How much is too much?

[DYING_S0UL]

I think it's similar to how some people suggest you should only trade with the money you can afford to lose. So if you have a capital worth of $1k, and you think losing $500 overnight is bad for you, maybe you should reduce the amount of capital you use for trading to $400 or lower. As others have mentioned, there are no rigid rules about this since everyone is different. Personally, I keep my capital for trading/speculation less than 30% of my total portfolio because I don't have enough sources to quickly fill that up if I lose everything. Especially when we're dealing with exchanges that requires KYC and so on.

Yeah, that's the worst scenario anyone can face! You are trading everything at once, and suddenly the market takes a sharp turn, and you are left with nothing in reserve to average out your losses. Fortunately, I do have reserves, and the amount I'm trading with is solely intended for trading. Doesn't matter if I go into the red, kinda experimenting I guess.

If you are an active trader, to my mind you need to risk a little bit and keep your money on exchange but at the same time, since you doubled your money,.snip...

I am not an active trader, and that's why I am being extra cautions with it. I'm mostly doing short trades, by short I mean not even hours, Accumulating little by little and increasing the overall profit. This is all I can say for now! So far so good, I hope i don't mess up!

If I were in your position, I would withdraw 100% of the profits and only leave the initial trading capital there, considering that I would continue trading. If I wanted to temporarily end trading, I would choose to withdraw everything. This management approach is to help you think that your trading funds are always limited, so that you do not take greater risks because you believe you still have profits.

I have just set a target for 1000$, hopefully I can go this far and as soon as hit it, I'll stop for a a while. As for withdrawal, I have kept aside the profits in stable, and slowly making p2p exchanges, when the rate is high..


Thank you everyone who has given me their honest opinion, advices. Unfortunately I couldn't reply to all of you because I'm on my mobile device and it's hard for me to manage the bbcodes from here.

[wiss19]

If every thing goes sideways you would be the only one that faces the consequence.
You can't let others standard influence yours cause at the end of the day we all different.

We can as well experience it and this why, we can say that one must only invest small or amounts that they can afford to lose easily. Maybe if the OP can add more details about his personal life like how much he is earning, then we can give a more specific answer. You already said that not all are the same. OP can be less knowledgeable than us to still ask a question like this, so we are on a much better position to answer it or give some suggestions to him.

This post should be in the trading discussion section in the forum,
Anyway, if I were you, I would send 80% of my total portfolio to my dex and the remaining on the cex for more trading in increasing my value, but this period I will not rush the process but gradually as I was doing.

Not sure if where it is located before but as we can see now, it is already on the board that you suggested. Using 100% of our portfolio for trading, seems too much, as we know that the risk on trading is a bit high than compared to investing (doesn't matter which type of exchange you use). Not just this period but all the time, we should not rush things.

We shall not worry as we will never get left behind and then rushing is prone to mistakes. Emotional tension seem to be negative but if it will be altered to excitement (which is positive) then that is much better, but yeah, it should only be in moderation, as too much of it or everything is not healthy anymore.

[Ojima-ojo]

Some people have so much confidence in their exchange to the point that, their will leave they life savings on those exchanges, and most of the time, they don't border to know more about self custody and it benefits until it too late for them, freedom comes from taking personal responsibility for your Assets.

Trading can be addictive, so anything that allows you have access to Money you definitely over gamble no matter what.

[Findingnemo]

If this is your trading capital and not the total crypto portfolio then I guess you just keep it in the exchange itself because better the capital the chance of making profit will be higher. I had seen people holding over 200btc as their balance in their wallet when I was trading in LBC and there could be more such people but we can't conclude which one is too big. Just like what we say to the investment, don't keep more than in your exchange which you are ready to lose in case of hack.

I would say just split it into two exchanges because the chances of two exchanges hacked at the same time is unlikely to happen means you still get to trade 100% of your trading capital while minimizing the risk by 50% and you can reduce it further by increase the number of exchange to 4 with 25% risk and so on.

