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Crypto Discussion Forum => Cryptocurrency Trading => Topic started by: akeemqaz on July 15, 2024, 05:44:14 PM

Title: Using multiple exchanges can be a risk management method
Post by: akeemqaz on July 15, 2024, 05:44:14 PM
For me, using multiple crypto exchanges spreads risk and provides more trading options. It also allows traders to profit from different earning possibilities and access various promotional offers. It serves as a backup during technical issues and lets me have other options without getting stuck.

Also, one can bypass regional limits, like when Binance stopped working in Canada, or OKX stopped supporting Nigerian P2P, and more.

I think the best parts of all these are bypassing regional limits and accessing different kinds of promotional offers. What do you think about this, and is there a reason why you use your exchange? Also, are there any features or fascinating offers you'd like to share?
Title: Re: Using multiple exchanges can be a risk management method
Post by: Charles-Tim on July 15, 2024, 06:15:27 PM
I think the best parts of all these are bypassing regional limits and accessing different kinds of promotional offers. What do you think about this, and is there a reason why you use your exchange? Also, are there any features or fascinating offers you'd like to share?
If you are using just one exchange, you will not know the cons of the exchange if you do not have like 5 or more other exchanges that you have accounts on. I do not even care about the exchanges promotional offers but care more about trading fee, withdrawal fee and how the exchanges are.
Title: Re: Using multiple exchanges can be a risk management method
Post by: Mr. Magkaisa on July 15, 2024, 11:35:30 PM
      -     It's also not good that only one exchange platform is used. Isn't it true that some people say that I also often read from them that we shouldn't put our eggs in one basket? And I believe in this advice and your suggestions.

Right now, the exchanges I use most of the time are Bybit, Okx, Mexc, Bitget, Ton, Biswap, Quickswap, and Uniswap. Unless I see a crypto that is on another exchange, I will also use it if its trading volume and market capital in the market are okay.
Title: Re: Using multiple exchanges can be a risk management method
Post by: Zed0X on July 15, 2024, 11:46:46 PM
Why risk putting your fund in a platform disallowed by your country (bypassing regional limits)? For me, the main benefit of using multiple exchanges is not having your crypto stuck on one exchange under a long maintenance. I find it annoying when you can't sell when your bags are pumping.
Title: Re: Using multiple exchanges can be a risk management method
Post by: akeemqaz on July 16, 2024, 12:29:32 AM
Why risk putting your fund in a platform disallowed by your country (bypassing regional limits)? For me, the main benefit of using multiple exchanges is not having your crypto stuck on one exchange under a long maintenance. I find it annoying when you can't sell when your bags are pumping.
You are getting it wrong. Lol.
I mean using multiple exchanges makes it possible to bypass regional limits. For example, if one of your exchanges stops offering a particular service for you, the others might serve as better alternatives.
Title: Re: Using multiple exchanges can be a risk management method
Post by: Zed0X on July 16, 2024, 02:34:34 AM
Why risk putting your fund in a platform disallowed by your country (bypassing regional limits)? For me, the main benefit of using multiple exchanges is not having your crypto stuck on one exchange under a long maintenance. I find it annoying when you can't sell when your bags are pumping.
You are getting it wrong. Lol.
I mean using multiple exchanges makes it possible to bypass regional limits. For example, if one of your exchanges stops offering a particular service for you, the others might serve as better alternatives.
Oh I see now, like what kind of service? To be honest, I never heard of any centralized exchanges imposing limits on the amount you could trade/deposit/withdraw. The only policy close to it that I'm aware of is adding KYC verification once you reach their threshold.
Title: Re: Using multiple exchanges can be a risk management method
Post by: hugeblack on July 16, 2024, 08:13:47 AM

