Why do you think it's best to consistently use the same exchange? - page 4.

Jegileman

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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.

I have never looked into that when thinking of the exchange I want to use. I have about five exchanges that im registered to and also done KYC on them to trade coins on. The reason for having so much is to access some coins that are not on others and to simply receive funds from others that are on same exchange through internal transfers. The idea you’re pitching here is a valid one, and the IRS will not look into that aspect of you owning all when it comes to collecting tax for using them. I don’t really bother about this because I’m not tax for using any of those exchanges, I only pay trading fees to the exchange during transactions and that’s it for that.

kentrolla

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When it comes to managing exchanges the only thing matters to me is convenient because it's difficult to manage our trading, calculation about the PnL when we use multiple exchange hence I maintain all at one place and more importantly the hassle of managing different passwords. But I use multiple exchange to track the price or sometimes but some coins earlier in exchanges like gate.io.

Cryptoprincess101

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Quote from: Adbitco on June 02, 2024, 12:36:17 PM

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 feel using different exchanges is also advisable because we should not forget the fact that no matter how reputable an exchange is, they can be compromised and hacked or they can crash so far as they are centralized. We need to learn alternativity, so that if some unforseen circumstances erupt in the future, we will not be totally consumed and we can have where to fall back to. Whatever exchange platform that involves a third party can not be completely trusted no matter how you have built trust with them for long, some exchanges can build good reputation for years and tarnish them within a blink of an eye. Let us not forget crypto exchange FTX collapsed in 2022 after they built good reputation.

woez

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Quote from: btc78 on June 03, 2024, 04:32:56 PM

There is just one simple answer to this, really.

If it isn’t broken, don’t fix it! There’s lots of exchanges out there and if you find one that works perfectly fine for you then just stick to that and do not risk using others that may compromise your entire crypto experience. It is also to avoid further confusion and complications.

The safest and easiest way is to use an exchange that has been licensed locally. If there is a problem with our investment, we can confirm it online first and if there is no meeting point, we can come to the official office with all the requested requirements. They will help you solve it quickly.

beerlover

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Quote from: Cryptomultiplier on June 03, 2024, 08:01:59 AM

I have noticed same thing also as regards giving better promotional offers to newbies and the oldie are then left to either join the community and participate with their funds to gain or have to adapt to the fees that may soon increase without much price explanation.

I think also when exchanges delist trading pairs from their services, it contributes to why people will seek other exchanges for what they need and this surely adds up to the confusion mostly experienced, that results in the inconsistency of using a particular exchange too.

I feel like there is a good reason because people do not have a reason to leave, that is the reason to stay. When you delist something I understand the situation, and there is nothing wrong with that, I think it's quite obvious that we end up seeing it like that.

I do not mean to say that we are going to end up with something that changes, we should probably consider how to grow bigger and better, we need to just adjust and do that. Of course that is not going to be all that easy, we need to just make it work one way or another. I believe that we are going to end up with something much better. Think about it this way, it is going to be a good situation and we can definitely make it work, we just need to be happy with what we have.

Reatim

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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?

Well there are loyalty benefits offered by the exchange itself when you have used theirs consistently over time. You may receive some disconted fees or even an exclusive offer that could only be accessed if you are a regular customer of theirs. While this may not seem much but I greatly value this and they could really make a difference when making transactions. Besides it’s more secure to just trust one exchange in my opinion

btc78

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There is just one simple answer to this, really.

If it isn’t broken, don’t fix it! There’s lots of exchanges out there and if you find one that works perfectly fine for you then just stick to that and do not risk using others that may compromise your entire crypto experience. It is also to avoid further confusion and complications.

Fortify

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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!

It depends how much money you're sending through exchanges on a regular basis really. If you're moving larger amounts then it is probably wise to stick with the same exchange, because each time you go to a new one you open up the possibility that you mis-understand how the trade works or end up paying larger than expected fees. You can also get a feel for how secure the platform is or whether it encounters regular downtime, which might signal that you should move on as it can be less safe. You should probably separate good bookkeeping skills from the platform you use, because it is fairly easy to record all the necessary stats if you are doing a low amount of transaction activity.

jaberwock

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Quote from: sunsilk on June 02, 2024, 06:47:58 PM

Using the same exchange all over again is because mainly of convenience and it covers all, convenient in pairs, fees, service and support.

