Topic: What's Your Exchange to Wallet Ratio? (Read 599 times)

Wow this thread took off  .

I feel very confident after using my TREZOR several times now. I understand how it works and have moved much of my BTC off of the exchange and onto it. What an awesome piece of tech.

My exchange to wallet ratio is actually unhealthy for some one who understnands the slogan of "not your keys, not your wallet".  I have literally all my Bitcoin on exchange wallet owing to the gas fees Bitcoin network is currently unfolding. Lightening Network is doing its own bit but sometimes we just have this cluster that makes us feel the rel deal a little bit so I deceided to leave my Bitcoin on exchangers.

You are very correct and it is practical. Just like me, I do not have to keep all my Bitcoin in self-custody that is decentralised, which is not good for my trading business but only good for the investment part. It is the HODLers who can be comfortable with the keeping of all of their coins in the self-custody arrangement,t but for those who want to trade and will use Bitcoin for payment and also send money home to be exchanged with P2P and others, it is unwise and not necessary to keep it all in the self-custody. The way I see it is that once money is moved to the non-custodial wallets, that money should be locked there, and God forbids that the person has a problem, the money should be there until Bitcoin has a long-term bearish pattern on the monthly chart. Nothing other than that should cause the moving out of the money for any reason. But for business to continue to happen, the centralized exchange which is custodial must be used and it is even better than the DEX alternative for business in all ramifications.

i do not have anything on an online exchange, I don't think there's any reason to store any on an exchange unless you're day trading or only trading for very short term. I'm pretty against online exchanges because you're not the real owner of your crypto, the exchange is. You don't control your private key, they do. It's extremely easy to get sim swapped or hacked another way on an online exchange. If you're planning on holding for a while, id recommend you transfer to either a hot or cold storage crypto wallet, not an exchange. Personally, I keep about 15-20% on Exodus, for day to day use, maybe spending a little, and the rest ~80% of my assets are locked up on Trezor.  Holding till the moon.

1 to 4 at the moment. I don't want to keep any coins on the exchange at all but like every other guy who makes trades, I don't really have a choice. At least I am not 100% on the exchanges like many people. I will only lose 20% of my crypto if the exchange goes down. 20% is still a big amount but that's the risk I am willing to take because no risk = no gain. I wish decentralized exchanges were more popular and safe but somehow they never took off. I guess trading will always happen on the centralized exchanges and some people will always lose money... It doesn't look like this will change anytime in the future.

I am not leaving a percentage of my coins at the exchange. What's the point in that? I can understand that if you are trading actively and need to react quickly that you will leave money at the exchange. But if you are investing for long term and will not likely touch the coins any time soon, then I would always withdraw all the coins. It's better to remain in full control and have all our coins in a well secured wallet that at the exchange. In the past there where too many security issue with large exchanges, so that I wouldn't take the risk of leaving any coins there for a long period of time. The only benefit I see is to be able to react more quickly to price changes in the market, but even then we could just send the coins from our wallet again. I prefer to pay a bit more in transaction cost for higher security.

I do not have any, all of it is in either exchange or cashed out in fiat form at my bank account, I have no wallet of my own that put any money in right now, I do have a wallet, electrum, but I do not use it currently because I like to trade with mine right now and that means I need them on the exchange to make some money. Doesn't mean that it is a smart idea, it just means that it is not that easy to handle at the moment.

I believe that the best thing to do at this moment is not to really take any risk, and just let it be, I believe that would definitely make it a lot better and could end up with a good result one way or another. That would not be all that easy, and it would still be a smart idea to keep it in wallet if you are holding.

If you would really be doing trading then most likely you would really be experiencing that you would be storing up your funds into the platform on which it would really be just that normal that would be doing less on transferring it out into those non custodial wallet on which it is recommended but if the platform or exchange you are dealing with is something reputable and long time running
then it cant be denied that we could really be able to mold up such confidence and we might be considering on storing up those funds in long time. Even myself would be thinkin up the same.
It isnt really just that because of the fee but also the main reason on why people would be storing up their coins is that it isnt really that hassle on transferring go back and forth into those
funds which you are tending that you would gonna trade. This is why we do hear up different opinions but in general case on which its never been that recommended
for you to store up huge sums no matter how trustable it is, we've seen the worst so its better to be safe than sorry.

With Bitcoin Spot ETFs are coming, people will be given a new option to invest in Bitcoin.

If they want self custody, they will buy bitcoin directly and store bitcoin by themselves.
If they want convenience and are not fearful of custody, they will not buy bitcoin directly but buy shares of Bitcoin Spot ETF alternatively.

If they choose Bitcoin Spot ETF shares, it's their decision to take risk by spending money but won't actually own bitcoins.

Some people can feel storing bitcoin by themselves is inconvenient but I don't see it like this. I love self custody and see it convenient too.

Anyone who is offering a higher percentage in your bitcoin holdings is obviously telling you to hand your bitcoin over to them, and they are trying to use someone greedy to steal from them.
 
Once bitcoin is sent to a centralised exchange, the custody of that fund is no longer in the hands of the owner; the bitcoin now has a new owner, and all that the person gets is just some figures added to their account and nothing more than that.
 
The question most people need to ask first is: how and what exactly will this exchange offering this reward do with the bitcoin, which will increase the reward over a short period of time that will be enough to reward both depositors and keep their business going?
 
NOT YOUR KEY NOT YOUR COIN. No matter the kind of offer Celsius and FTX give, it's not worth handing them over your custody of your coins.

0% at exchanges.  If you look at the history of exchanges, they are not safe for long term storage.  And if anyone - like Celsius, FTX etc - is offering something that appears too good to be true or wants to have custody of your coins, it probably is and they are probably scammers.

If you don't have the private keys, you are merely a creditor as many have found out to their regret.  Only put coins on exchanges briefly to sell (or after you buy).  I think Coinbase is legit of course, they seem quite competent, but many others are just scammers.

I don't leave any BTC on exchanges because that would be weird and pointless since I don't trade, but I do hold some Ethereum on an exchange in order to get interest on my holdings.  As far as a ratio if I were to put a number on it...  I'd say the ratio of crypto assets on exchanges as opposed to being held in wallets as opposed to exchanges is just under 1 to 100.  This should change once the mtgox coins are distributed, but I imagine I will either cash out those coins or remove them from the exchange as well.

It is really that always be on which it would really be just that right that people shouldn't really be treating up those exchangers to be their long time wallets. Only noobs who would really be having this kind of consideration and this is why on the time that there would really be some exchange hacks and exploits then this is where they would really be that making searches that storing coins on exchangers are non suggested.
Yes, they do make out those realizations but it is really too late and this is why it would really be that always best that you should really make yourself wary as early as possible. The only issue when you do make
those active transfers from exchange to your main wallet is that into those fees, people would normally be trying out to save fees as much as possible and this is why they dont make those active
transfers just for having that kind of saving up for  those things specially now that even on Bitcoins fees were high then it would really be that just a waste if you do make out some active transfers.

This is why i do only store up into those coins basing up on what would be i trading. I dont put up 100% of my coin holdings into an exchange but rather i would really be just
storing or transferring coins which are really that bound for me to make use into trading or something that i would really be making out those active buy and sell
on which i dont need on keeping transfers.

Even if Centralized exchanges charge additional fees to earn profit that amount still charging $6 extra is too much.. if coinbase really doing that then they are really insanse. I am glad that coinbase don't work in my country and I'll never get to use that.
and that is yet another reason to keep your holding in your safe wallet. only keep as much as you need for trading in exchange and when you earn some profit from trading withdraw them too.


it is good that you are a Defi lover. but I suggest you to use separate wallet when using Defi platforms. never use your personal/cold wallet where you store majority of your funds.

The question is not quite correct. If a person trades bitcoins, then, naturally, he will keep part of his bitcoins on the exchange. And if a person does not trade bitcoins, why should he keep his bitcoins on the exchange? Using exchanges as a wallet is a bad idea.

1%

What's Your Exchange to Wallet Ratio? I usually put a big chunks of money in an external wallet meaning outside the exchange, especially the BTC because the fee is insane.

and I like the DeFi World so Most of my money is outside the exchange + I have 2 wallet hot wallet and cold one and that it

That depends on each investor. It would be a lie for someone who is a trader to say that they always store their crypto assets in a non-custodial wallet or always withdraw all their bitcoins to their wallet at the end of the day. But if someone has no intention of short-term trading but just wants to accumulate and hold for the long term, storing their bitcoins on exchanges would be the stupidest idea.

For me, long-term portfolios are always stored in hardware wallets, and part of the capital used for short-term trading is stored on centralized exchanges. Risks are always present when we leave money on centralized exchanges, but to be able to trade and make profits, we really have no other choice.

As a businessman in cryptocurrency, it will be so senseless for me to store all my Bitcoins in my non-custodial wallet, nonetheless, I have the majority of my coins there. Also, if I am making so many gains with my trading and investments, I send more to my non-custodial wallets and it has been so easy for me. This is against what I do hear that it is so bad to have any asset in the custodial arrangement, but what about the business around it that the self-custody and even DEX cannot offer you? That is good for those who cannot maximize their earning potential with Bitcoin with what they know and rely only on what the HODLing of the coin can offer them alone.

I will continue to do my style even as I use the Bitcoin-USDT transfer often within the exchange with low fees depending on the market condition and my disposition which has always helped me rather than discouraging me unlike many here would want people to believe.

We can keep BTC in our wallet but before that we need to see how safe the wallet is to keep BTC. If I feel that my wallet is 100% safe then of course I can hold BTC in my wallet. I keep my BTC in my wallet even though there is little risk in holding BTC in long term wallet.