How much is too much?

[Joy- maker]

This thing is very simple @DYING_S0UL, and you don't necessarily need people's opinions on this matter if you ask me, you are just to decide within yourself how much is too much for you in this case,  because the amount of money you can afford to loose is not the amount of money the next  person can afford to loose, so you see the equation can never get balance. So IMO I will advise you just leave the amount of money you can afford to loose in a centralized exchange just in case anything go wrong on the exchange you are using to trade, and you are unable to get your funds back, you can easily let it go without been affected.

[Onyeeze]

And lastly, as my 1st question says, how much is too much, from your perspective!

The amount that's convenient for you should be decided by you because everyone's risk appetite isn't the same. What may be moderate for me may be anothers' high risk and to some; infinitesimal risk. You've to decide that yourself since you're the one who knows your financial capability. The easiest way to determine that is to put a tab on what capital exposure you can't let go. Any amount you can't let go means it's too much for you to invest that cash. Another man's net worth can be another's ⅒. That's life.

In investment, the investor have the final decision to take if it's to invest bigger amounts or smaller amounts, both investing on bigger amounts or smaller amounts is on the investors risk, we have to know the amount we are to invest that will not affect us if we lose it, in cryptocurrency investment risk control should be one of the factors we ought to consider, because if we invest without considering the future risk it might caused us harm in the future or affect investment, nobody invest and know if is going lose or not, so all the investors suppose to know the amount they are to invest and when they lose it will not affect them

[hafiztalha]

So IMO I will advise you just leave the amount of money you can afford to loose in a centralized exchange just in case anything go wrong on the exchange you are using to trade, and you are unable to get your funds back, you can easily let it go without been affected.

In my opinion, person should invest less money from the start and if he is making money then he should invest half of the money And half money should be out of the system. People want to make more money but they don't know how many risk in involved in that and we can lose our money if Market is going down and down and your analysis is not strong.  But my opinion is every person afford different amount because many are from middle class families and there are also people available on that platform who are Investing more money And they are greedy people and they want to earn more And that is reason they are losing more in less time .If person is not Rich and want to trade in that and I will suggest he should invest the amount he want to lose but if he got something,that is his luck .

[programmer3666]

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!

Exchanges can be tricky sometimes. If we complain too much, our ID will be flagged. They often make excuses when providing valid data about our funding, or they get annoyed if we win too much and make it look like we're using bots. I don't know, sometimes they're weird when it comes to resolving issues; even arguing too much can result in our account being frozen.

yeah!! exchanges can act strange sometimes even the big and reputable ones are not that perfect because they can freeze accounts, delay withdrawals or start asking too many questions for no real reason winning too much or contacting support too much can even draw unnecessary attention. so it is always smart to keep your records, stay calm when dealing with support and avoid keeping all your money on one exchange that way even if something goes wrong you are not stuck

[MarjorieZimmermanGinger]

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!

Talking about amounts is always relative, and may vary from person to person, I don't necessarily agree on the ideal amount. I'm usually only prepared to use or keep $1.000/$1,500 for trading purposes, and I'll divide that up over several trades. You have a role to play in determining the ideal amount, as I believe you understand the impact best. The exact figure depends on your needs, especially for trading purposes. However, keeping large amounts on the exchange is not a wise choice because we never know what the exchange will do in the future.

[knowngunman]

How much is too much should be considered based on how much the person is worth. There are those who consider six figures as a small amount that they can easily gamble on, which means they don't mind even if they lose that amount in trading or in an exchange crash. We also have those who consider it as very huge amount so the amount you should consider as too much to me should be base on your worth, but ordinarily for me $10k is too much to be left on a single exchange.

I share same idea with you. There's no specific amount to be considered too much, it has to do with individuals depending on the financial class they belong. The amount Op is referring to as a significant amount might be the same amount some one deposit on a daily basis to trade. I personally don't consider any amount small to be left on the exchange wallet in a case like this. The more money in your exchange account, the more you'll be tempted to trade even during the bad market conditions.

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!

In as much as I won't advise anyone to keep huge amount of their money on CEXs, it's important to acknowledge that they have no right to take any absurd action unless you involve yourself in activities that go against their terms of use. They are found of undergoing maintenance countless times causing inconvenience to users but that's not absurd action, it's temporary. Advisably, you should withdraw your capital at the close of your trading and risk the profit on the exchange.

