Why do you think it's best to consistently use the same exchange?

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Quote from: Cryptomultiplier on June 02, 2024, 12:21:32 PM

So, why do prefer to consistently use the same exchange?

Easiness, convenience and also because it becomes an habit. You trust that exchange based on past experiences, so you keep coming back for more transactions. Our daily routine is already too busy to keep looking for new alternatives of exchanges to be used every new transaction we have to make. So we stick to only one, saving us time in the end of the day.

However, from times to times it's a good idea to check if the market has a better option available, especially regards exchange rates. Sometimes exchanges start charging expensive fees from customers suddenly. For that reason, it's important to have a Plan B.

Anyway, the ideal would be to adopt P2P transactions, where you could negotiate based on fair market prices (for both sides), but for most of us it's not a possibility, because there isn't who to trade with directly.

Plaguedeath

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Quote from: justdimin on Today at 12:28:34 PM

Depends on the exchange, you think something will happen to Binance? I mean if binance closes down and takes all our money with it, which I am not saying impossible, but there are billions gone, and I mean tens of billions of dollars, maybe even over hundred billion dollars, not sure how much Binance has, but I am sure we are talking about a huge number. So, you would be losing your money along with so many people, tens of millions of people, you won't be alone.

But, if you look at the other side, then you will realize that we have so many people who are trusting this project and the website so why would all of this people end up trusting the exchange? Binance may actually be great and not going anywhere and this could be the reason why they all trust it?

Yeah that's what other people think, when they see there are a lot people doing the same thing, they will think it's correct and safe. While the reality, there's no guarantee doing the same thing is always correct, but some people doing it just because they don't want to take risk or don't want to learn a new thing.

Most people still not able to shift from centralization to decentralization because they've live in centralization for many many years, so it's a new thing for them.

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Quote from: Brainiac01 on October 02, 2024, 07:33:44 AM

Quote from: icalical on October 02, 2024, 12:25:32 AM

Using several different exchanges will actually reduce some risks. Yes, when you sign up to each of them, you are required to send your personal documents to each different website, which may seem a risk. But using only one exchange means you place all of your funds and data in one basket. If that gets hacked, as has happened in the case of Binance and others, you will have lost access to everything. You are diversifying the risk by having all of your assets spread across different secure platforms, reducing the impact of a single hacked exchange. While security and convenience might be hard to balance, the use of a number of trusted exchanges could provide a little bit peace of mind.

You are absolutely right. This is the point i have been waiting to read out. Since we have already provided our personal information in the first exchange we are using there is no point of not getting another exchange. I deem it so risky and insecurity wise of putting our funds in one exchange. What if something happens to the exchange that means all the funds will be lost. There are so many attacks on centralized exchanges and if we look the way things are, those exchanges we trust are the ones who end being attacked. So we cant be so accurate in choosing which exchange that will be more safer as this scammers are big threat to exchanges. Although its better that we lose some of our assets than losing all our assets.

Depends on the exchange, you think something will happen to Binance? I mean if binance closes down and takes all our money with it, which I am not saying impossible, but there are billions gone, and I mean tens of billions of dollars, maybe even over hundred billion dollars, not sure how much Binance has, but I am sure we are talking about a huge number. So, you would be losing your money along with so many people, tens of millions of people, you won't be alone.

But, if you look at the other side, then you will realize that we have so many people who are trusting this project and the website so why would all of this people end up trusting the exchange? Binance may actually be great and not going anywhere and this could be the reason why they all trust it?

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Quote from: Nothingtodo on October 01, 2024, 01:02:09 AM

It is very important to use only one specific exchange instead of using multiple exchanges. If more than one exchange is used, my personal security is at risk as I have to provide my personal documents to different exchanges. By using an exchange, my personal documents are given only to that particular exchange, so there is no chance of my personal documents being leaked.

No doubt here I have to be agreed with you because in early days I was also using too many exchanges which give me some loses few run away and then sometime I have things which were not favourable for me so at the end while I have some experience and also having good loses then I jump into one exchange which is now I am using for the long time and its giving me good return of my time and confidence.

Now as we are having some stick policies about KYC so many are fearing of their documents leaked and having problematic time with few other things so they are also not interested to take risks like these just because of this now sticking with one exchange and having all stuff around this is much better and popular decision.

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Quote from: icalical on October 02, 2024, 12:25:32 AM

Quote from: Nothingtodo on October 01, 2024, 01:02:09 AM

It is very important to use only one specific exchange instead of using multiple exchanges. If more than one exchange is used, my personal security is at risk as I have to provide my personal documents to different exchanges. By using an exchange, my personal documents are given only to that particular exchange, so there is no chance of my personal documents being leaked.

