Not your keys not your coins for traders

[SeriouslyGiveaway]

Keeping track of that many exchanges is the only fuss I see.

Even in spot trading you have to commit the money to the order even if takes months to actually execute at the set price. In between a hack and wipe out that money. Hence number of open trades should be minimized for spot trading.

Even bad is the habit that quite a few people use the exchange as a storage wallet. Which is the biggest victimization of traders during a hack.

Most traders leave their coins on exchanges to wait for orders to be filled or wait for chances of opening new trading orders. It's not a good practice because of many risks you said, while there are also many reminders about centralized exchanges.

Reminder: do not keep your money in online accounts
Events made you scare about custodial wallets, centralized exchanges.
OKX frozen my account and required me to KYC with a less than $1,000 deposit.

Advice is only fund your account on a centralized exchange when you see an opportunity for taking profit or buying with good price, then after finishing your trades, it's strongly recommended to withdraw fund back to your non custodial wallets.

Even doing so won't provide completely safety for your fund because exchanges can block your account, freeze your fund or it can be hacked, scam exit almost immediately after your deposit.

[Mummy OS]

Using thousands of exchanges for trading is not impressive at all. You can have account on your favorite exchange and trade there. There are also decentralized exchanges you can use for trading without dropping your KYC information on multiple exchanges in the name of looking for a good trading deal. Some kind of trading can look cool to the trader but it can be stressful for other that have a more better way to trade without walking through different exchanges.

[Jegileman]

If you are trader, it's very important to separate your funds to different exchanges but when you want to select an exchange, put money in where reserve is proven to be there and if there is insurance like Bitget did the other day when the the exchange was hack. If you make deposits on some exchange and keep it there for trading and something happen to their hot wallet, there is nothing you can do about it to get back your money, some people are still struggling on Bitmart and they are not even hack.

As trader, you must be ready to take risk of leaving your money on exchanges if you have a position open in there and when you are not doing anything, take your money from the exchange and take it to your personal wallet. Although, some people recommend that some Dexes experience are good but I am not familiar with them too much like centralized exchanges.

Decentralized exchanges just came on later and not so many people are familiar with them and have been using them. The whole process of a centralized exchange is understandable and doesn’t cause a fuss when it comes to using them. Exchanges are meant to trade and exchange tokens on, they are not meant to be used to save big amount of money. If everyone understood and follows this, then there is a high chance that losing money to an exchange becomes very minimal.

Traders are always trying to be a bit more careful and caution, applying the proper risk management to limit their losses and susceptibility to hack which is good for them at all times. I like the idea of using multiple exchange to manage more the exposure to potential risks trader can face using an exchange but I still think that having one good exchange and only depositing the amount you to use to trade only will serve too. Like you said, going for exchanges with reserves in case of hack will be the best choices when it comes to selection of the best exchanges to trade with.

[Nheer]

Keeping track of that many exchanges is the only fuss I see.

Even in spot trading you have to commit the money to the order even if takes months to actually execute at the set price. In between a hack and wipe out that money. Hence number of open trades should be minimized for spot trading.

Even bad is the habit that quite a few people use the exchange as a storage wallet. Which is the biggest victimization of traders during a hack.

Using an exchange is something common among people most especially the new ones to the system. Relying on exchanges and thinking of them as a safe place to store our tokens is a risky idea, everyday we keep hearing and reading news on exchanges getting hack and millions of dollars getting wiped which should have given us reason to believe that exchanges are not safe for storage instead we should consider using our non custodial wallet as a perfect option. Nowadays even secure and trusted exchanges get hacked and robbed and this happens to be common that it doesn’t even surprise us anymore. But some people won’t just listen unless they experience it for themselves that when they would learn.

[#CapsLOck]

Keeping track of that many exchanges is the only fuss I see.

Even in spot trading you have to commit the money to the order even if takes months to actually execute at the set price. In between a hack and wipe out that money. Hence number of open trades should be minimized for spot trading.

Even bad is the habit that quite a few people use the exchange as a storage wallet. Which is the biggest victimization of traders during a hack.