[LogitechMouse]

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!

It depends on which exchange you're trading. I mean if you're trading on large exchanges like Binance or Bitget then I think pulling back the half would just lead you to lesser profits since you've already said that you already doubled your account. That being said, pulling back half of your money just shows that you're securing your initial capital and it will not affect you at all if you lose the money you didn't pull out not because the CEX got hacked or something, but because of wrong trades.

As for my experience and if I'm in your shoes, I will not be pulling out at least half of my current capital. I mean I might cash out some, but that's because I want to reward myself, but I'll keep the majority. I guess I'll just trust the exchange and at the end of the day, that's the money that I'm willing to lose no matter what happens - and that includes the CEX being hacked.

[Wakate]

Talking about amounts is always relative, and may vary from person to person, I don't necessarily agree on the ideal amount. I'm usually only prepared to use or keep $1.000/$1,500 for trading purposes, and I'll divide that up over several trades.

Dividing your fund into several trades is good to save you the stress of trading only one asset which can be risky if price goes against your trade. This is a time when you will have to use stop loses in all your trades so that you don't lose more than you supposed since the price of Bitcoin is not certain and it's time to observe the market well so price don't dump on you. Trading at this current time should be at alert cause price can go any direction as quick as possible.

[DYING_S0UL]

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!

It depends on which exchange you're trading. I mean if you're trading on large exchanges like Binance or Bitget then I think pulling back the half would just lead you to lesser profits since you've already said that you already doubled your account. That being said, pulling back half of your money just shows that you're securing your initial capital and it will not affect you at all if you lose the money you didn't pull out not because the CEX got hacked or something, but because of wrong trades.

As for my experience and if I'm in your shoes, I will not be pulling out at least half of my current capital. I mean I might cash out some, but that's because I want to reward myself, but I'll keep the majority. I guess I'll just trust the exchange and at the end of the day, that's the money that I'm willing to lose no matter what happens - and that includes the CEX being hacked.

I'm using the first exchange you mentioned. As for pulling out, I did some, but not exactly half. The majority of the funds are still there. But I'm currently not trading all at once. Instead, I have kept some as the emergency funds in stable coins, in case I get fucked up, so that I can recover some of it. As for the rest of the things, lets see how it unfolds.

I'm not worrying about hacks or anything. I mean people trade with millions. Compared to them mine is only a drop. What more can I lose, even if I lose. 

[MarjorieZimmermanGinger]

Dividing your fund into several trades is good to save you the stress of trading only one asset which can be risky if price goes against your trade. This is a time when you will have to use stop loses in all your trades so that you don't lose more than you supposed since the price of Bitcoin is not certain and it's time to observe the market well so price don't dump on you. Trading at this current time should be at alert cause price can go any direction as quick as possible.

It's better to trade one asset than to take a direct trading approach across multiple assets simultaneously, as this can create much greater stress, especially if our trading skills are not particularly strong. Stop-losses serve to prevent significantly larger losses and are quite useful for traders in minimizing losses on each trade they execute. Market conditions can change so quickly that anticipation is needed to prevent further loss of money. Currently, the market is uncertain and direction can change rapidly regarding the movement of coins and stop-losses are quite useful to implement to avoid complete loss of capital.

[shinratensei_]

This thing is very simple @DYING_S0UL, and you don't necessarily need people's opinions on this matter if you ask me, you are just to decide within yourself how much is too much for you in this case,  because the amount of money you can afford to loose is not the amount of money the next  person can afford to loose, so you see the equation can never get balance. So IMO I will advise you just leave the amount of money you can afford to loose in a centralized exchange just in case anything go wrong on the exchange you are using to trade, and you are unable to get your funds back, you can easily let it go without been affected.

Right on the mark. Some people afford to lose $10k some can't afford to lose $1 it's different risk appetite for every person and OP is the one that should know what his risk appetite is.
I usually put what money I can afford to lose and call it a day too, if the exchange collapse then I won't be too desperate, after all I always take my initial balance if I make quite good profit to minimize risk of something like FTX happening again.

I advise OP to slowly think about how much you can afford to lose and that is the amount that is considered safe to be put in CEX. Always consider the worst scenario.

