Why You Should Not Put All Your Assets in One Account
Welcome to my blog!
It is my pleasure to come your way again. Today, I'll like to share with you some reasons why you shouldn't place all your assets in just one exchange account. It is important that as a cryptocurrency trader, you hold or split your assets into multiple accounts or exchanges.
Let's say you have $100, 000 or more you want to trade with, it is somewhat inappropriate or not advised to put them all in just one exchange account. You should split the capital into many accounts as there are also benefits for doing so.
One of such benefits is that, holding funds or capital in multiple trading accounts will help you make more profit. It helps you to buy dips (or pumps) at different low points (or high points).
For instance, taking the 14th of June bear market for an example. Bitcoin started dumping from about $9800, it got down to $9500. At this point, I bought in thinking that was the lowest dip it would attained. But right in-front of me, it dipped to $9100 up until it got to $8900. I could not buy long from an entry point of $8900 because I just had capital in one account and I had bought in already at the initial dumping of $9500.
With multiple accounts, you get to buy the dips at different points till the very lowest. This is also applicable when the market is experiencing at upward movement from a low point.
Initially, I had just one account which was on Binance exchange (@binance-hot) but after that experience, I moved to creating a new account on the Huobi Exchange. And maybe, as my capital increases, I split to another account.
Another downside of putting all your assets in one accounts is the high risk of losing them. For instance, you placed all your assets in an exchange and peradventure, the exchange gets hacked like when it happened years back; at that moment, you will lose all your assets. But if you have splitted it into different exchanges, at least some of your assets would still be secured.
There are many other importance and benefits of putting assets in different accounts or exchanges but as always do what best fits you. This not a financial advice; just my thoughts and experiences.
Posted Using LeoFinance
