Topic: Why do you think it's best to consistently use the same exchange? - page 4. (Read 1348 times)
June 18, 2024, 11:15:39 PM
The main reason why I'm sticking to one exchange is a security issue, there are almost no exchanges without KYC so this will make us have to do KYC in many places if we move between exchanges, another reason that one exchange will make it easier for us to know whether our trading progress is going well from deposits and withdrawals, and another reason is that the exchange I am currently using is a local exchange whose owner is also known because he is quite well known in the crypto community in my country and also the address of this exchange office is clear, so this is one of the reasons why I only use this exchange or more often only use this exchange, especially as there are lots of markets available and this exchange is quite updated with the latest markets, so I've got what I need here.
June 18, 2024, 10:56:38 PM
Quote from: Wexnident
Cause they're good at what they do and I've had zero complaints so far? Pretty sure that's the only thing you'd ever want out of an exchange. If you start talking about promos, user rewards and whatnot that shit ain't going to end imo. Honestly as long as an exchange is good and is allowed in my country then that's basically the exchange I'm going to use for as long as I could. Also helps that their reputation was good but that's mostly before trying to use it.
Something you have tested before and something you have not tested, I think it will be very easy for you to make a good decision, because you have use the exchange service before in the market and you enjoy their service which you will definitely prefer that service than others exchange service you have not use. You have been using the exchange without a complain of high fee, no scammers and your coins are protected through out your transaction, you need to continue with such exchange, because you are getting what you want from the exchange. That is the most important thing you need to consider before going ahead with such exchange, because if the exchange is not allow in your country, you don't need to use or continue with such exchange in the market but if the exchange is allowed in you country, you can continue using the exchange.
June 18, 2024, 09:49:12 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.
You are right, personally I like using a particular exchange. I see no reason to jump from one exchange to the other, What I mostly do is to 1 exchange to do all my p2p transactions or trade, except if that particular P2P exchange doesn't work anyore before I will like to make a change by downloading another exchange app. Most of the exchangs I downloaded always have one issue or the other one exExample is kyc problem just as you have earlier said. So most times we Just need to make things easy for ourselves rather than doing things the way it will be stressful to us.
June 18, 2024, 06:07:39 PM
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Because it's easy? I don't think there's a need to overcomplicate this, I'd keep using the same exchange over and over if it makes stuff simple for me. Transferring assets? Easy. Buying? Easy. Even what you made as an example can count as it being easy to use, just a lot more specific. Using multiple exchanges can get confusing and introduces a lot of unnecessary steps imo, maybe even overcomplicating something that can be extremely simple lol. Innovations were made to make life easier, I don't think I'd go back to making it hard by myself. June 18, 2024, 05:29:59 PM
The only time people may want to change is when the platform doesn’t have the feature they desire. But when it has everything, you will definitely continue using.
People probably use not just one but multiple ones if one exchange offers something they need but another doesn’t but still has something that they need. Personally I think it would also be a good idea to distribute your assets in different platforms but for convenience this might not be the best idea.Personally I would suggest to not spread your asset across a centralized exchange, instead, move everything to your decentralized wallet where you and only you have the access to the wallet. Only send the amount of money you wish to transact with to an exchange at that time. Many people make this mistake and the consequences may not be frequent, but don’t be unfortunate like a few people.
June 17, 2024, 10:25:57 AM
The reason why people should maintain consistency in using an exchange is because of problems that may arrive from adapting to a new user interface. There are people that already used to a particular exchange and they know how to manage their portfolio accurately using that exchange but when you introduce a new exchange to them it becomes difficult for them.
I have a friend who migrated to a new exchange because of his country being banned from doing P2P, at that period he deposited some amount of Bitcoin to the new exchange and that was how he lost the money. Meanwhile in the other exchange the amount of Bitcoin he deposited who had reflected but in the new exchange it is not up to the minimum amount of BTC deposit.
I have a friend who migrated to a new exchange because of his country being banned from doing P2P, at that period he deposited some amount of Bitcoin to the new exchange and that was how he lost the money. Meanwhile in the other exchange the amount of Bitcoin he deposited who had reflected but in the new exchange it is not up to the minimum amount of BTC deposit.
