Leaving your coins on exchanges

[harizen]

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

Since coins in exchanges are not truly controlled by our own, then no choice but to hope that no bad thing will happen on that exchange. To minimize the risks, only trade on a platform that somehow won't likely ruin their reputation thru scams. Besides, I trust those reputable exchanges are doing their best to make our funds safe.

Of course, since our coins are already at risk of leaving on an exchange, let's should be worked too on protecting our respective accounts by adding layers of protection and security for hackers not breach them that easily.

[1715271424]

1715271424

[tvplus006]

...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?..

Only the part of the deposit that is required for trading should be left on the exchange. Accordingly, all the profit that is not required for trading should be withdrawn to a noncustodial wallet. But it should also take into account the fact that if the profit is small, then perhaps the best solution would be to withdraw from the exchange when it becomes more significant.

[CryptoYar]

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?

The process of depositing and withdrawing on a daily basis is headache. And a day trader will not do that. I keep my stablecoins on the exchange which I use for trading. But I keep my long-term investments in my personal wallet as you said yourself NOT YOUR KEYS, NOT YOUR COINS.

[AicecreaME]

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

I only trust the exchange where I do trading, besides if I'm not mistaken, all of the money that has been stolen will be replaced by the exchanger where you are trading, if your wallet has been affected (correct me if I'm wrong). Transferring coins from a certain exchanger to your personal wallet everyday is hassle for me, that's why I only keep a certain amount of cryptocurrency in a certain exchange, an amount I can afford to lose just in case it will be hacked or something.

[traderethereum]

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?

The process of depositing and withdrawing on a daily basis is headache. And a day trader will not do that. I keep my stablecoins on the exchange which I use for trading. But I keep my long-term investments in my personal wallet as you said yourself NOT YOUR KEYS, NOT YOUR COINS.

A day trader must have prepared everything by saving a few coins to trade every day so they don't have to bother depositing and withdrawing their profits.
Maybe if in a day, they haven't been able to make a profit, they still keep their funds in the exchange so that if they continue trading the next day, their funds are ready to be used.
And when they can get a lot of profit the next day, they will immediately withdraw the profit and leave a part or a quarter of the total of all money.
But indeed, a day trader must have different plans because they have different funds.

[jrrsparkles]

.
.
. The DEX exchanges are growing day by day, I hope that in the near future they will soon provide the same services as the CEX exchanges are providing today.

Decentralized exchange may not be a good choice for day traders at any day cause they same withdrawal fee or transaction fee or the waiting time while trade execute may greatly affect our profits. Also we have risk connecting to our wallet while trading on DEX so we have to maintain separate wallet for day trading on DEX but for now the trading volume on the decentralized exchanges are no where so as I said earlier we have to take the risk of leaving the coins on exchange.

[danherbias07]

I do leave my coins but I always have a limit and if it goes further than that limit then it will be withdrawn.
It's like a safety measure, even if it's a reputable exchange, you should not leave large amounts there.

There's no effective way to protect your coins, it's not like an insurance company. All you can do is find the most trusted exchange and pray that it won't end up like other exchanges which suddenly close for greedy reasons.
The only thing you can do is make an ROI as best as you could and as soon as you can. Then, you could go wild and leave higher amounts if you want.

[Issa56]

It won't be easy for day trader to always transfer their coins from exchange to wallet, since they are not planning to hold for long term, but we should always leave the amount that won't affect us even if we lose it on exchange. Am not really a day trader, I always prefer buying and holding, but sometimes I always trade, am always having a specific amount that am always using to trade, so immediately the amount in my exchange wallet is more than my limit, then I withdraw the profit to my cold wallet address. For exchange if am always trading with $500, immediately I make profit and the money on exchange is more than $500, I will withdraw the profit and leave the $500 on the exchange wallet and whenever am trying to take a break from day trading, I will withdraw all my funds to my cold wallet address, I can't leave my funds on exhange for long period of time if am not making use of it, even if it's amount I can afford to lose, no matter how small the amount I lose I will still feel bad, I hate been scam.

[$crypto$]

But do big and well-known exchanges provide insurance to users if their exchange gets hacked? We will still get the whole asset right?

I'm not sure about that, even if Binance did in the past. You can't completely rely on the reputation of the big exchanges because in fact you will be disappointed in the end if at any time they can't guarantee your funds back after a hack.

Save your assets in a personal wallet instead of an exchange, it is the best option adopted by bitcoin users. Entrusting your assets to the exchange is limited to trading, it's good to avoid transaction fees. But it all depends on you, if you trust all your assets on the exchange then you should probably know what the risks are.

Never rely on the exchange to store assets because it will be vulnerable to hacking of course there is a high risk that will be faced later and even I am not entirely sure that the exchange will provide good insurance after they are successfully hacked by irresponsible people, basically don't be too happy when there is an exchange that says user funds have been insured, of course this process will be slow which must be passed, even though I have never experienced this problem, but we have to be careful as those who have assets.

I think it's right to choose a private wallet that has our own control over exchanges, that's always the best advice if you want to keep assets more secure from other hacks.

[stomachgrowls]

But do big and well-known exchanges provide insurance to users if their exchange gets hacked? We will still get the whole asset right?

I'm not sure about that, even if Binance did in the past. You can't completely rely on the reputation of the big exchanges because in fact you will be disappointed in the end if at any time they can't guarantee your funds back after a hack.

Save your assets in a personal wallet instead of an exchange, it is the best option adopted by bitcoin users. Entrusting your assets to the exchange is limited to trading, it's good to avoid transaction fees. But it all depends on you, if you trust all your assets on the exchange then you should probably know what the risks are.

Never rely on the exchange to store assets because it will be vulnerable to hacking of course there is a high risk that will be faced later and even I am not entirely sure that the exchange will provide good insurance after they are successfully hacked by irresponsible people, basically don't be too happy when there is an exchange that says user funds have been insured, of course this process will be slow which must be passed, even though I have never experienced this problem, but we have to be careful as those who have assets.

I think it's right to choose a private wallet that has our own control over exchanges, that's always the best advice if you want to keep assets more secure from other hacks.

Its really that hard to trust up on any platform even how much reputable or known it is then there's always a risk on getting hacked nor have those exploits or something in related this is why its never recommendable

on leaving huge amount of money on exchangers or even on any platforms.There's no such thing about perfect security and this is why you should really be mindful about those probabilities because its really that hard

to make yourself regret just because you hadnt obliged yourself on following those security measures at least but its really hard to deny that we do rely much on these platforms
and we dont tend to make out withdrawals on active manner because of the hassle and the fees involved.

[jostorres]

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.

And as long as you trust the exchange of course. I heard that there are now exchanges which offers insurances. Imagine if it is true then many people can now trade peacefully thinking that the exchange got them covered whatever happens to their funds but as long as it is not confirmed yet, we better stick on our limits just to be safe.

A legit exchange won't just close instantly without giving a warning to their users so don't say that they will take your coins once they go offline. You can always pull out your coins before it happens. There is a convenience on leaving our coins in the exchange. We can save time, transaction fees, errors and so much more. This why many of us prefer it.

[lalabotax]

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?

Most of my coins, I leave in an exchange that I think is a safe place.
I have 2 options to leave my coins on the exchanges, Tokocrypto and Binance.
Tokocrypto is the most popular exchange in my country, while Binance is the most reputable exchange in the world.
Sure, they fully control our coins and the coins may be stolen by hackers. But I believe these exchanges are safe, they have a good security system.

Moving coins from noncustodial wallets to exchange wallets requires transfer fees. If we do it daily, we may have a problem with transfer fees.

[livingfree]

The process of depositing and withdrawing on a daily basis is headache. And a day trader will not do that. I keep my stablecoins on the exchange which I use for trading. But I keep my long-term investments in my personal wallet as you said yourself NOT YOUR KEYS, NOT YOUR COINS.

I do that too.

I wouldn't keep most of the cryptos that I hold and only leave not just stable coins but other altcoins too that are not that painful for me to leave it here.

It's inconvenient to do that at most times when a day trader has to deposit and withdraw, it's not just all about the fee but even with little minutes of waiting, that's bothersome.

[strunberg]

The process of depositing and withdrawing on a daily basis is headache. And a day trader will not do that. I keep my stablecoins on the exchange which I use for trading. But I keep my long-term investments in my personal wallet as you said yourself NOT YOUR KEYS, NOT YOUR COINS.

I do that too.

I wouldn't keep most of the cryptos that I hold and only leave not just stable coins but other altcoins too that are not that painful for me to leave it here.

