Making Moves in Winter – Bear Markets are for Securing Yourself
When the crypto markets are hot, and crypto Twitter is practically vibrating with excitement, it can be disorienting for even the most seasoned crypto traders. It’s not uncommon to get caught up in the hype for a new protocol, or to go hunting for gems on the flavor-of-the-month swapping site.
Unfortunately, this excitement usually brings along with it countless stories of people losing their cryptocurrency to hacks, fraud, protocol failures, and other sad outcomes.
It’s all too predictable. You find out about a new protocol – let's call it “BigApplePie Swap” - and you’re instantly hooked by the 250% interest, clever memes from the marketing department, and the direct endorsement from your favorite cryptocurrency influencer. You park swap some ETH for some BigApplePie tokens, send both BigApplePie tokens and the ETH over to the protocol, and start earning interest.
Do you notice what went wrong here? To most, this seems like par for the course. But to those who know what’s going on, you’ll notice a glaring issue: you just gave up custody of your wealth to BigApplePie Swap. Are you sure this was the right move?
Okay, maybe you don’t trust BigApplePie Swap, so after a few weeks you decide to move your crypto off of there over to somewhere safe. Do you put it in your cold wallet? Do you transfer it to your MetaMask? If you’re like many traders, you probably just moved it over to a centralized exchange (CEX).
As we saw with Celsius, FTX, and other examples, this is no better. If you don’t have direct custody of your crypto, you are at risk of losing it at any second.
USE THE BEAR MARKET TO BE SMARTER WITH YOUR WEALTH
The excitement has died down in many areas of crypto, and now is the perfect time to harden your defenses, audit your own security, and make sure you are in control of your money. That means its time to move your crypto off of an exchange and into a wallet that you have full control of. Whether that be a digital wallet, a cold wallet, a paper wallet, or an air-gapped laptop that had its WiFi ports permanently ripped out, make sure you fully understand whatever it is that you’re doing.
At Tacen, we believe that everyone should always have full custody of their cryptocurrency, at all times and with no exceptions. That’s why we’ve built Tacen Exchange, the world’s first hybrid decentralized exchange (hDEX) that allows you to make trades while maintaining full custody and control of your crypto.
Anything less than that is far too risky.