Topic: Where do daytraders store their crypto? - page 4. (Read 848 times)
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.
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?
That is basically what day traders do, a positional trader can afford to send their coins to the exchange, exchange their coins and then get them out as fast as possible to lower the risk of being hacked while his coins are on the exchange to the minimum, but the same is not true for daytraders, their profits are on the small side and those kind of fees are really important for them, so having to pay for their coins to go out of the exchange at the end of the day is simply not an option for them. 
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.
For day traders, they are more comfortable putting their bitcoin in exchanges because they open up orders that are waiting to be fufilled. That's why it's very important that we have a lot of reputable exchange in the space so they can minimize the risk by spreading the trade in different exchanges.
By the way, if you still remember, Binance has SAFU, so your funds are safe as long as it's covered to the insurance. (not sure about the complete terms)
That's all I know because I'm not a day trader personally, but I'd love to know if this idea are already outdated and we have a more safer and advance way to trade comfortably while not sacrificing safety.
By the way, if you still remember, Binance has SAFU, so your funds are safe as long as it's covered to the insurance. (not sure about the complete terms)
That's all I know because I'm not a day trader personally, but I'd love to know if this idea are already outdated and we have a more safer and advance way to trade comfortably while not sacrificing safety.
Why you should withdraw your fund everyday after complete trading Daily. If you use binance, FTX, kucoin or another exchanger like these then you can store your fund on that exchanger without any worried. And store stablecoin USDT or BUSD for next day. or if you want to withdraw your profit everyday as stablecoin then you can withdraw usdt in BSC chain it will charge $0.8 or if you want to withdraw nonstable coin then use TRX, LTC
I'll take the suggestion of withdrawing every single time I've made a profit and I want to keep it and just continue and leave a fund to keep going for tomorrow's trade.You need to make yourself a favor of keeping some profits that you've made and take out the capital as much as you want and just continue until you get into the moment that you're going to trade with the profit that you've made while securing the capital.
If the withdrawal fees ain't that much, it's not going to be a problem if you withdraw most of the time.
Why you should withdraw your fund everyday after complete trading Daily. If you use binance, FTX, kucoin or another exchanger like these then you can store your fund on that exchanger without any worried. And store stablecoin USDT or BUSD for next day. or if you want to withdraw your profit everyday as stablecoin then you can withdraw usdt in BSC chain it will charge $0.8 or if you want to withdraw nonstable coin then use TRX, LTC
Its true that there is a risk if we store our tokens on centralized exchanges as we do not actually hold the private key.
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.But I think most day traders will leave their cryptocurrencies on the exchange instead of having to withdraw them to personal wallets,
Yes. Putting tokens or coins on an exchange wallet will make it easier to sell them once there is a pump. While if we put on personal wallets, it needs some time to send them and it requires transaction fees as well.
I just store it on the exchange I’m using since I can’t do day trading if my tokens are not on the exchange.
It is the same with me. I also often trade in CEX (Centralized Exchange), so I just put my coins or tokens on the exchange wallets. I think we don't need to worry about our coins or tokens there as long as we choose reputable exchanges. I don't want to send my tokens to private wallets, and then send them again when I want to trade. This will take too many transaction fees, so I avoid this. Top exchanges such as Binance, Kucoin, Gate, or Huobi, are secure enough as a place to keep our coins and tokens. Its true that there is a risk if we store our tokens on centralized exchanges as we do not actually hold the private key. But I think most day traders will leave their cryptocurrencies on the exchange instead of having to withdraw them to personal wallets, this will affect the trading orders we are executing.
Therefore, choosing an exchange is very important. Binance is the choice of most traders as it is the largest exchange today.
I'm also storing some of my tokens on Binance, I'm pretty safe leaving my coins on Binance and I haven't had any problems.
I will reckon that majority of them will have some kind of capital kept in an exchange for obvious reasons that they will continue to do trades.
This is no different for a gambler like me who bet on different sports, most of the time I will have my bitcoins on trusted gambling platform, and if I won I will withdraw it in a wallet that I have total control of. But there are times that I will withdraw everything and just go and deposit in the following days if I wanted to play. So I guess this is the same with traders.
This is no different for a gambler like me who bet on different sports, most of the time I will have my bitcoins on trusted gambling platform, and if I won I will withdraw it in a wallet that I have total control of. But there are times that I will withdraw everything and just go and deposit in the following days if I wanted to play. So I guess this is the same with traders.
When day trading at times. I leave some money in an exchange (Not advisable) but yeah I do for 3 reasons
1. I may have open positions that can't be closed until I realize profits. So one can not simply close positions just because they want to withdraw the money and keep it off an exchange during the hours they are not on computers
2. Open positions may require additional margin to keep the liquidation price for cross margin positions at bay. Again, the funds have to be nearby in the derivatives wallet
3. High withdrawal fees. Imagine doing this every day. That's some profit gone to withdrawal fees.
I keep most of my money in an offline wallet. Only the amount I use for trading remains in an exchange.
1. I may have open positions that can't be closed until I realize profits. So one can not simply close positions just because they want to withdraw the money and keep it off an exchange during the hours they are not on computers
2. Open positions may require additional margin to keep the liquidation price for cross margin positions at bay. Again, the funds have to be nearby in the derivatives wallet
3. High withdrawal fees. Imagine doing this every day. That's some profit gone to withdrawal fees.
I keep most of my money in an offline wallet. Only the amount I use for trading remains in an exchange.
I am sure that a day trader will store their capitals on the exchanges f they are still using them for trading daily.
But if this is related to the profits and also the coins that will be saved for the long term, not for daily trading again, they may prefer to use hardware wallets. That is why many daily professional traders will commonly have hardware wallets to secure some of their money.