June 16, 2024, 05:05:14 PM
I think it's best to consistently use the same exchange because it allows for easier tracking and management of transactions, reduces fees, and enhances security.
Most of these exchanges probably have the same security measures, so if you're going to use the same exchanges then I think it's not about any of that security but the security concern is that you're secured with them because you're a repeat customer. If you've got complains, they'd get to your account history and you're right about for easy tracking. So, it all boils down to that moment that if ever we meet some issues using them, they'd probably gonna give us some better response time and some treatment that they'd give because you're a loyal customer to them.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.
While that is true that it's your preference to use different exchanges. As for transaction costs or you mean by the withdrawal fees, you can always choose other networks with your preferred crypto that has cheaper network fees and this is now common for most exchanges, if not all. 
June 15, 2024, 11:03:17 PM
The only time people may want to change is when the platform doesn’t have the feature they desire. But when it has everything, you will definitely continue using.
People probably use not just one but multiple ones if one exchange offers something they need but another doesn’t but still has something that they need. Personally I think it would also be a good idea to distribute your assets in different platforms but for convenience this might not be the best idea. June 15, 2024, 07:20:58 PM
I think it's best to consistently use the same exchange because it allows for easier tracking and management of transactions, reduces fees, and enhances security.
June 15, 2024, 12:56:25 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.
June 13, 2024, 12:29:01 PM
Actually, I don't have particular reasons... Most of my money is on Binance because the volume there makes it easier for me to trade. Also, the Binance exchange pioneered a lot of innovations in the market during the CZ days. So first and foremost, I like it for its service... Of course, I would like to remind you once again that no matter what, centralized exchanges are vulnerable to dangers. Even though I've gotten used to some of them and use some of them a lot, I never trust them and withdraw my money to my personal wallet periodically...
June 09, 2024, 07:27:46 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.
So, why do prefer to consistently use the same exchange?
Let's discuss!
Multiple exchanges mean multiple accounts with multiple passwords that make you vulnerable to attack. You also have to submit KYC documents almost on each of them. For me, it isn't worth the headache, I don't even get any benefit. I prefer to use Binance or local exchange. I prefer Binance because it offers me many altcoins but I use local exchange also because I know that it's owned by a local bank, I know people who work there and I know that if something goes wrong, I can at least do something about it. What can I do if Binance gets hacked? Fly in Dubai? America?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-valueFair 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.
So, why do prefer to consistently use the same exchange?
Let's discuss!
Buy a hardware wallet that supports altcoins, use one or max two exchanges and relax.
That depends on each person's needs. There are investors who only like to speculate on projects with low and medium capitalization and are usually not listed on binance or leading exchanges. In this case if they do not use multiple exchanges then how can they continue their investment journey? In addition, not putting all your eggs in one basket is never redundant advice in investing, especially in a risky market like cryptocurrency.
Once you have accepted to use a centralized exchange, you have accepted the loss of privacy, so whether you choose Binance or a local exchange does not make much difference, and using one or more exchanges will not cause you further harm.
June 09, 2024, 05:32:48 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.
So, why do prefer to consistently use the same exchange?
Let's discuss!
Quote
Yes you can use the exchange as long as you don't find any issues but keep In mind that you need to be constantly updated by the problem of people that are using that exchange.
You can't just wait to be a victim of something and after that you just go and search for the alternative but you should keep an eye on things around you so you can make the right decision at the right time.
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-valueYou can't just wait to be a victim of something and after that you just go and search for the alternative but you should keep an eye on things around you so you can make the right decision at the right time.
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.
So, why do prefer to consistently use the same exchange?
Let's discuss!
