Therefore, in order to avoid losses or restrictions, it is necessary to abandon the storage of significant funds on exchanges. It should be remembered that crypto exchanges can also be subject to hacker attacks. Storage on personal wallets is used by owners of significant amounts, as well as those who have little confidence in storing cryptocurrencies on exchanges. It’s better to use an offline wallet, but if you don’t have one yet, then an online wallet will do. You should remember and follow the general recommendations: Use strong passwords, using numbers, letters, etc. Do not visit suspicious sites and do not click on suspicious links that may come to your email and in the form of SMS. Do not use “free WiFi” and unverified networks when conducting transactions with cryptocurrencies. Use Internet security tools. Install an antivirus on your PC. Activate two-factor authentication for your exchange account or wallet. If you have a SEED phrase, then it should be stored in a secure, hard-to-reach place, in several copies (in order to avoid the risk of losing access if you lose access to one of the keys). An example of cryptocurrency thefts.
The volatility in the cryptocurrency market in the 4th quarter of 2021 gave us high peaks of many cryptocurrencies, including Bitcoin (over $60,000) and Ethereum (over $4,000). Source: Tradingview It’s May 2022 and we see the fear and greed index below 11, the price of Bitcoin below $30,000 and Ethereum below $2,000. Is this the end of the crypto market? Let’s try to figure it out. By the way, if you are interested in crypto analytics, then here: “crypto analytics” we publish weekly, and in telegram daily. All cryptocurrencies are subject to high volatility (frequent and strong fluctuations in the exchange rate) — an important rule that should always be remembered. Why is this happening? The market is too young and a large trader can dump or pump the altcoin rate with a small capitalization. Volatility is influenced by many factors, for example: 1. Supply and demand (nowadays many people are afraid to invest in risky assets). 2. The cost of mining cryptocurrency. 3. Regulatory and legal regulation of countries. 4. Awareness of citizens and the work of the media. 5. The financial crisis (which affected all countries this year), etc. However, is this a significant reason for the irrevocable collapse of cryptocurrencies? — Probably not. Blockchain is tightly embedded in many systems, institutions and projects. Cryptocurrencies have a huge future and a unique system of functioning: obtaining financing, burning tokens, launching new networks, developing new projects, introducing them into the financial system of countries, etc. — all these factors have a positive impact on the cryptocurrency exchange rate. Given the geopolitical risks, the imperfection of the financial system and the lawlessness of banking institutions, cryptocurrency is a good option for saving and multiplying part of its assets. In the short run, the market is not predictable, but in the long run, the cryptocurrency can definitely show good growth, the collapse of the crypt is a temporary phenomenon. And there are practically no alternatives now. Now is the time when you can buy assets for crypto investors and enter the world of cryptocurrency for beginners, because perhaps we will never see such prices again.