Using multiple exchanges can be a risk management method

[alltalk]

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.

[KingsDen]

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...

[milewilda]

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.

[Crwth]

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.

[MrSpasybo]

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.

[Charles-Tim]

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.

[KingsDen]

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.

[Charles-Tim]

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.

[Kemarit]

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.

[debra]

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.

[Husires]

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.

[vegasus]

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. .

[bayu7adi]

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.

[PX-Z]

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.