Where do daytraders store their crypto?

[retreat]

I have assets for trading that are stored on the exchange, saving them to my personal wallet imo will only cost me money to pay fees. but before entrusting my assets to the exchange (currently FTX) I first traced the track record of FTX and after I was sure the exchange was safe then I did not hesitate to store my crypto assets in it.

[hyudien]

Of course, they will keep it on the exchange if it is a daytrader. Because tomorrow will be back to trade. If a daytrader trades today and keeps it in a cold wallet then will trade the next day he has to send it to an exchange? just for reasons of asset security? If you really are a daytrader, I'm sure saving on the stock exchange has become an option rather than the second option. Just so you know day traders know what they have to do if they want to trade tomorrow. He will not complicate and spend shipping costs unless he will withdraw the results of his trades every day, then the capital for tomorrow remains on the exchange, while the profits are withdrawn.

[AmoreJaz]

As a Binance day trader my portfolio is always in USDT  stored in my custodian wallet, the OP is very much concerned with risk of hodling all our coin in a CEX, personally I transact some of my profits in USDT right from Binance P2P thus instead of transferring the profits to my online wallet, if I needed some USDT I still follow the same process of P2P, though it is not advisable to hodl all our coins in an CEX which are always prone to hackers, however I believe Binance is well secured and safe based my own opinion.

a lot of traders have the confidence on binance because they have insurance in the form of SAFU, and this year,   SAFU is valued at $1BN as of january this year . so for me, that's one thing why binance traders are pretty confident with their funds on this exchange. if you are an active trader, it is really not practical to move your funds especially if it is ETH or ETH token you are dealing with.
but if you will not trade for quite a while, better transfer it to a noncustodial wallet. just for security purposes.

[Issa56]

Am a day trader, after selling my coin I always leave it in usdt in the exchange, I believe their is no need sending the coin to my non custodial wallet address because I will be needing it the following day, I know my fund is not really safe in an exhange wallet address but I just have to leave it their to avoid stress and unnecessary gas fee, but whenever am holding a coin for a long term immediately after buying a coin from exchange I always make sure I transfer the coin to my non costodial wallet address because I believe my funds are safe their and whenever u want to sell I transfer d coin back to the exchange.

[Captain Corporate]

 I do agree that there is absolutely no need to keep depositing and withdrawing all the time if you are a day trader. I get that it may not be great for the long term survival of your coins, so if you have excess amount that you do not feel like you will use, then you can withdraw them to a wallet that you feel safe and then keep it there. However, I also do not understand why a day trader whose entire time is spent on an exchange should withdraw money at the end of the day all the time. If anything happens, it could happen during your trading hours as well and you will lose that money anyway. So pick a place to day trade that you trust to begin with.

[DoublerHunter]

Am a day trader, after selling my coin I always leave it in usdt in the exchange, I believe their is no need sending the coin to my non custodial wallet address because I will be needing it the following day, I know my fund is not really safe in an exhange wallet address but I just have to leave it their to avoid stress and unnecessary gas fee, but whenever am holding a coin for a long term immediately after buying a coin from exchange I always make sure I transfer the coin to my non costodial wallet address because I believe my funds are safe their and whenever u want to sell I transfer d coin back to the exchange.

^ This is why from the start, picking a good and reputable exchange is a must because you need to leave your money on the exchange where you can entrust your money. But doing it in a long term is not a good idea, I mean probably it could be months but after you actively do trading, you must withdraw it and not let your money sleep on the exchange wallet. Becaue we never know what will happen next if we store our assets on the exchange wallet, from time to time they are vulnerable to hack and it is also good if the exchange has a secure fund like Binance have SAFU.

[Rengga Jati]

Assuming you trade a lot and are a daytrader and use binance, coinbase and all those exchanges, you need your coins on the exchange to trade.  But when you are done with trading that day, do majority of traders just leave their coins there till the next day?  Now if you are trading it with USD, then no issue then right since the balance would be USD or a portion of your balance is in USD?