It depends on your privacy, the extent of the data you share, and whether you are a trader or want to buy or sell every few months. Confining yourself to a single, good trading platform will reduce the possibility of your data being leaked, but in return, the fees may not be the cheapest or the trading experience the best.
Therefore, use several non-KYC platforms and be careful of those that ask for your personal data.
Title: Re: Using multiple exchanges can be a risk management method
Post by: MrSpasybo on July 16, 2024, 06:07:23 PM
Oh I see now, like what kind of service? To be honest, I never heard of any centralized exchanges imposing limits on the amount you could trade/deposit/withdraw. The only policy close to it that I'm aware of is adding KYC verification once you reach their threshold.
Typically, CEXs have their own limits such as min and max for each withdrawal. To be honest, I have never had enough crypto to exceed their max limit ^^

I only use multiple CEXs to diversify my trading platforms and avoid events like the collapse of FTX. In the worst case, when a CEX has problems, I will only lose a small part of my crypto assets and can still continue to invest with crypto assets on other CEXs and in my personal wallet.
Title: Re: Using multiple exchanges can be a risk management method
Post by: Sim_card on July 16, 2024, 07:09:38 PM
Why risk putting your fund in a platform disallowed by your country (bypassing regional limits)? For me, the main benefit of using multiple exchanges is not having your crypto stuck on one exchange under a long maintenance. I find it annoying when you can't sell when your bags are pumping.
It is only when you are a trader that you can leave your coins in an exchange so that you can trade easily when there is a pump in price. Apart of being a trader it is not advisable to keep your coins in an exchange because you don't know that will happen to the exchange next since you are not in control of your private keys and you will lose your coins. If not that exchanges are having some issues with government leading to their ban in the country fiat p2p, it is better to use one exchange like Binance for trading because using many exchanges exposes your information more and reduces privacy.
Title: Re: Using multiple exchanges can be a risk management method
Post by: akeemqaz on July 16, 2024, 07:11:26 PM
Why risk putting your fund in a platform disallowed by your country (bypassing regional limits)? For me, the main benefit of using multiple exchanges is not having your crypto stuck on one exchange under a long maintenance. I find it annoying when you can't sell when your bags are pumping.
You are getting it wrong. Lol.
I mean using multiple exchanges makes it possible to bypass regional limits. For example, if one of your exchanges stops offering a particular service for you, the others might serve as better alternatives.
Oh I see now, like what kind of service? To be honest, I never heard of any centralized exchanges imposing limits on the amount you could trade/deposit/withdraw. The only policy close to it that I'm aware of is adding KYC verification once you reach their threshold.
You are bringing up a new topic here. I gave examples of what I meant in my post. Did you read my post? I mentioned limits such as features like P2P or regional offers, not withdrawal/trade/deposit limits. Are restrictions on using P2P or participating in special offers not considered regional limits?
Title: Re: Using multiple exchanges can be a risk management method
Post by: Gurujebs on July 16, 2024, 08:12:34 PM
Oh I see now, like what kind of service? To be honest, I never heard of any centralized exchanges imposing limits on the amount you could trade/deposit/withdraw. The only policy close to it that I'm aware of is adding KYC verification once you reach their threshold.

As a verified user on Bybit, you can only with 1M USDT for 24 hours, after that you wouldn't be able to withdraw again until that 24 hours has elapse. However, when making deposits there is no restrictions to amount you can deposit but a large transaction will definitely raise suspicion especially if you have not deposit such kind of money before.

KYC is just another means to identify you and it has nothing to do with withdrawals because it's mandatory before you can be allow to withdraw from the exchange but there are some exchanges that will allow you to make deposit but wouldn't allow you to make withdrawals until you have completed your verifications.
Title: Re: Using multiple exchanges can be a risk management method
Post by: Captain Corporate on July 16, 2024, 08:41:28 PM
A lot of people do this, but also you are increasing the risk from one side as well while lowering it from another side. The logic is that you are trying to make some profit with what you are doing, you are putting it in many different places and that makes perfect sense, I agree with that part. However, you are also doing something that is putting another risk since we are dealing with riskier exchanges as well. So while its a good part with diversification, its also a bad part due to riskier exchanges. Does this mean you shouldn't do it? Of course not, you should still do this, it just means that we are dealing with something that we should be aware of.
Title: Re: Using multiple exchanges can be a risk management method
Post by: taufik123 on July 16, 2024, 09:02:50 PM
I myself will probably depend on every coin I get, as every airdrop coin or new coin I get has a different Exchange.
I almost own all the Exchanges because I've already explored them all.

