Leaving your coins on exchanges

[Mpamaegbu]

~snipped~

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.

I got on Binance in 2017 based on the recommendation of the dude who kind of directed me on buying BNB. At the time, Binance was the only exchange offering it. I knew virtually next to nothing then. As time went on, I started trading there and realising I could do that more often than on Poloniex and Coinexchange that I previously held accounts with. For me, I discovered it was easier to navigate the Binance platform than others. Later I realized it was even more secured than others because of CZ's SAFU. The assurance was soul lifting and we've seen it fulfilled whenever there's an issue on the Binance exchange. Depositors don't suffer hacks whenever they happen unlike in other exchanges. Invariably, I think the trust and safety of funds have given Binance that edge on others.

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

I wouldn't want to go into that debate now. Let's leave it for another day.

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.

How small is small? What makes for small to another may mean so much to you. If $2,000 is small funds to me, is that to another? I've come across traders who've over $10,000 on different exchanges and they felt it wasn't a big deal even if they lost it due to hacks. For me, that's a huge sum of cash to be left on an exchange.

[tvplus006]

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.

If you don't trust centralized exchanges, then you don't need to trade there. To date, there are a huge number of decentralized exchanges that have acceptable functionality and can completely replace CEX for trading. In this case, your money will always be in your wallet.

[blue_hurricanger]

The only way to lower the risk for traders when holding their fund or trade account on CEX is to doubt down on anything with security. 2FA for the trading account and the email linked to that account. A complete isolation OS machine to host those 2 two with a clean browser. Use that PC machine only for trade and not everything else. A basic smartphone for that two account 2FA. You're at least a controllable environment against attempts to hijack or fishing your trade account.

But of course, if the CEX side got hacked then it was meaningless no matter how much you've done to increase the security of your account. Traders have to take that risk or split their funds into smaller amounts on 2 or 3 CEX, lowering their effectiveness on trading.

[virasisog]

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.

Maybe that was their assurance to make their customers to trust them again but for me, it's not really safe to leave your coins on an exchange because no matter what you think whether they assure you it's still not gonna make them safe if their exchange suffers from hacking and you have no way to get your coin back since you have no private key to your wallet. But if you are trading you can't just switch and trade every day to your coin because the transaction fees will only kill your profit.

Our choice should depend on the reputation of the trading platform of our choice. If an exchange is trusted and has a good trust rate, I guess storing funds on it in a short-term period will still be a good idea, especially the exchanges that we have tried using before and provided a good service.
The possibility of hacking will always exist but if we know the security measures that exchange can provide, we shouldn't doubt it. The level of assurance should be our measurement when we decide to leave our funds in trading platforms.

[Silberman]

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.

If you don't trust centralized exchanges, then you don't need to trade there. To date, there are a huge number of decentralized exchanges that have acceptable functionality and can completely replace CEX for trading. In this case, your money will always be in your wallet.

Decentralized exchanges are without a doubt a good option for some traders especially those which care a lot about their privacy and having completely control of their coins, but we must admit there are many people that are willing to make any sacrifice as long as they can increase their profits, it is because of this that centralized exchanges are still as popular as they are despite the glaring irony that it is that we are in a market that supposedly strives to be decentralized and yet traders use centralized exchanges.

[DoublerHunter]

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.

If you don't trust centralized exchanges, then you don't need to trade there. To date, there are a huge number of decentralized exchanges that have acceptable functionality and can completely replace CEX for trading. In this case, your money will always be in your wallet.

Decentralized exchanges are without a doubt a good option for some traders especially those which care a lot about their privacy and having completely control of their coins, but we must admit there are many people that are willing to make any sacrifice as long as they can increase their profits, it is because of this that centralized exchanges are still as popular as they are despite the glaring irony that it is that we are in a market that supposedly strives to be decentralized and yet traders use centralized exchanges.

^Probably because there is always hype in centralized exchange as we see and the reason why people keep using centralized exchange than decentralized exchange. If you compare them both, the centralized exchange has the potential of making a profit because of the liquidity volume on it which is buying and selling is a very quick process there while decentralized will probably need more time for your position to be traded. I think there is no problem using centralized exchange as long as it is trusted but keep in mind that don't leave funds there for a purpose of holding it in a long term.

[fullhdpixel]

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.

There are "some" ways where you can protect your coins, and that is more than enough. Sure that if you put your money in the bank you feel a lot more comfortable but you "feel" more comfortable, that doesn't mean that it's protected better.

Most of the time when there are wars or any other big deals you will see banks having difficulty providing all that money. On top of that, the fact that not everyone can withdraw their money from the banks because banks do not have as much money as people have deposits there is the proof that your money is not safe there. They loan out your money, meaning you have your money there, and some other guy have your money as their loan too, and if you both try to withdraw, one will fail.

[Minecache]

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.