[shield132]

If you are an active trader, to my mind you need to risk a little bit and keep your money on exchange but at the same time, since you doubled your money,.snip...

I am not an active trader, and that's why I am being extra cautions with it. I'm mostly doing short trades, by short I mean not even hours, Accumulating little by little and increasing the overall profit. This is all I can say for now! So far so good, I hope i don't mess up!

It's good if you are not an active trader. Btw how many times do you trade a year? If you trade 10 times a year, then I suggest you to withdraw money every time you buy the coin, this way you'll be on a safe side, you'll control the coin and you won't care about what will happen to the exchange. The general principle is to deposit money, trade and then withdraw. Btw when someone trades regularly, that's pointless to my mind because of fees unless you trade with a huge capital.

Some people have so much confidence in their exchange to the point that, their will leave they life savings on those exchanges,

Many people trade with a lot of money. If you deposit/withdraw $100K and higher very frequently, I think that that won't look nice to an exchange and can become a problem. Also, when you have a lot of money, 0.1% profit can be a great profit. It's very easy and possible to make 0.1% profit every day in the crypto world.

[Zaguru12]

If I were in your position, I would withdraw 100% of the profits and only leave the initial trading capital there, considering that I would continue trading. If I wanted to temporarily end trading, I would choose to withdraw everything. This management approach is to help you think that your trading funds are always limited, so that you do not take greater risks because you believe you still have profits.

Definitely the right thing to do, he might want to actually not take out all his profits which is he would have wanted to increase his capital more. For example go for from using $50 to trade to a much higher one so it shouldn’t be actually his initial capital alone that should be there but intending trading capital but this should be base on great risk management because sometimes increasing trading capital usually back fires.

Then if the capital is sorted there is no reason for the rest of the money to be on the exchange in my opinion because the risk is there, as the amount that should always be on an exchange is one that you can afford to lose. Sometimes I even split my capital and keep it on different exchanges and trade on them because I don’t trust to have it one exchange at all

[TheUltraElite]

Good job if you doubled your initial, I would suggest taking out the capital to make sure that is safe and now that you have made it back you can continue trading on that.

I think how much depends on your income, this will vary with each individual, the average decent capital to start with is 100-500$ for a middle level income. Never take loans to fund your trades, it will end in a bad situation.

Dont be overconfident after some good trades, bad trades can happen anytime and the more you stick to spot trading the better and safer.

[AVE5]

So what do you think? Should I pull back half of it and take risks, because it's CEX we are talking about, they can take absurd actions at any moment! Or should I keep everything and trade with that! I'm looking for personal opinions, there who traded, or now trading, what do you guys do in this situation. How to you manage these, what's is safest amount. And lastly, as my 1st question says, how much is too much, from your perspective!

There're certainly investors who holds their funds quite long in the exchange while the risk lies within holders confident and the trust or reputations of the platform while we oversights that if exchange can't give the private keys to users, then your wallet securities is weak, so your funds turns vulnerable against scammers targeting the platform.

Moreover when you're trading in the short terms, it's obvious that short term profits is the goal and when you achieve it, you're expected to opt out considering the implication of greeds and the implication of dealing with regulating platform.

[shinratensei_]

The title can be pretty unclear I guess. I couldn't think of better wordings at this moment! To sum it up, what do you think about, how much is just too much?

To make things a little less confusing, I should say I have recently started trading again. Short trades to be precise. And all of us are aware of the fact that keeping large amount in a CEX is pretty dump idea! I couldn't agree more, as I have always said it too! But as I am trading now, I am keeping a decent portion there for obvious reason! So far I have doubled my initial portfolio. And the total amount kept increasing. So what do you think? Should I pull back half of it and take risks, because it's CEX we are talking about, they can take absurd actions at any moment! Or should I keep everything and trade with that! I'm looking for personal opinions, there who traded, or now trading, what do you guys do in this situation. How to you manage these, what's is safest amount. And lastly, as my 1st question says, how much is too much, from your perspective!

Move to appropriate board if needed!

