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Today is exactly 4 years since I registered on this forum. A long way has been passed, and time has flown by very quickly, like 1 day.
In honor of this event, I will not start a thread with congratulations, but will combine business with pleasure. I would like to share with the community (in particular, with newbies) my experience and observations regarding the work with centralized exchanges. I have been on the forum for 4 years, and in the crypto I have been for 7 years. All these 7 years I have been using centralized exchanges and I have a lot to tell about them. Now centralized exchanges play a big role in the life of cryptocurrencies and many people use these services for various purposes: trading, staking, launchpads, p2p, swap, etc.
This thread will not be about how to trade on the stock exchange, how to make money on trading, or something like that. Rather, as a set of recommendations on how to avoid additional problems associated with centralized exchanges.
1. Exchange selection
2. Registration
3. Logging
4. KYC
5. Purchased verification/account
6. Deposit/Withdrawal
7. Trading behavior
8. My threads about exchanges and trading
All information is not a direct guide to action, it is not a retelling of excerpts from some articles and guides. Everything listed below is solely my experience with CEXs and my observations over 7 years.
I often hear in the community that you should stay away from CEXs, they are dangerous and very risky when it comes to your money. I am convinced that if certain rules are followed, the risks can be minimized. I will divide the topic into the main points of working with centralized exchanges, a kind of chapters.
1. Exchange selection
During these 7 years I am a confident user of most top exchanges and my choice is always focused only on such services. The fact is that many users often turn their attention to various exchanges that are deep in the list of exchange ratings, or even to new exchanges or recently created ones. The risk of using these sites is much higher than the already proven and well-known exchanges. Why?
- Such exchanges always experience problems with liquidity. In order to somehow attract liquidity to their platform, the exchange is trying to lure new participants with various distributions, free tokens, free trading commissions, registration bonuses, and other tricks. These are not the most important points to consider when choosing an exchange. The most important thing is liquidity, variety of supported networks and fresh listings.
- Low liquid exchanges have one big drawback when withdrawing their funds - these are commissions. The thing is that large exchanges can very often withdraw your funds at a loss. Yes, it may sound strange, but it's true. The reason for this is that large exchanges live off volume, meaning their main income comes from liquidations and stop losses, which can reach hundreds of millions of dollars in the next major market spike. Therefore, when you withdraw bitcoin from such exchanges, it will cost you 0.0002-0.0005 BTC, which is a normal fee for such exchanges. On low liquid exchanges, the withdrawal fee is usually 2-3 times higher, because such exchanges cannot afford to make transactions below the minimum. Low-liquid exchanges try to make money at any step of the user, so the withdrawal of funds on such exchanges is always overpriced, just like the withdrawal limits. This is explained by the fact that by any means to restrain the outflow of funds from the exchange, so that all small deposits remain on the exchange.
- I also want to note that low-liquidity exchanges do not support most modern networks that solve scalability problems and provide a choice of a network with a low commission. There you will not see any Lightning, Arbitrum, Optimism, etc.
- Large exchanges also have another big advantage over small exchanges. They have the functions of sending funds between accounts (by UID), it is absolutely free and such transactions take place off-chain, that is, without any involvement of the blockchain. Sometimes it is very convenient to transfer cryptocurrency from one address to another without any traces.
- Major exchanges also have sub-accounts, which also have various useful features, both for swapping and trading.
2. Registration
I would not recommend registering exchange accounts by phone number, only through email. Ideally, of course, each exchange should be tied to a separate mailbox, and to protect against phishing, always use the anti-phishing code that will always accompany any email sent to you by the exchange itself. All modern exchanges have this feature.
As for registering with a phone number, this is an additional loss of privacy if you intend to use the exchange without KYC. Please note that if you register using a phone number, this number will now be embedded in all important functions when working with the exchange, any device change, security settings, withdrawal of funds will require SMS from you everywhere. There is one interesting feature here: SMS do not always arrive on time, or they may not arrive at all. I have already encountered such problems when the exchange suddenly ceased to support some operator or some region, and the phone turned out to be useless, and therefore the entire exchange. It is extremely problematic to untie or change the phone number on the exchange. This is a guaranteed KYC, you will be forced to pass it even if you have already passed it. This is a standard procedure if you are trying to change basic settings or account information. If you are against KYC, then this is a guaranteed problems of the account and your funds on it.
