[ojagodzinski]

So you're telling me that all these people exchanges currencies non-stop 24/7? Why can't they have coins in their offline wallet and transfer them to the exchange only before the transaction?

On a similar (sort of) principle, I do not keep 100% savings on the bank account to which my ATM card is attached, I have a separate account where I keep most of my savings and move money between them once a month or when i need to buy something very expensive.

[ralph84]

Because on-chain transactions are expensive and exchanges offer cheap off-chain transactions. If you could transact on-chain as cheaply as you can move money between a checking and savings account of course people would do that.

[SpaceManNabs]

> Because on-chain transactions are expensive

For what chain? As far as I can tell, this is only true for ETH, and you can mitigate this by switching to a true L2, although not many of them are up to par yet.

[skinnymuch]

Yeah the second paragraph makes sense. I do the same thing. I have a lot of bank accounts because of a side hustle (think dozens). I don’t connect my main savings bank account with any of these. Just in case something goes wrong, it’s easier if everything public goes through one or two banks with low amounts of money and I only carry a lower balance debit card with me.

[paulpauper]

probably day traders. These are people who trade crypto daily, sometimes many times/day. depositing and withdrawing may take a long time, so easier to keep it on the exchange and accept the risk.

[nly]

All the top HFT firms are trading Bitcoin at this point and have been for years.