Why do you think it's best to consistently use the same exchange? - page 2.

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Quote from: mirakal on October 07, 2024, 10:26:06 AM

Quote from: Adbitco on June 02, 2024, 11:36:17 AM

To me I don't really consider all this listed above the most important thing to do is to monitor and build your trust from that particular exchange even as we know that using one particular exchange is risky but provided they are trusted and have all the trading pair you required then no need jumping from exchange to exchange most at times we can have difficulty with passing kyc and other important things that could be needed by the exchange.

I have to agree with you. It’s not necessary to jump from one exchange to another just to prevent your funds from losing. The fact that one certain exchange you have been using has already proven its credibility and have been so much trustable with all those years, then that would guarantee already the security of your funds.

However, trying a new reliable exchange may also be a good idea, but that decision of yours would still depend on your own preference and perspective.

People are using terrible exchanges and this is why these type of questions rises time to time. If you used a good and trusted exchange then you wouldn't have a need to provide a proof of trying to do something like this, we are going to end up with a person who ends up not doing the right thing at all times, so we should be careful and not really deal with exchanges that are risky. Pick a place that you think looks trusted, and if enough people trust a place then there must be a reason.

Biggest example would be Binance, if they are at the top of the list, with trillions going around, then it means the place must be trusted and you can put your money in there. Consistently using them would not create any issues for you, or at the very least you could trust them more than you trust most of the other places, and this is why people should not have fears about them.

I believe we are going to see Binance be even bigger, I know that sounds silly, but people will see other exchanges being not so trustworthy and shady, so they will withdraw their money from those places and put it all on Binance, so eventually we are going to see Binance become much bigger than what it is right now.

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Well there is only 2 exchanges I use. And they are Binance and Coinbase. I did use others like Kraken before but not anymore. It is because they already have all of my information. And I do not want to send it out to more exchanges when I do not have to.
And I been trading on them for alot of years now. So I do not get any problems when I want to send fiat to the exchange or to my bank. And they are not going to steal from me at any time but do not know this is true for some other exchanges.

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Quote from: Cryptomultiplier on June 02, 2024, 11:21:32 AM

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.

I do not buy the idea of using one exchange, it's even risky as it will devastate us if anything bad happens. Your point is not also genuine in my country because the government do not tax risky activities like gambling and trading directly, they only tax you with your bank inflows and outflows.

Notwithstanding, considering the IRS concern, it is no big deal, many people have different earning activities and are still fairly reported and taxed. So why risk so much with an exchange due to it?

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

I don't prefer it, but I would have had a better trading/investmenet focus and personal accountability with a single exchange. But I can't trust them.

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Quote from: Adbitco on June 02, 2024, 11:36:17 AM

To me I don't really consider all this listed above the most important thing to do is to monitor and build your trust from that particular exchange even as we know that using one particular exchange is risky but provided they are trusted and have all the trading pair you required then no need jumping from exchange to exchange most at times we can have difficulty with passing kyc and other important things that could be needed by the exchange.

I have to agree with you. It’s not necessary to jump from one exchange to another just to prevent your funds from losing. The fact that one certain exchange you have been using has already proven its credibility and have been so much trustable with all those years, then that would guarantee already the security of your funds.

However, trying a new reliable exchange may also be a good idea, but that decision of yours would still depend on your own preference and perspective.

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Quote from: icalical on October 01, 2024, 11:25:32 PM

Quote from: Nothingtodo on October 01, 2024, 12:02:09 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.

Indeed, it is difficult to balance security and convenience. If we have a small amount of money then using one exchange makes sense, but if we have a larger amount then using only one exchange will only increase the risk.

Between privacy and security of assets, which will we choose? I bet if it was a large amount of money, everyone would choose to protect their assets. What is our privacy worth if our assets are zero?
Personally I still prefer using 2 or more exchanges rather than relying on just 1 exchange. But don't forget, we should only use exchanges for their intended purposes like peer-to-peer trading, daily trading, and never use them to store long-term investments.

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Quote from: Taskford on October 07, 2024, 06:11:43 AM

Quote from: Cryptomultiplier on June 02, 2024, 11:21:32 AM

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!