Using several different exchanges will actually reduce some risks. Yes, when you sign up to each of them, you are required to send your personal documents to each different website, which may seem a risk. But using only one exchange means you place all of your funds and data in one basket. If that gets hacked, as has happened in the case of Binance and others, you will have lost access to everything. You are diversifying the risk by having all of your assets spread across different secure platforms, reducing the impact of a single hacked exchange. While security and convenience might be hard to balance, the use of a number of trusted exchanges could provide a little bit peace of mind.

You are absolutely right. This is the point i have been waiting to read out. Since we have already provided our personal information in the first exchange we are using there is no point of not getting another exchange. I deem it so risky and insecurity wise of putting our funds in one exchange. What if something happens to the exchange that means all the funds will be lost. There are so many attacks on centralized exchanges and if we look the way things are, those exchanges we trust are the ones who end being attacked. So we cant be so accurate in choosing which exchange that will be more safer as this scammers are big threat to exchanges. Although its better that we lose some of our assets than losing all our assets.

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Using the same exchange regularly decreases the chances that they will confiscate funds & ask for the source of them. You will likely have to KYC but what’s the problem with that if you have nothing to hide. Like anything in business/finance, regularity improves trust between two parties.

icalical

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Quote from: Nothingtodo on October 01, 2024, 01:02:09 AM

It is very important to use only one specific exchange instead of using multiple exchanges. If more than one exchange is used, my personal security is at risk as I have to provide my personal documents to different exchanges. By using an exchange, my personal documents are given only to that particular exchange, so there is no chance of my personal documents being leaked.

Using several different exchanges will actually reduce some risks. Yes, when you sign up to each of them, you are required to send your personal documents to each different website, which may seem a risk. But using only one exchange means you place all of your funds and data in one basket. If that gets hacked, as has happened in the case of Binance and others, you will have lost access to everything. You are diversifying the risk by having all of your assets spread across different secure platforms, reducing the impact of a single hacked exchange. While security and convenience might be hard to balance, the use of a number of trusted exchanges could provide a little bit peace of mind.

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There is no any complicated reason why I am using the same exchange, and that's because I am convenient using them. Other than with that reason, it's mostly about that I have never experienced any problem with withdrawals and deposits, no issues have been faced so that makes me want to come back to any service that I use and in particular of exchanges. The same goes for the casinos that I am staying right now. If we're happily using the service, aren't we going to stay? So, being consistent of using the same exchange means a repeat customer for them and to us convenience.

With that mutual understanding from both ends gives the exchange the idea that they need to do better for them to keep the existing users that they have. Whilst us users, we're mostly loyal to these companies for as long as we're happy with the service that we receive from them. But, once it starts to dry out and we start to encounter troubles that we haven't met before, that's discouraging and we know what will happen next.

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Quote from: Nothingtodo on October 01, 2024, 01:02:09 AM

It is very important to use only one specific exchange instead of using multiple exchanges. If more than one exchange is used, my personal security is at risk as I have to provide my personal documents to different exchanges. By using an exchange, my personal documents are given only to that particular exchange, so there is no chance of my personal documents being leaked.

What is the pint when you have already provided your personal information on one exchange. I just feel like it doesn't matter, whether you are using several exchanges instead of one. Because it is based on luck that we dont get to find ourselves using the exchange that we steal our funds. Although some persons may have good reasons for using just one exchange. Reasons like; familiarity with the exchange UI, features and better professional security. But when it comes to personal information we might have provide our information on platforms that might do us more harm than these exchanges we are avoiding.

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Quote from: Cryptomultiplier on June 02, 2024, 12:21:32 PM

One of the reasons why I think it's best to consistently use the same exchange, is for valuation purposes to maintain consistency, it is so as to determine the fair market value of a cryptocurrency is for during tax preparation. It's how the IRS wants cryptocurrency transactions to be reported on tax returns.

Quote

While "fair value" and "fair market value" are similar, they aren't the same;

Fair value refers to the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at a particular date.

Fair market value is usually used when evaluating assets and liabilities for tax purposes. It is the price that any property would sell for on the open market. It is the price that would be agreed on between a willing buyer and a willing seller, with neither being required to act, and both having reasonable knowledge of the releva facts.

The IRS' guidance on this also states that if any crypto is not traded on any exchange, but maybe it was trades pair to pair, P2P, or received as income, the fair market value is whatever the crypto was worth on the date it was received.

https://www.bitwave.io/blog/how-to-determine-crypto-fair-market-value

So, why do prefer to consistently use the same exchange?

Let's discuss!

