In the first place, it is completely different if we decide to store our crypto to exchanges or to our personal wallets such as hardware. But to think of the fact that this two do actually have their own meaning and purpose could help us to make our decision such as considering that exchanges are platforms for buying and selling crypto, and wallets that are intended to store our cryptocurrency.
Though, you can store your crypto in exchanges, I advise that you just do it when you want to risk your fund and you want it to grow through trading. Or else, store it in Nano or trezor to make sure that your funds will be safe in a long term.
Topic: Placing coins in storage or setting stop losses? - page 2. (Read 336 times)
Common advice is to keep your currencies safe by placing them into storage. I feel this is risky considering coins have dumped to all time lows within short periods of time. The alternative would be to keep them on an exchange and set stop losses, however, this is also risky as exchanges or your account can be compromised. How do you manage these risks?
It's still goes down on the potential of the coin, I will be storing it in a cold wallet if I know the potential of the coin, but will never store it in exchange it has been advised hundred of times there is a huge risk storing your coins in a wallet, because you have no control on it, and the to many hacking going on.It's not totally a stop-loss feature on an exchange, he/she will still decide at the end, like if the OP wants to stop-loss or cut losses, he/she manually transfer again those coins back to the exchange and sell it immediately at losses.
The only problem here is the withdrawal fee on the exchange + transaction fee for depositing it again to the exchange.
Common advice is to keep your currencies safe by placing them into storage. I feel this is risky considering coins have dumped to all time lows within short periods of time.
Store your coins in the place you have full control of private keys, mnemonic seeds is the best.You can make deposit to exchanges and sell your coins. Don't worry about flash dumps because price will recover later. Of course, I am saying about good coins, not scam ones. With scam coins, whenever their team finish their planned fundraising, they will do scam exit, and price will hardly recover to where it is (all time high, ie.).
Quote
The alternative would be to keep them on an exchange and set stop losses, however, this is also risky as exchanges or your account can be compromised.
Stop losses can be used but it can not completely protect you.Sometimes, stop loss orders get errors (it mostly occur in flash crashes). Do you think of why we have flash crashes? Partially because of stop loss traps and errors.
Sometimes your exchanges make scam exit and you lose your money. Lose it all.
Don't let your stop losses eat all of your money.
Common advice is to keep your currencies safe by placing them into storage. I feel this is risky considering coins have dumped to all time lows within short periods of time. The alternative would be to keep them on an exchange and set stop losses, however, this is also risky as exchanges or your account can be compromised. How do you manage these risks?
It's still goes down on the potential of the coin, I will be storing it in a cold wallet if I know the potential of the coin, but will never store it in exchange it has been advised hundred of times there is a huge risk storing your coins in a wallet, because you have no control on it, and the to many hacking going on.
it mainly depends on what you are holding and why!
for example if you own bitcoin and the reason is because you believe in its long term future then the answer is obviously to keep the bitcoins in cold storage instead of leaving them on exchanges in open orders and stop loss orders.
but if you own altcoins and the reason is because you want to make profit then you must store them on exchanges since altcoins are always pump and dumping and have no long term future. as a result you want to be able to dump them as fast as possible when their dump ends.
for example if you own bitcoin and the reason is because you believe in its long term future then the answer is obviously to keep the bitcoins in cold storage instead of leaving them on exchanges in open orders and stop loss orders.
but if you own altcoins and the reason is because you want to make profit then you must store them on exchanges since altcoins are always pump and dumping and have no long term future. as a result you want to be able to dump them as fast as possible when their dump ends.
Common advice is to keep your currencies safe by placing them into storage. I feel this is risky considering coins have dumped to all time lows within short periods of time. The alternative would be to keep them on an exchange and set stop losses, however, this is also risky as exchanges or your account can be compromised. How do you manage these risks?
If you don't have any intention to sell your coins at some time, no need to put them on exchange. And even let's say you put them on the exchange, why set up a stop-loss if your purpose is just to hold. Your coins will still have the same quantity, bull or bear. The values of it are the only ones that will change).
It's not wrong to put your coins on the exchange so you won't be late when you want to sell it but to lessen the risks, choose only those reputable and big exchanges and you should know what's the risks. But only do this if you intend to sell your coins and will not wait for long.
But to lessen your worries that the exchange might turn into scam no matter how big it is (although it won't likely happen now), then just transfer your coins when you want to sell it. Transferring your coins from your own controlled storage to exchange or trading sites will not consume much time.
How far can a 16 hour candle move? I don't know what the biggest move we've seen is but if we assume that's the longest you'd have to stay away from your funds then we can also assume your funds shouldn't see too much of a crash in this time (i.e time between you sleep or even checking your messages once in the morning and once in the evening - since you can easily set alerts on cointracking apps)...