To lucky for us here that we don't have this crypto taxation thing so we can use crypto without getting bothered. But in case that a exchange would implement that and somehow their platform is reputable then I don't really think its a problem if they automatically take taxes from my transaction. Also most provably will continue to use that exchange since it gives me more confident to do transaction with them since that mean they are regulated and monitored by government so scamming most likely less to happen in those exchange.

Also we need to prepare for that implementation to happen since most provably that this will be an alternative option that government will take to oblige people to pay their taxes.

If all countries will really be doing the same stuff on what US is been doing like having on taxing on everything then we would be experiencing on the same thing and just like you have said that we are lucky that we are living on a place on which not as strict as US when it comes to taxation.If we do speak about tax then this is something which is really that default. There are really just those things that cant really be able to reach out such scope or simply government couldnt really be able to filter out certain industries on which they cant really be able to maximize out on how to get those taxes into those people who had been earning.

As for making use of the same exchange then it would really be up to you or simple with your preference since not all would really be having on the same preference and also
the availability of the tokens/coins that they are dealing into. We do know that there are coins/tokens which arent that listed on the site that we are using. This is why we would really be opting to
go for another exchange and would really be making some registration but later on we would really be going back into the platform that we are used to.

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Quote from: Cryptomultiplier on June 02, 2024, 11:21:32 AM

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!

To lucky for us here that we don't have this crypto taxation thing so we can use crypto without getting bothered. But in case that a exchange would implement that and somehow their platform is reputable then I don't really think its a problem if they automatically take taxes from my transaction. Also most provably will continue to use that exchange since it gives me more confident to do transaction with them since that mean they are regulated and monitored by government so scamming most likely less to happen in those exchange.

Also we need to prepare for that implementation to happen since most provably that this will be an alternative option that government will take to oblige people to pay their taxes.

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Quote from: uneng on October 05, 2024, 12:44:33 PM

Quote from: Cryptomultiplier on June 02, 2024, 11:21:32 AM

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.

I will capitalize on past experience, like if you have a good experience with a particular exchange, you just feel comfortable and subconsciously you keep coming back to them. Also if the exchange has good a rate, that adds to one your user experience, and the interface is just easy to use and nice.

If it has good security to protect your funds, like overall you enjoy it, you find yourself coming back to it. And probably because you are busy and trying to keep up with the way life moves fast, you sometimes forget to even try other exchanges out.

Although it's good when you hear about a new exchange or something, you just give it a try, you might not do a serious transaction with it, but you just try with the least amount that you can risk, in case something goes wrong

So what makes me use one exchange repeatedly is how easy it is for me to use, the rates, no network glitches, the security is good, and their customer support system too is good, like all of this, just gives me a good experience and make me ignore other exchanges in the market, and keep using one.

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Quote from: Adbitco on June 02, 2024, 11:36:17 AM

To me I don't really consider all this listed above the most important thing to do is to monitor and build your trust from that particular exchange even as we know that using one particular exchange is risky but provided they are trusted and have all the trading pair you required then no need jumping from exchange to exchange most at times we can have difficulty with passing kyc and other important things that could be needed by the exchange.

I don't know why I don't buy into this idea because it's quite a double check cause using a particular exchanges could be challenging most times and when you don't have other alternatives what would you do, so it's best to opt in different exchanges that will save you the stress of unforseen circumstances, let's say for instance you wanted to do some transactions via p2p and then you're having either network issues and KYC challenges as well and it's just that exchange your having and by the way that transactions is needed urgently what will you do. So this is why I wouldn't want to be consistent with just an exchange but multiple exchanges.

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Quote from: Cryptomultiplier on June 02, 2024, 11:21:32 AM

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.

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Quote from: justdimin on October 05, 2024, 11:28:34 AM

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, 06:33:44 AM

Quote from: icalical on October 01, 2024, 11:25:32 PM

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, 12:02:09 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 01, 2024, 11:25:32 PM

Quote from: Nothingtodo on October 01, 2024, 12:02:09 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.

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Quote from: Nothingtodo on October 01, 2024, 12:02:09 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, 12:02:09 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, 11:21:32 AM

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 September 30, 2024, 11:32:42 PM

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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