But for fixed trading, I might be more interested in Binance because it was my first Cex and still leads as a CEX with more users and better security.  But some other Tier 1 CEXs such as Bybit, OKX, Bitget, Coinbase can be quite good alternatives.
Title: Re: Using multiple exchanges can be a risk management method
Post by: Vx1 on July 16, 2024, 09:29:26 PM
Professional traders usually do this, they have several exchanges that are used as trading tools. 
They can even carry out arbitrage from one exchange to another, but the most important thing is that if we are unable to manage trading on many exchanges then it is better for us to trade on just one exchange. 
Because if we trade on one exchange we can focus more on paying attention to the coins we trade.
Title: Re: Using multiple exchanges can be a risk management method
Post by: Zed0X on July 16, 2024, 10:14:13 PM
~
Typically, CEXs have their own limits such as min and max for each withdrawal. To be honest, I have never had enough crypto to exceed their max limit ^^
I guess we're the same ;D

~
KYC is just another means to identify you and it has nothing to do with withdrawals because it's mandatory before you can be allow to withdraw from the exchange but there are some exchanges that will allow you to make deposit but wouldn't allow you to make withdrawals until you have completed your verifications.
Yeah, that's how most CEX are right now. If it becomes mandatory, then it means it has everything to do with withdrawal. Before, there is a maximum that you could withdraw without KYC. Binance used to have 2 BTC until they changed that, and then traders moved to other CEX like Kucoin but they also removed that.
Title: Re: Using multiple exchanges can be a risk management method
Post by: Smcchamp on July 16, 2024, 11:34:29 PM
I myself will probably depend on every coin I get, as every airdrop coin or new coin I get has a different Exchange.
I almost own all the Exchanges because I've already explored them all.

But for fixed trading, I might be more interested in Binance because it was my first Cex and still leads as a CEX with more users and better security.  But some other Tier 1 CEXs such as Bybit, OKX, Bitget, Coinbase can be quite good alternatives.

That's true. I use different exchanges for different purposes..

Bybit- general trades
Bitget- Derivatives, staking/launchpools( PoolX) and also for their generosity like this futures bonus opportunity. futures trade bonsues (https://www.bitget.site/register?color=black&from=%2Fevents%2Factivities%2Fe3acbf5cba9e5fd28005c5019095fc1f%3Fcolor%3Dblack%26languageType%3D0&languageType=0&source=events)
I also use phantom for Solana memes & ton wallet for Tom memes ahah..
Title: Re: Using multiple exchanges can be a risk management method
Post by: snowpega on July 17, 2024, 03:56:06 PM
For me, using multiple crypto exchanges spreads risk and provides more trading options. It also allows traders to profit from different earning possibilities and access various promotional offers. It serves as a backup during technical issues and lets me have other options without getting stuck.

Also, one can bypass regional limits, like when Binance stopped working in Canada, or OKX stopped supporting Nigerian P2P, and more.

I think the best parts of all these are bypassing regional limits and accessing different kinds of promotional offers. What do you think about this, and is there a reason why you use your exchange? Also, are there any features or fascinating offers you'd like to share?

Using multiple exchanges at the same time somehow enables you to earn from opportunities as we know that every exchange has their own functionality that differs from each other, let's say if we talk about gate io it enables its users to earn rewards from new projects in the form of airdrop only in case if one is the subscriber of their premium membership haha, I am its user at to be very honest I never get any rewards from this feature of this exchange.