If i were you i'd get my initial investment so at the worst case scenario you still got money left. CEX does occasionally freeze if there's any suspicious activity. The lower tier CEX can freeze out of nowhere that's why it's better to take a precaution.
There's literally nothing wrong with being careful though. Those cases floating around the internet and the review bombs left on these CEX's review page is enough to keep me from putting too much money in there for too long.

At the end of the day you make the decision, just do as you see fit.

[Bobrox]

I know many people very doubtful with CEX exchange market after how many top exchange bankrupt and run away the investor funs without responsibility from the exchange owner such as FTX exchange and last two years have scam cases with Turkey local exchange. As OP have trading at future or spot to earn profit in daily day or weekly I don't think good ideas if you move your fund from CEX to wallet because take few moment if you want to move back from wallet to exchange.

If late for getting great moment to buy or open short position I believe you loss much profit opportunity if holding or saving fund in wallet, but difference if fund at CEX exchange you can trader faster and have chance to open limit short or long position at future trading without waiting fund send from wallet. So my opinion hold or save fund at CEX exchange wallet depend how much do you want use for trading, if you want trade all better sent it to CEX but looking forward most trusted and good reputation exchange.

[traderethereum]

If you double your money in trading, you can withdraw to another wallet and leave the rest in your CEX account. You can use that money to trade and make another profit. We can't say how much because that depends on you. Withdrawing half of it will be good but if you want to trade using more money, you can withdraw what you think is enough.

No one knows how much is too much but you. You have the money, you decide by yourself without others interfering. You should be wise and think twice before deciding. You can use the rest money to trade.

[ancafe]

So what do you think? Should I pull back half of it and take risks, because it's CEX we are talking about, they can take absurd actions at any moment! Or should I keep everything and trade with that! I'm looking for personal opinions, there who traded, or now trading, what do you guys do in this situation. How to you manage these, what's is safest amount. And lastly, as my 1st question says, how much is too much, from your perspective!

The amount of funds you deposit for trading should be based on your capabilities, as people may have different perceptions of the amount of money needed in trading. Honestly, there's no exact figure for this, as everyone has different perspectives. I typically only use $1,000 for my trading, and that's more than enough for me. How you manage your money also depends on the accuracy of your trades, for example, you might use 50% of your total capital, or you could divide it into several percentages as needed.

I know that having more money makes it much easier to engage in trading because you can manage the margin for each trade. However, if you're concerned that the exchange isn't a safe place to store your funds, you can withdraw some and keep those funds solely for your trading needs.

[justdimin]

If this is your trading capital and not the total crypto portfolio then I guess you just keep it in the exchange itself because better the capital the chance of making profit will be higher. I had seen people holding over 200btc as their balance in their wallet when I was trading in LBC and there could be more such people but we can't conclude which one is too big. Just like what we say to the investment, don't keep more than in your exchange which you are ready to lose in case of hack.

I would say just split it into two exchanges because the chances of two exchanges hacked at the same time is unlikely to happen means you still get to trade 100% of your trading capital while minimizing the risk by 50% and you can reduce it further by increase the number of exchange to 4 with 25% risk and so on.

Splitting the balances will also affect the trade size and it will adversely affect the profits. I would not suggest splitting funds on multiple exchanges rather we can just use one exchange which has a solid history and also does provide some kind of security. I personally would only hold my trading funds on these exchanges. Holdings will always be on a cold storage. But, even the trading balance sometimes might be huge as you said so in that case we might have no other option than to take a risk.

Moving out profits will be a good idea here. We can still hold the trading balance but can keep moving the profits out to the cold storage so that in case of hack, at least our profits will be safe. We can wind up making 10% to 40% or maybe even more profits monthly just by taking a few trades so moving those profits out will recover our capital in just a few months.

[ScamViruS]

You have to judge for yourself how much is too much for you. And it is not safe to keep all your funds on CEX exchange, because there are many risks there and even CEX exchange can freeze your funds with a ridiculous excuse. CEX exchanges want you to always make losses, if you are a profitable trader, they will definitely target you to freeze your funds under various pretexts.