[Lanatsa]

This thing is very simple @DYING_S0UL, and you don't necessarily need people's opinions on this matter if you ask me, you are just to decide within yourself how much is too much for you in this case,  because the amount of money you can afford to loose is not the amount of money the next  person can afford to loose, so you see the equation can never get balance. So IMO I will advise you just leave the amount of money you can afford to loose in a centralized exchange just in case anything go wrong on the exchange you are using to trade, and you are unable to get your funds back, you can easily let it go without been affected.

Right on the mark. Some people afford to lose $10k some can't afford to lose $1 it's different risk appetite for every person and OP is the one that should know what his risk appetite is.
I usually put what money I can afford to lose and call it a day too, if the exchange collapse then I won't be too desperate, after all I always take my initial balance if I make quite good profit to minimize risk of something like FTX happening again.

I advise OP to slowly think about how much you can afford to lose and that is the amount that is considered safe to be put in CEX. Always consider the worst scenario.

Everyone has a different tolerance when it comes to how much they can afford to lose and that’s what makes trading so personal some people can easily risk thousands and stay calm others get anxious over losing even a few dollars the key is knowing your own limit and never crossing it.

Keeping only what you can afford to lose in a centralized exchange is the smartest move because anything can happen at any time exchanges have failed before and they can fail again if that happens you’ll feel bad but it won’t destroy you financially if you’ve only left an amount you’re ready to lose. It’s also good practice to take out profits as soon as you make them that way you’re always minimizing risk and protecting your initial investment thinking through the worst possible outcome helps you plan better and trade with peace of mind once you understand your own risk appetite and stay within it no market crash or exchange failure will ever catch you off guard.

[8rch7]

I usually put what money I can afford to lose and call it a day too, if the exchange collapse then I won't be too desperate, after all I always take my initial balance if I make quite good profit to minimize risk of something like FTX happening again.

I advise OP to slowly think about how much you can afford to lose and that is the amount that is considered safe to be put in CEX. Always consider the worst scenario.

Talking about FTX exchange make us little frustrated how easily the top market bankrupt and many user loss much money without any refund yet from the exchange developer. Right now Sam have been Sam Bankman-Fried is being imprisoned and not has any ideas yet from him to refund the FTX user money, I think its important for us how to manage large amount if fully hold in CEX exchange if any bad possibility can't withdraw yet and many exchange owner run away after bankrupt or get collapse.

Bit confusing between save assets in wallet or CEX exchange, if you are trader maybe difficult to trade if fund saving in wallet and must sent to CEX exchange, some time have good moment when market get lower price maybe sending to CEX exchange from wallet take few moment and has possibility miss dip buy at lower price.

[WatChe]

In investment, the investor have the final decision to take if it's to invest bigger amounts or smaller amounts, both investing on bigger amounts or smaller amounts is on the investors risk, we have to know the amount we are to invest that will not affect us if we lose it, in cryptocurrency investment risk control should be one of the factors we ought to consider, because if we invest without considering the future risk it might caused us harm in the future or affect investment, nobody invest and know if is going lose or not, so all the investors suppose to know the amount they are to invest and when they lose it will not affect them

Risk management is an important part of trading and must be dealt with great care. Without proper risk management, a trader is deemed to lose money because crypto trading is not as easy as it looks like. There are more people losing money in trading compared to those making profit. Those who are new to trading must not start with huge money straight away because they are not in a position to deal with wild fire of trading. With time a trader understand the 'nitty gritties' of trading and he can better handle the big amount.   

[alankasman]

In investment, the investor have the final decision to take if it's to invest bigger amounts or smaller amounts, both investing on bigger amounts or smaller amounts is on the investors risk, we have to know the amount we are to invest that will not affect us if we lose it, in cryptocurrency investment risk control should be one of the factors we ought to consider, because if we invest without considering the future risk it might caused us harm in the future or affect investment, nobody invest and know if is going lose or not, so all the investors suppose to know the amount they are to invest and when they lose it will not affect them

Making decisions about this is indeed difficult, especially when investing large sums of money. Therefore, the risk factor is one of the things investors must consider from the outset to avoid making the wrong decision, which could result in losses.
Regarding risk, this is certainly common for every investor, whether small or large. Risk actually depends on how investors make decisions. Therefore, if they make a mistake in this matter, it can impact their investment. Therefore, many investors are sometimes afraid to take steps, even if they feel they have a lot of money to invest, and so on, if they don't have a clearer perspective on this matter.