Besides this, I am not sticking to any specific exchange I have to use some other exchanges as well because when I receive any reward from any airdropping project then I have to use their recommended exchange in result to receive my reward at my end, so, this somehow helps me to explore these exchange, and in this way, I come to know different functionality of different exchanges.
Title: Re: Using multiple exchanges can be a risk management method
Post by: taufik123 on July 17, 2024, 06:11:06 PM
That's true. I use different exchanges for different purposes..

Bybit- general trades
Bitget- Derivatives, staking/launchpools( PoolX) and also for their generosity like this futures bonus opportunity. futures trade bonsues (https://www.bitget.site/register?color=black&from=%2Fevents%2Factivities%2Fe3acbf5cba9e5fd28005c5019095fc1f%3Fcolor%3Dblack%26languageType%3D0&languageType=0&source=events)
I also use phantom for Solana memes & ton wallet for Tom memes ahah..
yes it depends on your own choice, depending on which Exchange needs you want to use.
Bitget has been quite popular this year with its many bonuses, PoolX and trading competitions.

But don't you use Binance?
because you didn't mention it either.
Title: Re: Using multiple exchanges can be a risk management method
Post by: Crypto Library on July 17, 2024, 10:05:09 PM
It can be true that using multiple exchanges for trading can be risky because it will take more times than if you trade on only one exchange. But what I think is most of the trade have use the multiple exchanges they also use those but for trading most of them have only one option. I like to use multiple exchanges for multiple features but for doing spot trading my choice is Binance.
Title: Re: Using multiple exchanges can be a risk management method
Post by: |MINER| on July 17, 2024, 10:11:11 PM
I think the best parts of all these are bypassing regional limits and accessing different kinds of promotional offers. What do you think about this, and is there a reason why you use your exchange? Also, are there any features or fascinating offers you'd like to share?
I don't see any logic for using multiple exchangers for trade. And I will also say that those traders who used multiple exchangers for trading are either professional traders or they are stupid people.
 I myself have used multiple exchanges for trading but I find it irritating because I am getting the same thing in one exchanger why do I need to trade with different rules on different platforms. If there is any exceptional reason to use multiple exchanger then it is ok otherwise it is stupid to use multiple exchange for trading.
Title: Re: Using multiple exchanges can be a risk management method
Post by: Rruchi man on July 17, 2024, 11:55:11 PM
@OP, how many exchanges do you mean exactly by "multiple" exchanges?
For me, using multiple crypto exchanges spreads risk and provides more trading options.
Using more exchanges to spread the risk only increases the risk, and can put you in a dangerous situation.
Title: Re: Using multiple exchanges can be a risk management method
Post by: akeemqaz on July 18, 2024, 03:10:55 AM
@OP, how many exchanges do you mean exactly by "multiple" exchanges?
For me, using multiple crypto exchanges spreads risk and provides more trading options.
Using more exchanges to spread the risk only increases the risk, and can put you in a dangerous situation.
Honestly, I have accounts on more than 3 exchanges. Although I don't use all of them regularly, I find it convenient to check 3 exchanges most often for withdrawal fees. That's why I said more than three, because I mostly use 3 out of them, but I sometimes use the others whenever I need them for a particular coin not trading on any of my primary 3 exchanges. I've never experienced any issues having multiple accounts, but witnessing some issues made me have more.. I mentioned these two issues above.
Title: Re: Using multiple exchanges can be a risk management method
Post by: ZAINmalik75 on July 20, 2024, 09:06:04 PM
I think the best parts of all these are bypassing regional limits and accessing different kinds of promotional offers. What do you think about this, and is there a reason why you use your exchange? Also, are there any features or fascinating offers you'd like to share?
Using multiple exchanges can decrease the risk of losing your funds in one exchange. For example, people saving their crypto tokens in WazirX are now facing problems, as that exchange is not hacked and lost a lot of money. If a trader has stored all of his funds in that exchange then his money is gone. But to minimize the risk, he can prefer to store the money in 10 different exchanges