There's probably quite a few reasons, one important one for me is familiarity with the design of the site. When you're dealing with finances it's important that you understand all the fees and ways that the website will work so you don't accidentally send money off to the wrong place. Mentioning fees - they are likely to stay fairly stable when you stick with one exchange, so you know what you'll be getting without having to think too much about it. An element of security should always be considered and knowing that a exchange is reliable after consistently using it over a period of time should give you a little bit of extra peace of mind.

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Quote from: TastyChillySauce00 on October 01, 2024, 12:32:42 AM

remembering the FTX case, a good and reliable exchange could become a bad exchange in just matter of short time.
so just trusting the same exchange for too long might also pose risk if suddenly things goes south, I'd think that diversification of asset through various "trusted" exchange as something that's truly necessary.

I personally also try to seek the most trusted exchange there is but honestly, i'm not risking my money to be in the same situation as FTX, waiting so long to get reimbursement is such a pain in the ass, that with a big "IF" our money even get reimbursed in the first place, things can get messy. it's okay to keep trusting exchange but also on the lookout for the impending doom, to avoid being the victim.

Trusting one exchange is good with various reasons to trust it, but is the exchange you hold really convincing, of course you need to look at the background of the exchange itself, there are many factors that need to be examined, so that you are sure to use the same exchange to use.

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Quote from: TastyChillySauce00 on October 01, 2024, 12:32:42 AM

Quote from: Hanadawa on June 21, 2024, 09:52:46 AM

I will not be tempted by various promotions and discounts offered by other exchanges as long as I don't have problems with my current exchange. From the start I chose an exchange that was trusted, had lots of crypto assets and the most important thing was that it was easy to send, deposit and withdraw my assets. I don't need to learn new things and adapt to a new exchange interface. But to be honest I don't just use one exchange and have tried several exchanges. But in essence I only use one or two exchanges to make transactions and don't try other exchanges just because they offer price differences or lower fee promotions.

remembering the FTX case, a good and reliable exchange could become a bad exchange in just matter of short time.
so just trusting the same exchange for too long might also pose risk if suddenly things goes south, I'd think that diversification of asset through various "trusted" exchange as something that's truly necessary.

I personally also try to seek the most trusted exchange there is but honestly, i'm not risking my money to be in the same situation as FTX, waiting so long to get reimbursement is such a pain in the ass, that with a big "IF" our money even get reimbursed in the first place, things can get messy. it's okay to keep trusting exchange but also on the lookout for the impending doom, to avoid being the victim.

Most people agree that it's best to use just 1 exchange for reasons like consistency, routine, and ease of management...but I'm of the same mind as you. Indeed, risk is all around us and diversification is essential. We often advise each other to diversify assets, whether it's gold, bitcoin, or real estate...even the best assets have risks. Or even when protecting the seed phrase, we always have 2 or 3 backups to minimize the risk. So why do we only use 1 exchange when it is already risky because it is a centralized platform?

Regarding privacy, once we have used one or more exchanges, our privacy will no longer exist. What guarantees that the exchange we are using does not sell our personal information to 3rd parties?
Even the banks, schools, and services we use every day are silently collecting our data and selling it. There is only one way to ensure privacy and that is to not use any centralized exchanges or platforms.

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It is very important to use only one specific exchange instead of using multiple exchanges. If more than one exchange is used, my personal security is at risk as I have to provide my personal documents to different exchanges. By using an exchange, my personal documents are given only to that particular exchange, so there is no chance of my personal documents being leaked.

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Quote from: Hanadawa on June 21, 2024, 09:52:46 AM

I will not be tempted by various promotions and discounts offered by other exchanges as long as I don't have problems with my current exchange. From the start I chose an exchange that was trusted, had lots of crypto assets and the most important thing was that it was easy to send, deposit and withdraw my assets. I don't need to learn new things and adapt to a new exchange interface. But to be honest I don't just use one exchange and have tried several exchanges. But in essence I only use one or two exchanges to make transactions and don't try other exchanges just because they offer price differences or lower fee promotions.

remembering the FTX case, a good and reliable exchange could become a bad exchange in just matter of short time.
so just trusting the same exchange for too long might also pose risk if suddenly things goes south, I'd think that diversification of asset through various "trusted" exchange as something that's truly necessary.

I personally also try to seek the most trusted exchange there is but honestly, i'm not risking my money to be in the same situation as FTX, waiting so long to get reimbursement is such a pain in the ass, that with a big "IF" our money even get reimbursed in the first place, things can get messy. it's okay to keep trusting exchange but also on the lookout for the impending doom, to avoid being the victim.