Using an exchange is something common among people most especially the new ones to the system. Relying on exchanges and thinking of them as a safe place to store our tokens is a risky idea, everyday we keep hearing and reading news on exchanges getting hack and millions of dollars getting wiped which should have given us reason to believe that exchanges are not safe for storage instead we should consider using our non custodial wallet as a perfect option. Nowadays even secure and trusted exchanges get hacked and robbed and this happens to be common that it doesn’t even surprise us anymore. But some people won’t just listen unless they experience it for themselves that when they would learn.

I believe it is significant that there is a difference between. Trading funds and long term investors. When the trader waits for a long time for an off exchange spot price. The holding period can be significantly longer than the trader anticipates.An open spot order may keep the funds on the exchange a lot longer than the trader might think. This is not the same as saving coins in there. However it makes them susceptible to custodial risk. In my personal opinion. I would consider the change balance to be temporary working capital and would shift the money that isn't being used for active orders as often as I can to a wallet where I have the keys.

[Finebone]

The actual fact is that as long as you are a trader, you cannot avoid keeping some stable coin in your exchange account, because if you decide to only make a transfer of usdt to your exchange account anytime you want to take a trade, you are going to miss a lot opportunities that would have demand quick action from you, so what I do is that, I usually keep some money in my exchange account, but I do not keep more than what I can afford to lose in it, because I need to have available margin always, so that I can take a trade anytime I want, once I spot a perfect trading set up.

[Audrey Simmons]

These are the ways I have reduced the probability of losing too much money on exchanges. I want to see your own opinions of what you are doing to reduce the chance of losing too much money on exchanges during hack.

This is the reason I do not blame certain victims, who have their money in exchanges at the time of hack, some of them are trader who happens to be trading the market at the moment or waiting for a perfect opportunity to trade the market, not all of the victims were actually storing their money in exchanges.

I totally agree with splitting funds into separate exchanges, six maybe much depending on the size of the funds as well, but sharing KYC to six exchanges is definitely giving out much informations, sometimes users data are part of the stolen assets during exchange hacks.

[Leahized]

Some of the exchanges that I am using have been hacked before, but luckily I always do not have money on the exchange at the time of the hack. Example is Bitget, I was having just $1 on the exchange while having money on four other exchanges at the time of the hack.

Your idea and fund holding strategy is quite useful. I have never thought of it this way before, although I currently use four different exchangers. I used to KuCoin only for P2P because KYC was not mandatory there. And the minimum buy-sell was $1. However, that opportunity is no longer available. And Bitget probably fully operational about 5 days ago. However, I have been using it for about 3 years.

Yes, your strategy is capable of completely protecting against fund hacks. But very few people are there who trade or are active on multiple CEX at the same time. I use Binance for fund holding because they have backup funds. There is virtually no risk here.

[Webutxo]

Using thousands of exchanges for trading is not impressive at all. You can have account on your favorite exchange and trade there. There are also decentralized exchanges you can use for trading without dropping your KYC information on multiple exchanges in the name of looking for a good trading deal. Some kind of trading can look cool to the trader but it can be stressful for other that have a more better way to trade without walking through different exchanges.

It's not impressive but there are days you are left with no choice. You remember when Binance was having beef with Hype exchange? CZ was using the exchange to compare with ASTER and may people came for him that he want to be centralized and want everything to Binance without considering other people. It took Binance more than 1 year before they list Hype on the exchange, many people that couldn't let go of the token ran to other exchanges where the coin is listed. There are many coins that are on this condition, they ran to other exchanges because the other does not have it.

There are some pairs you can never see on top exchanges, it's possible they can have the futures but they are going to stay away from spot with their reasons best known to them. You are left with no any choice but to use an exchange that has the token and pairs.

[Muba20]

The actual fact is that as long as you are a trader, you cannot avoid keeping some stable coin in your exchange account, because if you decide to only make a transfer of usdt to your exchange account anytime you want to take a trade, you are going to miss a lot opportunities that would have demand quick action from you, so what I do is that, I usually keep some money in my exchange account, but I do not keep more than what I can afford to lose in it, because I need to have available margin always, so that I can take a trade anytime I want, once I spot a perfect trading set up.

If there is excess money in the trading account, there may be a desire to take new trades, which may result in losses later. Of course, a limitation should be kept here. By keeping trading funds within a limit and not transferring funds beyond what is possible to lose, the trader can take trades according to their convenience.