It's always better to keep your holding funds in cold wallets and only keep those amounts in centralized exchanges which are going to be used for daily tradings and expenses etc. Usage of multiple exchanges will lower the risk but management will become difficult and sending and receiving accounts will also become difficult.
Title: Re: Using multiple exchanges can be a risk management method
Post by: Mr. Magkaisa on July 20, 2024, 11:59:10 PM
     -     No matter what exchange there is a tisk that is affiliated whether it's a dex or cex platform, and that depends on how we choose a platform that we will do trading activity on. Even if we only use one exchange, if the one we choose is wrong, the strategy we decide is also irrelevant.

That's why it's important to first research an exchange that we will use so that the crypto assets that we will hold are not at risk whether it is short or long term.
Title: Re: Using multiple exchanges can be a risk management method
Post by: Fivestar4everMVP on July 21, 2024, 01:42:54 PM
For me, using multiple crypto exchanges spreads risk and provides more trading options. It also allows traders to profit from different earning possibilities and access various promotional offers. It serves as a backup during technical issues and lets me have other options without getting stuck.

Also, one can bypass regional limits, like when Binance stopped working in Canada, or OKX stopped supporting Nigerian P2P, and more.

I think the best parts of all these are bypassing regional limits and accessing different kinds of promotional offers. What do you think about this, and is there a reason why you use your exchange? Also, are there any features or fascinating offers you'd like to share?
Indeed, having been in the crypto space since 2016, I can tell for sure that registering and operating multiple exchanges accounts is to the owners advantage really, in fact, I usually do advice newbies they come around me to endeavor to have account on all the major exchanges around, and its not just having an account, but also taking a step further to have thosw accounts verified even if he or she is not ready to use that account or exchange at that particular time, having such a backup could come in handy in the future.

Like I myself have account on almost all the exchanges we can think except from the very few ones that started operating of recently.

So, this is actually a very good advice every should consider, it doesn't hurt, it's not a risk to have multiple exchange accounts, but rather, it's an advantage as this give you multiple options of choosing where to trade at a time based on the current situation of things at that particular time.
Title: Re: Using multiple exchanges can be a risk management method
Post by: bounceback on July 21, 2024, 02:56:32 PM
Considering many exchange market supported listed with the same coins want to trade its not necessary for using multiple exchange market account, currently I used Binance only for trading altcoin because there are many altcoin already for trading.
If use multiple exchange but all coins want to trade already at Binance I think waste time only and we can focus one exchange for trading,
difference for arbitrage they need use multiple exchange with possibility difference transaction volume between one exchange with other exchange until altcoin already listing or not. In my opinion, waste your time only if trading with multiple exchange trade on top coins already list on single exchange only.
Title: Re: Using multiple exchanges can be a risk management method
Post by: Charles-Tim on July 21, 2024, 06:36:46 PM
But don't you use Binance?
because you didn't mention it either.
Is Binance that special? Or why did you ask such question as if Binance is the only exchange in the world that is good. I think if someone is using Bybit alone, the person will have access to what Binance users are having access to. Also the same if you are using Bitget. These exchanges are as good as Binance.
Title: Re: Using multiple exchanges can be a risk management method
Post by: Hamza2424 on July 21, 2024, 07:10:44 PM
The one-stop solution for all these problems is to hold your assets under your own controls, which means you should hold your assets in self-custody with non-custodial wallets, such trust wallet, for the higher amount of assets better go for the cold storage wallets, TBH you can if you hold goof amount of funds, it will help you in avoiding all these mentioned problems.
Title: Re: Using multiple exchanges can be a risk management method
Post by: Wiwo on July 21, 2024, 10:55:36 PM
Sometimes what I take in exchange is not different from how I treat and take a casino, this is because on some exchanges I may not have the best of luck with them, and a couple of my games may lose, which makes me disappointed to believe that my luck is not on this exchange or casino, so having such platforms as alternative may not work for someone like me.

At times my first attempts son and exchanges to open a position gave me good profits, which made me feel comfortable using such platforms even though it became my sole relied on exchange I didn't care to have alternatives, because what matters most is the profit's and not the number of exchanges that you have on your list.
Title: Re: Using multiple exchanges can be a risk management method
Post by: MUGNIA on July 21, 2024, 11:11:22 PM
I think it's true, using multiple exchanges can minimize risk, and can make a profit, but usually this is mostly done by professional traders to trade, not for seasonal traders like bounty traders and airdroppers.
Title: Re: Using multiple exchanges can be a risk management method
Post by: alltalk on July 21, 2024, 11:15:20 PM
Bitget has been quite popular this year with its many bonuses, PoolX and trading competitions.
I never use Bitget, I don't know what bonuses you mean. However, it looks like a good exchange because it has a good score rating in CMC, it is one of the top 15 exchanges. Does it offer lower fees for traders?

But don't you use Binance?
because you didn't mention it either.
There are some people who don't use Binance even Binance is the number 1 CEX in the world. Few countries ban Binance, including our country. And Binance also have the policy to exclude some countries.
- https://tribuneonlineng.com/list-of-countries-where-binance-operations-is-banned-restricted/
- https://support.binance.us/hc/en-us/articles/360046786914-List-of-unsupported-states

It can be the reason why he and some people don't use Binance.

Title: Re: Using multiple exchanges can be a risk management method
Post by: KingsDen on July 21, 2024, 11:47:07 PM
I think it's true, using multiple exchanges can minimize risk, and can make a profit, but usually this is mostly done by professional traders to trade, not for seasonal traders like bounty traders and airdroppers.
I only have account with just one exchange, the other one I tried didn't work for me and I abandoned it. It was after Binance had some restrictions in my country that I found another exchange. I am always not happy whenever I am to complete KYC in any platform. That is the reason why I don't register in many platforms that require KYC, so that my data won't spread so much...
Title: Re: Using multiple exchanges can be a risk management method
Post by: milewilda on July 22, 2024, 05:10:04 AM
I think it's true, using multiple exchanges can minimize risk, and can make a profit, but usually this is mostly done by professional traders to trade, not for seasonal traders like bounty traders and airdroppers.
I only have account with just one exchange, the other one I tried didn't work for me and I abandoned it. It was after Binance had some restrictions in my country that I found another exchange. I am always not happy whenever I am to complete KYC in any platform. That is the reason why I don't register in many platforms that require KYC, so that my data won't spread so much...
The only time that i do able to make use of a certain exchange and make out some KYC verified is on the time or moment that a certain coin on which im buying or trading is really that only listed on a certain exchange but if i do see it on Binance then i dont have that kind of consideration on making another registration into other exchange. Having multiple exchange is good but
it would really be that a bit hassle that you would really be making some transition in between trades specially when you are checking such position. Even though it do only need a small
amount of effort and time but it do finds hassle on my part. I dont know in others but i do prefer on doing things on a single spot.
Title: Re: Using multiple exchanges can be a risk management method
Post by: Crwth on July 22, 2024, 05:55:34 AM
I use multiple exchanges to spread out my capital in a way that I can focus on the balances of each one. It's impossible to completely profit but I chose like that so I could trade different pairs because some exchanges don't have the pairs that I want.

It is a risk management so you cannot lose a lot when something happens to exchanges.
Title: Re: Using multiple exchanges can be a risk management method
Post by: MrSpasybo on July 22, 2024, 08:55:29 AM
Is Binance that special? Or why did you ask such question as if Binance is the only exchange in the world that is good. I think if someone is using Bybit alone, the person will have access to what Binance users are having access to. Also the same if you are using Bitget. These exchanges are as good as Binance.
I believe that for many crypto investors, Binance is always the best and only option they think of when they want to use a CEX. Many other CEXs are also very good, such as GateIO, Bybit, Bitget, CoinEX... but they are not the first successful CEX that they know of. Binance has been operating since 2018 and has continuously built trust with users and investors in this market.

Binance has SAFU and has previously compensated all user losses in the hack incident. Binance also has more reliable reserve evidence than FTX and has led many major trends in the cryptocurrency market. I myself am also very fond of Binance, even though I am using multiple other CEXs for trading at the same time.
Title: Re: Using multiple exchanges can be a risk management method
Post by: Charles-Tim on July 22, 2024, 04:13:14 PM
I believe that for many crypto investors, Binance is always the best and only option they think of when they want to use a CEX. Many other CEXs are also very good, such as GateIO, Bybit, Bitget, CoinEX... but they are not the first successful CEX that they know of. Binance has been operating since 2018 and has continuously built trust with users and investors in this market.
Kucoin was established in 2017. OKX was established in 2017. Bitget was established in 2018. There are many exchanges now that are well known that were established around that time, even before Binance. Binance is a good exchange but those exchanges are comparable.
Title: Re: Using multiple exchanges can be a risk management method
Post by: KingsDen on July 23, 2024, 07:53:08 AM
I believe that for many crypto investors, Binance is always the best and only option they think of when they want to use a CEX. Many other CEXs are also very good, such as GateIO, Bybit, Bitget, CoinEX... but they are not the first successful CEX that they know of. Binance has been operating since 2018 and has continuously built trust with users and investors in this market.
Kucoin was established in 2017. OKX was established in 2017. Bitget was established in 2018. There are many exchanges now that are well known that were established around that time, even before Binance. Binance is a good exchange but those exchanges are comparable.
Reputation is not always directly proportional to age. A project could be a decade old and yet it's not reputable while another will be only a few years old and will be reputable. We all know how Binance nearly monopolized the industry.

The man CZ was very smart. In as much as he did some dark things as a human, we must give him his flowers. At a time Binance stood out and looked like the only option. Till now, it is still leading and might likely continue to lead.
Title: Re: Using multiple exchanges can be a risk management method
Post by: Charles-Tim on July 23, 2024, 08:43:13 AM
Reputation is not always directly proportional to age. A project could be a decade old and yet it's not reputable while another will be only a few years old and will be reputable. We all know how Binance nearly monopolized the industry.
It is worth knowing that Binance did not nearly monopolize the industry. They were only smart and provide services that some other exchanges did not provide at the time. But this time around, the other exchanges are providing the same thing which makes Binance no more unique from them.

The man CZ was very smart. In as much as he did some dark things as a human, we must give him his flowers. At a time Binance stood out and looked like the only option. Till now, it is still leading and might likely continue to lead.
Binance is not like that again. He is not the only option. It is just an alternative. There are many exchanges that are as good as Binance.
Title: Re: Using multiple exchanges can be a risk management method
Post by: Kemarit on July 23, 2024, 10:04:44 AM
Reputation is not always directly proportional to age. A project could be a decade old and yet it's not reputable while another will be only a few years old and will be reputable. We all know how Binance nearly monopolized the industry.
It is worth knowing that Binance did not nearly monopolize the industry. They were only smart and provide services that some other exchanges did not provide at the time. But this time around, the other exchanges are providing the same thing which makes Binance no more unique from them.

The man CZ was very smart. In as much as he did some dark things as a human, we must give him his flowers. At a time Binance stood out and looked like the only option. Till now, it is still leading and might likely continue to lead.
Binance is not like that again. He is not the only option. It is just an alternative. There are many exchanges that are as good as Binance.