I recommend using 2FA and email to work with the exchange. This set is enough to work with all popular exchanges. And do not forget to save and duplicate the 2FA key, because if you lose it and want to restore it, you will fall into 9 circles of hell of communication with technical support, and in this case you will also be forced to undergo KYC.
In no case do not use virtual or disposable numbers to register on exchanges.
3. Logging
Here, too, there are some nuances, especially for those accounts that have not passed KYC. I would not recommend constantly logging into your account from different browsers and from different IPs, especially if you are sitting with a VPN (especially free ones, it is better to refuse them altogether if possible). Users who like to constantly log into their account from different devices and IPs, without knowing it, provoke the exchange to block funds and request KYC.
If KYC is passed, then the exchange usually requires additional confirmation by mail that this IP is correct and that you are logging in, in exceptional cases they can block the withdrawal of funds for 24-48 hours. If KYC is not passed, you are at risk. I recommend using the account from one browser and from one IP, preferably the one from which you registered. If you do not want to access the network from your IP, then you can use the anti-defect browser+proxy bundle. For example, I use an anti-detect browser on which I have an individual proxy running and I always access exchanges from this device, thereby not provoking the exchange to various additional checks, especially if I need to withdraw funds after entering the exchange.
If you try to enter the exchange from a new IP and withdraw your entire balance, then there is a very high chance that you may be blocked and forced to undergo KYC. Do not use free VPNs and cheap proxies for those exchanges where you have funds, keep your accounts and privacy much longer. People themselves provoke exchanges to additional checks, and then complain that exchanges suddenly introduce KYC for their account.
4. KYC
I have always been an opponent of KYC and in 7 years I have never passed it. No exchange has my papers, and I hope this will continue for as long as possible. On this theme, I have a separate thread where you can choose a good and well-known exchange without KYC: Current list of exchanges without KYC. This list has been personally verified by me and I use these exchanges all the time, so I can recommend them for review and further use, but do not forget about DYOR.
As for the danger of KYC, it has already been said many times on this forum and, in my opinion, this problem was best described by 1miau: Why KYC is extremely dangerous – and useless
Therefore, I will not repeat myself, but I advise you to familiarize yourself with his topic. With each generation of crypto users, KYC is becoming kind of commonplace and people are ready to scatter their documents and scans of their faces right and left. You should not exchange your personal data with the first service you come across, especially if this service is not very well-known and relatively new. This can be a regular scam, and then your documents will go to various services for rendering and selling personal data to pass various KYCs on a variety of services.
5. Purchased verification/account
Now, in 2023, the market for verifications and the sale of verified accounts has grown very much and has a huge offer, for a variety of needs and for a variety of services. It is also important to follow certain rules of caution here, otherwise you can also provoke an account blocking and repeated KYC.
This information is strictly informational in nature and does not encourage anyone to use other people's or rendered documents to work with exchanges. Use this method at your own risk and remember that when passing KYC on other people's documents, you do not get rid of risks, you change one risk for another. There is no risk-free operation with exchanges, due to their centralized nature. Always remember this.
- If you want to buy a ready-made verified account, then never chase low prices, the cheapest accounts = scam or quick ban. Such accounts are very often registered through auto-registration (by script) and KYC on them only on rendered (non-existent) documents. Such accounts are blocked most often.
- If you want to buy a verified account, then do it ONLY through a guarantor, as this market is teeming with all sorts of scammers. Without escrow, you will be deceived in 99% of cases.
- If you buy a verified account, then select a choice similar to your geolocation and country. It will be very strange if you buy some account from Bangladesh, and you yourself will sit from a computer in the euro zone.
