Safeguarding funds , your funds on exchanges are safe?

[luckyflop]

Many of you are wondering if your funds on exchanges are safe (SAFU anyone?). Here are some tips for you, and how I manage my own funds.
Time for a short thread
Exchanges act like banks with the ability to buy and sell tokens and coins. The simplest example you could think of is you can go to your local bank, and exchanging USD for your local currency. Now, what happens if the bank is on hold? (Vacation or completely shut down?)
You end up waiting until the issue is resolved. Banks have reserves in order to cover their client's funds. Insurance funds that exchanges operate are more or less the same.
But you wouldn't trust the fund to be able to cover everyone now, would you?
Welcoming cold storage. What is cold storage? Cold storage is a hardware (there's also the paper version) wallet that you own and is inaccessible by exchanges.
No one can access it but you, think of it as your physical wallet that you hold cash in. Ledger is one example of cold storage,TrustWalletApp is considered a hot wallet (they operate online).The way it goes is that you transfer the amount of your portfolio there that you do not want to trade.

What's the best way to maximize your fund's security?

Well, for starters, no one should go "all in" on a trade. You always need to keep liquidity on the side and avoid heavy losses if a trade goes south. You also want to avoid any shenanigan that might happen to your favorite exchange, and you caught in the middle.
Do some research online, purchase a hardware wallet, I personally use ledger Nano X, I've heard of other good alternatives. It's a matter of choice.
While I do not recall the names, a quick google search should do the trick.
First thing you need to do after you get it is transferring the amount you're absolutely not okay to lose (mine hovers around 80% of my entire portfolio, hence I trade with 20% of my funds only).

You own the keys, no one can take them from you.

The better question is, how do you consistently manage your funds? Well, if you had a successful trade, then you would transfer a part of your profits to the wallet. I usually transfer 50% of the total profit on a weekly basis and increase my trading account with the rest
So let's say your entire fund is 5000$. You would transfer 4000$ to your wallet, and trade with 1000$.If you made 500$ on a trade with the 1000$, you would then transfer 250$ and trade now with 1250$.
Easier and safer than most think.No one is responsible for your own funds but you. Trusting exchanges isn't the smart move, otherwise, why are you on board with this entire decentralized finance train? Might as well stick to your local bank.

[Mighty_crypt]

Thanks for the info, since centralized exchanges has the biggest volumes and liquidity they've become the best platform for every traders, actually I will be more interested if you can share information about your trading strategy? How can one make as little as 20$ per day from day trading? I do trading too but only when there is a big opportunity for example when Bitcoin dumps, I would buy and wait for recover to sell again, any information will be much appreciated thanks

[luckyflop]

Thanks for the info, since centralized exchanges has the biggest volumes and liquidity they've become the best platform for every traders, actually I will be more interested if you can share information about your trading strategy? How can one make as little as 20$ per day from day trading? I do trading too but only when there is a big opportunity for example when Bitcoin dumps, I would buy and wait for recover to sell again, any information will be much appreciated thanks

I can share with you my trading strategy but I'm pretty sure it'd not be very useful for you or for everybody else, as I believe trading very much depends on everybody's personality and every one would fit in some different strategy, somebody works with Fibonacci, somebody would rather work with UNIRanko instead of candlesticks, You need to see what is your way and what suits you the best , if some way works for someone, doesn't necessarily mean it'd work for you too, and the only way you can make a profit in downtrends is to do margin trading which is not my favorite and I don't do that.

[bubbalex]

I do not hold funds on exchanges, it is not safe at all. Exchange can be hacked, your account can be suspended/blocked/frozen. I hold on the wallets with full control of private keys, mnemonic phrases, etc. I use exchanges only to sell/buy/convert some assets and withdraw it immediately.

[b1k4ng]

I do not hold funds on exchanges, it is not safe at all. Exchange can be hacked, your account can be suspended/blocked/frozen. I hold on the wallets with full control of private keys, mnemonic phrases, etc. I use exchanges only to sell/buy/convert some assets and withdraw it immediately.

yes for most exchanges are not liable in case of hacking, but binance will still replace our assets (like some time ago) when binance was hacked.
but it is highly recommended for everyone to keep all their assets in their personal wallet so they can sleep soundly

[masterrex]

IMHO, I think it depends on the capability of the exchange platform if it was trusted and reliable and then there is no reason to be afraid because I always doing this since 2017 until now, Luckily there is nothing bad happens, I'm a fully verified user so I was never afraid of these possible scenarios like blocking or locking my account because I have not done any illegal thats why I have nothing to be afraid off by the way the crypto exchange that I was using is a secure platform and also has insurance to cover if something happens thats why it's okay. But let me clear this I'm not leaving all my funds in the exchange wallet only the funds that I was using for daily trading purposes.

[crzy]

As a trader you have no choice but to take risk on putting your money in exchanges even if you know hackers are just there waiting for their moment because the fees will eat all your capital if you do a lot of transactions from your wallet to another wallet. As a trader you should updated about that exchange so you can sell early when something bad happen. If its a long term investment, I don’t trust exchanges on this so I have to transfer it on my secured wallet.

[tsaroz]

I am aware of all this but there are different preferences of different people regarding the funds they hold.
It is a wise idea for long term hodlers to put their coins in a wallet they have a private key to or even put them on hardware wallet or paper wallet.
But that can't be claimed same for a trader. For a trader, larger the liquidity is, larger it can profit from the market.
And anyone wanting to invest in new coins through IEO, they can't do that while hodling their coins in wallet.

