Not your keys not your coins for traders

[The Cryptovator]

I have also been using a couple of exchanges but not keeping much of the funds in the exchanges. Right now there are two exchanges using them for trading, but only for trading, not for holding funds there. After completing the trade, I move funds into my hardware wallet, either coins or stable coins, not keeping them on the exchange.

I think you are doing the right things; since you are doing leverage trading, then you have to keep your funds in the exchanges. So dividing them on multiple exchanges reduces the possible risk of losing funds in case of exchange exploitation. For spot traders, I will advise just moving funds into the safest hardware wallet after completing the trade.

[henmark]

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.

[Findingnemo]

I also have accounts on a few exchange but ultimately I am not using any at the moment, I use some p2p but once in a while and then just withdraw the funds after the trade completes.

SInce we started to have instant swap exchanges the need for traditional exchanges reduced a lot, I mean still there are traders who use them but people who simply wants to buy BTC and keep them in their wallet might prefer the instant swap exchanges.

[Finebone]

I think you are doing the right things; since you are doing leverage trading, then you have to keep your funds in the exchanges. So dividing them on multiple exchanges reduces the possible risk of losing funds in case of exchange exploitation. For spot traders, I will advise just moving funds into the safest hardware wallet after completing the trade.

The problem about leverage trading is that opportunity can come at anytime, so you need to have an active available balance all the time to seize any available opportunity, because if you do not have a margin available to take the opportunity that moment, it would be already late before you will finish wasting  time, by moving some funds to your exchange account. So it's very important that you must always have an amount you can afford to lose in your exchange account if you want to be a successful derivative or futures trader.

[BitBakerr1]

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.

I agree with you, If you are a trader, you need to always use an exchange, if you are not using an exchange, then you are not a good trader. A good trader must always use an exchange because anything can happen and you may decide to sell or buy immediately.
The reason why people are succeeding in trading is because they are using exchange, to be successful as a trader. You must use an exchange.

And yes, exchange can be hacked and Wallet can also be hacked, just this year we all saw some few wallets that have been hacked, Just the way exchange has also been hacked.

[Mpamaegbu]

Exchanges can't even prevent themselves from attacks, and this is the reason not to rely on them.

To tell you the truth, nothing/nobody is immuned from attacks in this industry. It doesn't matter how strong or fortified we think a particular exchange or app is. It happens whenever insiders want to rear their ugly heads and show their hands. When that Binance hack happened, I had some funds on the exchange (a couple of hundreds) and I didn't panic for two reasons. One, it was because what I had there at the time was an amount I wouldn't die for. Two, I had the confidence the exchange could refund everyone there because of its reserve funds in cold wallet. Even when the recent Bitget hack happened, I had two tokens there but I never panicked. In fact, I didn't bother checking my account until after a week of that hack. Everything was intact when I checked. The advice is to choose an exchange with high trust score rating if you must use one.