It is necessary to keep money in the exchange, but it is also necessary to refrain from keeping all the money. Keeping money in excess of the need is definitely unsafe.

Everyone should wait for a good set-up. A trader cannot properly utilize every opportunity. Those who want to take all the opportunities also have an high chance of making mistakes, which can also be responsible for losing their capital. Everyone must consider their risk when taking trades. It is also better to wait for the trader without trading for some time.

[Royal Cap]

The actual fact is that as long as you are a trader, you cannot avoid keeping some stable coin in your exchange account, because if you decide to only make a transfer of usdt to your exchange account anytime you want to take a trade, you are going to miss a lot opportunities that would have demand quick action from you, so what I do is that, I usually keep some money in my exchange account, but I do not keep more than what I can afford to lose in it, because I need to have available margin always, so that I can take a trade anytime I want, once I spot a perfect trading set up.

But another problem here is that if there is more stable coins than required in the exchange account, then many times even if you don't want to, you make decisions like buying useless coins, I myself have been victim of buying bad meme coins a few times. So yes I think if you can keep as much as you need in the exchange account, then at least you can avoid such FOMO. Another thing is that you can transfer from your wallet very easily and quickly through the BSC network. Unless there is an emergency, keeping funds in your wallet seems safer to me.

[Iranus]

I use Binance for fund holding because they have backup funds. There is virtually no risk here.

Tbh, I do not have a problem with people keeping their funds on CEXs like Binance, as long as they know what they're doing with their money and accept that risk.

But thinking  Binance or any other CEX is riskfree just because it has SAFU is a serious mistake. SAFU is just a fund Binance  set up itself, not insurance backed by law. They're not obligated to compensate users, and there's only so much money in that fund.

SAFU does not make Binance as safe as a bank , so don't mix those up.

[Futurexxx]

I use Binance for fund holding because they have backup funds. There is virtually no risk here.

You can do what ever you like with your money by taking a huge gamble on them, but thinking that keeping your money in an exchange is risk free is false. We live in a world where things can go wrong very fast, like from one hundred to zero, so it's to think that because binance have a reserve to cover up for such casualties automatically means that your asset is safe.
It's true that binance can cover up for the loss easily since they have proof of reserved already but bro, taking such risk makes no sense when you already knows the implication of keeping your funds in an exchange, because prevention is always better than cure.

[Freeveto]

Using thousands of exchanges for trading is not impressive at all. You can have account on your favorite exchange and trade there. There are also decentralized exchanges you can use for trading without dropping your KYC information on multiple exchanges in the name of looking for a good trading deal. Some kind of trading can look cool to the trader but it can be stressful for other that have a more better way to trade without walking through different exchanges.

We have limited number of centralized exchanges that don’t require KYC, but they usually have limited withdrawal limit, and some of them don’t used to have good treading features other exchanges that request for KYC has, that is why they are not suitable for trading always. Traders prefer top reputable exchanges that can guarantee them good trading features so that they can put in their money to trade.

However, if you decide to use more than two exchanges to trade, it’s on you because you will have to risk your information with these exchanges through KYC. You can have good chance of making money if you have the capital to trade in all the exchanges, but if you don’t have, staying with just one exchange is better.

[Rockstarguy]

I use Binance for fund holding because they have backup funds. There is virtually no risk here.

The biggest mistake that anyone could make is trusting an exchange for backup. Exchanges are always unpredictable, and there are some challenges an exchange may face from which they may not recover.

Exchanges can't even prevent themselves from attacks, and this is the reason not to rely on them. I think you need to do your own research and know better because you can't achieve complete security from an exchange, but you can get it from a non-custodial wallet. Don't let comfort make you regret your decisions later on; do the right thing and secure your funds.

[savetheFORUM]

I use Binance for fund holding because they have backup funds. There is virtually no risk here.

Tbh, I do not have a problem with people keeping their funds on CEXs like Binance, as long as they know what they're doing with their money and accept that risk.

But thinking  Binance or any other CEX is riskfree just because it has SAFU is a serious mistake. SAFU is just a fund Binance  set up itself, not insurance backed by law. They're not obligated to compensate users, and there's only so much money in that fund.