If you are a holder, storing assets on an exchange is not necessary and is a bit risky but if you are a day trader, I think it will not be a problem to leave assets at there. The exchanges are licensed and protected by law so it is safe to say that they are quite safe for us and being hacked is something no one wants, even government websites are sometimes not immune to attacks by criminals. As long as they fix the problem and compensate investors, we can rest assured. Remember that everything in life is risky because crime never stops, even if you leave your property right at your home it is not completely safe.

[gunhell16]

Perhaps most people here know that placing cryptocurrencies on the exchange is very dangerous, but most still gamble on this matter despite the risk that can be faced. But maybe it depends on the exchange we trust to place tokens or altcoins.

Just like me who is a crypto trader, I leave altcoins on the Binance exchange, even though I know there is a risk in doing so. But even so, I trust the Binance exchange, because it has been hacked a few times, but the good thing about this platform is that they can stop it immediately, although other assets have been taken or stolen, they are able to find a way right away and do not abandon those their clients are already affected, unlike other exchange platforms they cannot do what Binance does in this situation.

[LUCKMCFLY]

I have gone through many exchanges which has been scammed and i loss my fund. Only big exchanges can be good to leaves coin otherwise leaving on any exchanges is not a good decision. As a crypto promoter or investor I loss money every year so be careful. Put your coins in wallet then we will be very happyhappy only save secret phase in secure place.

I think this is one of the best tips there can be, at the beginning in 2017 I always thought that the best thing was to put my money in a very famous exchange and well this would give me some confidence and a lot of reputation better than a traditional bank that we are used to having, however at that time many exchanges suffered many attacks and were hacked, so many people lost money, I remember that Cryptopia was one, and I think that is something very unpleasant, in addition to the most famous until now, which is Binance , was also hacked, so I think these exchanges are not safe, for me the best option will always be to have cold wallets

[blockman]

I have gone through many exchanges which has been scammed and i loss my fund. Only big exchanges can be good to leaves coin otherwise leaving on any exchanges is not a good decision. As a crypto promoter or investor I loss money every year so be careful. Put your coins in wallet then we will be very happyhappy only save secret phase in secure place.

For the unknown exchanges, they're obviously not to be trusted. And for the known exchanges like Binance, we trust them but that doesn't mean that we're good at leaving a huge amounts of our funds in them. It's still the best thing to be aware of things like you don't leave your biggest funds there. Keeping your funds that seems to be low or okay to lose on them is good metrics that you can set because you shouldn't be that confident even with huge exchanges that we've been trusting even if they have the safu feature that gives that whole trust and confidence from the attacks that they've got before.

[len01]

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

actually storing coins on the exchange is very dangerous when one day hackers can break into the exchange platform.
for myself when trading daily and after finishing trading the coins i have i always move to my personal wallet like electrum.
maybe it will cost you a very expensive fee when you want to trade and after you finish trading. however, i'm more willing to spend a little money on shipping fees but my coins are completely safe than keeping the coins on the exchange platform.
because no matter how good the security of the platform, there must be a lot of hackers who are targeting to break into and take all the money on the exchange.
so in conclusion it is better not to keep coins on the exchange because it is vulnerable to hackers

[KingsDen]

I have gone through many exchanges which has been scammed and i loss my fund. Only big exchanges can be good to leaves coin otherwise leaving on any exchanges is not a good decision. As a crypto promoter or investor I loss money every year so be careful. Put your coins in wallet then we will be very happyhappy only save secret phase in secure place.

I think this is one of the best tips there can be, at the beginning in 2017 I always thought that the best thing was to put my money in a very famous exchange and well this would give me some confidence and a lot of reputation better than a traditional bank that we are used to having, however at that time many exchanges suffered many attacks and were hacked, so many people lost money, I remember that Cryptopia was one, and I think that is something very unpleasant, in addition to the most famous until now, which is Binance , was also hacked, so I think these exchanges are not safe, for me the best option will always be to have cold wallets

There is nothing as good as having your private key safe saving your money (coins) by yourself in your own wallet.
You can also admit that it is not all money or all coins you would want to send into your private wallet. What will likely go into your private wallet is coins you want to hold or save for a very long time . That is how I approach mine.

I keep big part of my funds for spending and immediate projects on reliable exchange. The one for long time project or for long-time investment will go into the private wallet.

[borovichok]

I think this is one of the best tips there can be, at the beginning in 2017 I always thought that the best thing was to put my money in a very famous exchange and well this would give me some confidence and a lot of reputation better than a traditional bank that we are used to having, however at that time many exchanges suffered many attacks and were hacked, so many people lost money, I remember that Cryptopia was one, and I think that is something very unpleasant, in addition to the most famous until now, which is Binance , was also hacked, so I think these exchanges are not safe, for me the best option will always be to have cold wallets

Trusting exchanges is totally out of the box because there's always a day that either it's been hacked by crypto fraudsters. There was a time I had numerous shitcoins in my wallet and didn't touch it for the purpose of two years, when I came back to open my wallet, it wasn't there, it was then down on me that these exchanges are mostly volatile to hacks. Even the cold wallets not still safe, like Trust Wallet which I bagged much quantities of Shiba, although I purchased it from offline vendors, it didn't reflect in my wallet rather it's pure glitch everywhere, I have been victims of many scam exchanges. I really had a terrible experience in crypto but I have learnt my lessons and always careful in choosing a project to invest in.

