Another exchange bites the dust, and it looks like it will take BlockFi down. as well It was bad enough that the Luna crash happened. The market dropped $640 million, and people withdrew thousands of dollars from exchanges. Honestly, I feel sorry for these people who keep getting caught up in the fraudulent activities of these exchanges.
It was chaos, a traumatic flashback to Luna. Now the death of FTX & BlockFi may put crypto on the extinction list.
I have learned a few things from this situation:
1) Not your keys, not your coins. This is the most important thing to remember in the crypto world. If you don’t own the private keys to your coins, you don’t really own them. Therefore, it is essential not to entrust your coins on exchanges.
2) Don’t put all your eggs in one basket. Diversify your holdings across different exchanges and wallets. That way, you won’t lose everything if one exchange or token goes down.
3) Keep a close eye on the news. These exchanges are constantly getting hacked or caught up in a scandal. If you see something fishy, extracting all funds before they stop withdrawals is best. Although keeping your tokens off an exchange is much better.
4) Use hardware wallets! They may cost a bit more upfront, but they are the best way to safeguard your coins. If your coins are off an exchange, it doesn’t matter if all the exchanges fall. Your coins will remain safely there until the market recovers.
These exchanges can disappear, taking all your coins with them. This can’t happen when you keep your coins off an exchange and store them in a cryptowallet.