- The ideal account is expensive and comes with a set of Useragent, Cookies. To successfully work with a purchased verified account, you should use an anti-detect browser, a separate proxy, Useragent, Cookies (if available). This will greatly increase the security of your account and less attention from the exchange itself will be in your direction. Also, in the security settings, you should enable all possible settings (except for the phone number), namely the trading password, 2FA, anti-phishing code. All this will reduce attention to your account and after you log into the purchased account, do not try to change the settings there, namely the time zone, account name, password, etc. This is almost guaranteed to lead to a block or KYC re-pass. Also, after logging into such an account, you do not need to immediately deposit money in order to quickly convert it into another cryptocurrency and immediately withdraw it. This also applies to suspicious behavior.
- If you want to work with fiat and also withdraw funds in fiat, then in no case can you use someone else's verified account. Here only your data will help to avoid loss of funds. Other people's verified accounts are needed only to work with cryptocurrencies.
- If you follow all these rules, then your accounts can live for a very long time and not bring you any problems, even on exchanges like Binance.
6. Deposit/Withdrawal
This has also been discussed many times, on this forum and beyond. If you do not trade on the exchange intraday, then there is no point in keeping money on the exchange, keep money only on your own NON-CUSTODIAL wallets, from which you have private keys and a seed phrase. The withdrawal of funds on the exchange should also be attributed responsibly. The fact is that here also many people make typical mistakes that lead to loss of funds.
- After registering on the exchange, do not immediately try to deposit money on the exchange, then quickly convert it and immediately withdraw it. Exchanges do not particularly like this behavior and can, at best, block the withdrawal for 24-48 hours. In the worst case, they will be asked to go through a full-fledged KYC.
- Never try to make a large exchange with one transaction. For example, I want to exchange 10,000 USDT for Bitcoin. I will never deposit the entire amount in one transaction, it is better to break large amounts into several parts, then the risk of losing the entire amount is greatly reduced. Of course, you increase your fees, but it's better to lose 20 bucks in fees than to lose everything and then write numerous complaints all over the Internet that the exchange is holding your funds.
- It’s definitely not worth sending large amounts to low-liquid exchanges, especially if you don’t pass KYC there, this increases the chances of blocking, since the exchange makes good money due to such cases. If you look at all the complaints about the blocking of user funds on this forum, then there we will most often meet various no-name exchanges.
7. Trading behavior
Many traders, especially day traders, keep their funds on the exchange at all times. There is no way to get rid of this, because the very specificity of day trading obliges you to keep funds on the exchange for constant intraday trading. But this does not mean that you also need to keep all profits on the exchange (unless, of course, the trader has it) and not withdraw it. If a trader is constantly engaged in accumulation, then sooner or later he may lose everything, for example, due to the collapse of the exchange or the possible blocking of the account for various reasons.
Therefore, the withdrawal of profit should be carried out constantly, at least several times a month, in this way you will reduce the risks of losing funds and will earn. Because until you have withdrawn nothing from the exchange, you have not earned anything. You have become richer only on paper (screen), since the exchange only drew numbers on the screen for you, and real assets continue to be stored on its wallets (not on yours).
Many traders avoid this behavior, because in this case the effect of compound interest is lost, where the profit received goes to the account of the general deposit and subsequent transactions begin to bring more profit. But one case can cross out everything in general, and then it turns out that you could get rich faster if you earned constantly, but a little, rather than constantly saving up and losing everything at once. This can happen not only because of an exchange scam, but it can also happen because of a bad deal.
I would like to touch a little on derivatives trading. Usually beginners come here with a small deposit and trading with a small leverage does not suit them because of small profits. Therefore, they are trying to increase the leverage and risks so that the growth of the deposit occurs much faster. This is also a common misconception. The higher the leverage, the shorter the life of the deposit. Don't try to cheat risk management. You will earn much more if you constantly reduce risk, and not vice versa. I will say from my own experience that the maximum viability of my deposit was exclusively with risks of 1.56-1.67% OF THE TOTAL DEPOSIT. That is, if you have $1000, then the amount of your trading should be no more than $15-20. Someone will say that these are mere pennies, but at a distance of several years, a very stable income is obtained. If your risk is 10-30% of the total deposit, then, no matter how paradoxical it may sound, you will earn less in a few years than someone who made trades with a risk of 1.67%. The understanding of this perfectly penetrates the trader's head after he sits down and calculates how much money he lost in a year of trading with high risk, and how much money he could earn with a very low, but STABLE risk. As a rule, the amounts differ by several, or even several tens of times, although it would seem that you are trading for small amounts, how can you make money here at all? You can if you stick to low risk and don't try to fool risk and money management.
