While there is a risk that you open yourself up to, that is a trade off when you think about what you could miss in seconds when it comes to how the market changes in short periods of time. Day traders have no ability to wait for this time, they have to act instantly.
They take the risk and they reap the rewards of being day traders (whatever that may be)
Topic: Storing coins in exchanges. (Read 117 times)
As we all know exchanges can get hacked, caн be down for a long time, can held transactions and so on, so obviously it is not a good idea to keep your coins in them at all times. But then comes the transaction prices, if we move the coins always, we pay extra for the transactions we make. Perhaps the decentralized exchanges where you can directly log in with your wallet will help solve this, as you have the control over your wallet and not the exchanges.
That's why it is not advisable to hold a lot of your funds in an exchanges because of what you said. If the exchanges are hack then your coins are gone. If your account is compromise, same results. The practice though is just put enough coins for your trading activity. If you are done and make good profits then its time to withdraw and put it in your wallet where you have total control over it. Nothing spectacular and you can sleep knowing that your funds are safe in your hard wallet.
OP is right about the risks to use crypto exchanges for storing coins. The withdrawal fees are unavoidable, we can only try to weight this factor when we choose an exchange for buying of coins.
I would anyone store coin in an exchange! It is not safe to do so and beside, there are many safer methods and ways for you to keep your coin. You can go cold by storing your coin in cold storage. You could also generate paper wallet for your coin.
As we all know exchanges can get hacked, caн be down for a long time, can held transactions and so on, so obviously it is not a good idea to keep your coins in them at all times. But then comes the transaction prices, if we move the coins always, we pay extra for the transactions we make. Perhaps the decentralized exchanges where you can directly log in with your wallet will help solve this, as you have the control over your wallet and not the exchanges.
I'm not going to recommend to you guys to use exchanges as a storing place to your coins even though it is a decentralized one. I suggest you guys to use a wallet for that, it is important that you have the control for all of your coins, and having your own wallet is a lot of reassuring than storing it on exchanges. Also having that fact that an exchanges could be down for a while and that would be annoying if you really need to sell some of your coins for fiat.
Perhaps the decentralized exchanges where you can directly log in with your wallet will help solve this, as you have the control over your wallet and not the exchanges.
you still have to make on chain transactions and that will require paying on chain fees. so you won't be escaping that when using a decentralized exchange.
but there are solutions such as Lightning Network and the cross chain transactions called Atomic Swap which may take place on the second layer and because of that they can have nearly zero transaction fees. but I have not seen this in action so this is just a theory for the time being. hopefully it becomes a reality soon.
As we all know exchanges can get hacked, caн be down for a long time, can held transactions and so on, so obviously it is not a good idea to keep your coins in them at all times. But then comes the transaction prices, if we move the coins always, we pay extra for the transactions we make. Perhaps the decentralized exchanges where you can directly log in with your wallet will help solve this, as you have the control over your wallet and not the exchanges.
If you trade for a living, that means almost daily, moving coins in and out of exchanges makes no sense.
So you will have to store a certain amount of coins on the exchanges of your choice.
Therefore I only store small amount of coins, compared to what I have in cold storage, on exchanges. Furthermore I also withdraw regularly some of the profits.
So if something should happen with one of those exchanges, the loss wouldn't hurt that much. That's the risk we have to take at the moment.
Decentralized exchanges will need much more time to be competitive with centralized exchanges like Binance or Bitfinex in terms of number of users, liquidity and ease of use.
But I hope one day we will get rid off all those centralized platforms.
As we all know exchanges can get hacked, caн be down for a long time, can held transactions and so on, so obviously it is not a good idea to keep your coins in them at all times. But then comes the transaction prices, if we move the coins always, we pay extra for the transactions we make. Perhaps the decentralized exchanges where you can directly log in with your wallet will help solve this, as you have the control over your wallet and not the exchanges.
Since majority knows it obviously then it was obvious too what will be some of the best/wise/preferred things to do to counter all the risks associated on it. It's a common action prior on entering the trading activity.
Once you entered the world of trading, you must understand that everything is risky so deal with it or left out.
As we all know exchanges can get hacked, caн be down for a long time, can held transactions and so on, so obviously it is not a good idea to keep your coins in them at all times. But then comes the transaction prices, if we move the coins always, we pay extra for the transactions we make. Perhaps the decentralized exchanges where you can directly log in with your wallet will help solve this, as you have the control over your wallet and not the exchanges.
Yes exchanges are the primary target of hackers because they hold huge volume of cryptocurrencies. But if you are trader, the goal is always get a profit so moving your cryptocurrency in and out of the exchange will cost you a lot, so there is no choice but to store it to them until you decided to get your profit. Decentralized exchanges are a good option because it is trustless, transparent and offers anonymity to users but it is not that easy to use and there is no option for traders to trade their cryptocurrencies to fiat and vise versa, this is why decentralized exchanges also have low volumes.
I keep my coin in bittrex market I think it's very safe. with autentikator feel more secure.
and must keep their emails in order not to be cracked by others
delete incoming email data as well to avoid account to be cracked by others.
and must keep their emails in order not to be cracked by others
delete incoming email data as well to avoid account to be cracked by others.
Storing coin on the exchange is very dangerous! If you are not directly have singular access to your coin, you are not in control of it and if you are not in control of your coin, whoever in control of your coin can decide what to do with it without your approval!
Its true that we need to pay extra for the transaction each time we make some moves. But to be honest those little fees are all right in from to the big loss caused due to the hacks or stealing etc. Its always better to have your coins in the wallets at any cost. You should look after the big security rather than smaller fees of transaction. What if exchanger got hacked and your thousands of worth dollars got wiped out for nothing. To avoid such consequences it would be better to pay couple of dollars in terms of fees.
Long term and mid term traders always maintain a wallet only but day traders are always stored in exchanges because they are all experts in the trading field. So they know how to transact in securely and how protect ourself. Still some exchanges good reputation so we should the right trading site this will protect our investment.
I am not prefer to store my coins in exchanges because sometimes, they are being delisted on crypto markets without prior announcements.
It depends. If you day trade, keeping your coins on exchanges (or at least most of them) is the right way to go. On the other hand, if you're a hodler or a longterm trader, it's better to store then on a hardware wallet and transfer them again to exchanges when you want to sell them. Exchanges get hacked, so I wouldn't store my crypto on them unless I have to.
For a day trader, it is required to keep the coins in exchange it is not worth to move coins daily but for the long term holder and trader it will be good if he moves his coins from an exchange and keep it in the secure wallet it will be good for them.
As we all know exchanges can get hacked, caн be down for a long time, can held transactions and so on, so obviously it is not a good idea to keep your coins in them at all times. But then comes the transaction prices, if we move the coins always, we pay extra for the transactions we make. Perhaps the decentralized exchanges where you can directly log in with your wallet will help solve this, as you have the control over your wallet and not the exchanges.
Jump to: