Topic: Where do daytraders store their crypto? (Read 848 times)

There's no such thing about perfect security even with the current best exchange did experience some hack.
Hack Brief: Hackers Stole $40 Million from Binance Cryptocurrency Exchange

Therefore, there's no assurance about security but good thing that they are really that prepared on making out some compensations or refund
on affected users.

When it comes to exchanges indeed Binance is one of the most popular exchanges,
especially by looking at the features that Binance has, it can be said to be complete so many people use it,
the level of security is also high although indeed we never know whether it will be safe from hackers

Binance is one of the recommended exchanges for storing assets because of its good reputation and experience in terms of security.  but for those with large capital, there is nothing wrong with moving the assets in a personal wallet after trading because we can't make sure an exchange as good as binance is safe from hackers.

Binance is one of the recommended exchanges for storing assets because of its good reputation and experience in terms of security.  but for those with large capital, there is nothing wrong with moving the assets in a personal wallet after trading because we can't make sure an exchange as good as binance is safe from hackers.

In this regard, I would say that you can trade on exchanges like Binance. Trading fees are much lower. You can convert your assets into a stable coin by trading every day. Binance is very useful in this case. You can easily convert to USDT or BUSD to your assets. If you select others exchanges like it you can do.

Assuming you trade a lot and are a daytrader and use binance, coinbase and all those exchanges, you need your coins on the exchange to trade.  But when you are done with trading that day, do majority of traders just leave their coins there till the next day?  Now if you are trading it with USD, then no issue then right since the balance would be USD or a portion of your balance is in USD?


If you are doing this with coins like ETH, you are going to pay a ton of fees each way.  Your exchange is going to charge you a fee and you going to pay a decent fee sending it back the next day.  Now imagine having many other altcoins where the fees are similar.  I can' t imagine people are depositing/withdrawing each day?  The deposit/withdraw fees would eat them up if they do ETH or even if they use a lot of other coins because the exchange is going to charge them a flat fee each time.


Obviously keeping your coins in an exchange is not as safe as a hardware wallet, but what do daytraders do?  If I daytrade, I would just keep my coins in the exchange until I need to withdraw or if I know I won't be trading for a while.  The other thing is some coins they want to trade, it is possible they can't store it in their hardware wallet because that coin is not supported.  So because of that, no other option than to store it on the exchange?  Or they use something like metamask?  But still they have to pay fees depositing/withdrawing right?

Assuming you trade a lot and are a daytrader and use binance, coinbase and all those exchanges, you need your coins on the exchange to trade.  But when you are done with trading that day, do majority of traders just leave their coins there till the next day?  Now if you are trading it with USD, then no issue then right since the balance would be USD or a portion of your balance is in USD?


If you are doing this with coins like ETH, you are going to pay a ton of fees each way.  Your exchange is going to charge you a fee and you going to pay a decent fee sending it back the next day.  Now imagine having many other altcoins where the fees are similar.  I can' t imagine people are depositing/withdrawing each day?  The deposit/withdraw fees would eat them up if they do ETH or even if they use a lot of other coins because the exchange is going to charge them a flat fee each time.


Obviously keeping your coins in an exchange is not as safe as a hardware wallet, but what do daytraders do?  If I daytrade, I would just keep my coins in the exchange until I need to withdraw or if I know I won't be trading for a while.  The other thing is some coins they want to trade, it is possible they can't store it in their hardware wallet because that coin is not supported.  So because of that, no other option than to store it on the exchange?  Or they use something like metamask?  But still they have to pay fees depositing/withdrawing right?

Obviously keeping your coins in an exchange is not as safe as a hardware wallet, but what do daytraders do?  If I daytrade, I would just keep my coins in the exchange until I need to withdraw or if I know I won't be trading for a while.

DEX is the solution for all your concern. Daytraders nowadays doesn't rely that much on CEX since there is already an alternative way to day trade without risking money on CEX since the current available DEX has sufficient volume to rival what CEX offered and this is only possible with the DeFi idea that used on DEX. Still many people are using CEX for trding due to its feature of placing limit order which DEX can’t provide because this is the limitation of an AMM exchange.

DEX is the solution for all your concern. Daytraders nowadays doesn't rely that much on CEX since there is already an alternative way to day trade without risking money on CEX since the current available DEX has sufficient volume to rival what CEX offered and this is only possible with the DeFi idea that used on DEX. Still many people are using CEX for trding due to its feature of placing limit order which DEX can’t provide because this is the limitation of an AMM exchange.

The issue of  trusting a centralized exchange with your coin is a very dicey risk that is unavoidable for traders! Having to take a position require that you trust an exchange with your fund! However, one can mitigate this risk by following a time bound plan for your trading hoping you will not fall victim of a hack or government regulations!

In this regard, I would say that you can trade on exchanges like Binance. Trading fees are much lower. You can convert your assets into a stable coin by trading every day. Binance is very useful in this case. You can easily convert to USDT or BUSD to your assets. If you select others exchanges like it you can do.

Speaking of future then everything is not assured or doesnt really have any guarantees that it would really be happening again or possible things to happen specially that this market involves big money

which is great spot for hackers to get huge amount of money.For daytraders then most of their funds would be stored on exchangers yet they are active on making out some trades then it would

be understandable that they would really be having that kind of set-up.Funds are on idle and able to make out some immediate move when there's opportunity but of course it would be having
its cons.

It's okay if you do that because you know that it can happen anytime, just being aware is already good as it is because you've seen the changes. As you've said, it still applies today.
Choosing a reliable exchange is vital and if the hack happens, they can just refund all the affected users. But we don't know if that ever happens again, if they're going to give the same refund as before, we just don't know what can really happen in the future.

Many years ago when I started with crypto everything was so uncertain, exchanges were often hacked, scams and frauds were everywhere, and keeping coins without private keys was a really big problem! That rule still exists, never doubt it, if you don't have private keys you don't own coins, but many other things have changed, exchange offices are now much more reliable than before! I am not afraid to keep some amounts on different exchanges! I am doing the same for years and I never had a single problem, that speaks for itself!
People who day trade should choose a reliable exchange for that and be free to store some amounts there! If you are afraid of that you shouldn't day trade in the first place! Simply moving funds after every trade is too expensive!

It's not advisable to keep your assets in exchanges.

You are right however for a trader which is hell bent on trying to obtain profits having money in the sidelines not participating in a trade is simply unacceptable to them, so they may not have any other option but to have all their capital at exchanges all the time, now a possible way to avoid this could be by using leverage and a very tight stop loss, but this will increase the number of whipsaws and you need to pay additional few which can destroy the profitability of most day traders anyway.