Topic: Meaning of leaving money on the exchange (Read 535 times)

i think that screenshot wanted to say that choose your exchange carefully and be sure to follow all news to prevent such loss like mt-gox

pulling money out of exchanges is not logically true, because you are paying extra deposit/withdraw fee. also most important you will lose chance to act fast on news trading which is mostly much more profitable than normal trade.
 
i myself, prefer a more expensive but more trusted exchange than cheaper one which i know less about itself and owners

Not really like that, what that means is like in gambling. Gamble only what you afford to lose and in trading, put your bitcoins in an exchange where you can afford to lose. Likely people are telling this because there can be scenarios that the exchange will be compromised and hack together with your funds. And that's why you only have to put an amount where you'll use ideally only for trading, don't use them for safekeeping that it's.

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It's fine to leave some extra as long as you afford that amount when something crazy happens to that exchange.

So from what I understood: those who just got their ETH frozen in their wallet..

1. it's not fixable without a fork? That is serious

2. it apparently has to do with hacked code (through a prob with its smart contract) on the blockchain

So yeah, think twice. You are not fully in control either because you own a hardware wallet.

I don't think this applies to BTC wallets, but I'm not sure I'd feel safe with these either. All the wallet does is cryptography. But handling it is done through software. Said support software can't be hacked to steal your stuff, but if you've stored your BTC's in a hardware wallet for 10 years, will all the software still be there to operate it in 10 years? Very likely that it will still be findable, but also very likely that the companies will have stopped their support for years. Maybe it'll still be safe, but it will be a pain in the ass.
I have old code on backup tapes somewhere.. it's "safe", it's (probably, but maybe not) still on those tapes.. and to access it I'd have to ebay for an old reader, and possibly an old PC because it was all DOS & old partition systems back then. Well it's "backed up", but for me it's practically lost.

With online wallets you trust people, like you trust your bank. And banks have proven to be fragile as well (but generally they're backed up by countries).

So yeah both suck. Just consider that you're never really in control of your money, unless you have a bar of solid gold (and a gun to protect it) under your bed.
What's ironic is that with this cryptocurrency you're trusting EVERYONE, you give your trust to the mass. In theory it's better, "everyone" can't go wrong (but in practice this "everyone" right now is many large farms, it's not "the people" anymore). But still, with BTC you're trusting strangers more than ever. And they are way more strangers than your national bank, if something happens to your money, it's gone, no one is gonna help you, no one cares. Your bank would, because the money there has your name on it. Different worlds, but they both have advantages. If you like to trust people with guns to protect your gold, instead of owning a gun yourself, a bank or a *reputed, well-funded, regulated & backed up* online wallet isn't a bad idea IMHO.

Keeping your money (fiat or coins) over exchanges means it is prone to threats of being hacked either via your account OR if the exchange goes offline or gets hacked via some DoS attacks. Leaving money over exchanges is like leaving it on the table for someone to come and snatch it away in front of your eyes. It's always better to have a safe (cold) wallet to store your coins and withdraw your stash every 2 - 3 days or weekly out of the exchange to work it out for yourself. It will always protect you from the possible worst situations that could happen any time now as Bitcoin has gained a lot more momentum and it's really hard to believe any online services to store it now.

It means that never believe exchanges and when ever their is big profit just take some profit withdraw so that in future if any problem you should not be loosing everything . This the meaning of never leave money on exchange.

i think to withdraw or not, its depend on you because that is your money and you have fully controlled and managed your own money but if I were you, I think I will withdraw my profit and still using the base money to do trading again and another make profit. I think the most problem from people which doing trading bitcoin pair fiat is because they are too greedy with their profit and they don't make some limit that they want to reach in one day so sometime they are missed the right time to take the profit and then finally they only gets lose their money.

This is just precaution that most experienced people in crypto advice to newbies so that they don't experience the same mistake like the experts. Because you never know, no matter how reputed and how big the trading volume is and extreme security measures will also not be able to stop hackers from hacking the exchange. It's always advised that people need to keep their crypto in a hardware wallet for their own safety of their hard earned money.

This is a good advice for you. With trading, you just need an amount of money for the deposit. All your money and profit need to transfer to your wallet. Don't put your money in exchange, you might be lost

In my opinion also more safe to store it in wallet where we control it.
I always have some bitcoin/etherium in some exchange as much as i use for trading. 
The rest i keep in my own wallet.

They are just saying don’t store cryptocurrencies on the exchanges. So if you are trading with half of your fund then keep the other half off the exchange and in a secure wallet. You are always taking a risk with exchanges. I recommend that you keep most of you coins (maybe 75%) in an offline wallet and only trade with 25% or less. You never know when an exchange will get hacked or go out of business, so protect most of your coins.

No need to download different wallets because there are wallets that hold different coins like myetherwallet. Like mostly of the coins in exchanges are erc20 tokens so MEW will just do.
Exchanges are just meant for trading coins and not for storing coins. Just deposit your coins when yoy wanna trade and withdraw it immediately after you finish transaction. Better be safe than sorry.

At least you are exploring yourself about in this things, though for a newbie like you it wouldn't be easy to understand this matter at early stage. But just be patience and continue what you are doing it now. If you leave money on trading you want to multiply your capital by this things just be careful on choosing in which coins you are going to trade in mate. and check the coinmarketcap.com choose among the top 20 listed in there. Okay

Any exchange could just disappear with the funds or get hacked. There's been several instances where this has happened and it's likely to happen in the future too. Not only that but exchanges are a gold mine for hackers to try and get access into peoples accounts which will happen from time to time. Keeping money in any online service isn't good practice. Also trusting your funds in someone else hands is not a good idea.

