Topic: Where do daytraders store their crypto? - page 6. (Read 848 times)

Not all day traders store their crypto on CEX.

Nowadays, if you trade your tokens daily, you can store them in non custodial wallets such as Metamask, Trust, Safepal, C98, etc. When you want to trade, connect your wallet to DEX and do trade by swapping.

It is different than you trade on centralized exchanges because on CEX, you will have to leave your crypto on their platforms. However, with CEX, you will have different order types to choose and use.

There are pros and cons and there are two approaches as mentioned.

Day traders usually do have a high leve account on the exchanger where they are doing their trade. They just transfer it to another wallet that let them have their own private key, they do it by converting their tokens to Bitcoin or Ethereum since it is supported by most hardware wallets. I use electrum since 2018 if I'm not mistaken, until now electrum is still protecting my funds.

Leaving your coin in the exchange is pretty better to avoid charges to withdraw to wallet daily and that is why you have to sign up to a trusted exchange. As a trader when you need to make withdraw is when you have profit that you want to take some home to rest in your wallet. But making withdrawal always reduces your profit.

Withdrawal fees are not a problem as many people compare withdrawal fees between platforms and compare prices based on some altcoins or some blockchain.
you can check them using ---> https://withdrawalfees.com/ to find lowest exchange withdrawal fees.
also some blockchain have small withdrawal fees such as BSC but I highly recommending you to stay away from it.

you will find that the withdrawal fees in TRON, and Polygon are the cheapest, and that an altcoin such as Litecoin has cheaper withdrawal fees in general.

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Note that: Day trading is often about less than 10% of the total assets allocated for trading.

of course it's necessary to store your balance in USDT to prevent losses from the volatility of the market.

Because it's like you let your money flowing in the market without stop loss if you keep storing your capital to any asset for how many days which so volatile.


my entire capital is on USDT and yes there's no  problem with it as long as you're using trusted platform, but when i have profits already i used to transfer it to my FUNDING section to sell it through p2p and start again with new balance to trade.

By the way I'm using binance platform because i dont need to pay fees to convert my USDT into fiats.

Yeah, what you are doing is right but OP is asking about day traders who trade a lot of trades in a day and ask whether they will trust the exchange or move it to the wallet everyday the straight answer is no, they can't do it everyday and if they are going away from trading then it make sense to move their funds to wallet and OP should not forget that this is 24/7 market so there is no end and the trading will keep on going.

I experience being a day trader and the main objective is to convert your holdings in to a stablecoin or fiat at the end of your trading to guarantee your profit since volatility is very high in crypto. By using stablecoins, Some day traders can afford to transfer there holding on hardware wallet such as trezor or ledger nano and just send it back on the other day. Day trader usually leave there assets on exchange/broker so that they can save fee and can buy immediately if the price drops down suddenly but due to the benefits of blockchain, they can already move out there tokens since transaction speed and fee are now fast and affordable on some blockchain that has stablecoins like BSC and Tron.

Withdraw your funds whenever you've reached a balance that you're comfortable with and that will cover all of your fees. This will protect you from worrying too much about the possible transfer fee if you decide to keep your profits in your hardware wallet.

However, if you insist on transferring them on a daily basis because you are too paranoid (which is still a good thing), then the only option I can think of is to switch networks or use other exchanges and take advantage of the free transaction, as suggested by other members. However, as I previously stated, this is not something that can be done on a regular basis when actively trading and there is always a trade-off between security and comfort.

I think you just answered your question because those are what most day traders are doing. I think it would also depend on what exchange you are in because there are possible things that you can do after trading, like extracting your profits and moving them to another wallet.

For example, in Binance, there are multiple types of wallets that you have there.

• Spot Wallet
• Funding
• Futures Wallet
• Margin Wallet
• Earn

There are more wallets, but I think it depends on your area and availability on where you are from. So I guess it's the trader's decision where they are going to put the profits that they made for the day. I would put it on Funding or just away from my spot wallet so my computation on how much profit I had for a longer time would be easier to compute.

As day traders, they do not withdraw their money every day or move their balance from one exchange to another because they already have a balance on another exchange.
They will only withdraw their money if they have achieved the target profit from trading lots of coins or tokens because they have also thought about how much they will pay.
Maybe every day trader has a different way of trading, withdrawing their money, or moving from one exchange to another.
So I guess it will depend on how a day trader will handle it.

Daytraders will leave their coins on exchanges, although custodial platform is risky and not safe enough... but they don't have any choice here. Gaining profit by daytrading isn't easy and you may wouldn't earn anything if you always transfer it to your wallet. Since a daytrader can't protect his coins on exchanges, but he can still minimize the risk by not put all his funds to exchanges... only put some % that you use for trading.

From my experience they're not moving their funds out of the exchanges everyday and then deposit back into the exchange, yes there is a risk of exchanges can be hacked at any time but day traders can't make any profit if they're not ready to take the risk but day traders mostly don't allocate all their crypto capital for day trading just only a part of it, maximum 30% is what I had in the exchanges while doing day trading but now I am done and not doing it anymore.

If you are using a centralized exchange, then you will have to keep it on the exchange until you are done trading. Once you are done, remove them as soon as possible and store them somewhere safe. The chances of your funds getting stolen is low, but the chances of your account getting frozen is higher.
"this kind of mineset"? Lol, even the CEO of a centralized exchange (Kraken) warned  everyone not to store their funds and move their coins out immediately.

Actually, if you are trading with Binance and trading daily and you want to store your coins safely without spending too much I suggest use other stable coins like BUSD where you can withdraw it for free in your Metamask or directly to your hardware wallet if supported.

The same goes for other exchanges if your trading there only look for stable coins with other networks that support free withdrawal fees like the offer on FTX exchange and Binance.

Only withdraw them partially just to reduce the risk and its free withdrawal. Depositing it back will need you to pay a fee but binance smart chain transaction fee is pretty cheap.

Remember it's better than holding your funds on Exchanges there are sometimes happen in the past where exchanges suddenly disappear.

If about to trade for tomorrow, just keep it there and if withdrawing it in the form of USDT, choose TRC20 or any other network where fee is very cheap.
There's no problem if you go in and out your funds and profits from the exchange when you're done. Just choose the alternatives that will make you pay cheap fees. Some uses to straight connect their metamask wallets if it's for BSC and ERC20 but we know that if it's on ETH network, fee isn't cheap. But with the recent changes, try to monitor the fees before you proceed. I see it sometimes cheap and tolerable.

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.

Not all coins/tokens have their own wallet, its still better if you have hard wallet especially on storing coins for your long term hold since you have the control over your wallet. You can trust the top exchange to at least have some of your holdings but again, its not advisable if its already a big money.

Each coin does have its respective non custodial wallets on which its been supported even though its not supported on some hardware wallets but its impossible that it couldnt be stored up somewhere.

This is one of the problems you would have if you do let yourself be too paranoid when it comes to coin security on which you would be thinking on actively pulling off your funds on a centralized platform

which i couldnt blame off several people who do have this kind of mindset but i do believe that majority of traders will just leave their coins in the platform as they could able to save up some fees and
wouldnt be having that hassle on withdrawing and depositing once again.

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?