A trader is different from a hodler, one hold for short period depending on the kind of position and assets you own at that particular and the other one is hodler who own his coins in an off-exchange, trading and living some substantial amount of your assets on an exchange for a long time is very risky. However, you don't have a choice but to live it on the exchange so that you can just buy and sell your desired cryptocurrency.
Talking about the fees, I think there are those whales who don't really care about those fees because they gain back from the trades they carried.
Topic: Where do daytraders store their crypto? - page 3. (Read 848 times)
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).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.
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.
I simply keep them in an exchange wallet and my habit about trading is that I never do the day trading whenever if the coins are not stored, so in my opinion there must be some exchanges in which the one should keep their coins after trading and when they wants to start in another day then they should start it with the same .
Well most common problem is how to find an exchange that you can entrust your fund and keep safe while on the exchange wallet which is we always doubt that it is vulnerable to possible hacks. How about the exchange that promised a safe asset fund [SAFU], perhaps they are trusted enough to store funds but that does not serve as any guarantee that your money is safe. Perhaps that is a part of a risk of those traders that we need to manage, because it is not easy for now to pick a good exchange that has a good volume for the day trading. Just take the risk or leave for being a crypto trader. legendary
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I think being trader you need fast access to your coins and thus you can not have them stored on the wallets. True. But, keeping the tradable amount on the exchanger is completely fine in case of day trading. There is always good security these days for the crypto exchanges considering you choose the reputed one. Note that they are so secure as you can also choose to stake it funds on them.
Don't advocate staking on centralized exchange, they're never secured, better you stake on decentralized platforms that you can always have access to your funds whenever you want them. As for traders especially those actively day trading, you just have to risk storing your funds on the exchange. This is why we're advice to only use funds we're comfortable losing. Don't go over trading more funds than you can handle if you lose them as by storing them on a centralized exchange that means they're liable to hack (you losing them).
These days we have decentralized platform doing impressive volumes even more than centralized platforms that you can hold your funds privately in your wallet and still trade multiple coins using decentralised platforms like Uniswaps etc. You don't have to use the centralized platforms to get the full advantage iyf trading coins.
I simply keep them in an exchange wallet and my habit about trading is that I never do the day trading whenever if the coins are not stored, so in my opinion there must be some exchanges in which the one should keep their coins after trading and when they wants to start in another day then they should start it with the same .
I think being trader you need fast access to your coins and thus you can not have them stored on the wallets. True. But, keeping the tradable amount on the exchanger is completely fine in case of day trading. There is always good security these days for the crypto exchanges considering you choose the reputed one. Note that they are so secure as you can also choose to stake it funds on them. I think to be able to day trade you have to risk some assets which are available in the exchanger all the time no matter what. Because market is way volatile and you can not loose time and transfer fees in the process.
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. 
the difference between the both of them is that when it comes to making use of a decentralized or non-custodial wallet you are the one who is in charge of the safety of your cryptocurrency wallet. In this case you should be aware of the risk that is involved in making use of a decentralized wallet and you should also be aware of how to handle such risk and know what to do and be very careful with your wallet and the kind of information that you put out that might put you at risk of losing your money.
You should also be very careful with how you store your private keys which is like the main thing about your wallet because if a hacker gains access to it, you lose the money.
But in the case of centralized exchanges or wallets, you are not in control of anything and if the exchange gets hacked you may lose your money. But even at that it is also good to make use of a really good exchange and know what practices they put in place to make sure that their users assets are hundred percent secure.
At certain point you have to ask yourself. Do you trust Binance with your money more than you trust yourself? Reality is that since these are centralized places, they are getting constant hacking attempts and they either defend it well, and even if they can't, usually it is the hot wallet that gets emptied and nothing else.You should also be very careful with how you store your private keys which is like the main thing about your wallet because if a hacker gains access to it, you lose the money.
But in the case of centralized exchanges or wallets, you are not in control of anything and if the exchange gets hacked you may lose your money. But even at that it is also good to make use of a really good exchange and know what practices they put in place to make sure that their users assets are hundred percent secure.
On the other hand, we are talking about your personal computer, or ledger, or metamask or whatever you believe and it could be a lot worse. I once had a software that changed the addresses to owners address and even though I did not lose any money because I double check, I knew something was wrong quickly and got rid of it, but not everyone can. So do you really trust yourself more than you trust Binance? That’s an important question.
As a trader, I keep my coins in my wallet and on exchanges because it makes it easier for me to continue trading the next day or a few days later. But if on that day I get a decent profit, I will withdraw the profit to my wallet and keep it there. I don't have a lot of coins on the exchange because I know that it has risks, so I'd better keep it in my wallet. Saving on an exchange has its advantages and disadvantages, but if we can choose a place of exchange that can maintain the trader's funds properly, at least it can minimize the bad risks. So it's up to the individual traders as they must have their own calculations to keep some of their coins on the exchange and in their wallets.