[VolkoB]

I do not hold funds on exchanges, it is not safe at all. Exchange can be hacked, your account can be suspended/blocked/frozen. I hold on the wallets with full control of private keys, mnemonic phrases, etc. I use exchanges only to sell/buy/convert some assets and withdraw it immediately.

I agree with you. But in any case, users' wallets can also be hacked. Therefore, exchanges such as binance, to a certain extent, provide more protection than conventional storage. Storage everywhere at your own risk)

[Zeehaxan]

Personally i transfer only the coins to the exchange wallet that i want to sell or exchange while most of my coins stay in my private wallet. Another way to reduce risk is by using non custodial decentralized exchanges.

[piebeyb]

I use that way not completely put all the money into the exchange, usually I just send a few to make trades and after getting my profit I withdraw my profits and leave the capital to trade there, I am also worried they will go away with my money and it will it hurts me, so we don't have to put a lot of money there, at least we need to protect our money and be responsible with it, we need to prevent something that is not wanted is good

[BitcoinTurk]

It has been a good informative content, in addition to what is written here, I want to add some of my knowledge and my own thoughts.

Unfortunately, many exhange services are not fully secure, and with the exception of only a few, no service has an insurance budget. For this reason, the capital we hold in the accounts of such services is never safe.

[Ucy]

Easier and safer than most think.No one is responsible for your own funds but you. Trusting exchanges isn't the smart move, otherwise, why are you on board with this entire decentralized finance train? Might as well stick to your local bank.

It can be abit challenging to convince them on the importance of self-custody if they don't know/understand the purpose of crypto, if they are not interested in its ideals, if they are just in Crypto to make money, if they are not aware of the security implications of keeping coins on centralized exchanges, etc
One of the most disturbing things about exchanges holding people coins is that they can use them for consensus/governance and to change the rules of a Decentralized Cryptocurrency via coin voting. Won't be surprised if centralized exchanges deliberately turn(or gradually turn) decentralized crypto into centralized crypto in this manner

[irixo10]

This post is very informative and educating as well, even a newbie having gone through it can know a thing or two about safeguarding his funds and so on. I like your trading strategy and the steps you take to secure your assets, especially the aspect of withdrawing your weekly profit to your personal wallet, it shows contentment which some people lacks, that is, some people always make that mistake of either keeping funds on exchange or trading with everything both the profit and so on with the mindset of making more, more funds more gain while forgetting the market can go south. Lastly, it has been said many times that no exchange is secure no matter how big the exchange is or how secure they claim to be, Kucoin hack should have taught people great lessons by now; your personal wallet should be used all the time and not that of exchanges.

[Mandarava]

If you made 500$ on a trade with the 1000$, you would then transfer 250$ and trade now with 1250$.

This system sounds too utopian. I think very few people can earn 50 percent a week from their deposit.

The only way to earn so much is if you risk very much by trading assets which at the bottom of the coinmarketcap list. But this is so risky that you are much more likely to lose all your money instead of making a profit.

In this case, you will have no any mind about your exchange security, because the greatest danger will actually come not from the exchange, but from the very fact of buying such high-risk assets.

[laredo7mm]

Thanks for the info, since centralized exchanges has the biggest volumes and liquidity they've become the best platform for every traders, actually I will be more interested if you can share information about your trading strategy? How can one make as little as 20$ per day from day trading? I do trading too but only when there is a big opportunity for example when Bitcoin dumps, I would buy and wait for recover to sell again, any information will be much appreciated thanks

I also want to hear some good trading strategy too. I am not very good at trading so I mostly use some common bot trading strategy to minimize the risk. But rewards are also very low. Actually, it's gride trading I do when market goes sideways and I use the trailing take profit option to get maximum profit when the market pumping. Those two strategy works fine for me.

[tyz]

There is only one simple rule that has kept me from losing my coins in one of the exchange hacks or exchange bankruptcies in almost 10 years of crypto: Always deduct your coins from the exchange as soon as you have made your trade. Never leave them and never hold open positions for more than two or three days. That is the secret.

[pilosopotasyo]

[/b]
The better question is, how do you consistently manage your funds? Well, if you had a successful trade, then you would transfer a part of your profits to the wallet. I usually transfer 50% of the total profit on a weekly basis and increase my trading account with the rest
So let's say your entire fund is 5000$. You would transfer 4000$ to your wallet, and trade with 1000$.If you made 500$ on a trade with the 1000$, you would then transfer 250$ and trade now with 1250$.
Easier and safer than most think.No one is responsible for your own funds but you. Trusting exchanges isn't the smart move, otherwise, why are you on board with this entire decentralized finance train? Might as well stick to your local bank.

You are lucky that you are making profit from trading not everyone here can, and this is the reason why people prefer to HODL than to trade, they know the risk of storing their coins to long on exchanges for trading purposes, it's good if you can retain only your profit in exchanges but it's very tempting to store your coins in exchange if you know how to trade or very active in trading, this is one of the risk of traders.

[covfefe_]

The jeast is not to hold your coins on exchange when you are not trading or investing. If it's a large fund and you are bullish about it's future, you should put it somewhere safe with a private key you own. Putting on exchange or centralized wallet is not only risky when they are hacked, but it also poses risks from your government, court through lawsuits. Some courts have even declared them your financial assets and martial property.

[Ryushin]

Funds are safer in your wallet than exchanges, don't listen to those praising top exchanges, even coinbase or binance can still get hacked, if you are a full time trader always move your profits off the Exchanges to your personal wallet that you owned the private keys, don't....

1. Use coinbase wallet to store funds, it's centralized
2. Make sure you use 2FA code for your exchanges too