Using multiple exchanges can be a risk management method

[akeemqaz]

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?

[Charles-Tim]

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.

[Mr. Magkaisa]

      -     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.

[Zed0X]

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.

[akeemqaz]

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.

[Zed0X]

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.

[hugeblack]

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.

[MrSpasybo]

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.

[Sim_card]

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.

[akeemqaz]

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?

[Gurujebs]

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.

[Captain Corporate]

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.

[taufik123]

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.

[Vx1]

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.

[Zed0X]

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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

~
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.