Is cryptocurrency trading and investing a profitable venture compared to the rest of the traditional financial markets, or is it time to let go of it?
Many are losing their money as negative news about crypto exchange governance is coming to light. They have lost a substantial amount of funds in the form of cryptos and hold a pessimistic view about the recovery of those funds.
The latest FTX scandal has hit the news and has created an unhealthy environment for those crypto enthusiasts. What was supposed to be a way forward into the future has left an unappealing sight for many—even those considering investing and trading in cryptocurrencies.
The potential seen during the boom of cryptocurrencies in the pandemic period was just the tip of the iceberg. It has yet to show its full potential. However, considering that it is more than a decade old compared to the rest of the traditional financial markets, the growth and acceptance are tremendous.
What Stats Say About Crypto
The adoption rate of Americans worldwide is merely 14%, as per the reports. The reports also suggest that more than 15% of crypto users are between the ages of 15 to 34, 11% are between 35 to 64, and 4% are people above 65.
Per another report, out of every 10 Americans, three have had some transaction with cryptocurrency. They were also aware of how the cryptocurrency market works.
Your Way Out of the Crypto Market Chaos
So what becomes of these traders as they lose interest and faith in cryptocurrencies? Well, there is a way out; you can “Hodl” onto your cryptocurrencies and trade without fearing some exchanges going bankrupt.
The lax nature of governance in crypto exchanges has been quite prominent. All those exchanges victims of bankruptcy have the same old story of bad management.
Cryptocurrency came into existence to carry out borderless transactions without incurring huge fees. Another reason for the mass appeal was as it was decentralized; the government had no business over how much wealth you had “Hodl” with you. So you could be a millionaire or a billionaire without the government ever knowing about it.
The Governments’ Impulse on Crypto
Government agencies worldwide are trying to control this DeFi and convert it into centralized finance, thus exerting total control on the flow of the currency.
Any negative news regarding cryptocurrency convinces the government to take equally harsh steps to control this decentralized finance.
Several experts believe that the way forward into the future is a cryptocurrency, and there is no concern about you surrendering all your crypto wealth since the world is also slowly accepting it.
Global Acceptance and Support
In the United States, many banks encourage their customers to keep cryptocurrencies as collateral against loans. In addition, many governors also publicly express their love and support of cryptos.
In Central America, especially Mexico, many are adopting and trading cryptocurrency to hedge inflation since their local currency is very weak.
Out of all the Central American countries, El Salvador, the President has already planned to create a Bitcoin-friendly city where people can carry out their transactions in cryptocurrencies.
Crypto for Gamers
Several games are now based on blockchain technology, allowing transactions of in-game accessories and enhancing their players’ gaming experience. In addition, games like Axie Infinity have revolutionized cryptocurrency trading to the next level. The game is based on cryptocurrency economics or “Tokenomics,” as the term goes.
Gamers are also encouraged to trade in cryptocurrencies to trade their characters and accessories. Some even sell their gaming accounts for cryptos after completing the game halfway or completing a difficult level.
So much more is expected from incorporating blockchain technology, enhancing our daily lives. Since cryptocurrency has a significant role in our lives, it is shameful that specific unfavorable promotions like scams and crypto exchanges filing for bankruptcy indeed leaves a bad taste in society.
Tips to Secure Your Crypto Hodling
So how does one ensure that you continue cryptocurrency trading without fearing losing your hodlings? If you wish to trade or invest in cryptos, you should consider the following tips to safeguard your crypto hodlings.
Remember that your cryptocurrency is your primary concern; several crypto exchanges allow you to park your cryptocurrencies with them. Some even offer you to lend your cryptos to others; they give incentives and bonuses to you for utilizing your cryptocurrencies. However, it would help if you understood that these crypto exchanges are frequent victims of cyber attacks like malware, spyware, viruses, and even hacking cryptocurrency accounts. The latter is more devastating as they clean off the cryptos in those accounts.
You can also use your personal computer to “Hodl” your cryptocurrencies. All you need to do is install third-party software which uses encrypted keys to access your cryptocurrencies. Such software is also available on your android or iOS mobiles. In addition, you can store your cryptocurrencies directly on your computer’s or mobile’s hard drive. Several e-wallets in the form of software are available online that are user-friendly. They are similar to your online cryptocurrency accounts on the crypto exchanges. However, since your mobile and personal computer are always connected to the internet, they too can be subjected to cyberattacks.
Though tiresome, the other method can save you the hassle and headache of storing your cryptos “offline” without the risk of storing them online. Instead, you can print your private and public keys on paper and store them under lock and key. The only trouble you will face is that you need to type in your keys every time you need to transact or trade your cryptos. But in the long run, such trouble is worth it.
If you feel that storing your cryptos on paper is dangerous, then all you need to do is approach a hard wallet that stores your cryptos.
Several hardware wallets are available online; you can even buy them on Amazon and eBay. Such wallets are expensive; however, you can store several different crypto coins that are in high quantities. These wallets are easy to use. These can also be locked so that no one can access these cryptos without the password.
There are ideal ways to store your cryptocurrencies without fearing losing them to either cyber attacks or exchanges going bankrupt.
The threat of crypto exchanges going bankrupt as they are not registered or regulated means none of their customers have their cryptocurrencies protected. Although several potential cryptocurrencies are yet to be discovered, they fail due to unprofessional methods of handling crypto exchanges. The only way to secure your crypto “hodling” is by storing them offline and continuing cryptocurrency trading.