Recently, many such incidents have been exposed. So, you should withdraw a part of your funds from the exchange and keep them elsewhere to avoid any unexpected incidents.

[henmark]

I don't see any harm in keeping your trading money on CEX's if you comply with the rules and regulations. Also you might want to take a closure look at the taxation rates in your country and if you are compliant their than there will be no problem in keeping all of your money on those centralized exchanges.

Here I assume your total trading volume is less than a million dollar. Above million dollar, yes you might want to consider at least moving out your profits on daily basis just to be safe. CEX's have been operational since years now and they also have backed their funds in some sort of liquidity so if in case something goes haywire, your funds still remain insured. If does depend on the CEX you are choosing.

[Findingnemo]

If this is your trading capital and not the total crypto portfolio then I guess you just keep it in the exchange itself because better the capital the chance of making profit will be higher. I had seen people holding over 200btc as their balance in their wallet when I was trading in LBC and there could be more such people but we can't conclude which one is too big. Just like what we say to the investment, don't keep more than in your exchange which you are ready to lose in case of hack.

I would say just split it into two exchanges because the chances of two exchanges hacked at the same time is unlikely to happen means you still get to trade 100% of your trading capital while minimizing the risk by 50% and you can reduce it further by increase the number of exchange to 4 with 25% risk and so on.

Splitting the balances will also affect the trade size and it will adversely affect the profits. I would not suggest splitting funds on multiple exchanges rather we can just use one exchange which has a solid history and also does provide some kind of security. I personally would only hold my trading funds on these exchanges. Holdings will always be on a cold storage. But, even the trading balance sometimes might be huge as you said so in that case we might have no other option than to take a risk.

Moving out profits will be a good idea here. We can still hold the trading balance but can keep moving the profits out to the cold storage so that in case of hack, at least our profits will be safe. We can wind up making 10% to 40% or maybe even more profits monthly just by taking a few trades so moving those profits out will recover our capital in just a few months.

Splitting the funds and doing the exact trade order on both the exchange and with exact exit point, then it is most likely the profit will remain the same with half the risk compared to one exchange. Basically, one exchange even with a good reputatio,n can't give us complete assurance that we will be safe but if we are going that way then we should also be ready in case if it ends up as 100% loss.

[DYING_S0UL]

Some people have so much confidence in their exchange to the point that, their will leave they life savings on those exchanges, and most of the time, they don't border to know more about self custody and it benefits until it too late for them, freedom comes from taking personal responsibility for your Assets.

Trading can be addictive, so anything that allows you have access to Money you definitely over gamble no matter what.

That some people isn't me! I'm not leaving my life's savings in any exchange, not even if it's a reputable one. As the saying goes, "Not your keys, not your coins."

It sure is addictive. You won't believe how many short trades I haven taken so far in a week! I can assure you it's a lot more than a hundred!

If this is your trading capital and not the total crypto portfolio then I guess you just keep it in the exchange itself because better the capital the chance of making profit will be higher. I had seen people holding over 200btc as their balance in their wallet when I was trading in LBC and there could be more such people but we can't conclude which one is too big. Just like what we say to the investment, don't keep more than in your exchange which you are ready to lose in case of hack.

I would say just split it into two exchanges because the chances of two exchanges hacked at the same time is unlikely to happen means you still get to trade 100% of your trading capital while minimizing the risk by 50% and you can reduce it further by increase the number of exchange to 4 with 25% risk and so on.

Yes only trading capital...

Two exchange! Got it. Tbh, it's already hard for me to track one, but I guess I can manage two, but not more than that!

It's good if you are not an active trader. Btw how many times do you trade a year? If you trade 10 times a year, then I suggest you to withdraw money every time you buy the coin, this way you'll be on a safe side, you'll control the coin and you won't care about what will happen to the exchange. The general principle is to deposit money, trade and then withdraw. Btw when someone trades regularly, that's pointless to my mind because of fees unless you trade with a huge capital.