It may depend on how the trader itself.
But commonly, they will make it in stable coins in order to ease their day trading activities. It will be also more stable if we are saving the assets in stable coins if we are for day trading. Stable coins are not only USDT but others that may be available in the exchanges. We can choose one of them as our best choice. ANd if we let them in the wallet before converting to the bank or even convertig to other assets for long term investment, Ithink that stable coin really makes sense to be used.

If you are doing this with coins like ETH, you are going to pay a ton of fees each way.  Your exchange is going to charge you a fee and you going to pay a decent fee sending it back the next day.  Now imagine having many other altcoins where the fees are similar.  I can' t imagine people are depositing/withdrawing each day?

We will only be charged a fee if we make transactions, both buying and selling or withdrawing. So if we just leave it in the form of ETH, it won't be charged. It's just that the movement of the ETH value may continue to change. So sometimes the assets in the wallet will easily go up and down

[Mahanton]

Leaving your coin in the exchange is pretty better to avoid charges to withdraw to wallet daily and that is why you have to sign up to a trusted exchange. As a trader when you need to make withdraw is when you have profit that you want to take some home to rest in your wallet.

What if the exchange got hacked or it have some issues that they need to freeze the funds of its customers? it's risky to store funds inside the exchange but we can just sacrifice some fee for the safety of our coins and also for our peace of mind. You cant focus on your trades or you can't sleep at night when you know that there is something bad that can happen to your coins anytime.

There are now coins that are cheaper in fees so why not use them? If your trading with heavier coins, you can just trade them to a cheaper coin once your done with your trades. Stable coins are stable and can help a trader but if you didn't withdraw your stable coins outside the exchange, it is still the same.

About hacking of exchange, it is wiser to trade in reputable exchange that is difficult to get hacked. But I think another choice to fee reduction in daily withdrawal back to wallet is to use stable coins. With stable coins you are keeping your coins safe from fluctuations of the market just like you gave example of stable coin but to withdrawal a coin daily won't be profitable what of if profit was not made after the daily trade.

Nothing is unhackable  on this world but it is a good behavior that you should really be choosing the best exchange that we do have in the market on which you could be somewhat that confident on using them.
It is really just unavoidable for someone to make use of those platforms as their wallets because we do usually store up our coins on waiting up for some buying or selling opporunity which i couldnt
really blame off someone who do really have that kind of behavior on storing their coins with centralized platforms which is something unavoidable because of the situation.

[Eureka_07]

<snip>

Since those traders are day-trading, it is definite that they would just leave those funds on the exchanges where they are trading. It is kind of a hassle and waste of withdrawal fee if they send it to another wallet everyday. Most probably they will just move it if they need to use the money for any reason. There are advices that tells us not to store money on exchanges, but in this case, these people always use it for day-trading, so it is fine.

<snip>
Nothing is unhackable  on this world but it is a good behavior that you should really be choosing the best exchange that we do have in the market on which you could be somewhat that confident on using them.
<snip>

I agree, I don't think of any big crypto exchanges that has no history of being hacked.

[Zilon]

Swap fee is only applicable to trades that are left for more than a day but once a trade isn't open there will be no need for the swap fee. And it is more easier leaving those coins on the exchange so as to trade the next day because moving the funds between wallets will result in paying for gas fees as well

[Peanutswar]

Most traders stored their assets to the trading platform they are using because they are an active traders with a day trade they must not miss out a day to make a profit. It depends if they will going to take profit or stop loss for sure they are separating their assets depends on the purpose sometimes success trade win rate is ideal too. Traders create different accounts for the holding trade, futures trade and storing their earned assets still the ideal use is to store your assets to a platform that you have full control.

[jrrsparkles]

Just in the exchange itself because they can't afford to pay withdrawal fee everyday because it cost around $25 even on the cheapest trading fee exchange so imagine how much it will be for a month $750, that's not small amount though. But yes there is risk of losing our cryptocurrency completely if the exchange got hacked but it is not going to happen everyday and choose the exchanges wisely.

[noorman0]

Who knows if a trader uses all or only part of his crypto portfolio to trade daily on a centralized exchange? If they wish they can withdraw assets daily to external wallets due to higher profit calculations. Or also they don't move anything from the exchange because they only use a small part of the portfolio that they can tolerate to lose.

