As the Federal Reserve announces yet another rate hike in a long series of rate hikes in an attempt to rein in inflation in the US economy, institutional investors, venture capitalists, and funding sources of all stripes are trying to determine what happens next. Is now a good time to pour millions of dollars into new start-ups, or should they wait for the Federal Reserve to start lowering interest rates again?
These uncertainties can make the waters murky for cryptocurrency companies that rely on institutional investors. When the tide goes out, and you get a good look at company finances, some executives are left bewildered and dismayed by how short the runway for their company suddenly is.
For this reason, we’re cautioning people in the crypto space to be prepared for some crypto companies to declare bankruptcy, insolvency, or other financial troubles. We saw it happen countless times last year, and the years before that, and it seems all but certain for a number of companies in 2023.
Why does this matter to you? Because when a company goes under, any assets being held with them can be taken with them to pay their debts.
As we saw with Celsius in 2022, making account holders whole again after becoming insolvent is usually far down the priority list for most accountants and attorneys. That means money that belongs to you may disappear forever if the crypto company you’ve trusted to safeguard your money becomes insolvent overnight.
That’s why we are urging everyone, in the strongest possible terms, to take the time to practice self-custody of your cryptocurrency. Waiting until you wish that you did is waiting until it’s too late – do it now, save yourself the heartache later.
When you have self-custody of your crypto, nobody can take it from you. As long as you control the keys, you control your crypto. First steps for taking self-custody of your crypto usually involves:
1) Choosing your preferred self-custody system, such as a Trezor, a Ledger, or something else.
2) Watching some YouTube videos that explain how your system works.
3) Making secure back-ups of your keys.
4) Transferring your crypto into the wallet that you now control.
5) Sleeping soundly, knowing that you are in full control of your money.
With Tacen Exchange’s hybrid decentralized exchange (hDEX) model, you can maintain full custody of your cryptocurrency even while making trades. In our industry, we like to call that the best of both worlds. Read more about our hDEX solution and how easy it is to use here.
There’s never been a better time than this to put in the legwork, do some reading, and take self-custody of your own cryptocurrency.
New to Tacen and wanting to learn what it’s all about? Be sure to follow us on Twitter to catch the latest updates and join our Discord community to meet the team and make friends. We love to give crypto to our community, and staying active on our Twitter and in our Discord server are the best ways to be the first in line.
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