Many people trade with a lot of money. If you deposit/withdraw $100K and higher very frequently, I think that that won't look nice to an exchange and can become a problem. Also, when you have a lot of money, 0.1% profit can be a great profit. It's very easy and possible to make 0.1% profit every day in the crypto world.

I am doing spot trading. As for the capital and fees, they aren't that much either way, you could say I'm a poor trader (sarcasm intended)! I have traded so many times that I assume I had to pay a lot for it. But still on on the positives' side!

Good job if you doubled your initial, I would suggest taking out the capital to make sure that is safe and now that you have made it back you can continue trading on that.

I think how much depends on your income, this will vary with each individual, the average decent capital to start with is 100-500$ for a middle level income. Never take loans to fund your trades, it will end in a bad situation.

Dont be overconfident after some good trades, bad trades can happen anytime and the more you stick to spot trading the better and safer.

Recently, many such incidents have been exposed. So, you should withdraw a part of your funds from the exchange and keep them elsewhere to avoid any unexpected incidents.

Thanks mate!

In fact I also started with 100, later increased the capital, also along the way, made some profit, took out some through P2P.

I am trying not to. I did some dumb trades, I am only human. But I was lucky enough to pull back at the right moment. I minute late, bad things could have happened.

So far everything is good.

[ScamViruS]

Recently, many such incidents have been exposed. So, you should withdraw a part of your funds from the exchange and keep them elsewhere to avoid any unexpected incidents.

Thanks mate!

In fact I also started with 100, later increased the capital, also along the way, made some profit, took out some through P2P.

I am trying not to. I did some dumb trades, I am only human. But I was lucky enough to pull back at the right moment. I minute late, bad things could have happened.

So far everything is good.

It's good to hear that you are well-informed about how to keep your funds safe. In fact, as important as money management is when trading, managing your funds is just as important so that no particular exchange can blackmail you. And if you have good trading knowledge, then you can continue trading and increase your capital.

And you should definitely trade on exchanges that are at the top of the rankings, where there is enough liquidity. Because there are many exchanges that offer tempting offers to join, but only after joining those exchanges you understand how much they harass you, so avoid them.

[DYING_S0UL]

Recently, many such incidents have been exposed. So, you should withdraw a part of your funds from the exchange and keep them elsewhere to avoid any unexpected incidents.

Thanks mate!

In fact I also started with 100, later increased the capital, also along the way, made some profit, took out some through P2P.

I am trying not to. I did some dumb trades, I am only human. But I was lucky enough to pull back at the right moment. I minute late, bad things could have happened.

So far everything is good.

It's good to hear that you are well-informed about how to keep your funds safe. In fact, as important as money management is when trading, managing your funds is just as important so that no particular exchange can blackmail you. And if you have good trading knowledge, then you can continue trading and increase your capital.

And you should definitely trade on exchanges that are at the top of the rankings, where there is enough liquidity. Because there are many exchanges that offer tempting offers to join, but only after joining those exchanges you understand how much they harass you, so avoid them.

I have everything written on notes actually, when I bought, how many unit at which rate, I mean everything in a single page! So that I can take a quick glance, plan my next move! It's easier that way!

As for using a reputable exchange, I am using a reputable one, the one with the Yellow logo (you know exactly what I'm referring to) and I just hope they don't block my account for silly reasons. I mean, hundreds of thousands of users trade each day! What could possible go wrong! Or is it wrong for me to think that way! Anyway, I have measures in places, hope I can do some profits and leave safely!

[shield132]

You won't believe how many short trades I haven taken so far in a week! I can assure you it's a lot more than a hundred!

What's the result of your hundred trades in a week? Did you make a profit or did you lose some money? For example, imagine that your capital was $100. After a hundred trades in one week, what was your final capital? I'm curious about that. I was doing the same when I first started trading, and my strategy was as follows - I would look for coins that were recently pumped on Binance, then I would buy them with my whole capital and would sell them immediately at a 2% higher price with the hope that the coin would pump within minutes and bring me a few profits. If you are doing the same, let me tell you it doesn't work forever, and in the end, it can lead to a very bad outcome.