Let's say I want to make a large transfer to an exchange. I am sure to verify the receiver address. However, if the exchange made a mistake somehow, all the bitcoin would be lost forever. So does it make sense to send a small amount first, confirm that they receive it, and then send the rest?
Because I have also heard that each address should not be used more than once.
How does an exchange will do a mistake? While if you want to deposit they will give an address where you deposit your balances safely. If you miss to copy that and copy the other address well thats your mistake not their.
But if you are worried about sending some large instruction on exchange better send a small amount and once it credited you can send the other large sum so that you will not be worried on worse things.