all its customers' money, or it gets hacked and has no fund protection or security to ensure that the funds are not stolen.

Perhaps it's best to go to a decentralized exchange to ensure you somehow hold your funds; it feels safer.

I second that thought about no exchange is perfect and that's why we need to have some accounts in other exchanges for us to have choices. This also gives us a way to determine the flaws and advantages of each of them. While there are some that we will definitely like on how smooth transactions going there. Don't stick to it and have some trades as well in the other ones. Aside from the opportunities, maybe some airdrops or earn features, the entire exchange itself we'll be liked on how they take care of their customers.

You may be surprised by this fact, but those who lost their money using a non-custodial wallet will be no less than those who lost them due to hacking the exchange. And in some cases, if you use a trusted exchange, for example, as a Binance, the money was returned to the victims from a special SAFU insurance fund.

Decentralized exchanges are not suitable for traders. Centralized exchanges are more user friendly and they offer better liquidity and more trading options, etc. Decentralized exchanges are good for privacy, but as for hodling your funds and the feeling of safety while doing that, the only option is a non-custodial wallet, anything else doesn't count. Exchanges are for trading and not for hodling coins.

I am sure that traders have more than one exchange account, but I am not sure if most traders use multiple exchanges for their daily trading. As you said, most traders have exchanges that they already prefer. For whatever reason, it is highly likely that traders will more often use those exchanges for their daily trading activities, perhaps using other exchanges a few times.

It's not all the coins that is in CEX is in DEX which is the reason why traders prefer using CEx because you can get a newly listed coin in centralized exchange. Apart from the no KYC stuff with decentralized exchange, I don't see how it makes keeping your coins in them safer than a centralized exchange. The only safe place to keep your coins is a self custody wallet where only you have the private keys.

That's true, having at least two exchanges is a good practice. But most importantly, always stick to exchanges that are truly trusted. A short downtime of a few minutes or even an hour is still acceptable, though rare. But when an exchange goes down for several hours, that's a serious concern. Fortunately, most of the big exchanges carry insurance to protect their users’ funds but the time you will wait for refund after a hack or something similar, that's probably bad experience to go through