Some coins may be the options, but this will depend on each person to choose stable coins, BTC, ETH, or other altcoins to store. ABoutt he fees? Of corue this will be one of the consideration when going to store their assets.
But if this is related to the profits and also the coins that will be saved for the long term, not for daily trading again, they may prefer to use hardware wallets. That is why many daily professional traders will commonly have hardware wallets to secure some of their money.
Some coins may be the options, but this will depend on each person to choose stable coins, BTC, ETH, or other altcoins to store. ABoutt he fees? Of corue this will be one of the consideration when going to store their assets.
I just store it on the exchange I’m using since I can’t do day trading if my tokens are not on the exchange.
It is the same with me. I also often trade in CEX (Centralized Exchange), so I just put my coins or tokens on the exchange wallets. I think we don't need to worry about our coins or tokens there as long as we choose reputable exchanges. I don't want to send my tokens to private wallets, and then send them again when I want to trade. This will take too many transaction fees, so I avoid this. Top exchanges such as Binance, Kucoin, Gate, or Huobi, are secure enough as a place to keep our coins and tokens. 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.
Day traders must need to trust their platforms for their funds; no exceptions. By considering the hassles involved with daily withdrawing/depositing, I guess all active traders will prefer about holding their funds within exchanges.Here are the points that you need to consider which justify their decision of holding funds in exchanges:
1. Day traders are not whales which means for your small capital you may risk with your exchange.
2. There are long running-tested-reputed exchanges are available to use as wallets.
3. BTC lighting network is not available in most reputed exchanges.
4. Even some altcoins facilities quick TX, traders may not prefer to keep their capital on altcoins.
5. Active traders may prefer to go for withdrawing once in a while; otherwise it would burden them along with their TA and watching and following market movements.
I believe most day traders here are using binance exchange.
I, myself, is also somewhat confident when leaving funds on their exchange for quite a while.
Like when you are using their earning features such as fixed and flexible savings.
I have more trust on them when it comes to this type of investment.
Just what I posted earlier in this thread, the security is maybe due to the insurance in place in this exchange.
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.
Day traders must need to trust their platforms for their funds; no exceptions. By considering the hassles involved with daily withdrawing/depositing, I guess all active traders will prefer about holding their funds within exchanges.Here are the points that you need to consider which justify their decision of holding funds in exchanges:
1. Day traders are not whales which means for your small capital you may risk with your exchange.
2. There are long running-tested-reputed exchanges are available to use as wallets.
3. BTC lighting network is not available in most reputed exchanges.
4. Even some altcoins facilities quick TX, traders may not prefer to keep their capital on altcoins.
5. Active traders may prefer to go for withdrawing once in a while; otherwise it would burden them along with their TA and watching and following market movements.
This is one of the issues you would have in the event that you really do allow yourself to be too neurotic with regards to coin security on which you would think on effectively pulling off your assets on a brought together stage. They will possibly pull out their cash assuming that they have accomplished the objective benefit from exchanging heaps of coins or tokens since they have additionally pondered the amount they will pay.
They have lot of choices where they stores their crypto coins such as hardware wallets or software wallets. If have want to earn money with crypto coins by day trading then they can store their crypto coins on a exchange. SO, that they can trade can earn profit from it. But if they want to store crypto coins as a long term investment then the best choice is hardware wallet.
Best exchange for storing crypto coins is FTX, kucoin, coinbase, huobi.
Best exchange for storing crypto coins is FTX, kucoin, coinbase, huobi.
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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.
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I believe that there already a lot of traders (day traders or non-day traders) are starting to use Decentralized Exchange (DEX) if you are not yet familiar with it, it is the opposite of Centralized Exchange (CEX) where most of DEX is non-custodial where you have your own crypto wallet and every transaction must confirm from your own wallet compare to Centralized Exchanges which is custodial, they are the one who holds your funds.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.
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Exactly this will be in the exchange wallet. For, if we are storing the coins in the hardware wallet, we may need to spend a lot of money to pay for some fees.
However, if this is about the profits or results of day trading itself, it may depend on who you are.
Sometimes, traders will prefer to cash out the profits into a bank account
Sometimes, traders will convert to Bitcoin or Ethereum and store the profits in their hardware wallet.
Or sometimes, some traders will use the profits to make another day trading capital
However, if this is about the profits or results of day trading itself, it may depend on who you are.
Sometimes, traders will prefer to cash out the profits into a bank account
Sometimes, traders will convert to Bitcoin or Ethereum and store the profits in their hardware wallet.
Or sometimes, some traders will use the profits to make another day trading capital
It is possible to trade directly with your non-custodian wallet with some exchange like coinbase. And if you trade on dex, you will also be in charge of your coin. But to trade on centralized exchange, you will have to trust that exchange! When you keep your coin on centralized exchange for days or one or two weeks, you shouldn't have to worry about hack if those exchange have track record of safety of customers funds!
I think most day traders store or leave their coins in the exchange itself.
Because getting out will incur fees, so if you are active trader, it is not practical to get in and out your funds frequently.
However, if you are storing it to the exchange, it is better to choose the exchange which has very good reputation.
And at least your funds are protected just like in Binance, which has insurance for its users.
Coinbase has also this FDIC-insurance up to $250k if you are keeping cash with them.
https://blog.coinbase.com/on-insurance-and-cryptocurrency-d6db86ba40bd
It is possible to trade directly with your non-custodian wallet with some exchange like coinbase. And if you trade on dex, you will also be in charge of your coin. But to trade on centralized exchange, you will have to trust that exchange! When you keep your coin on centralized exchange for days or one or two weeks, you shouldn't have to worry about hack if those exchange have track record of safety of customers funds!
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