It is very risky to leave money on a exchange, it doesnt matter how much money you have in there, i use to never leave a buck in there because i am afraid to face a hack or something else who can compromise my account or my funds, it is a serious problem and nobody should leave money in there.
I used to trade before, and after every trade, or after every day i used to withdraw that money because i dont feel safe to have money in there, you all know that they can just suddenly disappear and run away with your hard earned money.

The reason to do that has to do with the fact many people do not trust exchanges to hold their funds for the long term, there have been too many hacks, technical problems, scams and governments raids, and people have lost fortunes so every time you are done for the day it is a good idea to withdraw your money from the exchange, it is a pain but you need to do it.

It is good practice to remove all funds from any accounts and in to a secure wallet whenever you are done trading, many people got burned years ago when Mt. Gox went down and it is wise to reduce the risks of such a thing happening again.

What about those traders on bittrex who buy like 25+ altcoins etc.  Are they really going to download 25 different wallets on their computer though?

I actually have slowly seen a trend, that some of the exchanges try to encourage the users by giving them a personal wallets and addresses on their exchange accounts. Maybe you don't have a full control, but it's also not like your money is stored in the same place as everyone else's. That way also, there was no problems with funds in case of forks as they could easily just add them to your exchange account, because you are in a way an owner of these addresses.

Yes I agree to you that it is not really good and safe to store money in the exchanger because we don't have any control on it and anytime the website can be go down and we don't have any chance to get back our money.

It is risky man, but there is no way that you could lose your money if you leave your money on a big exchange like polo or bittrex, not even cryptopia. That guy who lost 0.50 bitcoins probably lost them because their funds were connected to something weird, so there is no need to worry if you are going to leave your coins in there, because there is no way that you can lose them, no matter what.
I have some coins on Polo and i have never experienced something strange.

It is not really good leaving your profit on exchange sites, cause you are not fully in control of your coins in the account. So, it is better for you to withdraw to your wallet where you have all the access code, so as to avoid losses.

Because a lot of people are losing money because of those fraudulents exchanges, i still remember those times in where i had more than 0.50 bitcoins on my poloniex wallet, and poloniex closed my account without any explanation, i tried to send several support tickets but none of them was answered (bitcoin was below $2500 by those times) but it was not fair, a lot of people had the same issue.
I dont know why it happened to me, but because of this is that i am so insecure about exchanges and everything that concerns about them.

That is just a precaution given to people who uses exchanges as even the most reliable exchange can be vulnerable to attacks. Not to mention that the exchanges have the power to hold your account when they want it. This exchanges are not the extension of your wallet as any time they can be shutdown by the certain countries they are operating with.

Quite ironic:

https://techcrunch.com/2017/11/07/a-major-vulnerability-has-frozen-hundreds-of-millions-of-dollars-of-ethereum/?ncid=mobilenavtrend


Trusting an online service, or trusting hardware.. really I'm not sure what's worst. It depends on the size & reputation of the service. I trust my bank probably more than I should, but I wouldn't wanna have all my money in gold bars under by bed. Or even worse, as a magic code in my memory, which I don't trust at all.

It's not always a safe bet to keep Bitcoin in the exchange. If you have a wallet, try to keep it in your wallet, and importantly, keep your wallet's private key

If you make $300 profit in bitcoin as you said let say the profit was made on $3000, if you have not cash out your profit in bitcoin, you have not made that profit. It is still a paper profit if the profit is still in the form it was made. And if you have cash out in bitcoin but your bitcoin is still on the exchange that means you are not in charge of your fund yet and if anything happen to wallet on exchange of which you donot have private key , then youhave lost of everything.

It only means that you don't store all your bitcoin in an exchange because it is not safe. Most traders here will just leave a few bitcoin or altcoin on an exchange for their daily trading needs. And if the coins already grow and just sitting on it, we have a practice to moved that coins and deposit to your personal wallet like Electrum because you have total control of it. When your coins are just sitting in an exchange, there is a likelihood of a hack resulting you losing it. Or if the exchange suddenly close because the authorities says so, like what happened to BTC-e, then its gonna be difficult for you to get it back. So to be safe moved your coins out from an exchange to a wallet that you own.

Yeah then you of course should leave it on the platform.

Cashing out your losses at the end of the day isn't necessarily the best idea, though.
I don't even think it's safer, especially with altcoins, where you can double but also half your bet within a few hours.

Thanks Kloug for the help,

I plan to only day trade the bitcoin market BTC/USD so, I will be cash most of they day or when I go to sleep.

It means it's more safe to hold your currency locally, in a hardware wallet, than trusting an online service to do it for you. One that can be hacked or go out of business, or be a scam. They're not as reliable as large banks (which themselves proved not to be so reliable either)

So it means when you're not actively trading but holding it for years/months.
Of course you can also screw up holding your bitcoins yourself, but then it's your own fault.

Hello,

I was doing some research on Bitcoin trading.


http://prntscr.com/h76g3r

What does this mean by "Ideally, when trading, only deposit to make a trade, then get your money off the exchange." from the link above. I took a screenshot from an article.

Does this mean, if i take a trade on exchange GDAX and close it the trade with a profit of say $300, I need to withdraw $300 from GDAX instantly? Or does this mean, don't leave extra money in my GDAX trading account that I will not be used for trading only?

Thanks, still learning.