Leaving your coins on exchanges

[Oshosondy]

We know this common phrase 'not your key not your coin'. It is just about exchanges, they have the private keys, which means address they give to users are for the exchange owner and they have full control over any money their users send to the addresses. This can lead to inconveniences like blocked or freezer account, withdrawal maintenance, inability to access your coins and many other things that can come up.

Not only that, another are hackers. Many exchanges has been hacked in the past, many exchanges are hacked yearly, even Binance and some other trustworthy exchanges has been hacked before.

These are common reasons we should not leave our coins on exchanges. But how are traders helping themselves? Not to hold on exchanges is good for holders, but would be hard for scalpers and day traders.

Are you traders able not to leave your coins on exchanges? How are you able to manage transaction fee and the likes? You are day traders, your coins on noncustodial wallet will most likely be a stable coin like USDT and the transaction fee is not high, some exchanges even make transaction fee for their listed stable coin to have zero fee while cheaper fee while transfering from noncustodial wallet to the exchange.

After you finish trading in a day, because of the stable coin low fee, did you move your coin to a noncustodial wallet and move it back to an exchange if you want to trade next time? Or you just leave it alone on the exchange you are using?

What effective way you use to protect your coin as a trader?

[1714811321]

1714811321

[1714811321]

1714811321

[Zaguru12]

I am not that kind of a major trader in bitcoin,  so some of my coins that I prefer to trade are split in exchanges like Binance and kucoin. I don't move my coins daily to wallets but mostly abandon them for like a month on exchanges, although it seems risky but the transaction fee attached to a moving coins between exchanges and wallets is an headache to small traders like myself

[Solosanz]

I think it's up to personal reference about it's own money, but the safest is only use the exchange when you're want to trade which mean after you trade you will move your coins to your noncustodial wallet.

But myself who only trade with small money will need to leave my coins on the exchanges until I get a lot money to withdraw the profit. It doesn't make sense if my profit will gone because of transaction fee.

As long as you're only leave small money and you can afford to lose, it's fine.

[Minor Miner]

~~

What effective way you use to protect your coin as a trader?

Most of us know that it is not safe to store assets on a centralized exchange but for a day trader I think there is hardly any other option. I think we should identify the risks that we will face when using centralized exchanges. Currently, I still hold some of my assets on binance, I find it very inconvenient when at the end of the day after work, I have to withdraw all my assets to a non-custodial wallet and then have to transfer to the exchange when do I start trading again. Doing so will make us unable to focus on trading and will miss a lot of profit opportunities.

[Baofeng]

~~

What effective way you use to protect your coin as a trader?

Most of us know that it is not safe to store assets on a centralized exchange but for a day trader I think there is hardly any other option. I think we should identify the risks that we will face when using centralized exchanges. Currently, I still hold some of my assets on binance, I find it very inconvenient when at the end of the day after work, I have to withdraw all my assets to a non-custodial wallet and then have to transfer to the exchange when do I start trading again. Doing so will make us unable to focus on trading and will miss a lot of profit opportunities.

Perhaps if you are a big trader, then it might be good to just take it out and put it into a wallet that you can control over. And then deposit it back again if you feel you are going to trade that day. It's better safe than sorry. And we have heard horrible stories years ago when the exchanges suddenly run off with traders money.

But for average trader like me, I just left like $100, I know it is still money, nevertheless I guess I can afford to lose that one. And maybe if we trade on exchange that is in the top list, although they can still be hack, at least it's safe as compare to lower tier exchange or fly by night, in my opinion.

[rozak]

What effective way you use to protect your coin as a trader?

I leave the coin stable on the exchange after the daily trading is done I do. withdraw profits to a personal wallet. I just left my trading capital. I will convert the profit I get into a stable asset and wait for a good price to buy good coins (mostly I collect BTC).
withdrawing money from the exchange and depositing it again the next day would be difficult. I know there are risks when we put our money in an exchange and leave it for a while. Therefore, using a trusted exchange is now the main choice. although that doesn't eliminate the risk.

[traderethereum]

I left some coins on some exchanges because I don't have to deposit any more funds if I want to trade.
It also makes it easy for me to trade immediately whenever I want and not wait for deposit times which can sometimes take longer.
And if I can get a big profit, I will immediately take the money and send it to my other wallet or withdraw it to my bank.
But whatever it is, you should be able to accept the consequences of keeping your funds on the exchange so that if anything happens to the exchange, you won't regret it.

[Minor Miner]

~~

What effective way you use to protect your coin as a trader?

Most of us know that it is not safe to store assets on a centralized exchange but for a day trader I think there is hardly any other option. I think we should identify the risks that we will face when using centralized exchanges. Currently, I still hold some of my assets on binance, I find it very inconvenient when at the end of the day after work, I have to withdraw all my assets to a non-custodial wallet and then have to transfer to the exchange when do I start trading again. Doing so will make us unable to focus on trading and will miss a lot of profit opportunities.