You can also use multiple apps and most phones retain data connectivity pretty well so if you have coinbase and binance for example then you should get a good idea as to where a coin is at.
You can also use multiple apps and most phones retain data connectivity pretty well so if you have coinbase and binance for example then you should get a good idea as to where a coin is at.
Whenever a coin I own is dumped to All-Time Lows, I just buy more of it to decrease the average price I've invested at. This is how I minimize my losses and it's worked every time.
I'm hodling them all. Haven't sold a crypto in my entire life (for fiat). It's something that's gonna be worth a shit ton of money one day and if I won't get to benefit off it, my kids will. I haven't entered this game to dump my holdings. I'm just hodling them all and living a happy life watching BTC grow. My Nano S is probably the most precious thing I'll ever own.
I've done day trading but always failed. I have some kind of talent to hit the Buy button whenever price decreases and the Sell one right before a parabolic movement. I've done a lot of altcoin trading and what I found out in the end is that, although some of my moves got me a lot of profit at the time, if I were to hold BTC until today without selling it for any kind of alt, my total holdings today would've been worth approximately 50% more. Hence, trading BTC for alts and vice-versa when prices changed did get me profit at that moment, but on the long term that profit decreased dramatically.
I'm hodling them all. Haven't sold a crypto in my entire life (for fiat). It's something that's gonna be worth a shit ton of money one day and if I won't get to benefit off it, my kids will. I haven't entered this game to dump my holdings. I'm just hodling them all and living a happy life watching BTC grow. My Nano S is probably the most precious thing I'll ever own.
I've done day trading but always failed. I have some kind of talent to hit the Buy button whenever price decreases and the Sell one right before a parabolic movement. I've done a lot of altcoin trading and what I found out in the end is that, although some of my moves got me a lot of profit at the time, if I were to hold BTC until today without selling it for any kind of alt, my total holdings today would've been worth approximately 50% more. Hence, trading BTC for alts and vice-versa when prices changed did get me profit at that moment, but on the long term that profit decreased dramatically.
Common advice is to keep your currencies safe by placing them into storage. I feel this is risky considering coins have dumped to all time lows within short periods of time. The alternative would be to keep them on an exchange and set stop losses, however, this is also risky as exchanges or your account can be compromised. How do you manage these risks?
Since you seem to talk about altcoins, I'd say keep them on exchange and use stop loss orders, because the risk of a coin crashing is much higher than your account getting hacked. Just make sure to use 2FA and password manager with truly random password for both your account and email, and never install any risky software on your device to avoid getting malware.
If it's Bitcoin, or some not completely bad altcoin like Ethereum, and we are talking about big amounts, then you should use cold storage.
It's one thing to prevent theft, and another to prevent losses from price movements.
Indeed BTC markets are quite volatile with FIAT pairs, but that doesn't mean theft isn't worse.
You could still recover coins from a private key wallet pretty fast if you have the software in place. The security it provides is taking advantage of bitcoin's positive properties to the maximum. Holding BTC in an exchange might allow to trade to FIAT a few minutes faster but the risk of losing everything if the exchange goes bust is overpowering any advantage.
Indeed BTC markets are quite volatile with FIAT pairs, but that doesn't mean theft isn't worse.
You could still recover coins from a private key wallet pretty fast if you have the software in place. The security it provides is taking advantage of bitcoin's positive properties to the maximum. Holding BTC in an exchange might allow to trade to FIAT a few minutes faster but the risk of losing everything if the exchange goes bust is overpowering any advantage.
I keep all of my bitcoin’s in cold storage. I am the only person who has access to my private keys. I’m a long term HODLER, I have no intention to be a day trader.
For guaranteed profits - HODL
Day trading is for idiots
Leaving your coins on exchanges is a recipe for disaster.
Not your keys - Not your bitcoin.
For guaranteed profits - HODL
Day trading is for idiots
Leaving your coins on exchanges is a recipe for disaster.
Not your keys - Not your bitcoin.
Common advice is to keep your currencies safe by placing them into storage. I feel this is risky considering coins have dumped to all time lows within short periods of time. The alternative would be to keep them on an exchange and set stop losses, however, this is also risky as exchanges or your account can be compromised. How do you manage these risks?
You either are a belieber in bitcoin, or you're not.If you're not, you could either choose not to buy it, or as you said, have some faith in the centralized exchanges, and place stop loss orders for when bitcoin drops too low.
Can't stress it enough though: not your keys, not your coins.
Quote
How do you manage these risks?
Only buy what you can afford to lose.
Common advice is to keep your currencies safe by placing them into storage. I feel this is risky considering coins have dumped to all time lows within short periods of time. The alternative would be to keep them on an exchange and set stop losses, however, this is also risky as exchanges or your account can be compromised. How do you manage these risks?
Jump to: