Not your keys not your coins for traders

[Oshosondy]

Even when the incident happens once a year, it is never ideal to store funds on exchanges for the long term, even if the funds are split into many exchanges, and I don't see any reason why it will save anyone from a sudden exchange hack unless you're referring to it minimizing the amount of crypto people will lose through the hack.

If you split the money on exchanges, it is better. Also this is not about holding, it is about trading funds. People should be able to differentiate between that. If I have 100% money, 10 to 30% go into trading. The 10 to 30% splitted into 3 to 5 exchanges. The trading fund on the exchanges are lower. Another thing is that it is good to use exchanges that have protection fund.

[Texac]

With centralized exchanges, there are some biggest risks.

Hacks.
Scam exits.
Bankruptcies.

Among these three biggest risks, I consider scam exit is most dangerous because with this exchange death type, users will surely lose all money. With hacks and bankruptcies, it is case by case, and users will still have chance of getting their fund back, fully or partially.

Yah, exit scams are probably the biggest risk when holding fund on CEX. But with government stepping in heavier and regulation tightening up, I reckon those exit scam will fade out pretty soon.

Just this year alone, 3 exchange have shutdown, 1 got hacked. But most of them gave clear announcement and specific instruction to their users. None of them just pulled the plug and ran off with customer money.

Imagine what happens once full on crypto laws get passed and enforced? Doubt anyone is keen on doing jail time LOL.

After I trade and make a profit, I usually immediately withdraw the money to my personal account, leaving only a small amount for the next trade. So, basically, my capital is safe and I've made a profit too.

It's your good practice even it costs you more in withdrawal fees and on chain transaction fees for deposits to exchange accounts.

That's actually a good habit, but how many traders are really making a profit and discipline to pull their money back to their wallet after every win? Kinda doubtful, ngl.

[EL MOHA]

If you split the money on exchanges, it is better. Also this is not about holding, it is about trading funds. People should be able to differentiate between that. If I have 100% money, 10 to 30% go into trading. The 10 to 30% splitted into 3 to 5 exchanges. The trading fund on the exchanges are lower. Another thing is that it is good to use exchanges that have protection fund.

This is one practice that I will say I recommend, leave off your little amount splitted in two to many exchanges at a time and the exchanges are reputable ones because we all know that almost all of them now says they have protection funds or SAFU as others called it. The probability that all exchanges will be all hacked one day is definitely slim and that means there is an iota of chance you’re losing just small if one exchanges actually goes down. The only problem is that most traders are usually fond of using one or two exchanges probably because of their features and this limits them to not been able to split their funds enough into exchanges.

That's actually a good habit, but how many traders are really making a profit and discipline to pull their money back to their wallet after every win? Kinda doubtful, ngl.

The idea is actually not leaving off big amounts on exchanges so a withdrawal after a profitable trade or series of trades might be because the profit is big that trader cannot afford to lose and this huge wins isn’t common just everyday, so the move cannot be everyday or after every trade

[Catenaccio]

If you split the money on exchanges, it is better. Also this is not about holding, it is about trading funds. People should be able to differentiate between that. If I have 100% money, 10 to 30% go into trading. The 10 to 30% splitted into 3 to 5 exchanges. The trading fund on the exchanges are lower. Another thing is that it is good to use exchanges that have protection fund.

I don't split it like this and I split my trading capital to 5 or 10 parts, then use each part as my trading capital, and I save the remaining parts for later use. Because I understand risk of trading, and I reserve 9 remaining parts for using if I lose all money with my first trading capital part. Split it to 10 parts will give me 10 times of learning about trading, practicing trading, and repeating it again and again.

This is one practice that I will say I recommend, leave off your little amount splitted in two to many exchanges at a time and the exchanges are reputable ones because we all know that almost all of them now says they have protection funds or SAFU as others called it. The probability that all exchanges will be all hacked one day is definitely slim and that means there is an iota of chance you’re losing just small if one exchanges actually goes down. The only problem is that most traders are usually fond of using one or two exchanges probably because of their features and this limits them to not been able to split their funds enough into exchanges.

I can split funds on two or three exchanges but only split it from each part of my trading capital as said in reply to Oshosondy above. Storing funds on exchanges is never SAFU. Trading is risky, not SAFU. Combining them means a lot of risk with trading on any exchange.

[Just Say]

Bitget's experience is another recent hack that should teach us a lesson for those who are used to using a centralized exchange for trading: don't keep all your trading funds on an exchange; the risk may be too high for you to be on their side with all your trading capital because you can't predict what may happen in the near future with any centralized exchange. Not your keys, not your coins still remain ever relevant.