8. My threads about exchanges and trading
During the 4 years that I spent on the forum, I created many topics about exchanges and trading. Here I will give a complete list of all such guides:
- [HUGE LIST] Useful Crypto Links !!!
- [BIG LIST] Buy/Sell Crypto (OTC, P2P, DEXs, CEXs, NO-KYC, ATMs, etc.)
- [BIG LIST] Crypto Trading Bots
- [Review] CryptoWisser - Useful site for beginners and not only
- Exchanges List (1000+)
- [BIG LIST] Analytical Crypto Services & Tools
- Is a demo account necessary for a beginner trader?
- Scalping is the most controversial way to make money. My experience for 4 years
- Why is it a waste of time and money to buy ready-made trading strategies?
- [GUIDE] Who are Professional Traders?
- Never invest your money in a trust management
- ByBit - Derivatives Exchange
- Beginners, do not choose a no-name exchanges
- Exchange Graveyard in 2021-2022
- {LIST} Big Library of Bitcoin & Blockchain Books
- Averaging. Helper or Enemy?
- {LIST} Demo Trading Platforms
- BitMEX - Derivatives Exchange
- Services Providing a Complete History of BTC Prices
- Library of Beginner Crypto Trader
- Step-by-Step Guide for Beginner Crypto Traders
- Beginners & Help Encyclopedia
- Learn more about scams and improve your security with CryptoSec
- Newbies, don't be naive
- Parting words to young warriors
- Current list of exchanges without KYC
Thanks to everyone who helped and supported me on my glorious 4-year BitcoinTalk journey. Use exchanges wisely and with caution. Do not break basic security rules and do not try to save on basic things that will help protect your funds and your privacy.
My 7 years of experience with CEXs (4 years on Bitcointalk)
In honor of this event, I will not start a thread with congratulations, but will combine business with pleasure. I would like to share with the community (in particular, with newbies) my experience and observations regarding the work with centralized exchanges. I have been on the forum for 4 years, and in the crypto I have been for 7 years. All these 7 years I have been using centralized exchanges and I have a lot to tell about them. Now centralized exchanges play a big role in the life of cryptocurrencies and many people use these services for various purposes: trading, staking, launchpads, p2p, swap, etc.
This thread will not be about how to trade on the stock exchange, how to make money on trading, or something like that. Rather, as a set of recommendations on how to avoid additional problems associated with centralized exchanges.
Table of contents:
1. Exchange selection
2. Registration
3. Logging
4. KYC
5. Purchased verification/account
6. Deposit/Withdrawal
7. Trading behavior
8. My threads about exchanges and trading
All information is not a direct guide to action, it is not a retelling of excerpts from some articles and guides. Everything listed below is solely my experience with CEXs and my observations over 7 years.
I often hear in the community that you should stay away from CEXs, they are dangerous and very risky when it comes to your money. I am convinced that if certain rules are followed, the risks can be minimized. I will divide the topic into the main points of working with centralized exchanges, a kind of chapters.
1. Exchange selection
During these 7 years I am a confident user of most top exchanges and my choice is always focused only on such services. The fact is that many users often turn their attention to various exchanges that are deep in the list of exchange ratings, or even to new exchanges or recently created ones. The risk of using these sites is much higher than the already proven and well-known exchanges. Why?
- Such exchanges always experience problems with liquidity. In order to somehow attract liquidity to their platform, the exchange is trying to lure new participants with various distributions, free tokens, free trading commissions, registration bonuses, and other tricks. These are not the most important points to consider when choosing an exchange. The most important thing is liquidity, variety of supported networks and fresh listings.
