Where do daytraders store their crypto? - page 2.

wozzek23

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Quote from: doomloop on April 01, 2022, 01:14:05 AM

if it is then it is a must to store the funds on the hardware wallet and not inside the exchanges but if it's for trading purposes you can just choose a trusted exchange and store your funds on them. A trusted exchange have a better security than the non trusted one, we are sure that hackers will have a hard time of penetrating it.

Thats not even really needed. I mean it is cool if you have a lot of money, if you are long term investor and you have a lot of money then it makes sense to get a ledger nano or something like that. However, if you are using Binance or Coinbase as your long term base, then it is not really that bad neither. They are two reputable exchanges and I highly doubt that anything would happen to your money there.

If you are using 2FA as well? Then it is probably as secure as your ledger as well. I am not saying that do not use hardware wallet, do use that if you can and it is the first option for sure. However, acting as if Coinbase would be a terrible choice never really made sense to me.

Ludmilla_rose1995

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I personally always prepare the assets that I will trade on the exchange where I trade because it is really impossible to transfer to a personal wallet if I finish trading, besides the fees charged will definitely reduce the number of assets I have.

doomloop

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Quote from: JooBra on March 31, 2022, 05:04:57 AM

Quote from: perla on March 31, 2022, 04:21:03 AM

They said that storing in exchange site is very dangerous since you don't know whether exchange site is safe from hackers is that possible to trade in exchange site directly with your Ledger or Nano hardware wallet like logging in to Metamask but this one you are going to login using your hardware wallet.

Long term and day trading are different things. Keeping your money for trading somewhere like Binance which is pretty safe like shown during the years it's okey i think.

Long term what, investing? well if it is then it is a must to store the funds on the hardware wallet and not inside the exchanges but if it's for trading purposes you can just choose a trusted exchange and store your funds on them. A trusted exchange have a better security than the non trusted one, we are sure that hackers will have a hard time of penetrating it.

@perla you use metamask? Be careful with this wallet because this wallet is not totally decentralized anymore. There are anomalies with this wallet lately. The one that you mean connecting the wallet directly to trade is I think works only on a decentralized exchange but not on binance and similar sites.

Silberman

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Quote from: blockman on March 31, 2022, 05:42:17 AM

Quote from: perla on March 31, 2022, 04:21:03 AM

They said that storing in exchange site is very dangerous since you don't know whether exchange site is safe from hackers is that possible to trade in exchange site directly with your Ledger or Nano hardware wallet like logging in to Metamask but this one you are going to login using your hardware wallet.

It's not advisable to keep your assets in exchanges. It's okay to leave some and trade them if you want to but do not leave all your assets there. Whichever is you're comfortable with and you know what you do to avoid being compromised, just keep on practicing the safe way of keeping your assets. Because not everyone is safe from it, I've read a lot of stories that their funds were compromised despite being aware of the hacks that has been revolving around in the community.

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.

blockman

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Quote from: perla on March 31, 2022, 04:21:03 AM

They said that storing in exchange site is very dangerous since you don't know whether exchange site is safe from hackers is that possible to trade in exchange site directly with your Ledger or Nano hardware wallet like logging in to Metamask but this one you are going to login using your hardware wallet.

It's not advisable to keep your assets in exchanges. It's okay to leave some and trade them if you want to but do not leave all your assets there. Whichever is you're comfortable with and you know what you do to avoid being compromised, just keep on practicing the safe way of keeping your assets. Because not everyone is safe from it, I've read a lot of stories that their funds were compromised despite being aware of the hacks that has been revolving around in the community.

JooBra

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Quote from: perla on March 31, 2022, 04:21:03 AM

They said that storing in exchange site is very dangerous since you don't know whether exchange site is safe from hackers is that possible to trade in exchange site directly with your Ledger or Nano hardware wallet like logging in to Metamask but this one you are going to login using your hardware wallet.

