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.
There are a few users who rely on these exchanges with their long term holdings because these exchanges make it much easier to showcase PnL statements and also exiting from any specific long term position is quite easier on these exchanges. I was one of those who would prefer keeping most of the funds on exchanges just so I can catch any opportunity in the near future. I did not have any problem until FTX went down. That make me stand in a big loss and that was the point where I learnt not to completely trust these exchanges no matter how reputable they are.
I only use these exchanges to buy and sell but I will never hold on any exchanges. I would prefer keeping a cold storage and all funds would be moved over their right away. I don't even risk keeping funds on that exchange for more than 24 hours.