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Quote from: G_Besar on June 19, 2024, 01:44:54 AM

Quote from: Epaper on June 15, 2024, 01:56:25 AM

In my opinion, it is not necessary to use the same exchange consistently if along the way sometimes our wishes and the exchange do not work as they should. For example, when we have used an exchange for several years but suddenly there is a change in transaction costs to become high or something like that, then we will definitely leave that exchange and choose another exchange with lower transaction costs.

This option is not wrong for everyone to do if they have special reasons that could interfere with their comfort in using an exchange's services. So it wouldn't be wrong if each of us wanted to use more other exchanges in order to be able to adjust transaction costs because most people who change to using exchange services are more concerned with the issue of costs at a particular exchange apart from the special menus and features available in that particular exchange that might This doesn't exist on other exchanges.

So please use several well-known exchanges that have been trusted for a long time in order to get better service, including service fees which can be very affordable because we as users are actually free to use any exchange and are not required to use just one exchange. However, it would also be very good if one exchange could have everything we need so that we as users don't have to worry about registering on a new exchange to get certain things, like in the example of transaction fees.

I agree with you that choosing various exchanges can indeed provide flexibility in managing transaction costs. Especially if you use a trusted exchange, we can feel safer and more comfortable in making transactions. In addition, it might be ideal if there was one platform that could meet all our needs so that we could save time and effort.

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I have 4 of my favourite cex to exchange, although 1 of them I often use but anticipate better.

I was a little uncomfortable at first with the collection in the tos procedure about the kyc requirements that I had to provide, but the cex is getting more and more I need because a token / coin if it is listed of course it is a real coin that can benefit.

Because the cex exchange only asks for a connection I think it should be more research to use it especially the new market domain, many designations are the goal of coin hodlers, I am an airdrop hunter and I need a lot of exchanges. Also a trader if he has an arbitrage trading style will certainly need a lot of markets too, I think it is optional and I am confident in my decision.

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Quote from: Wexnident on June 18, 2024, 07:07:39 PM

Quote from: Cryptomultiplier on June 02, 2024, 12:21:32 PM

-snip-

I will not be tempted by various promotions and discounts offered by other exchanges as long as I don't have problems with my current exchange. From the start I chose an exchange that was trusted, had lots of crypto assets and the most important thing was that it was easy to send, deposit and withdraw my assets. I don't need to learn new things and adapt to a new exchange interface. But to be honest I don't just use one exchange and have tried several exchanges. But in essence I only use one or two exchanges to make transactions and don't try other exchanges just because they offer price differences or lower fee promotions.

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Quote from: Cryptomultiplier on June 02, 2024, 12:21:32 PM

One of the reasons why I think it's best to consistently use the same exchange, is for valuation purposes to maintain consistency, it is so as to determine the fair market value of a cryptocurrency is for during tax preparation. It's how the IRS wants cryptocurrency transactions to be reported on tax returns.

My reason is also 'being convenient'. Yeah, I do agree with the "easy" ones, those people are right, well at least right for me. It's easy, because I am already using one and do not see a reason to move. If I had to move, I need to find a reputable one that I can trust, and move all my money there, which makes no sense because it's a lot of work, or at least it's scary to do it.

I personally believe that the best thing to do right now would be just realizing that life isn't as simple as you may think, or that hard as you may imagine, it's just calm and regular. That's why I prefer the calm and regular option, keep staying at where I am because it's the easy option and I would not get any worries about any other place. If anything happens where I am, then I may start reconsidering.

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Using one exchange is good for me than using multiple exchange. It will save you of stress and many other factors like kyc because if you chose to use multiple exchange, it will occupy alot of space in your phone. It will not add anything to your list of important things on phone and many other factors. So using a single exchange is good. Except it has lost its usefulness before I may consider not to use it again. I have a friend of mine that use the sake of this multiple exchange and lost access to the one that has fund in it. What happens is that all of his centralised exchange on his mobile phone has different password so he was using another password for another exchange for long till he forgot the right one and he didn't has a backup, he was lucky to have the registered email where he received a recovery password and he changes it. In this aspect it can Leed to being confuse at some point.

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Quote from: NotATether on June 20, 2024, 03:49:20 AM

It doesn't really matter. Unless you are trying to avoid giving your ID to many different exchanges (good), don't engage in arbitrage trading (good I guess?), prefer to keep all your eggs in one basket (bad - use wallets), or trying to accumulate rewards (bad - they are a waste of time). But those are the only things I can think of off the top of my head.

Your first point makes a lot of sense. Actually I can remember not wanting to use an exchange because they asked for my ID. It’s something I have supplied to an exchange before then, but having to give it out like it’s a souvenir was indeed a problem for me.

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