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.
And besides, not really a fan of doing multiple KYCs.
Topic: Why do you think it's best to consistently use the same exchange? - page 5. (Read 932 times)
June 02, 2024, 05:47:35 PM
June 02, 2024, 05:25:54 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.
Most considerations about trader/investor using a particular exchange is the convenience features, services and of course trust just as you have said.It is even preferable in being conversant with one exchange instead of stressing to adopt to others which could be potential to lost of funds due to unverified exchanges reputations before adopting it.
I would only consider swapping to other exchange when the current exchange is perceived with negative remarks or the system does not accept the safe of their clients their priority as that may be considered selfish interest of the exchange.
When choosing up an exchange and at the moment that you do find it to be that convenient and no hassle then of course you would really be sticking into it for the rest of your crypto journey.
It would really be just that normal for someone to have that kind of approach on things on which we know that this is something that you would find yourself to be safe and wont
really be having an headache.
June 02, 2024, 05:06:59 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.
Most considerations about trader/investor using a particular exchange is the convenience features, services and of course trust just as you have said.It is even preferable in being conversant with one exchange instead of stressing to adopt to others which could be potential to lost of funds due to unverified exchanges reputations before adopting it.
I would only consider swapping to other exchange when the current exchange is perceived with negative remarks or the system does not accept the safe of their clients their priority as that may be considered selfish interest of the exchange.
June 02, 2024, 04:50:54 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.
So, why do prefer to consistently use the same exchange?
Let's discuss!
At least to me the reason to use the same exchange has to do with privacy, if you use several exchanges then you will have to pass a great deal of checks and send your information to all of them, and a single data leak on one of those exchanges will see your data compromised, but if you only use one, then the only way for your data to be leaked is for that specific exchange to get hacked, which reduces your chances of your data being stolen, as there is only one set of documents which have been sent by yourself to an exchange. 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!
June 02, 2024, 04:34:59 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.
i recommend using the same exchange because of KYC. if you have submitted to one exchange and then submit another on Kraken, Kucoin, or the new ones like Bitget, you will be submitting to all of them which means you give away to all of them where their government will soon have control over those exchanges. they could link them all for your digital ID for the IRS to look at.
If you use many exchanges you’ll eventually have to do KYC on each of them and that creates lots of security risks because exchanges get “hacked” all the time. If you use only one exchange you’ll have the minimum risk for that scenario.
And with the high rate of data sales and the rest of them using multiple exchanges and KYcing in all of them, it also increases the risk of identifying where the leakage comes from.As some new exchanges emerge with their hidden motives, most of them are just gathering information about their customers and selling it off to third parties. They won't get hacked, but your data in their database won't be safe.
For me. I don't like exposing my personal data in so many exchanges. So I don't use to many Centralized platforms except it's very necessary. Most exchanges offer same features which I normally use and the difference between them most times is their rates. And since I've been in the crypto market, I have only used and registered on two exchange, because both have similar features which I prefer using compared to any other exchanges out there. Also, I do some trading most times and there are certain things I require for theses trades which I can't find else where so that's why I just stick to one exchange.
If you use many exchanges you’ll eventually have to do KYC on each of them and that creates lots of security risks because exchanges get “hacked” all the time. If you use only one exchange you’ll have the minimum risk for that scenario. Other than that I don’t see any other reason… It is best not to hold too many coins on an exchange anyway. The latest regulations made trading on the centralized exchanges a nightmare. Either use a reliable dex or don’t trade at all. Hodling seems to be the best course.
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.When I saw IRS and tax returns in the OP, I was like this isn't relatable. In my country, we don't do tax returns on crypto not when the government is anti crypto.
The reason why I keep using the same exchange or why I will.is because in addition to having the trading pair that I require, the have a P2P exchange market place that gives a fair value of exchange to my fait whenever I want to trade better than the others out there.
Except p2p is not listed there to trade to fiat otherwise if the particular exchange I have been using for long provides p2p then there is no need, like what just happened between Binance and Nigeria Government, if all cases are being solved and they please go operate in Nigeria via providing p2p it their citizens then fine, lot of people don't mind coming back to use binance exchange after they might have complied with the laws.
I quite agree with @Adbitco's reason that maintaining consistency with an exchange builds trust and also you become eligible to some certain rights and privileges those who aren't regular will be privy to and true also that it's risky to have only one exchange as they can suddenly crash or go under, making one lose all their funds and all that but if we look at it positively, users' confidence will be built knowing that the platform takes their compliance and safety seriously.
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.When I saw IRS and tax returns in the OP, I was like this isn't relatable. In my country, we don't do tax returns on crypto not when the government is anti crypto.
The reason why I keep using the same exchange or why I will.is because in addition to having the trading pair that I require, the have a P2P exchange market place that gives a fair value of exchange to my fait whenever I want to trade better than the others out there.
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.
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
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!
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