It's inconvenient to do that at most times when a day trader has to deposit and withdraw, it's not just all about the fee but even with little minutes of waiting, that's bothersome.

saving on exchanges was safety too today since most exchanges have their insurance too backup their customers wallet if hacking case happen. Maybe for unreputable exchanges it true to save our assets into private wallet,but for exchanges like binance or kucoin maybe hold it here no problem. They have huge money. And the another benefits was they support at every upgrade on each network.

[Ultegra134]

Despite what others say, I find exchanges relatively safe. Don't get me wrong, I don't support them. I had approximately €600 worth of Bitcoin stored in Bitstamp for over 3 years. They were abandoned after I lost my interest in cryptocurrencies in 2018. I didn't face any issues with the exchange when I tried to sell and withdraw, nor did I lose any funds. I believe that even if a major exchange such as Binance gets hacked, they'll compensate their users. Otherwise, they'll shut down.

I'm currently holding with no intention of selling. Therefore, I don't see a reason to store my Bitcoin on an exchange, unless I was actively trading.

[Piesel]

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

Is quite simple, never leave huge amount on an exchange wallet.

And I also buy in your idea of splitting your balance on multiple exchange and some other exchange have a safu balance in the case of hack traders whose coins are stolen through hack attacked on the exchange are repaid from the safu fund but then that is not a guarantee to leave your coins in an exchange.

[serjent05]

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

I withdraw my coins that are not listed on the trading wall.  I keep a minimum of coins on the exchange as much as possible.  I only leave the coins that are due to trading.  Once the trading is complete, I withdraw the funds immediately.

I already experienced being hacked and it's painful since I use the exchange to store my coins before, so when my account was hacked, all my coins were stolen.  Yes, I learned my lesson the hardway but I say that lessons were well learned. 

[livingfree]

I do that too.

I wouldn't keep most of the cryptos that I hold and only leave not just stable coins but other altcoins too that are not that painful for me to leave it here.

It's inconvenient to do that at most times when a day trader has to deposit and withdraw, it's not just all about the fee but even with little minutes of waiting, that's bothersome.

saving on exchanges was safety too today since most exchanges have their insurance too backup their customers wallet if hacking case happen. Maybe for unreputable exchanges it true to save our assets into private wallet,but for exchanges like binance or kucoin maybe hold it here no problem. They have huge money. And the another benefits was they support at every upgrade on each network.

That's SAFU for Binance and that's not all about the backup wallet or what. It's like an insurance policy that they'll have to implement if some hacks happen, and their customers fund are affected by that incident.

Although it's not really recommended to leave your funds on exchanges if you'll do that for long and you have no intention of day trading.

Whether the exchange is reputable, take note of that if you don't have to leave it there, you better keep it on your wallet together with your private keys.

[chaser15]

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?

Seems like a hassle to me if I will do that every time during my active trading session. I know and understand the risks so I will just put my faith in that trading platform. But for those who are new to this trading stuff, my advice is to practice using a non-custodial wallet then if they understand the risks now of leaving coins on exchanges, then they can now face the risks of doing it.

That only applies if I'm actively trading but if I have no plan to trade at all, no way I will leave my coins on an exchange regardless of how reputable it is.

[Oshosondy]

The only possible cushion for unmitigated risk in terms of this will be to only deal with trusted exchanges. Deal with exchanges with high trust score and I guess that's why Binance is often on the lips of many. Yes, Binance suffered a hack recently but that was swiftly taken care of by the exchange. It never affected depositors. No trader can do without leaving funds on exchanges. I've read a lot of reviews where traders were advised not to leave their stuff on exchanged, no matter what. That's not feasible. If you tell crypto traders not to leave their funds on exchanges because they're centralized, then those who do traditional trading shouldn't also leave their money in the bank. How about that? Aren't banks also centralized?

Fiat and crypto are different. What do happen about fiat are people that steal in the bank, many of this in the past but banks are able to immediately continue to provide banking services with their customers and no customers money is not intact on their account, unlike exchanges. Exchanges can not be compared with banks. Banks are far better to protect customers money, unlike exchanges.

Binance is often the lip of many not because it is secure, I think it is good in marketing itself and also making a lot of convenience and good services that could convince people to use the exchange. There are many exchanges that have not been hacked before, even Binance was hacked like you also said. No exchanges can be said to be secure enough.

We should not compare crypto with anything related to fiat which can easily be tracked online.

There are still ways to leave just little amount on exchanges that you can trade with. If traders can not withdraw all their money because of trading, they can still reduce the trading amount and leverage the remaining as I have explained in my previous post.