Newbie Reminder: Treat Exchanges as Marketplaces

[Hyphen(-)]

Yeah it's a challenge for daily traders. I had suggested before that it will be better to split them into two or more exchanges depending on on the traders fund. At least its rare to have all exchanges having issues at the same time. Then monthly some of the funds can be moved to wallets. This could minimise the risk.

Yes, it will reduce risk because there will be backup if the funds are split across multiple exchanges because two or more exchanges cannot have problems at the same time.
There is too much risk in every investment, but cryptocurrency investment has the highest risk in my opinion, as it can simply move someone from grace to grass.

[Getmon]

Yeah it's a challenge for daily traders. I had suggested before that it will be better to split them into two or more exchanges depending on on the traders fund. At least its rare to have all exchanges having issues at the same time. Then monthly some of the funds can be moved to wallets. This could minimise the risk.

Yes, it will reduce risk because there will be backup if the funds are split across multiple exchanges because two or more exchanges cannot have problems at the same time.
There is too much risk in every investment, but cryptocurrency investment has the highest risk in my opinion, as it can simply move someone from grace to grass.

My circle of friends were using different exchanges back then because we continuously looked for new coins before they were listed in the bigger exchanges. Today, we have many options to buy promising new coins. The birth of PancakeSwap, Uniswap, Dodo and many more changed it, smaller exchanges are not needed anymore. Therefore it is decentralized exchanges for the new coins but the focus on regular trading is in the big exchanges.

It is easier to trade using centralized exchanges than decentralized exchanges. The trading features alone are of great use for regular traders. But for non regular traders, never leave your bitcoins in exchanges. If the second biggest exchange FTX gets wiped out in a matter of days, leading exchange Binance can fell too. There is no vulnerable exchange particularly in the volatile crypto market.

[Magic-Money]

That is a very good one, while having a mindset for long run investment, as newbie buy and transfer to your cold wallet is a very good idea and it will make know difference network to save your cryptocurrency asset.

[AakZaki]

Yes, it will reduce risk because there will be backup if the funds are split across multiple exchanges because two or more exchanges cannot have problems at the same time.
There is too much risk in every investment, but cryptocurrency investment has the highest risk in my opinion, as it can simply move someone from grace to grass.

Has the highest risk, but also provides greater returns than other investments. So commensurate with the big risk that will be accepted.
But as smart investors, we must also prioritize the safety of the investments we make. Minimizing every risk will be very useful in various ways that can be done, such as splitting on several exchanges. Monitoring updates from each exchange can also be done to find out the latest developments so that if there is an emergency you can rush to take the actions that need to be taken.

[Mpamaegbu]

I understand that Ethereum fees are still too high to use Uniswap for a daily trading but there are bunch of L2 solutions that users can trade one with very little gas fee.

I don't like using any ETH commission based Dexs because of that killer in gas fees. Yes, I admit that fees have drastically gone down but it's not like what we've in other chains, especially BSC or even Polygon.

And then there is leverage trading. Before it wasn't that easy to do leverage trading on a decentralized exchanges but lately there is an increased popularity in DEXes where users can do leverage trading.

What you shared here is an eye-opener, even to me. Things like this exposition you've here are supposed to be with examples and links to Dexs that offer that. If you don't mind could you share names and links?

[Issa56]

That is a very good one, while having a mindset for long run investment, as newbie buy and transfer to your cold wallet is a very good idea and it will make know difference network to save your cryptocurrency asset.

It's nice to transfer your coin to non custodial wallet address, but everyone should also learn how to protect their wallet address and also secure your private key, when you lose access to your private key then you also lose access to your wallet and when your private key have been exposed to scammer then the scammer can easily transfer all your coin without you knowing, so we should always protect our private key and we should always make sure we store it in a place that's not connected to the internet.

[Anguwa]

Dear newbies, please treat exchanges, such as Binance, KuCoin, Kraken, Huobi, OKX, and Coinbase, as marketplaces. What do I mean? Just as you do not leave your goods on the market after you have paid for them, you take them home with you. Consider your coins as the goods you bought at the marketplace. Your bitcoins should only be stored in cold storage wallets after purchase, and transferred out when you want to sell them. It takes less than 10 minutes. Remember, if you don't have the keys, it's not your coins.

This is a very good advise especially when compared to this market conditions and the bad News of LUNA and FTX crash, our personal wallets are our homes that we can control what we have, but when we live them in the market, if we lose anything among them we have no one to blame bacause we carelessly live them exposed.
Is it only Bitcoin that can be stored in personal wallets like Electron or it dose support many coins?

[Piesel]

The Golden rule is never leave your coins on an exchange and truly exchanges are just a marketplace and not a storage unit, your Bitcoin is best in your personal wallet, and if the exchange wants to be more effective.

They should focus on providing the link between two traders and not holding their coins, there should be a way that any transactions that will be carried out on the exchange, should drop directly into the trader's wallet and not the exchange wallet.

But not all exchanges have such features unless the Dapp which have a wallet connect feature that allows an external wallet connection feature, until your coins are in your wallet with private keys, you did not own the coins the exchange does.

So do well to move out your Bitcoins and any other assets out of the exchange, because there are safe there.

[qwertyup23]

Dear newbies, please treat exchanges, such as Binance, KuCoin, Kraken, Huobi, OKX, and Coinbase, as marketplaces. What do I mean? Just as you do not leave your goods on the market after you have paid for them, you take them home with you. Consider your coins as the goods you bought at the marketplace. Your bitcoins should only be stored in cold storage wallets after purchase, and transferred out when you want to sell them. It takes less than 10 minutes. Remember, if you don't have the keys, it's not your coins.

This advice is seemingly one of the useful ones here in this forum. To be honest, I somehow feel guilty about this given that I have been in this forum for five (5) years now. Majority of my BTCs are inside my local exchange and the reason on why I do not transfer them to a hardware wallet is the convenience that the former provides in converting my BTCs to cash whenever I need it.

I guess that maybe, this is the sign that I have been looking for. Newbies, follow this advice and avoid the problems that most have already encountered. If you have invested a hefty amount of BTCs (bought them at exchanges), then move it as soon as possible to a hardware wallet.