What advantages it brings when you save crypto on the exchange? Saving is not the same as storing but in saving it means we put our crypto there for a long time. I did not hear any exchange that gives you interest by doing that but except on the lending platforms because you are letting them to borrow the coins sitting in your account. On banks they can give you a little interest too but there are drawbacks because a bank can also charge you a fee for using their service.Storing crypto on the exchange has an advantage because you can trade immediately, it can save you a time, effort and fees because you don't need to access your wallet and make a transfer.
From my point of view I also do day trading. My trading base is USDT, whenever I make a profit, I don't immediately withdraw funds or spend them on altcoins. I will wait until the profit reaches 1 week, for example in one week I make a profit of $200, then I will use it, $50 to buy BTC, $40 to buy ETH, $40 to buy BNB, $40 I will put into my trading balance so that the trading balance I increase and the rest I will withdraw as savings or shopping for daily needs. The coins I buy will be stored in my hardware wallet or mobile wallet. If the fee is low, I will send it directly on the day, especially for ETH I will wait until my ETH balance increases, while I still keep it in the exchange wallet.
But for each person will be different needs. I'm just a small trader who doesn't reach tens of thousands of dollars, but big-time traders whose funds reach hundreds to millions of dollars may have their own strategies in overcoming the problem of transfer fees. Sometimes they don't care, because the benefits they get are also great.
But for each person will be different needs. I'm just a small trader who doesn't reach tens of thousands of dollars, but big-time traders whose funds reach hundreds to millions of dollars may have their own strategies in overcoming the problem of transfer fees. Sometimes they don't care, because the benefits they get are also great.
...
most traders see the situation and conditions of the exchange and also personal...if an trader has a large capital (more than $10k) then saving on the exchange will be very risky, most of them must save in a personal wallet or hardware wallet because withdrawal fees are definitely not a big problem for him but those who have small capital (under $2k ) making withdrawals is useless, it's better to keep it on the exchange (but have to pay attention to the reputation of the exchange) while I personally prefer to only save on the exchange because I have small capital and the withdrawal fee is really a problem for me lol.
Actually, as a day trader, I believe it is extremely risky to withdraw from the exchange where I trade every day. Instead, I always convert my coins to a stable coin, such as USDT or BUSD, to ensure that I will not lose money before moving on to the next coin to trade.
Although exchanges are not completely safe, there are some that come highly recommended and are worth trying.
I trade on the KuCoin and Binance exchanges because I believe they are secure.
Although exchanges are not completely safe, there are some that come highly recommended and are worth trying.
I trade on the KuCoin and Binance exchanges because I believe they are secure.
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.
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.
Of course, storing our tokens on an exchange has a risk but that doesn't mean storing tokens on a private wallet has no risks. We can forget the password or private key of our own wallet and sometimes it will be difficult to recover the wallet once we lose the data. While on the exchange, we may get a help from the exchange service center if we have a problem with our data or tokens.
The decision that you have made to take some time and learn how cryptocurrency trading works is really important and it is going to be very helpful to you in the future when you start your trading full time. Is very important for most newbies who get into cryptocurrency trading to first of all get to learn how cryptocurrency works and what cryptocurrencies are all about. But, most of them don’t do that.Even I myself when I started trading I noticed that it was really difficult for me and I wasn’t making much progress based on the knowledge I’ve had so far as of then. so I had to go for training and to acquire more knowledge so that I would be better than what I am as of then.
As a trader, I keep my coins in my wallet and on exchanges because it makes it easier for me to continue trading the next day or a few days later. But if on that day I get a decent profit, I will withdraw the profit to my wallet and keep it there. I don't have a lot of coins on the exchange because I know that it has risks, so I'd better keep it in my wallet. Saving on an exchange has its advantages and disadvantages, but if we can choose a place of exchange that can maintain the trader's funds properly, at least it can minimize the bad risks. So it's up to the individual traders as they must have their own calculations to keep some of their coins on the exchange and in their wallets.
There are so many people who keep saying "not your keys, not your coins" and they do not realize that if I kept on depositing and withdrawing money in and out of my exchange account, that would be both a huge time loss and also money lost as well depending on the coin. I mean I just use exchanges for the trading amount, just like you whatever else I have (long term) stays with my wallet and I am securing them that way.However, I have some coins in exchanges that I keep on trading, or hold bags that I want to get rid of so I have sell orders, but that's just about it, I can't take them out at all because it would be useless to do so and this is easier.
anytime which means that you would really be having a big problem on losing money if ever that happens.Always consider or mind off about possibilities and dont really get that
too confident on trusting up the platforms even though they are popular or on top ones but cant still able to remove about those probabilities.