[Maidak]

I think this is one of the best tips there can be, at the beginning in 2017 I always thought that the best thing was to put my money in a very famous exchange and well this would give me some confidence and a lot of reputation better than a traditional bank that we are used to having, however at that time many exchanges suffered many attacks and were hacked, so many people lost money, I remember that Cryptopia was one, and I think that is something very unpleasant, in addition to the most famous until now, which is Binance , was also hacked, so I think these exchanges are not safe, for me the best option will always be to have cold wallets

Trusting exchanges is totally out of the box because there's always a day that either it's been hacked by crypto fraudsters. There was a time I had numerous shitcoins in my wallet and didn't touch it for the purpose of two years, when I came back to open my wallet, it wasn't there, it was then down on me that these exchanges are mostly volatile to hacks. Even the cold wallets not still safe, like Trust Wallet which I bagged much quantities of Shiba, although I purchased it from offline vendors, it didn't reflect in my wallet rather it's pure glitch everywhere, I have been victims of many scam exchanges. I really had a terrible experience in crypto but I have learnt my lessons and always careful in choosing a project to invest in.

It's not that your assets were hacked or stolen, you said it was shitcoins and you didn't visit for 2 years, most likely shitcoins was delisted by the exchange and you missed that information. I left 0.01ETH on huobi exchange since 2018 and I really don't remember it and until last year I used huobi again and after accessing my account the ethereum was still there intact. I'm not saying it's safe to leave coins on exchanges, but they're not as bad as you say either.

Nothing is completely secure in the market, our mission is to implement all the best protection measures to limit attacks. By the way, trustwallet is not a cold wallet, it is a software wallet.

[Cryptmuster]

actually storing coins on the exchange is very dangerous when one day hackers can break into the exchange platform.
for myself when trading daily and after finishing trading the coins i have i always move to my personal wallet like electrum.
maybe it will cost you a very expensive fee when you want to trade and after you finish trading. however, i'm more willing to spend a little money on shipping fees but my coins are completely safe than keeping the coins on the exchange platform.
because no matter how good the security of the platform, there must be a lot of hackers who are targeting to break into and take all the money on the exchange.
so in conclusion it is better not to keep coins on the exchange because it is vulnerable to hackers

If we are talking about day trading, then the funds must be stored on the exchange, otherwise it will all be very difficult and expensive, but in this case it should be a small part of your deposit and you must understand all the risks. But in general, you are right, coins should be kept on a cold wallet (medium and long term transactions) to be sure of safety, because otherwise you put your investments at great risk.

[LastKiss]

~snip~

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?

Mostly I leave my trading funds on the exchange because I did trading not for a very long term tho, if I want to hold for the long term I choose to put my funds in my wallet rather than on the exchange. Although stablecoin has low fees, if we do it like 1 time a day and we calculate how much fees we spend in a month then it feels like I'm wasting my money for nothing.

[Yamifoud]

I hope it was clear to everybody the risk of leaving our coins to the exchanges for a long time. Might sometimes do this but not necessarily use this for holding. Day traders will consider this but if we are not, it is more advisable to have a separate and controlled wallet than risking our funds in them as we can't assure the safety of our money in their hands. It is much better to anticipate what might happen( lose) so we have nothing to regrets if there is something will happen to them.

[ultrloa]

~snip~

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?

Mostly I leave my trading funds on the exchange because I did trading not for a very long term tho, if I want to hold for the long term I choose to put my funds in my wallet rather than on the exchange. Although stablecoin has low fees, if we do it like 1 time a day and we calculate how much fees we spend in a month then it feels like I'm wasting my money for nothing.

Although its really hard to anyone to always do their withdrawals on daily basis so maybe its also good for them to earn a little bit to cater the withdrawal fees so that it will not hurt them. Or they can set a weekly withdrawals so that they cannot feel anything so they can also do what they want on whole week span. But all of this always depends on peoples prefer but they should always keep in mind that never always trust the exchange even if they are trusted.

[xSkylarx]

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?

Is there really someone that really moves in and out his crypto on the exchange daily? We all know that doing it everyday can be very annoying and also it's kind of dangerous if the person mistakenly copy/paste the wrong address. It's true that leaving our assets on DEXs have risks but that can be minimal as long as we use a well-established platform like coinbase, ftx, or binance. I trade 3-5x weekly on binance and I just keep my trading funds there when I'm busy. I don't feel afraid when I leave my assets there since they are already proven to be reputable. I just withdraw the profit every week or until it's big enough that I can buy something from it.