June 09, 2024, 04:20:31 AM
Because you're subjecting yourself to more and more KYC, the more that you use different exchanges for your needs in crypto, basically it's a hassle for you to do it with more exchanges when you know that you can always go for just one exchange, most of the time, you only use it for selling in P2P or converting your crypto to other crypto without big transaction payments so in my opinion, I think that you'd be fine with the consistent use of one exchange, no better way to put it, besides your point that it's easier for you to track your holdings and to calculate how much tax you owe, the headache of opening different exchanges to do things that could've been easier if you just made sure that you didn't have to do multiple exchanges.
it is better to stick to one or two anything more than exposing yourself to data exposure and I don't se any reason why an individual would decide to just open exchanges everywhere if it is about trading they all have the same trading features so I still can find the reason and if it is about the security of an asset it is better not for anyone to keep their assets in exchange, not your keys, not your coin people that have gotten the experience of keeping your funds in an exchange means you don't have full power over your assets. is better to have everything in your possession and your mind will be at rest because what happened with FTX was not a good experience and this is the kind of thing that gives crypto a bad name.
And since exchanges act as a middle man and if you want to trade it is better to stick to that tradition of only trading, and when you are done you send it back to your wallet but people will be looking at the stress behind moving assets from one place to another, it is better to undergo that stress than lose your assets. if you have a portfolio of all your assets it will be easy for you to track the price and also your transaction so everything is based on how you make things easy for yourself.
June 09, 2024, 03:51:49 AM
So, why do prefer to consistently use the same exchange?
Let's discuss!
Let's discuss!
Because I am very much familiar with the exchange and I am getting every service I needed done the way I need it. The things that make people to change exchange is when they are not getting a specific service that want. If need to buy my altcoins I will use pancakeswap but for other services I use centralized exchange and I don't bother to change those exchange because I don't require a service they don't have.
June 09, 2024, 02:57:33 AM
Because you're subjecting yourself to more and more KYC, the more that you use different exchanges for your needs in crypto, basically it's a hassle for you to do it with more exchanges when you know that you can always go for just one exchange, most of the time, you only use it for selling in P2P or converting your crypto to other crypto without big transaction payments so in my opinion, I think that you'd be fine with the consistent use of one exchange, no better way to put it, besides your point that it's easier for you to track your holdings and to calculate how much tax you owe, the headache of opening different exchanges to do things that could've been easier if you just made sure that you didn't have to do multiple exchanges.
While I love the idea of maintaining an exchange for my convenience, I think in cases where the exchange no longer decides to or outrightly bans some trading pairs that I would normally use, could contribute to the reason why I have to use different exchanges inorder to facilitate payments and complete my transactions in the denomination I prefer. 
June 08, 2024, 09:13:19 PM
Because you're subjecting yourself to more and more KYC, the more that you use different exchanges for your needs in crypto, basically it's a hassle for you to do it with more exchanges when you know that you can always go for just one exchange, most of the time, you only use it for selling in P2P or converting your crypto to other crypto without big transaction payments so in my opinion, I think that you'd be fine with the consistent use of one exchange, no better way to put it, besides your point that it's easier for you to track your holdings and to calculate how much tax you owe, the headache of opening different exchanges to do things that could've been easier if you just made sure that you didn't have to do multiple exchanges.
June 08, 2024, 06:48:29 PM
There’s no big reason whatsoever. People use big exchanges because what’s the essence of going to another exchange when you’ve found what you need? The only time people may want to change is when the platform doesn’t have the feature they desire. But when it has everything, you will definitely continue using. Just as people use Binance based on how much feature it has.
I can totally agree with you. Or unless, your government has banned the services of the exchange. Just like your example, I believe, a lot of traders are using binance because they trust this trading platform, using even their p2p exchange services. As they have a lot of different fiat currency services, a lot of people are exchanging their crypto to their fiat. I think it comes with the reputation of the exchange.
On the note of using your local crypto-exchange - of course, if you found one and you haven't been screwed by the site not even once, for sure, you will use it as it will be like your comfort zone to use their crypto services. Now, if you will try a new one, more than likely, you will test it with small amount to see how it goes with them.
June 08, 2024, 06:43:40 PM
There’s no big reason whatsoever. People use big exchanges because what’s the essence of going to another exchange when you’ve found what you need? The only time people may want to change is when the platform doesn’t have the feature they desire. But when it has everything, you will definitely continue using. Just as people use Binance based on how much feature it has.
June 08, 2024, 05:15:31 PM
Because a well-studied stock exchange is easier to navigate and feels at home
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