Yes Bitget hacking incident is another experience for us so learn from it and don't keep all funds in centralized exchange for trading as many exchanges have been hacked in past. Actually traders should be aware that they should only use this exchange for doing p2p or trading and in my opinion the profit earned from trading or funds should not be stored there for long term.

Non-custodial wallets should be used for holding Bitcoin or other cryptocurrencies to reduce the risk of losing large sums of money to the exchange during hacking, as the advantage of this wallet is that you will have complete control over your funds and privacy or security will be maintained so that hackers cannot hack an investor's Bitcoins by hacking the central server, thereby keeping the holdings safe.

[BitBakerr1]

Bitget's experience is another recent hack that should teach us a lesson for those who are used to using a centralized exchange for trading: don't keep all your trading funds on an exchange; the risk may be too high for you to be on their side with all your trading capital because you can't predict what may happen in the near future with any centralized exchange. Not your keys, not your coins still remain ever relevant.

Yes Bitget hacking incident is another experience for us so learn from it and don't keep all funds in centralized exchange for trading as many exchanges have been hacked in past. Actually traders should be aware that they should only use this exchange for doing p2p or trading and in my opinion the profit earned from trading or funds should not be stored there for long term.

Even before the Bitget hack happened, we have heard about other exchange hacks that happened, and I believe everyone has already known the risk in keeping your crypto coin in an exchange for a very long time.
I agree with you, as a trader after trading what you should do is to remove all the money or all the crypto coin in your exchange and move it to your wallet if you don’t want to run P2P that will change it to your currency, keeping it in your exchange is very risky because anything can happen like they say not your key not your coin, this applies to traders too.
Traders use exchange to trade but don’t keep your coin there too long.

[otterninja]

Solid point, and honestly rare to see measured takes like this here. The part most people miss is sample size — a few good weeks proves nothing. I keep a journal of every trade with the reasoning attached, and looking back, my biggest losses all came from breaking my own rules, not from bad analysis. Keen to hear how others here handle this.

[henmark]

if you don’t leave your money in an exchange, you won’t have any problem with the exchange being hacked.
When you are done for the day, the next thing you should do is to withdraw all the money that is left in that exchange so you won’t fall into a situation of losing your money.

It is called as exchange for a reason. People should only use it to exchange. Then on the other, there is also called as wallet. We already know what is it. This is where we should store our money by the time we are done trading. If we think we will use the exchange again, then withdrawing all is not a wise thing to do. We should only withdraw our profits and leave the same capital we use last time.

But talking about hack, I have not actually seen a situation where a hack happens to an exchange and the exchange totally close down and customers loses their money, it may have happened but I have not actually seen.

You have not seen one but have you heard any? Me, I have not not seen an actual event but I do hear a couple of it already. I think one example is Mt.Gox. It is an old exchange. The reason may be for the shut down, is that the damage is way too big. It must only be understood, since the security before is not that tight as of today.

[Hamza2424]

That was what I thought after reading the entire post. He was lucky because in a situation like this, it could have been any exchange. I think he already made mention of that on a part of post here, but what he said right after that made it look more like he was expecting the hack which doesn't make any sense.

Perhaps he's not after the extra benefits but having less exposure and not losing everything in a situation where a hack ocurrs. The latter fulfils that process for him.

No one knows which exchange will be next, and no one knew about Bitget too. He predicted that, and he took early precautions, so whenever something like this happens, he will be safe. But if he was using Bitget, then he won't be.

Although I heard Bitget is resuming withdrawals, so everyone will be able to withdraw their funds if they want to. But we should understand one thing, we should only hold funds in exchanges that have enough SAFU funds for what they are controlling. Unlike Bitget, they are responsible for more than they have in SAFU.

[suzanne5223]

Even when the incident happens once a year, it is never ideal to store funds on exchanges for the long term, even if the funds are split into many exchanges, and I don't see any reason why it will save anyone from a sudden exchange hack unless you're referring to it minimizing the amount of crypto people will lose through the hack.

If you split the money on exchanges, it is better. Also this is not about holding, it is about trading funds. People should be able to differentiate between that. If I have 100% money, 10 to 30% go into trading. The 10 to 30% splitted into 3 to 5 exchanges. The trading fund on the exchanges are lower. Another thing is that it is good to use exchanges that have protection fund.

Now I understand your stance about the split of funds in different trading platforms.
I made the previous statement because the previous user never said anything about the fund being used mainly for trading purposes.
If that's the case, then everything said about splitting funds is good, but we shouldn't just use exchanges that use only words to claim they implemented user fund protection.