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.
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-valueSo, 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.