There could be other stuff that I have missed to say but that's the reason why we are mainly using the same exchange at all times.

If taxation and IRS is the priority of this thread, I think that only comes secondary or even not really have been thought at all by most of us.

If it has all the features you mentioned, then yeah, why will we need to jump on the other right? it's only hassle. While, if it doesn't have it, there is also no reason to stick on it and be stay miserable when in fact there are plenty of good choices out there to pick from.

We must not be afraid to try something new, because I'm sure there are also people who are like this. It is like a kind of phobia. Tax on the other hand is actually important before anything else because we can get in serious trouble if we neglect it. I think many of us are not dumb enough to know it but we only pretend to not mind it because in our head it's only an added expense and can only stress us throughout the day.

Casdinyard

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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!

Correct me if I'm wrong, but doesn't this mean nothing? I mean, we can use our favorite exchanges for all we want to promote this fair market value you're talking about, but if there is arbitrage in between exchanges, no matter how small, doesn't it mean that fair market value is still not achieved, given the fact that two exchanges are clashing against what they think is the real value of the coin in question? I mean the only way this could really be achieved is if every single crypto user chooses a single exchange among a vast plethora of others in the market, and honestly if that were to be the case I might quit crypto for good.

And honestly speaking, the only reason why I use the same exchange for the past 8 years now is only because I got myself pretty familiarized with the UI and the way things work with this exchange, I have been able to build trust with this crypto exchange for years on end and I have yet to be disappointed by Binance, security, ease of access, and in every other facet of service that they could provide. So yeah, besides DEX that I am obliged to use every now and again I will always stand by Binance.

CoinMin3r

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One reason to use same exchange consistently may be to avoid headache for doing the same kyc verification process again and again with other exchanges. I don't see any other reason or benefits to use same exchange consistently. We may not find our desired trading pairs or tokens in just one exchange forcing us to use another one.

kryptqnick

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Thankfully, I'm not a US citizen and not a US tax resident, so I don't have to worry about IRS. I've used some major international crypto exchanges in the past, but I don't do that nowadays. Instead, I use local exchanges, the kind where you don't store funds but transfer them directly for each transaction. It's convenient to minimize the trust issue, and the same goes for using one exchange consistently: I know my experience has been positive in the past, so I feel safer using it than trying something new.

Dr.Bitcoin_Strange

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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?

Let's discuss!

I am not using only one exchange; I use Digifinex for my future trading. The reason why I love the exchange is because it is easy to use and makes it possible for me to easily understand the market, and I just feel that it is only in that exchange that my strategy works best. The other exchanges that I use are bybit and binance, which I commonly use for p2p. If it were around 2019–2021, when I was seriously into altcoins investment, I would have used different exchanges, and the reason is because the tokens I was buying were listed on those different exchanges.

Cryptomultiplier

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Quote from: shinratensei_ on June 03, 2024, 01:45:37 AM

in my opinion, the main reason why I keep using same exchange just because the best exposure to liquidity and good services it offered aside from the fact that its easier to do accounting on our end for tax purposes as well.
i'm pretty sure people who just stick with one exchange is because out of convenience, they only go out of their way using other exchange possibly lesser known ones when they trying to trade ticker that aren't available in their main exchange.
but once that ticker available and listed in their mainly used exchange they will immediately come back.

Quote from: Rruchi man on June 02, 2024, 04:34:59 PM

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

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

If an exchange has not given you any reason to doubt their services, there is no need to switch to another exchange. Being a long-time customer of an exchange can increase your customer status with the exchange because they know that you are a long-time customer, so you may have some kinds of benefits.

