Hi Carlos
If you are invested in cryptocurrencies, you might be feeling gut-wrenching pain with all the hacks and negative news making round.
And let me tell you that you are not alone.
A lot of investors like you are feeling the same.
After the FTX downfall, a lot of crypto VC and small exchanges are becoming insolvent, and especially many small crypto exchanges are halting withdrawal.
Withdraw funds from crypto exchanges
The next few weeks will be unexpected for the entire cryptomarket, and we may hear a lot of bad news from small exchanges around the globe.
Here is the latest news from a tiny Canadian exchange.
November 21st 2022
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I would not be surprised if we hear the same from other small crypto exchanges from different parts of the world.
The last time, after the Luna crash, it took almost a month for Celsius and Voyager to become insolvent.
It does not matter if you are from India, the USA, Australia, or any other country; your crypto investment could be at risk with small exchanges.
This is why many investors are converting their majority of crypto to Bitcoin and moving it to a hardware wallet.
Also, the below chart by Cryptshadow will throw the light of such a cycle playing out in the Bitcoin journey:
What should you do?
In my last email, I suggested you move your cryptocurrencies out of exchanges and take self-custody.
In simple terms, you can use a hardware wallet like Ledger Nano X or the Trust wallet on your iPhone to store your cryptocurrencies. A hardware wallet is the best way to keep your investment secure.
A lot of investors have moved their cryptocurrencies from small exchanges to large exchanges such as:
Here is a chart from CoinMarketCap, and do notice the volume volatility.
A few more tips:
- Avoid any lending platform like Nexo or any other (At least for now)
- Implosion of projects like Luna, FTT and SOL has taught us that Staking might not be the best idea for passive income. I will share a separate note on this in the coming days.
- Understand the dynamics of bear and bull market. It is common for a lot of negative news to be out in a short term, and think long term over short term.
In other news:
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Carlos as you know, CoinSutra is a Bitcoin and blockchain education platform, and we often share our learnings and findings with our community.
Do note- We are not an investment platform and we do not give any investment advice. All of our material is for education purposes, and you should do your own research.
As much as we like everyone to understand blockchain technology's benefits, it is equally important to understand the risks of investing in an asset class like "Digital assets."
If you are smartly invested with proper asset allocation, you might come out as a winner when the market changes its direction.
Always remember - Weak hands never make money.
And last but not the least, move your cryptocurrencies from exchanges to your hardware wallets.
If you have any question about self custody, reply to this email and let us know. We will make a tutorial for the same.
Best of luck!
Regards
Mr. Creatonics
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[Important] Avoid Small Crypto Exchanges - Do This Instead