Why do you think it's best to consistently use the same exchange?

[EarnOnVictor]

One of the reasons why I think it's best to consistently use the same exchange, is for valuation purposes to maintain consistency, it is so as to determine the fair market value of a cryptocurrency is for during tax preparation. It's how the IRS wants cryptocurrency transactions to be reported on tax returns.

I do not buy the idea of using one exchange, it's even risky as it will devastate us if anything bad happens. Your point is not also genuine in my country because the government do not tax risky activities like gambling and trading directly, they only tax you with your bank inflows and outflows.

Notwithstanding, considering the IRS concern, it is no big deal, many people have different earning activities and are still fairly reported and taxed. So why risk so much with an exchange due to it?

So, why do prefer to consistently use the same exchange?

I don't prefer it, but I would have had a better trading/investmenet focus and personal accountability with a single exchange. But I can't trust them.

[mich]

Well there is only 2 exchanges I use. And they are Binance and Coinbase. I did use others like Kraken before but not anymore. It is because they already have all of my information. And I do not want to send it out to more exchanges when I do not have to.
And I been trading on them for alot of years now. So I do not get any problems when I want to send fiat to the exchange or to my bank. And they are not going to steal from me at any time but do not know this is true for some other exchanges.

[dezoel]

To me I don't really consider all this listed above the most important thing to do is to monitor and build your trust from that particular exchange even as we know that using one particular exchange is risky but provided they are trusted and have all the trading pair you required then no need jumping from exchange to exchange most at times we can have difficulty with passing kyc and other important things that could be needed by the exchange.

I have to agree with you. It’s not necessary to jump from one exchange to another just to prevent your funds from losing. The fact that one certain exchange you have been using has already proven its credibility and have been so much trustable with all those years, then that would guarantee already the security of your funds.

However, trying a new reliable exchange may also be a good idea, but that decision of yours would still depend on your own preference and perspective.

People are using terrible exchanges and this is why these type of questions rises time to time. If you used a good and trusted exchange then you wouldn't have a need to provide a proof of trying to do something like this, we are going to end up with a person who ends up not doing the right thing at all times, so we should be careful and not really deal with exchanges that are risky. Pick a place that you think looks trusted, and if enough people trust a place then there must be a reason.

Biggest example would be Binance, if they are at the top of the list, with trillions going around, then it means the place must be trusted and you can put your money in there. Consistently using them would not create any issues for you, or at the very least you could trust them more than you trust most of the other places, and this is why people should not have fears about them.

I believe we are going to see Binance be even bigger, I know that sounds silly, but people will see other exchanges being not so trustworthy and shady, so they will withdraw their money from those places and put it all on Binance, so eventually we are going to see Binance become much bigger than what it is right now.

[doomloop]

Well there is only 2 exchanges I use. And they are Binance and Coinbase. I did use others like Kraken before but not anymore. It is because they already have all of my information. And I do not want to send it out to more exchanges when I do not have to.
And I been trading on them for alot of years now. So I do not get any problems when I want to send fiat to the exchange or to my bank. And they are not going to steal from me at any time but do not know this is true for some other exchanges.

I am having long journey into this crypto world, and I was using some good number of exchanges in my early days but then suddenly I have some huge loses in few which gone without any prior notice after this now I am also using two exchanges for long time these are giving good service without any problem as you mentioned I also have Binance and Coinbase with I was thinking to go ahead with Kraken but due to personal issues I drop this idea and now having just two exchanges which are giving best all time.

I don't know why I don't buy into this idea because it's quite a double check cause using a particular exchanges could be challenging most times and when you don't have other alternatives what would you do, so it's best to opt in different exchanges that will save you the stress of unforseen circumstances, let's say for instance you wanted to do some transactions via p2p and then you're having either network issues and KYC challenges as well and it's just that exchange your having and by the way that transactions is needed urgently what will you do. So this is why I wouldn't want to be consistent with just an exchange but multiple exchanges.

Due to P2P and having KYC is now surely challenging issue for many around this community because governments are forces for this and without doing things which they required we can't do anything specially while we are having emergency we need to go ahead with exchanges which are suitable for us.

For me, as mentioned above Binance is doing good work because in case of emergency I am having enough time and space for fixing my issues and also having money into my pocket it's going good but still fear is always around us for having troubles because we can face consequences as well which are never been on note but can happen.

[Minor Miner]

To me I don't really consider all this listed above the most important thing to do is to monitor and build your trust from that particular exchange even as we know that using one particular exchange is risky but provided they are trusted and have all the trading pair you required then no need jumping from exchange to exchange most at times we can have difficulty with passing kyc and other important things that could be needed by the exchange.

I have to agree with you. It’s not necessary to jump from one exchange to another just to prevent your funds from losing. The fact that one certain exchange you have been using has already proven its credibility and have been so much trustable with all those years, then that would guarantee already the security of your funds.

However, trying a new reliable exchange may also be a good idea, but that decision of yours would still depend on your own preference and perspective.

People are using terrible exchanges and this is why these type of questions rises time to time. If you used a good and trusted exchange then you wouldn't have a need to provide a proof of trying to do something like this, we are going to end up with a person who ends up not doing the right thing at all times, so we should be careful and not really deal with exchanges that are risky. Pick a place that you think looks trusted, and if enough people trust a place then there must be a reason.

Biggest example would be Binance, if they are at the top of the list, with trillions going around, then it means the place must be trusted and you can put your money in there. Consistently using them would not create any issues for you, or at the very least you could trust them more than you trust most of the other places, and this is why people should not have fears about them.

I believe we are going to see Binance be even bigger, I know that sounds silly, but people will see other exchanges being not so trustworthy and shady, so they will withdraw their money from those places and put it all on Binance, so eventually we are going to see Binance become much bigger than what it is right now.

Before its collapse, Mt.gox was considered the largest and most reputable exchange at the time, its dominance was not unlike Binance's current one. FTX is also one of the exchanges that is considered to be Binance's most formidable competitor in 2021, but as you know, things are not going as well as you think.
Binance is arguably the largest and most reputable exchange on the market today, but what proof do you have to guarantee that it will grow bigger and will never get hacked or go bankrupt?

Every centralized platform and service is trustworthy until it is no longer trustworthy, and that is when they collapse without giving us any notice. As we often say, everything has risks and diversification is the solution, so don't be naive and put all your trust in Binance or any centralized service in the market.

[alastantiger]

And I been trading on them for alot of years now. So I do not get any problems when I want to send fiat to the exchange or to my bank. And they are not going to steal from me at any time but do not know this is true for some other exchanges.

Trusting an exchange is kind of becoming difficult as the new exchange do not understand customer service and think that they're going to be in business forever hence they don't treat their customers right and also don't take our complaint into consideration when improving on their exchange some of them don't improve their exchange. I too only use two exchange and one is for my trading and buying of coins that I want to hodl while the other is use for trading my cryptocurrency to fiats. I only used one exchange before but Binance stopped supporting the exchange of cryptocurrency to fiat for my country hence I had to use other exchange that has that function. One exchange is enough then we can have a backup just so when the exchange isn't functional, we can use the other exchange and not get stuck. Don't change your exchange when it has been serving you just fine and you have no complaints about their services.