Perhaps if you are a big trader, then it might be good to just take it out and put it into a wallet that you can control over. And then deposit it back again if you feel you are going to trade that day. It's better safe than sorry. And we have heard horrible stories years ago when the exchanges suddenly run off with traders money.

But for average trader like me, I just left like $100, I know it is still money, nevertheless I guess I can afford to lose that one. And maybe if we trade on exchange that is in the top list, although they can still be hack, at least it's safe as compare to lower tier exchange or fly by night, in my opinion.

As I said at the beginning, we all know the risks of storing our assets there. I tried doing it that way for better sleep but it was really annoying.
You know trading is not like buy and hold, when I analyze the chart of any coin and see the right time to place an order and if I keep my assets in my personal wallet, I have to make a deposit and it takes about 10 minutes to complete the deposit process. During that time, it is possible that the coin I intend to trade, it may have increased or decreased and is no longer a good entry point. Sometimes it only takes a few minutes for us to miss an opportunity, a profit in a trade of only 10%-20% is too stable to take profit and it usually happens very quickly.

[NeuroticFish]

What effective way you use to protect your coin as a trader?

I don't qualify as a trader, but I do sell coins now and then when I need badly more fiat or the price is right.
I think that the best approach is to not keep at exchanges too much money. And that should be okay, since it's also advised to not trade money you cannot afford to lose.
So a sweet point must be achieved, and I expect this differ for each and every person.

I don't think that day traders withdraw often, I expect they keep their trading money in 24/7. It helps with the fees, plus some may use trading bots that actually trade there 24/7 (or at least watch the market).


The problems start when people keep all their money in there, like in a bank, failing to understand that their money is not insured.

[Distinctin]

For me, it's okay to leave my coins in exchange as long as I can afford to lose them.

If the exchange goes off and takes my coins, I can still continue trading because I can afford to lose them.
They say it's not good to store your coins in exchange, but if it does provide your convenience, I think it's okay, but there's always a limitation up to a certain amount only.

[Oshosondy]

I think that the best approach is to not keep at exchanges too much money. And that should be okay, since it's also advised to not trade money you cannot afford to lose.

It is better to trade with the money we can afford to lose, but this is often told to newbie traders. Some pro traders just prefer not to be looking for the amount of money they can not afford to lose in profit, but using high amount of money to trade, with a very low leverage that would most likely makes their trading profitable.

I started to check about copy trading recently on Binance, I can see some traders that disclosed for other traders to see the amount of bitcoin or altcoin they used to trade, you may not know  the actual amount from the size because some people use leverage, but you can determine it by checking the Return on Equity after the coin they are trading has moved in some price away from the mark price of the coin they are trading. I have noticed some used 1x and trading with over 10 bitcoin. Maybe they can afford to lose that though, but I am still doubting that always, but they are pro traders that if they are losing, they may leave the coin for a while and the market may correct itself.

I do not against what you said that traders should trade with the amount of money they can afford to lose. This is because if a trader is not discipline himself enough, emotions and bad mindset may be experienced and leading to losses in a way all the trading amount would be lost within just little period of time.

Recently, I have used some approaches which I like, but which I think other advices can help more about this.

One of my approaches is that I leave just the trading amount on the exchange, it is little amount of money. If I gain, I withdraw it. If I lose, I have extra amount like 10% if my trading money that I will add from spot or funding account to my trading account. But if I have overall gain, I withdraw.

Some traders think to withdraw $1 worth of fee transaction is high but they pay more when they are trading at times. I have noticed that I pay $3 to $6 or more as fee for opening and closing a position.


The second approach is that, assuming I want to go for 1x using $500, I will go for 3x with $167. The worst that would happen is to transfer money from my wallet to my exchange account which won't take more than 3 or 4 minutes or less. This helps to reduce the amount of money I leave on exchange. But the disadvantage is for a trader to see increasing margin ratio or leverage to be profitable, but actually a trap for newbie traders to effectively loss their money.

[NeuroticFish]

I have noticed some used 1x and trading with over 10 bitcoin. Maybe they can afford to lose that though, but I am still doubting that always, but they are pro traders that if they are losing, they may leave the coin for a while and the market may correct itself.

This is interesting. Not unexpected, still, interesting.
Well, there are us, mortals, and there are ... this kind of players who certainly don't ask around what to do. Our rules don't apply to them.


The hardest is when you're somewhere in the middle. And in that case I cannot help, sorry. And I doubt that many will tell you be reckless with your money. That's something you have to assess and that's a decision you have to make or not.