This question requires a survey of several daytraders, each with a different portfolio.

And how safe is it now to store on an electronic wallet?

It depends on the electronic device you are using.  You have to be more specific what kind of electronic wallet and electronic money you mean.

[danherbias07]

You are right. If you are done with it, withdraw it. If you are going for a vacation, withdraw it. There's no telling when an exchange will just shut down, be hacked, or whatever internal reason they make that is almost unbelievable sometimes.
Save yourself the trouble of being stressed out thinking about it especially if you are on a vacation with someone special to you.
How could you enjoy that if you are being paranoid with the funds left in an exchange? Not your keys, big problem in the future. 

[taufik123]

You are right. If you are done with it, withdraw it. If you are going for a vacation, withdraw it. There's no telling when an exchange will just shut down, be hacked, or whatever internal reason they make that is almost unbelievable sometimes.
Save yourself the trouble of being stressed out thinking about it especially if you are on a vacation with someone special to you.
How could you enjoy that if you are being paranoid with the funds left in an exchange? Not your keys, big problem in the future. 

Being paranoid is no fun and always getting nervous when some assets are still on the exchange. Binance has never been hacked, especially with other exchanges. But the security of the exchange is currently being improved, for some assets that do not have a large value, I might just leave it on the exchange, because it is constrained by fees which will certainly reduce assets. If it is USDT then I will withdraw it. There is no place to save if we are too paranoid and not so alert.

[crzy]

And how safe is it now to store on an electronic wallet?

Its not 100% safe since you don’t have the control over your wallet so better to choose an e-wallet with a good trust rating, at least if they are a reputable site the risk can be lessen. Day trader usually store their holdings in exchanges so they can trade faster and just withdraw it if they want to secure their profit on their hard wallet.

[Pasa32]

Day traders hold their balance in exchanges, so they can take fast trade on any market action. If they need to withdraw they just get a withdrawal from an exchange. Exchanges are also safe  some exchanges have bad security system so they get hacked, Sometimes trust wallet also gets hacked, so be smart and safe.

[beerlover]

Who knows if a trader uses all or only part of his crypto portfolio to trade daily on a centralized exchange? If they wish they can withdraw assets daily to external wallets due to higher profit calculations. Or also they don't move anything from the exchange because they only use a small part of the portfolio that they can tolerate to lose.

This question requires a survey of several daytraders, each with a different portfolio.

Unless you are at the very start of your trading, you never trade with 100% of your bankroll. No good trader does that, you store most of your money in something like ledger so that you could keep it safe.

Let's assume you have 100k, you would not be trading with 100k anyway, that is too risky and there is no need for that, you would trade with at most 3-5k and then you could store the rest in a secure location. Then you would be trading with that amount and when that amount reaches to like 10+ thousand, then you remove some of it and go back to 5k again. That’s how all the rich traders I know have done it so far in the past 5 years. If you have a thousand dollars and want to trade, then of course you may end up with depositing it all.

[clarkt]

It is possible to trade directly with your non-custodian wallet with some exchange like coinbase. And if you trade on dex, you will also be in charge of your coin. But to trade on centralized exchange, you will have to trust that exchange! When you keep your coin on centralized exchange for days or one or two weeks, you shouldn't have to worry about hack if those exchange have track record of safety of customers funds!

[TimeTeller]

It is possible to trade directly with your non-custodian wallet with some exchange like coinbase. And if you trade on dex, you will also be in charge of your coin. But to trade on centralized exchange, you will have to trust that exchange! When you keep your coin on centralized exchange for days or one or two weeks, you shouldn't have to worry about hack if those exchange have track record of safety of customers funds!

I think most day traders store or leave their coins in the exchange itself.
Because getting out will incur fees, so if you are active trader, it is not practical to get in and out your funds frequently.
However, if you are storing it to the exchange, it is better to choose the exchange which has very good reputation.
And at least your funds are protected just like in Binance, which has insurance for its users.
Coinbase has also this FDIC-insurance up to $250k if you are keeping cash with them.

https://blog.coinbase.com/on-insurance-and-cryptocurrency-d6db86ba40bd