Avoiding The Crypto King With Hive
After watching The Crypto King documentary, I was suddenly worried about my Crypto holdings.
I wanted to know if I could lose my crypto holdings the same way as in the film. It is therefore a good time to reassess where to store my crypto.
What are the risks?
Most exchanges have no audit or proof of their reserves.
If you have anything on The Kraken, you can check if your Crypto assets were found in their recent audit by checking here:
This is the only exchange that I know of where you can check your proof of assets with their auditor.
This should be standard on all the exchanges.
Therefore it seems to make sense to not keep your crypto in centralised exchanges.
Going forward I will make sure that I don't have more than a certain % on a centralised exchange so I don't get completely wiped out by the Crypto King.
What are the alternatives?
People are usually keeping crypto on a centralised exchange in order to gain yield through staking or similar. If you store your crypto in your own wallet, you won't be able to get those returns.
You can store your crypto in your wallet and then use a protocol like anchorprotocol to stake. This still puts your crypto at risk on the protocol instead of the exchange.
The Power Of Hive
Hive offers the safest solution known where you can still gain yield with your assets without losing possession of your assets.
This is a very unique proposition in that Hive makes it possible to earn yield by lending out your assets but they remain in your wallet.
The options available include using Leofi.io or Dlease.io to lend your assets with yields around 10%+.
You can also directly delegate your hive power to earn between 5-12% APR curation rewards.
The currently highest yielding option is to hold the HBD (Hive Backed Dollar) in your wallet and gain a 20% APR (22% APY) paid monthly to your account. The assets remain in your wallet and you don't have any counter-party risk.
What measures are you taking to avoid the Crypto King?
Thanks for reading