- Low liquid exchanges have one big drawback when withdrawing their funds - these are commissions. The thing is that large exchanges can very often withdraw your funds at a loss. Yes, it may sound strange, but it's true. The reason for this is that large exchanges live off volume, meaning their main income comes from liquidations and stop losses, which can reach hundreds of millions of dollars in the next major market spike. Therefore, when you withdraw bitcoin from such exchanges, it will cost you 0.0002-0.0005 BTC, which is a normal fee for such exchanges. On low liquid exchanges, the withdrawal fee is usually 2-3 times higher, because such exchanges cannot afford to make transactions below the minimum. Low-liquid exchanges try to make money at any step of the user, so the withdrawal of funds on such exchanges is always overpriced, just like the withdrawal limits. This is explained by the fact that by any means to restrain the outflow of funds from the exchange, so that all small deposits remain on the exchange.
- I also want to note that low-liquidity exchanges do not support most modern networks that solve scalability problems and provide a choice of a network with a low commission. There you will not see any Lightning, Arbitrum, Optimism, etc.
- Large exchanges also have another big advantage over small exchanges. They have the functions of sending funds between accounts (by UID), it is absolutely free and such transactions take place off-chain, that is, without any involvement of the blockchain. Sometimes it is very convenient to transfer cryptocurrency from one address to another without any traces.
- Major exchanges also have sub-accounts, which also have various useful features, both for swapping and trading.
2. Registration
I would not recommend registering exchange accounts by phone number, only through email. Ideally, of course, each exchange should be tied to a separate mailbox, and to protect against phishing, always use the anti-phishing code that will always accompany any email sent to you by the exchange itself. All modern exchanges have this feature.
As for registering with a phone number, this is an additional loss of privacy if you intend to use the exchange without KYC. Please note that if you register using a phone number, this number will now be embedded in all important functions when working with the exchange, any device change, security settings, withdrawal of funds will require SMS from you everywhere. There is one interesting feature here: SMS do not always arrive on time, or they may not arrive at all. I have already encountered such problems when the exchange suddenly ceased to support some operator or some region, and the phone turned out to be useless, and therefore the entire exchange. It is extremely problematic to untie or change the phone number on the exchange. This is a guaranteed KYC, you will be forced to pass it even if you have already passed it. This is a standard procedure if you are trying to change basic settings or account information. If you are against KYC, then this is a guaranteed problems of the account and your funds on it.
I recommend using 2FA and email to work with the exchange. This set is enough to work with all popular exchanges. And do not forget to save and duplicate the 2FA key, because if you lose it and want to restore it, you will fall into 9 circles of hell of communication with technical support, and in this case you will also be forced to undergo KYC.
In no case do not use virtual or disposable numbers to register on exchanges.
3. Logging
Here, too, there are some nuances, especially for those accounts that have not passed KYC. I would not recommend constantly logging into your account from different browsers and from different IPs, especially if you are sitting with a VPN (especially free ones, it is better to refuse them altogether if possible). Users who like to constantly log into their account from different devices and IPs, without knowing it, provoke the exchange to block funds and request KYC.
If KYC is passed, then the exchange usually requires additional confirmation by mail that this IP is correct and that you are logging in, in exceptional cases they can block the withdrawal of funds for 24-48 hours. If KYC is not passed, you are at risk. I recommend using the account from one browser and from one IP, preferably the one from which you registered. If you do not want to access the network from your IP, then you can use the anti-defect browser+proxy bundle. For example, I use an anti-detect browser on which I have an individual proxy running and I always access exchanges from this device, thereby not provoking the exchange to various additional checks, especially if I need to withdraw funds after entering the exchange.
If you try to enter the exchange from a new IP and withdraw your entire balance, then there is a very high chance that you may be blocked and forced to undergo KYC. Do not use free VPNs and cheap proxies for those exchanges where you have funds, keep your accounts and privacy much longer. People themselves provoke exchanges to additional checks, and then complain that exchanges suddenly introduce KYC for their account.
4. KYC
I have always been an opponent of KYC and in 7 years I have never passed it. No exchange has my papers, and I hope this will continue for as long as possible. On this theme, I have a separate thread where you can choose a good and well-known exchange without KYC: Current list of exchanges without KYC. This list has been personally verified by me and I use these exchanges all the time, so I can recommend them for review and further use, but do not forget about DYOR.