[Judith87403]

In investment, the investor have the final decision to take if it's to invest bigger amounts or smaller amounts, both investing on bigger amounts or smaller amounts is on the investors risk, we have to know the amount we are to invest that will not affect us if we lose it, in cryptocurrency investment risk control should be one of the factors we ought to consider, because if we invest without considering the future risk it might caused us harm in the future or affect investment, nobody invest and know if is going lose or not, so all the investors suppose to know the amount they are to invest and when they lose it will not affect them

Risk management is an important part of trading and must be dealt with great care. Without proper risk management, a trader is deemed to lose money because crypto trading is not as easy as it looks like. There are more people losing money in trading compared to those making profit. Those who are new to trading must not start with huge money straight away because they are not in a position to deal with wild fire of trading. With time a trader understand the 'nitty gritties' of trading and he can better handle the big amount.   

True. What a lot of people fail to understand is that, as far as trading or even investment isn’t concerned, risk management happens to be the backbone of survival. A lot of people come into the trading sphere with the mindset that trading is another get rich quick scheme, only to be humbled by the market due to their unpreparedness. Beginners who doesn’t yet understand how volatility really works should throw huge capital into the market because they’ll have to learn the hard way how unforgiving crypto trading can be.

[Wakate]

It's better to trade one asset than to take a direct trading approach across multiple assets simultaneously, as this can create much greater stress, especially if our trading skills are not particularly strong. Stop-losses serve to prevent significantly larger losses and are quite useful for traders in minimizing losses on each trade they execute. Market conditions can change so quickly that anticipation is needed to prevent further loss of money. Currently, the market is uncertain and direction can change rapidly regarding the movement of coins and stop-losses are quite useful to implement to avoid complete loss of capital.

I understand from what angle you are bringing this but you need to understand that trading in the crypto market has so many coins you can trade and make money for your self. There are some tokens that might take time for you to make significant profits because of the less liquidity they carry and their are others that have enough liquidity and moves very fast. This is why you need to trade at least two assets if you want to be profitable not seating on a single token pairs for a long period of time.

[tvplus006]

I'm using the first exchange you mentioned. As for pulling out, I did some, but not exactly half. The majority of the funds are still there. But I'm currently not trading all at once. Instead, I have kept some as the emergency funds in stable coins, in case I get fucked up, so that I can recover some of it. As for the rest of the things, lets see how it unfolds.

I also trade on Binance and keep some of my funds that are not involved in trading on Earn at about 10% per annum. In addition to this small profit, the USDT placed in Eearn allows me to receive additional points in the Binance Alpha program.

[BitBakerr1]

It's better to trade one asset than to take a direct trading approach across multiple assets simultaneously, as this can create much greater stress, especially if our trading skills are not particularly strong. Stop-losses serve to prevent significantly larger losses and are quite useful for traders in minimizing losses on each trade they execute. Market conditions can change so quickly that anticipation is needed to prevent further loss of money. Currently, the market is uncertain and direction can change rapidly regarding the movement of coins and stop-losses are quite useful to implement to avoid complete loss of capital.

I understand from what angle you are bringing this but you need to understand that trading in the crypto market has so many coins you can trade and make money for your self. There are some tokens that might take time for you to make significant profits because of the less liquidity they carry and their are others that have enough liquidity and moves very fast. This is why you need to trade at least two assets if you want to be profitable not seating on a single token pairs for a long period of time.

Wakate you are correct, as a trader you need to have more than one cryptocurrency that you are holding, you can't be trading using only one crypto coin if you do that you are not a good trader and you won't make money from trading, I see some people saying they will only focus on Bitcoin because it's less risky when you are trading for me you are making a very big mistake if you want to make money from trading you won't even focus on Bitcoin right now bitcoin is meant for accumulating and holding for a very long time if you want to trade and make money from trading you should go for new cryptocoin and you have to be very smart and always ready to trade and make your profit at any time.

[Razmirraz]

We both know this and some of the more senior and experienced members always advise against putting all of your funds in CEX, the reason being that the security risks there are very high. You can make a wiser decision to prevent the feared event from happening, withdrawing half of it and trying to risk the remaining portion on CEX, but all of these decisions depend on your risk tolerance and trading strategy, including the amount you are willing to risk.

In general, every trader has a different risk profile. If you feel comfortable with the risks and feel you can account for all the decisions you've made, then just stick with the current situation. However, if you want to play it safe, withdrawing some of your funds might be a better option.