Topic: Why do you think it's best to consistently use the same exchange? - page 6. (Read 1358 times)
June 03, 2024, 08:20:55 AM
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.
hero member
Activity: 770
Merit: 538
Leading Crypto Sports Betting & Casino Platform
June 03, 2024, 08:04:25 AM
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.
June 03, 2024, 07:01:59 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.
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'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.
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.
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 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.
June 03, 2024, 01:33:45 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
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!
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.
June 03, 2024, 12:45:37 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.
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'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.
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.
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.
June 03, 2024, 12:10:23 AM
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.
June 02, 2024, 10:09:56 PM
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.
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.
June 02, 2024, 05:47:58 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.
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.
June 02, 2024, 05:47:40 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!
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.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!
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.
June 02, 2024, 04:47:35 PM
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.
And besides, not really a fan of doing multiple KYCs.
June 02, 2024, 04:25:54 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, 04:06:59 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, 03:50:54 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, 03:34:59 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.
Jump to: