How to protect your crypto capital from another CEFI crypto Crash ?

in LeoFinance2 years ago (edited)

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We are in the month of July as I write this post a large part of our planet is experiencing sweltering heat and one of its worst summers.
Yet in the crypto universe we experience chilly winters. Things are slow to move and the only price action we see is mostly on the down side.

Things got bad with LUNA

At the risk of being repetitive I have so say that the LUNA episode has left the crypto markets shaken up to say the least.

Leveraged play on LUNA took a toll on so many individuals and financials institutions.
The story of Three Arrows Capital is not the first in the row.
Three Arrows Capital (3AC) got liquidated after they were unable to pay back creditors.
Its problems got accelerated when Voyager Digital came out with the news that 3AC had not payed back to them $665 million loan.
Apparently this was an unsecured loan!

Celsius was another casualty caused due to exposure to LUNA and accelerated by the current crypto scene.

Crypto exchange Vauld has suspended deposits ans withdrawals.

There were rumors that financial crisis may have hit Kucoin however such information has been dismissed by the Kucoin CEO.

The Moot point

A lot of the centralized financial exchanges and platforms specially the ones that had leveraged positions on LUNA may have suffered badly.
Though the exact damage may not be known as a lot of their transactions happen behind closed doors.

Could this start the Domino effect ?

Hope the fall of the big names in the crypto space gets stalled.

However if this contagion continues this could see big crypto names falling like domino's.

Where does this leave the individual investor ?

Confused ! to say the least.
One does not know for sure whom to trust with your crypto in the crypto space.
That being said it seems the best time to withdraw funds from any wallet or account where you do not hold the keys.

  • Do not used your centralized exchange account to HODL your crypto.

You never know which platforms has suffered how much and when it may decide to declare suspension of withdrawal of funds or a point of no return i.e. declare insolvency.

Always remember the first golden rule of crypto

Not your keys not your cryto !

This holds in every crypto season and is the most important rule to follow now.
The best things to do...
Do not leave your crypto with centralized exchanges or investment platforms.
keep your crypto safe in wallets where you control the keys

The best investment is a hardware wallet

Get yourself a hardware wallet and use it to store your crypto securely over there.
Transfer only the amount of crypto that you absolutely must to a centralized platform at least for now till things settle and start moving in the positive direction because it is better to lose some money in terms of interest then seeing your capital being wiped out because the company that took your money went insolvent.

Easier said than done

Do not led greed over take logic.
Indeed a lot of us trust crypto more than we trust FIAT. However this is the season to preserve the capital more than anything else.

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Love this, everything in crypto world is turning down now , prevention is better than cure

Dear @thetimetravelerz, we need your help!

The Hivebuzz proposal already got important support from the community. However, it lost its funding a few days ago when the HBD stabilizer proposal rose above it.

May we ask you to support it so our team can continue its work?
You can do it on Peakd, Ecency, Hive.blog or using HiveSigner.
https://peakd.com/me/proposals/199

All votes are helpful and yours will be much appreciated.
Thank you!

Hello @thetimetravelerz

The situation of distrust that I think LUNA in the cryptocurrency market is one of the events that I did not imagine could happen, such distrust has managed to permeate in the most consolidated investors that the crypto world has, since everything points to the fact that centralized systems and even exchanges at any time can leave us without our resources.

Best regards, be well.