Why some exchanges have limited reserve for some currencies?

[Syedaltafshah 19]

Reserves act as a shock absorber against factors that can negatively affect a currency's exchange rate, so a nation's central bank uses its currency reserves to help maintain a steady rate, buying or selling depending on which direction they want exchange prices to go.

[Shahud 1319]

it is just because to avoid the spamming and to control the use of funds .i know that is annoying but we must follow to their rules

[MCSGlegend 2210]

Some exchanges struggle so much with those who earn money at different exchange rates that they buy cryptocurrency on one exchange and sell it on another. Or they do it to protect themselves from fraudsters who launder money in this way.

[guatazoo 7150]

They do that so they have big commissions on fees.

[Upright 2688]

One thing which I know is that, it's not all coins on an exchange that will be successful on the market as some might just isolated on being a bottom coin. And so exchanges will just barely invest on such coins, if from their creation, The hype wasn't really there

[BitcryptoHan 2557]

Exchanges with limited cryptocurrencies is because of security. Later, as they are developing, they will still add more cryptocurrencies but will make sure they are safe to be hold or use by there consumers before allowing it. 

[Rares002 262]

I think that when exchanges have limited reserves for some currencies, the reason is that the currency is not suitable or not the best currencies the exchange chooses.

[teminalibug 309]

2 hours ago, Sirlabo999 said:

Although I am not so sure but I think this could be as a result of the low trading volume and also might be that it is not popular so no much reserve is needed                                                                                                                                           

He is talking about withdrawal or cashing out from exchanges, so it has nothing to do with volumes.

[CryptoMaxim 2372]

On 14.12.2019 at 18:44, Cryptokiller said:

I don't know about it.But I think the coin is not so popular and has a little trading volume on the exchange.

You can just try to divide the amount into several parts and withdraw it to different exchanges or exchangers. Only you should probably choose trusted exchanges.

[Fedor00 74]

Because exchanges have hundreds of coins listed on their platform. They can't have hundreds of thousands of dollars in each coin because they would need billions of dollars for that 

[Brushless4500KV 4214]

On 3/30/2020 at 1:36 AM, Fedor00 said:

Because exchanges have hundreds of coins listed on their platform. They can't have hundreds of thousands of dollars in each coin because they would need billions of dollars for that 

This seems like a reasonable answer. Anyone who establishes an exchange will put some money in the form of different currencies into it. This is the initial investment to set up this kind of business. However, they need to increase their reserves because all users are not the same and there are rich people among them who need to exchange larger amounts of one currency to another. For example, someone wants to convert 1000 ETH to USD. What should he do if the reserve for USD in an exchange is limited? He can't go to banks for such a transaction. I think there must be some exchanges with high reserves only for large transactions.

Edited April 13, 2020 by Brushless4500KV

[scorpiali 5626]

On 2/9/2020 at 6:03 PM, AHSANUL31 said:

Reserves of all countries are gold, that is, provided with gold. Unsupported foreign exchange reserves can not be at all. What will these reserves be for the country if they can depreciate in one day? No normal country will agree to have unsecured foreign exchange reserves

For example the usdt is backed by dollars every usdt in exchange have one real dollar i real life , but the exchange limit some currency because they dont have a big volume to trade them 

[ComeBackIsrael 185]

Because perhaps they are afraid of money laundering through anonymous cryptocurrencies and because of this, they reduce the reserve of a particular cryptocurrency.

[bitcoinb 1359]

To give a simple answer to the question of this topic i will say: An exchange is not a bank, so the liquidity is depending of the simple law of supply and demand.

[Thekingcallme 1975]

This is because of the small trading volume in that currency and this is what makes the reserves of some platforms limited, because the trading volume is not large

[Ridam 7455]

In my opinion the fund of exchange is limited and for small exchange if you did withdraw huge Money through payeer they may need to refill in very shortly so they set some limits or may be it's due to the payeer deposit issue. For solving this exchange should launch new policies regarding it and solve the issue.

[Kamila 291]

They can't do this for security reasons , their wallet will be blocked if they transfer such a huge amount to you, so some exchanges have such withdrawal limits.

[magd 5231]

Each platform sets its own business plan and budget study by currency type, focusing on the most popular currencies in the beginning and allocating more reserves to them. Through trading operations, the reserve is filled with lower price currencies, so we do not face this problem with Bitcoin and Ethereum, but it is very likely that we will find a shortage Reserve currency in USD and the solution is to convert in intermittent payments

[DreamStage 2105]

I believe that is because there is a certain difficulty in having algorithms for every currency transactions.

 

As they have to adapt their system to implement more code so that it is able to make new pairs and transactions between each individual currency.

 

Or it's just because of the commissions they have to give to the miners as fees.

[Brushless4500KV 4214]

17 hours ago, DreamStage said:

I believe that is because there is a certain difficulty in having algorithms for every currency transactions.

As they have to adapt their system to implement more code so that it is able to make new pairs and transactions between each individual currency.

Or it's just because of the commissions they have to give to the miners as fees.

I don't think it has anything to do with codes and algorithms. The possible reason is that every exchange have a certain amount of investment in circulation. They divide their investments into multiple currencies and choose mainly those currencies that are common and traded. This can be the cause of variation in reserve between exchanges because some may offer more and others may offer less. The second reason is that in some exchanges, some currencies may be more popular. It is obvious that those currencies will receive more reserve.

[Zaino34 0]

In fact, I have not tried transferring huge amounts of money from stock exchanges, and I believe that not all stock exchanges suffer from this problem, and they may be taking this step because they do not have a sufficient volume of currencies or in order to maintain the safety of users and do not pay large sums at once or there is another reason for that.

[Calvinpriva 17296]

This is not a problem, but its the amount that they have in their paypal account. They will send the amount that they have for that time, and they will refill their account to complete the remaining amount. Every exchange has its own amount in their wallets.

[Saj555 2250]

They do that for some legal reasons. Because otherwise they would have implemented the idea of doing transactions or exchange with entire time.  Maybe either the network doesn't count on the larger amount or other reason can be to avoid legal accountability. Because if larger amount of transactions are happened then the authority has to pay a larger amount of tax. That's why to avoid legal monitoring they do that. 

[malik6314193 5449]

The exchanges which i use have not such limiting deposit. I use mostly yobit exchange and binance exchange. Sometime Yobit didn't offer deposit from bank but binance always support to deposit fiat currencies as much as you want. 

[Yomose 3704]

Exchanges can not have more than what traders are buying and sending into the exchange. If only limited trading volume is what an exchange got, it is as a result of the low amount traders are using on the exchange to trade.