Long term and day trading are different things. Keeping your money for trading somewhere like Binance which is pretty safe like shown during the years it's okey i think.

perla

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They said that storing in exchange site is very dangerous since you don't know whether exchange site is safe from hackers is that possible to trade in exchange site directly with your Ledger or Nano hardware wallet like logging in to Metamask but this one you are going to login using your hardware wallet.

MFahad

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Many of the traders will i think store in exchange because day trader using some usdt to make profit daily and they send profit to hardwallet or soft wallet. Especially if the daily trade coin fee high like Eth than its very hard to daily withdraw token.

LastKiss

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Quote from: jerry0 on March 02, 2022, 05:52:57 PM

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.

Well, I will keep my coins in exchange until I satisfy with my result in trading. I just trust the exchange I use because they provide kind of security features like 2FA Authenticator, Anti Email Phishing and others. So with that feature will make me feel safe but when it comes to long term holding and in a lot of amounts of coins I prefer to keep my funds in a hardware wallet.

tygeade

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Quote from: gabbie2010 on March 28, 2022, 02:31:51 PM

I traded cryptocurrencies using Binance exchange and I stored all my coins in the exchange wallet in form of a stable coin after successfully executed a trade e.g USDT meanwhile I traded some of profits using P2P to fiat and sent directly into my bank account, I knew how risky it is to store or hodl my coins in the exchange wallet because some of these exchanges are prone to hacking, though I am still trading with small amount of funds, however if I earn huge profits daily I would transfer all profits into my private wallet on daily basis even with a high transaction fees.

I use BUSD but I basically do the same thing. I do small trades, usually deal with long term investments and I have to say that it has been a very clear thing for me when we are talking about how I could trade only small amounts but still even on long terms I could use Binance. People are talking crazy when they are saying you should keep your money in your wallet or something like that.

I mean why would I do that when Binance is better at it and their entire multi-billion dollar business relies on the fact that they could keep my money safe? Trade there all you want, you could lose your money from bad trades, but I highly doubt it would be from them not paying you.

gamer4156

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A few purposes to straight associate their metamask wallets assuming it's for BSC and ERC20 yet we know that in the event that it's on ETH organization, expense isn't modest. security on which you would think on effectively pulling off your assets on a unified stage

seleme

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I am also day trader and it is better to keep your trading capital on exchanges. Saving fees and avoiding possible risks can save your day, sometimes making mistakes can cost you few weeks to recover. For short-term trading positions, leaving funds on exchanges sounds like a good idea but for long-term benefits it is recommended buying hardware crypto wallet. BTW, the exchange can flag your account if you keep depositing/withdrawing similar amount all day. It can be checked as crypto mixing since many users keep doing such things for avoiding the potential tracking issues, IMHO.

Vaskiy

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It is always said that don't save your holdings on any exchange, try to keep it secure on the non custodial wallets. There are traders who follow it, because the trading amounts will be high and the transaction fee won't affect the withdrawal and deposit.

With low volume traders, they think of the transaction cost and this mostly makes them hold it on the exchange itself than making withdrawal every day and deposit the next day. Some exchanges like Binance gives cent percent trust, because even at the time of hack it paid from its reserve to the affected users.

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Quote from: Qikiye on March 26, 2022, 06:18:10 PM

Actually a day trader reserve his cryptocurrencies in his cryptocurrencies wallets or exchange wallets . He always trade his cryptocurrencies in centralised or decentralised exchanges , if he trades into centralised exchange, he should Keep exchange wallets or decentralised exchanges he should Keep it's his wallets.

I traded cryptocurrencies using Binance exchange and I stored all my coins in the exchange wallet in form of a stable coin after successfully executed a trade e.g USDT meanwhile I traded some of profits using P2P to fiat and sent directly into my bank account, I knew how risky it is to store or hodl my coins in the exchange wallet because some of these exchanges are prone to hacking, though I am still trading with small amount of funds, however if I earn huge profits daily I would transfer all profits into my private wallet on daily basis even with a high transaction fees.

Silberman

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Quote from: bitgolden on March 25, 2022, 05:10:36 AM

Quote from: wozzek23 on March 23, 2022, 03:58:35 AM

That is the issue and the most traders have to go through this same thoughts every time and at the end they feel that it is usually best for them to just store their cryptocurrencies on the exchange that they are making use of, maybe Binance.com. and coinbase.com, instead of having to keep withdrawing and depositing it all the time that they want to trade on the platform which will result in having to pay a lot of fees.

But, by having their cryptocurrency stored on the exchange they can easily get to trading without much hassle. Although sometimes you can as well just divide the money and not put all of them on the exchange except the ones that you are trading with. That way you can at least minimize the risk.

The reality is that if you want to keep your money there for trading, then you should still hold the amount that you will use for trading, and not the whole amount. You should never trade with your whole amount anyway, which means that you would still have some in cold storage (could be ledger, could be simple bitcoin wallet, could be non-custodial wallet).

If you have 100 bucks and trade with all 100 that would be wrong, if you have 100 and trade with 10, then keep the 10 in exchanges but put the 90 away. That would be a lot better for you and you could do a lot better that way. Doesn't mean that you should trade with 10%, that could change but never 100% for sure.

Correct, and like most of the time things come down to money management, money management is most of the time disregarded by many traders and they think it is not important when in fact it is key to be able to become a successful trader, after all it is not rare to see people using all their capital in each trade or even using leverage over the totality of their capital, and it does not matter how good your trading system is you will go bankrupt sooner or later by doing that.

Qikiye

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Actually a day trader reserve his cryptocurrencies in his cryptocurrencies wallets or exchange wallets . He always trade his cryptocurrencies in centralised or decentralised exchanges , if he trades into centralised exchange, he should Keep exchange wallets or decentralised exchanges he should Keep it's his wallets.

pawanjain

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If I were a day trader then I would only store a particular amount of my coins on the exchange which I want to day trade with.
If the amount is huge I would split it up into multiple exchanges by carefully researching that the exchange is reputable.
The rest of my coins will be staying in a non custodial wallet and all the profits that I would get will be withdrawn to these wallets on regular time intervals.

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Quote from: nhaila on March 25, 2022, 06:34:13 PM

Basically a trader must deposit his trading profit in his personal account. A trader is constantly trading with market analysis so it is definitely troublesome to transfer his currency regularly. So for the convenience of his work, he must deposit his assets in his personal exchange account.

You do not have to deposit your cryptocurrency to an exchange wallet, as you can use a decentralized exchange for trading. This way you will constantly maintain control over your finances and will not worry that a centralized exchange can block your cryptocurrency.

barbara44

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Quote from: Silberman on March 24, 2022, 01:45:19 PM

Daytraders do not have too much of a choice, when they have a window of a few seconds to make their trades then they cannot hope to make their trade in time if they have to open their wallet, write the amount they want to send, sign the transaction, wait for a confirmation and finally wait for the exchange to acknowledge their deposit to finally be able to make their trade, by the time all of that happened the market has moved so much that most likely the trading opportunity has evaporated already.

This is the true answer. If they are trading, and they have a small chance to achieve what they are trying to achieve, spending extra amount and time to send the money from the wallet to the exchange and then trade, and trade back and send it back again all would be too inefficient.

I do not believe that we should be putting our trading money into anywhere else, if you are a trader then just keep it in the exchange. Hell, I do not trade that much and yet I still keep all my money in Binance, I just trust them more than I trust any wallet, and it is free to use them as a wallet as well, not only it is free, you could even stake or earn interest there as well.

nhaila

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Basically a trader must deposit his trading profit in his personal account. A trader is constantly trading with market analysis so it is definitely troublesome to transfer his currency regularly. So for the convenience of his work, he must deposit his assets in his personal exchange account.

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