As for the danger of KYC, it has already been said many times on this forum and, in my opinion, this problem was best described by 1miau: Why KYC is extremely dangerous – and useless
Therefore, I will not repeat myself, but I advise you to familiarize yourself with his topic. With each generation of crypto users, KYC is becoming kind of commonplace and people are ready to scatter their documents and scans of their faces right and left. You should not exchange your personal data with the first service you come across, especially if this service is not very well-known and relatively new. This can be a regular scam, and then your documents will go to various services for rendering and selling personal data to pass various KYCs on a variety of services.
5. Purchased verification/account
Now, in 2023, the market for verifications and the sale of verified accounts has grown very much and has a huge offer, for a variety of needs and for a variety of services. It is also important to follow certain rules of caution here, otherwise you can also provoke an account blocking and repeated KYC.
This information is strictly informational in nature and does not encourage anyone to use other people's or rendered documents to work with exchanges. Use this method at your own risk and remember that when passing KYC on other people's documents, you do not get rid of risks, you change one risk for another. There is no risk-free operation with exchanges, due to their centralized nature. Always remember this.
- If you want to buy a ready-made verified account, then never chase low prices, the cheapest accounts = scam or quick ban. Such accounts are very often registered through auto-registration (by script) and KYC on them only on rendered (non-existent) documents. Such accounts are blocked most often.
- If you want to buy a verified account, then do it ONLY through a guarantor, as this market is teeming with all sorts of scammers. Without escrow, you will be deceived in 99% of cases.
- If you buy a verified account, then select a choice similar to your geolocation and country. It will be very strange if you buy some account from Bangladesh, and you yourself will sit from a computer in the euro zone.
- The ideal account is expensive and comes with a set of Useragent, Cookies. To successfully work with a purchased verified account, you should use an anti-detect browser, a separate proxy, Useragent, Cookies (if available). This will greatly increase the security of your account and less attention from the exchange itself will be in your direction. Also, in the security settings, you should enable all possible settings (except for the phone number), namely the trading password, 2FA, anti-phishing code. All this will reduce attention to your account and after you log into the purchased account, do not try to change the settings there, namely the time zone, account name, password, etc. This is almost guaranteed to lead to a block or KYC re-pass. Also, after logging into such an account, you do not need to immediately deposit money in order to quickly convert it into another cryptocurrency and immediately withdraw it. This also applies to suspicious behavior.
- If you want to work with fiat and also withdraw funds in fiat, then in no case can you use someone else's verified account. Here only your data will help to avoid loss of funds. Other people's verified accounts are needed only to work with cryptocurrencies.
- If you follow all these rules, then your accounts can live for a very long time and not bring you any problems, even on exchanges like Binance.
6. Deposit/Withdrawal
This has also been discussed many times, on this forum and beyond. If you do not trade on the exchange intraday, then there is no point in keeping money on the exchange, keep money only on your own NON-CUSTODIAL wallets, from which you have private keys and a seed phrase. The withdrawal of funds on the exchange should also be attributed responsibly. The fact is that here also many people make typical mistakes that lead to loss of funds.
- After registering on the exchange, do not immediately try to deposit money on the exchange, then quickly convert it and immediately withdraw it. Exchanges do not particularly like this behavior and can, at best, block the withdrawal for 24-48 hours. In the worst case, they will be asked to go through a full-fledged KYC.
- Never try to make a large exchange with one transaction. For example, I want to exchange 10,000 USDT for Bitcoin. I will never deposit the entire amount in one transaction, it is better to break large amounts into several parts, then the risk of losing the entire amount is greatly reduced. Of course, you increase your fees, but it's better to lose 20 bucks in fees than to lose everything and then write numerous complaints all over the Internet that the exchange is holding your funds.
- It’s definitely not worth sending large amounts to low-liquid exchanges, especially if you don’t pass KYC there, this increases the chances of blocking, since the exchange makes good money due to such cases. If you look at all the complaints about the blocking of user funds on this forum, then there we will most often meet various no-name exchanges.