SAFU does not make Binance as safe as a bank , so don't mix those up.

You are right; with Binance it is not zero risk, that part is true. But you have to consider the risks involved on both sides. If you own your Bitcoin, for example and it is on your pc, and you have a wallet of your own and the security is all up to you, how difficult it is for someone to hack into your pc and steal it? Is it zero? Of course it is not zero; of course, some hacker could hack into your pc and steal your bitcoins.

Same logic applies to Binance; they could steal your funds there too. So you have to compare the risks, what is the risk higher, you being hacked and your funds being stolen on your pc? Or binance being hacked and all the hot wallet is emptied? I would say that the risk is actually lower with Binance.

[Conqueror777]

I have registered on many exchanges just because I am a trader. Among the many were some centralized no KYC and KYC. Presently I am using 6 different exchanges which I divided my coins among. While trading I use just 3 exchanges actively for grid trading. Grid trading helped me divided my coins on different exchanges in case one exchange is exploited, get it is a trading strategy similar to averaging or a form of averaging.

Some of the exchanges that I am using have been hacked before, but luckily I always do not have money on the exchange at the time of the hack. Example is Bitget, I was having just $1 on the exchange while having money on four other exchanges at the time of the hack.

I also use leverage for my advantage. Example is if I have $1050 for trading, I send $350 to 3 exchanges. Instead of using 1x leverage, I use 3x leverage. I can use as low as 0.2x leverage, depending on the coin pair that I am trading.

These are the ways I have reduced the probability of losing too much money on exchanges. I want to see your own opinions of what you are doing to reduce the chance of losing too much money on exchanges during hack.

why bother creating so many accounts on all these exchanges when you can effectively have a wallet either on your PC or a hard wallet?

[Qhunman]

Most traders leave their coins on exchanges to wait for orders to be filled or wait for chances of opening new trading orders. It's not a good practice because of many risks you said, while there are also many reminders about centralized exchanges.

There is nothing without risk and trading is not an exception, that's why even though keeping our coins in a centralise exchange might not be a wise idea but it is necessary because opportunities to buy or sell could come up at anytime. So if we don't have our funds saved in a centralise exchange at the time the opportunity came, we might miss it. There is no doubts that Centralise exchange could be hack which is why any money we are leaving on it for trading should be an amount that we have ready our minds to lose since anything can happen.

[Doll2233]

Using thousands of exchanges for trading is not impressive at all. You can have account on your favorite exchange and trade there. There are also decentralized exchanges you can use for trading without dropping your KYC information on multiple exchanges in the name of looking for a good trading deal. Some kind of trading can look cool to the trader but it can be stressful for other that have a more better way to trade without walking through different exchanges.

In my opinion It's not a problem if someone is using more and different exchanges because every exchange provide different experience  like trading pairs, liquidity, fees etc it depends on our needs. But if we are creating account everywhere without clear mindset and thinking it will create unnecessary complexities . And can ruin our peace.And yes i agree with you regarding KYC and privacy but decentralized is like we can't say it is better option everything has it's own positive points and negative ones. At the end of the day we have to choose wisely according to our needs which trading pairs we need for trading or for better trading experience, exchange fees and security. Simplicity is useful but it should not come at the cost of better trading and opportunities.

[terrific]

Tbh, I do not have a problem with people keeping their funds on CEXs like Binance, as long as they know what they're doing with their money and accept that risk.

That is their consent and you're right, if they have no problem keeping it on the exchanges like binance, that's their personal choice.
They'll also throw some arguments that hardware wallets are no longer safe because of tampering and other hacking issue.

But thinking  Binance or any other CEX is riskfree just because it has SAFU is a serious mistake. SAFU is just a fund Binance  set up itself, not insurance backed by law. They're not obligated to compensate users, and there's only so much money in that fund.

SAFU does not make Binance as safe as a bank , so don't mix those up.

It is what they need to understand.
SAFU was advertised as to make it sound and safe to keep their funds in binance and will be refunded if something bad happens.
The guarantee that they have marketed for it was successful. But users who understand that they can always change their terms have to consider that it also has risks.