Using many exchanges at once is a security risk to your details and to whatever amount you have kept back on that exchange.

funnily enough most of the exchange i know that are top ranked never truly appreciate long time customer, they always give promos to the new customers, the long time customer can still join certain event but most of the event still focused on the new users for the purpose of increasing their users.
it has always been like this new user get incentivized more.
so I can see the reason why some people decide to just use many exchange to pursue the discounts and promotional offers, but it is one time event anyway, since afterward they're not eligible for all the promotional offer anymore.

I have noticed same thing also as regards giving better promotional offers to newbies and the oldie are then left to either join the community and participate with their funds to gain or have to adapt to the fees that may soon increase without much price explanation.

I think also when exchanges delist trading pairs from their services, it contributes to why people will seek other exchanges for what they need and this surely adds up to the confusion mostly experienced, that results in the inconsistency of using a particular exchange too.

Promocodeudo

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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!

If you found an exchange worthy of transaction with, I think there nothing bad about continuous use of such exchange hence you are conversant with it, once an exchange possess everything you need to trade with, jumping from one exchange to the other shouldn't be an option as the case may be, although no matter how you trust an exchange their shiuld be constant check and monitoring because exchange has dubious means of doping people, dont hold your coin their, your can move some the coin you want to trade to your preferred exchange to trade but before you move it make aurr that you know their minimum deposit in other to avoid losing your coin.

shinratensei_

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in my opinion, the main reason why I keep using same exchange just because the best exposure to liquidity and good services it offered aside from the fact that its easier to do accounting on our end for tax purposes as well.
i'm pretty sure people who just stick with one exchange is because out of convenience, they only go out of their way using other exchange possibly lesser known ones when they trying to trade ticker that aren't available in their main exchange.
but once that ticker available and listed in their mainly used exchange they will immediately come back.

Quote from: Rruchi man on June 02, 2024, 04:34:59 PM

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

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

If an exchange has not given you any reason to doubt their services, there is no need to switch to another exchange. Being a long-time customer of an exchange can increase your customer status with the exchange because they know that you are a long-time customer, so you may have some kinds of benefits.

Using many exchanges at once is a security risk to your details and to whatever amount you have kept back on that exchange.

funnily enough most of the exchange i know that are top ranked never truly appreciate long time customer, they always give promos to the new customers, the long time customer can still join certain event but most of the event still focused on the new users for the purpose of increasing their users.
it has always been like this new user get incentivized more.
so I can see the reason why some people decide to just use many exchange to pursue the discounts and promotional offers, but it is one time event anyway, since afterward they're not eligible for all the promotional offer anymore.

seanskie18

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For me, the response is yes because it is your money, and you want to ensure that it is secure and not lost. All exchanges are not the same, and neither are their security measures; some are easily hacked. So, if you've already demonstrated that the exchange you're using is trustworthy, it's best to stick with it.

ChiBitCTy

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Personally I try and use OTC (Over the counter) as much as possible, and avoid exchanges at all costs. It's not always possible, but there are thankfully plenty of times where it is.

I watched a Fortune Magazine YouTube video of "the most trustworthy" exchanges the other day...anyone want to guess who they had listed as number one? LULZ...Conbase..I mean Coinbase. What a fn joke. They are as corrupt as they get. OTC FTW.

sunsilk

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Using the same exchange all over again is because mainly of convenience and it covers all, convenient in pairs, fees, service and support.

There could be other stuff that I have missed to say but that's the reason why we are mainly using the same exchange at all times.

If taxation and IRS is the priority of this thread, I think that only comes secondary or even not really have been thought at all by most of us.

o48o

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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!

Well, in countries that do have taxes, it's obviously just way more easier to pick one, and with any luck they have easy and clean tx history to download as a file, for filling your taxes, which can be complicated as hell. Depending how much you make, hiring a service to do taxes for you might save you from some serious mental break down when you are hunting your hundreds of different addresses and every transaction from them in local fiat value at the time minus fees.

Still, complex taxes don't seem to stop people for using multiple exchanges, multiple wallets with multiple chains and multiple dexes. Profits for using several exchanges and be worth the work that you need to put in your taxes later. Changes are it's not going to be, but not everyone can be a winner.

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