And that's what really separates CZ and Binance, it's because they were able to give their customers what they want as they listen to them and then their BNB is a game changer. And as much as others follow them, there's not much as success as Binance and then they really grow into a billion dollar business and then governments or financial authorities take noticed and so it's time for them to really cut the head of Binance and they were given fines after fines and CZ was forced to go down. But still, they are the top exchanges right now and no one can garner the big traders and newcomers except Binance.
Title: Re: Using multiple exchanges can be a risk management method
Post by: debra on July 23, 2024, 01:55:32 PM
I think it's true, using multiple exchanges can minimize risk, and can make a profit, but usually this is mostly done by professional traders to trade, not for seasonal traders like bounty traders and airdroppers.
Are you sure using multiple exchanges to minimize the risks? What risks?
If we use multiple exchanges, it is even riskier our data and our coins. Specifically if we use random exchanges (unpopular exchanges). Most exchanges ask for KYC procedure, we must do KYC process there. This will be riskier for our private data. And there are many cases of hacking, robbers hack our account. There are also the cases, we can't access our exchange accounts. If we use random exchanges, we may lose our coins there. It is better to use few exchanges only, choose the most reputable exchanges only.

For bounty and airdropers, they use random exchanges because the bounty/airdrop tokens are only listed on the random exchanges. It is no problem as long as we don't do KYC procedure there. And we don't keep the coins for a long time on the random exchanges. It is better to transfer it to a more trusted exchange when the bounty/airdrop coins have been sold or converted to USDT or top coins.

Title: Re: Using multiple exchanges can be a risk management method
Post by: Husires on July 23, 2024, 04:51:49 PM

For bounty and airdropers, they use random exchanges because the bounty/airdrop tokens are only listed on the random exchanges. It is no problem as long as we don't do KYC procedure there. And we don't keep the coins for a long time on the random exchanges. It is better to transfer it to a more trusted exchange when the bounty/airdrop coins have been sold or converted to USDT or top coins.
If the bounty/airdrop tokens are so bad that they are listed in random exchanges only, then claiming them is an effort that will not yield a good return.
Title: Re: Using multiple exchanges can be a risk management method
Post by: vegasus on July 24, 2024, 10:39:33 PM
There will be pros and cons when using multiple exchanges. As for the cons, maybe it's more about asset and time management. Because of course it will influence how often you use the exchange, how long you stay on the exchange and do you really do everything on the exchange?

Then specifically for risk management, actually this is more about choosing an exchange. So there are indeed some user restrictions in some areas, of course you have to use other exchanges. And this also reduces the risk when the exchange suddenly collapses.

As for the other things, I think that even though you use several exchanges, that doesn't mean you use a lot of exchanges. because it will not be effective enough. For example: I have many exchange accounts but the ones I use most officially are only 1 or 2 of them. .
Title: Re: Using multiple exchanges can be a risk management method
Post by: bayu7adi on August 01, 2024, 01:35:15 AM
It is a risk management so you cannot lose a lot when something happens to exchanges.
If the goal is to avoid the risk of an exchange collapse such as due to hacking or others... it is wiser to store assets in a non-custodial wallet so that control is fully in personal hands. Or act hybrid, by storing some funds in a personal wallet, and some on the exchange if you want to trade at more frequent intervals.

Using multiple exchanges at one time is still full of pros and cons, where basically our identity is more vulnerable to being spread too. Most centralized exchanges now require their users to do KYC, so that makes our privacy very unsafe.
Title: Re: Using multiple exchanges can be a risk management method
Post by: PX-Z on August 01, 2024, 01:43:48 AM
It is a risk management so you cannot lose a lot when something happens to exchanges.
If the goal is to avoid the risk of an exchange collapse such as due to hacking or others... it is wiser to store assets in a non-custodial wallet so that control is fully in personal hands. Or act hybrid, by storing some funds in a personal wallet, and some on the exchange if you want to trade at more frequent intervals.
That's true but only to someone who don't regularly trade, that's the least they can do. But you can't force that one to traders — at least to don't put all your eggs in one basket that in case the exchange collapse majority of your fund is safe.