As a trader, I keep my coins in my wallet and on exchanges because it makes it easier for me to continue trading the next day or a few days later. But if on that day I get a decent profit, I will withdraw the profit to my wallet and keep it there. I don't have a lot of coins on the exchange because I know that it has risks, so I'd better keep it in my wallet. Saving on an exchange has its advantages and disadvantages, but if we can choose a place of exchange that can maintain the trader's funds properly, at least it can minimize the bad risks. So it's up to the individual traders as they must have their own calculations to keep some of their coins on the exchange and in their wallets.
There are so many people who keep saying "not your keys, not your coins" and they do not realize that if I kept on depositing and withdrawing money in and out of my exchange account, that would be both a huge time loss and also money lost as well depending on the coin. I mean I just use exchanges for the trading amount, just like you whatever else I have (long term) stays with my wallet and I am securing them that way.However, I have some coins in exchanges that I keep on trading, or hold bags that I want to get rid of so I have sell orders, but that's just about it, I can't take them out at all because it would be useless to do so and this is easier.
Of course, storing our tokens on an exchange has a risk but that doesn't mean storing tokens on a private wallet has no risks. We can forget the password or private key of our own wallet and sometimes it will be difficult to recover the wallet once we lose the data. While on the exchange, we may get a help from the exchange service center if we have a problem with our data or tokens.
Well, the difference between the both of them is that when it comes to making use of a decentralized or non-custodial wallet you are the one who is in charge of the safety of your cryptocurrency wallet. In this case you should be aware of the risk that is involved in making use of a decentralized wallet and you should also be aware of how to handle such risk and know what to do and be very careful with your wallet and the kind of information that you put out that might put you at risk of losing your money.You should also be very careful with how you store your private keys which is like the main thing about your wallet because if a hacker gains access to it, you lose the money.
But in the case of centralized exchanges or wallets, you are not in control of anything and if the exchange gets hacked you may lose your money. But even at that it is also good to make use of a really good exchange and know what practices they put in place to make sure that their users assets are hundred percent secure.
~snip~
There are so many people who keep saying "not your keys, not your coins" and they do not realize that if I kept on depositing and withdrawing money in and out of my exchange account, that would be both a huge time loss and also money lost as well depending on the coin. I mean I just use exchanges for the trading amount, just like you whatever else I have (long term) stays with my wallet and I am securing them that way.However, I have some coins in exchanges that I keep on trading, or hold bags that I want to get rid of so I have sell orders, but that's just about it, I can't take them out at all because it would be useless to do so and this is easier.
When we get a big profit, that's what we withdraw to another wallet, and we keep it for a while. Or we can also sell the profit in bitcoin to fiat, and then we withdraw it to our bank.
But it will be different if they use Decentralized Exchange where they just connect their wallet to the exchange and can trade right away. If they finish trading on that day, they simply disconnect from the Decentralized Exchange so that no coins are left on the exchange.
As a trader, I keep my coins in my wallet and on exchanges because it makes it easier for me to continue trading the next day or a few days later. But if on that day I get a decent profit, I will withdraw the profit to my wallet and keep it there. I don't have a lot of coins on the exchange because I know that it has risks, so I'd better keep it in my wallet. Saving on an exchange has its advantages and disadvantages, but if we can choose a place of exchange that can maintain the trader's funds properly, at least it can minimize the bad risks. So it's up to the individual traders as they must have their own calculations to keep some of their coins on the exchange and in their wallets.
There are so many people who keep saying "not your keys, not your coins" and they do not realize that if I kept on depositing and withdrawing money in and out of my exchange account, that would be both a huge time loss and also money lost as well depending on the coin. I mean I just use exchanges for the trading amount, just like you whatever else I have (long term) stays with my wallet and I am securing them that way.However, I have some coins in exchanges that I keep on trading, or hold bags that I want to get rid of so I have sell orders, but that's just about it, I can't take them out at all because it would be useless to do so and this is easier.
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?
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?
Not for the assumption really, the day traders was on the exchanges like binance, coinbase, FTX pro. Day trading is the short term trading, it maybe for a day. Or two days one with in a week. The will buy at certain price and sell with the short period with the minimum profit.
do talks about active trading then they would be definitely be putting up their capital or funds for fast executions of buys when there's a dip or would sell out immediately if theres
a pump because if we do mind off about pulling those funds actively then you would be surely spending out some fees and hassle on time of confirmation which would
only make out some delays which it is something that they dont like.
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?
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?
Not for the assumption really, the day traders was on the exchanges like binance, coinbase, FTX pro. Day trading is the short term trading, it maybe for a day. Or two days one with in a week. The will buy at certain price and sell with the short period with the minimum profit.They will repeated the trading again and again. When they get little in all trade. At the period of one month, the net profit for one month will be huge.
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