The game of losing everything- Crypto, FTX, and some more talk.
People used to say a crypto is a place where we will lose everything. It was somehow true to some extent. Even in today's situation, many already became to the bottom because of recent crypto heists, hacks, and dramas.
It will be the same for a long time. If you don't believe so, take a look at the market.
Photo: made by Canva
Crypto is unpredictable. But if you lose everything it's your fault.
There are so many altcoins, tokens, exchanges, and options; you can always make a second choice. The unpredictability and lack of info make it harder to take the right decision at the moment but it's never impossible.
For example, the uncertainty and financial stability of FTX were in the market for a few days before it went bankrupt. I wouldn't say investors had enough time to take away their billions. But it was quite possible to move some before the fund got stuck.
Should we bet on something where we can lose everything?
How come our strategy would be something that we have the chance to lose everything? That's the first question.
Keeping all our money in one exchange/one place is at the top of the investment risks. Just because some platform seems safe, and gives good returns doesn't mean we need to give them everything. And by saying so, I mean it. Because crypto is never in our hands, it's our money but they are taking care of it.
What do I follow?
I have shared in an earlier post that I keep 20% of my money in a liquid form, and 30% in such crypto/tokens that I believe are stable. And the rest 50% are on a bet, I'm hopeful about them but not sure.
I primarily use Coinbase, Binance, probit, and Bittrex. I occasionally use Huobi and Bitfinex.
They are not just for crypto exchange but I hold a portion of my asset there for regular trading. Also, Hive/HBD recently became another means of investment for me.
I never can imagine what my situation will be if I have to lose anything in one of my accounts. But if so, then I never have to lose at least everything.
That's the peace of mind I carry.
I know there are many clever ideas but this is what works for me. And I never like the idea of exchanging high returns with high risks. I would rather settle for a few less with safe money.
In conclusion I never believe it is a place to lose everything but gain many things. The choice is ours.