[Kelvinid]

Everything you've said OP is right and even mostly what we heard from experts. But, it was our discretion to take the risk or not, or simply follow what the others said because, in the end, it was also for our safety.

Sometimes, I was holding my coins on the exchanges but never I keep there for too long, 1 week is the longest day I ever made. But if we use this as a storage wallet, that is what I called it - a risky decision.

[Bananington]

After you finish trading in a day, because of the stable coin low fee, did you move your coin to a noncustodial wallet and move it back to an exchange if you want to trade next time? Or you just leave it alone on the exchange you are using?

Best strategy will be to remove the amount that you want to take as profit safely to a noncustodial wallet and keep the amount you wish to continue using for trading in the exchange in case the unexpected happens. Sharing the money will also ensure that you do not use all the money in your exchange for further trade which can put it all at a risk of loss.

[kamvreto]

I think it's up to personal reference about it's own money, but the safest is only use the exchange when you're want to trade which mean after you trade you will move your coins to your noncustodial wallet.

But myself who only trade with small money will need to leave my coins on the exchanges until I get a lot money to withdraw the profit. It doesn't make sense if my profit will gone because of transaction fee.

As long as you're only leave small money and you can afford to lose, it's fine.

Small money or big money for someone may be different in amount. I trade on the exchange for no more than $500 and before I get my profit I don't withdraw to my noncustodial wallet. For reasons of fees and of course there is still no profit. I will probably withdraw the profit gradually so that it will accumulate and be able to attract the main capital.
I'm more likely to day trade or swing trade, and I will of course keep a few sets on the exchange first. I use the binance exchange and of course it's safe in my opinion, using google authenticator 2fa and some other supporting securities so it's not easy to break into. Security is then the responsibility of Binance.

[yhiaali3]

Exchanging coins to USDT and transferring them on a daily basis outside the central exchanges is annoying to me, it is true that the transfer fees are not high but it is annoying and some errors can occur, so I keep a small capital in the central exchanges and trade on a daily basis and when I get profits I make Transfer it to an external wallet and leave the capital.

[noorman0]

There's no choice, I guess the "invest as much as you can afford to lose" advice also works on any term trading. Trading capital management is key, that amount can be completely lost at any time so you will allocate for trading only a smaller amount than what is in a non-custodial wallet. Thus you sleep soundly everynight.

[milewilda]

After you finish trading in a day, because of the stable coin low fee, did you move your coin to a noncustodial wallet and move it back to an exchange if you want to trade next time? Or you just leave it alone on the exchange you are using?

What effective way you use to protect your coin as a trader?

We do know the risk but due to hassle and fee problems for sometimes(excluding usdt) and ending up on leaving those funds on exchanges because we are just too lazy on doing those basic things this is why we do decide to leave those funds on exchanges.Some are prepared on the risk and some arent, this is why when hack happens then regrets do come out and you do keep on saying into yourself that you should havent done that.Its really that basic that you should not leave your funds on exchangers or something that you dont possess its keys and its the main risk.Come to mind off that Binance had recently hacked
but its not pertaining on their users funds but still indicates that even on the top exchange we do have now is really that prone to hacks and exploits.

[Silberman]

After you finish trading in a day, because of the stable coin low fee, did you move your coin to a noncustodial wallet and move it back to an exchange if you want to trade next time? Or you just leave it alone on the exchange you are using?

What effective way you use to protect your coin as a trader?

We do know the risk but due to hassle and fee problems for sometimes(excluding usdt) and ending up on leaving those funds on exchanges because we are just too lazy on doing those basic things this is why we do decide to leave those funds on exchanges.Some are prepared on the risk and some arent, this is why when hack happens then regrets do come out and you do keep on saying into yourself that you should havent done that.Its really that basic that you should not leave your funds on exchangers or something that you dont possess its keys and its the main risk.Come to mind off that Binance had recently hacked
but its not pertaining on their users funds but still indicates that even on the top exchange we do have now is really that prone to hacks and exploits.

I imagine this is true for the majority of day traders, they are probably aware of the risks but they do not have any other option, the profit margins of day traders which are using a small capital are super thin, to the point sending their coins to their own wallet and then sending them back will reduce their profits by a lot, and it is also possible their account could be flagged by exchanges by suspicious behavior, then it is easy to see why most day traders prefer to keep their coins at exchanges despite the risks.

[goaldigger]

Choosing the best exchange can have a good factor here, honestly I have my confidence with Binance and I’m holding most of my capital there because i know it’s safe, though I also transfer some funds to a more secured wallet but that is for my long term holding. As a trader I’m sure already see your balance and you are updated with the news, you can easily get that money once you heard negative news or you want to pull out the money, just put what you can afford to lose and trade professionally, have a good site to trade for your peace of mind.