7. Trading behavior
Many traders, especially day traders, keep their funds on the exchange at all times. There is no way to get rid of this, because the very specificity of day trading obliges you to keep funds on the exchange for constant intraday trading. But this does not mean that you also need to keep all profits on the exchange (unless, of course, the trader has it) and not withdraw it. If a trader is constantly engaged in accumulation, then sooner or later he may lose everything, for example, due to the collapse of the exchange or the possible blocking of the account for various reasons.
Therefore, the withdrawal of profit should be carried out constantly, at least several times a month, in this way you will reduce the risks of losing funds and will earn. Because until you have withdrawn nothing from the exchange, you have not earned anything. You have become richer only on paper (screen), since the exchange only drew numbers on the screen for you, and real assets continue to be stored on its wallets (not on yours).
Many traders avoid this behavior, because in this case the effect of compound interest is lost, where the profit received goes to the account of the general deposit and subsequent transactions begin to bring more profit. But one case can cross out everything in general, and then it turns out that you could get rich faster if you earned constantly, but a little, rather than constantly saving up and losing everything at once. This can happen not only because of an exchange scam, but it can also happen because of a bad deal.
I would like to touch a little on derivatives trading. Usually beginners come here with a small deposit and trading with a small leverage does not suit them because of small profits. Therefore, they are trying to increase the leverage and risks so that the growth of the deposit occurs much faster. This is also a common misconception. The higher the leverage, the shorter the life of the deposit. Don't try to cheat risk management. You will earn much more if you constantly reduce risk, and not vice versa. I will say from my own experience that the maximum viability of my deposit was exclusively with risks of 1.56-1.67% OF THE TOTAL DEPOSIT. That is, if you have $1000, then the amount of your trading should be no more than $15-20. Someone will say that these are mere pennies, but at a distance of several years, a very stable income is obtained. If your risk is 10-30% of the total deposit, then, no matter how paradoxical it may sound, you will earn less in a few years than someone who made trades with a risk of 1.67%. The understanding of this perfectly penetrates the trader's head after he sits down and calculates how much money he lost in a year of trading with high risk, and how much money he could earn with a very low, but STABLE risk. As a rule, the amounts differ by several, or even several tens of times, although it would seem that you are trading for small amounts, how can you make money here at all? You can if you stick to low risk and don't try to fool risk and money management.
8. My threads about exchanges and trading
During the 4 years that I spent on the forum, I created many topics about exchanges and trading. Here I will give a complete list of all such guides:
- [HUGE LIST] Useful Crypto Links !!!
- [BIG LIST] Buy/Sell Crypto (OTC, P2P, DEXs, CEXs, NO-KYC, ATMs, etc.)
- [BIG LIST] Crypto Trading Bots
- [Review] CryptoWisser - Useful site for beginners and not only
- Exchanges List (1000+)
- [BIG LIST] Analytical Crypto Services & Tools
- Is a demo account necessary for a beginner trader?
- Scalping is the most controversial way to make money. My experience for 4 years
- Why is it a waste of time and money to buy ready-made trading strategies?
- [GUIDE] Who are Professional Traders?
- Never invest your money in a trust management
- ByBit - Derivatives Exchange
- Beginners, do not choose a no-name exchanges
- Exchange Graveyard in 2021-2022
- {LIST} Big Library of Bitcoin & Blockchain Books
- Averaging. Helper or Enemy?
- {LIST} Demo Trading Platforms
- BitMEX - Derivatives Exchange
- Services Providing a Complete History of BTC Prices
- Library of Beginner Crypto Trader
- Step-by-Step Guide for Beginner Crypto Traders
- Beginners & Help Encyclopedia
- Learn more about scams and improve your security with CryptoSec
- Newbies, don't be naive
- Parting words to young warriors
- Current list of exchanges without KYC
Thanks to everyone who helped and supported me on my glorious 4-year BitcoinTalk journey. Use exchanges wisely and with caution. Do not break basic security rules and do not try to save on basic things that will help protect your funds and your privacy.
My 7 years of experience with CEXs (4 years on Bitcointalk)