We the Bitcoin Enthusiasts, How can we Safequard our Holdings in Turbulent Times - page 2.

Mauser

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Quote from: ebookshelves on June 14, 2023, 07:43:00 AM

How might the closure of a prominent cryptocurrency exchange like Binance affect investors confidence in the broader crypto market, and what steps do you think enthusiasts can take to safeguard their investments in such situations? Please share tips.

I'm thinking about closing my key positions for the time being.

There are only 3 options we can choose from: buy more coins, sell our existing coins or just hold. Assuming that you only used money for investing that you don't need in the short term, there shouldn't be any real pressure to sell your coins. I made the mistake in the past to close out all my crypto holdings, only to miss out on the next rally. It was my biggest investing mistake that I am never going to do again. I rather sit out the next bear market than risking to miss out the bull market. My recommendation would be to hold your current positions and wait for prices to drop lower before buying more. Like that you will take advantage of cheaper prices and profit from sudden price jumps. There will always be negative information coming out in the crypto community, we shouldn't panic and remain calm.

Blitzboy

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Quote from: kryptqnick on June 14, 2023, 10:26:50 AM

I think the best strategy is to mitigate the risks. The first risk is obvious: centralized platforms can mismanage funds, be hacked, have their assets frozen, etc. Solution: use a non-custodial wallet. As a bonus, if your money isn't on an exchange, you're less inclined to engage in panic-selling because it's now much more effort to sell your BTC than when it's already on Binance or something. The second risk is, IMO, safeguarding access to your wallet, while also ensuring you don't lock yourself out of it. Here, opinions can differ, and one needs to assess what feels right to them regarding the storage of the passphrase.

Its quite clear you've given a good deal of thought to this, and theres merit in your approach. Non-custodial wallets are indeed one step towards safeguarding one' assets, but are they the be-all-end-all? The risk doesnt disappear, it merely shifts. You're now fully responsible for the safekeeping of your private keys. Lose them, you lose your coins! Can we agree thats an equally scary prospect?

Sure, keeping coins off exchanges might deter panic selling, but what about opportunity cost? In volatile markets, being able to act swiftly is crucial! Doesnt the added effort to sell BTC, as you pointed out, also affect the agility to seize trading opportunities?

Finally, the matter of safeguarding access to your wallet is crucial! I agree, theres no one-size-fits-all solution here, and it ultimately boils down to individual comfort levels. Hardware wallets, multi-signature wallets, encrypted backups - theres a whole universe of security measures to explore!

Kemarit

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Quote from: Jawhead999 on June 17, 2023, 10:20:23 AM

If you want to safeguard your coins, leaving your coins on Binance or any centralized exchange is a worst decision. You can't speculate or predict when the hacker successfully hack Binance, when CZ turn become a criminal and run with all investors money etc, after all you can't verify it.

Make sure you learn about non custodial wallet, hardware wallet/cold storage and open/closed source.

Exactly, there's nothing wrong with leaving a few hundred in an exchange, that is if you are a active trader. But if you uses exchanges as your wallet then that's where the problem lies because that is a bad practice to begin with.

We have a lot of options, we have even Electrum as a good choice for the majority of us. And as long as we know how to protect itself or practice safety hygiene then then we can safeguard it and no one can steal our bitcoin from us.

michellee

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Steps that investors or traders can take is to move their assets elsewhere. For investors, they should transfer their assets to their personal wallets and store them there. As for the merchants, they can trade elsewhere with no problem.

This is important for traders or investors to pay attention to if they want to anticipate the worst. We don't know what will happen next and should think about what steps to take. But each investor and trader must have their own opinion and it's up to them.

But experienced traders and investors already know what they have to do. They will look for other exchanges that are still doing well. Exchange one crashed but that didn't affect the other exchanges. Meanwhile, the crypto price may be able to decline a bit due to panic from unprepared traders but it will recover again as before. So don't worry too much. Just think about what you should do and don't depend on other people's opinions.

Rruchi man

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Quote from: ebookshelves on June 14, 2023, 07:43:00 AM

How might the closure of a prominent cryptocurrency exchange like Binance affect investors confidence in the broader crypto market, and what steps do you think enthusiasts can take to safeguard their investments in such situations? Please share tips.

I'm thinking about closing my key positions for the time being.

Safety involves being aware of all the security threats and making sure not to be a victim of any. Your bitcoin holding is your personal responsibility to secure, and to safeguard your bitcoin as an enthusiast, you have to make it you duty to be aware of every security threat old and new that can affect your bitcoins.

A bitcoin Hodler who is unaware of the threats that his bitcoins faces is has already given opportunity for loss to meet his/her bitcoins.

Safeguarding of bitcoins is what every newbie to bitcoin investment should concern themselves about, the importance of knowing about the safety of your own investment cannot be overlooked.

adzino

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Quote from: ebookshelves on June 14, 2023, 07:43:00 AM

How might the closure of a prominent cryptocurrency exchange like Binance affect investors confidence in the broader crypto market, and what steps do you think enthusiasts can take to safeguard their investments in such situations? Please share tips.

I'm thinking about closing my key positions for the time being.

Safeguard from what? From those centralized exchanges and wallets? You weren't supposed to hold and store your coins over there in the first place. Holding and storing your coins in those exchanges means you are no longer the owner of the coins. You gave it to those centralized financial institution, and they never actually promise you to give you back your money when you ask for it. You just trust that they will give it back to you. You don't even know what they do with your coins. The only way to keep your coins is by holding it in your own wallets where you own the keys.

Jawhead999

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If you want to safeguard your coins, leaving your coins on Binance or any centralized exchange is a worst decision. You can't speculate or predict when the hacker successfully hack Binance, when CZ turn become a criminal and run with all investors money etc, after all you can't verify it.

Make sure you learn about non custodial wallet, hardware wallet/cold storage and open/closed source.

Findingnemo

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Quote from: ebookshelves on June 14, 2023, 07:43:00 AM

How might the closure of a prominent cryptocurrency exchange like Binance affect investors confidence in the broader crypto market, and what steps do you think enthusiasts can take to safeguard their investments in such situations? Please share tips.

I'm thinking about closing my key positions for the time being.

If Binance closed today we may see a huge drop on prices of all cryptocurrencies like 30 to 50% and it will take a while to realise what happened around the market and the trend get steady. Then everything will start to recover so end of an exchange or business related to cryptocurrency is not going to end the future of cryptocurrencies.

When such things happens just move any balance left in the exchange to wallet ASAP, and wait for the things to settle down and if you can then buy at that phase which will bring you great returns later.

Ultegra134

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Quote from: Nrcewker on June 14, 2023, 08:05:35 AM

Quote from: ebookshelves on June 14, 2023, 07:43:00 AM

How might the closure of a prominent cryptocurrency exchange like Binance affect investors confidence in the broader crypto market, and what steps do you think enthusiasts can take to safeguard their investments in such situations? Please share tips.

I'm thinking about closing my key positions for the time being.

Why are you panicking dude? Bitcoins doesn’t depends on Binance. Yes I know that Binance is one of the popular exchanges, but it doesn’t mean that, if it shuts downs, then the Bitcoins will collapse. Your investment is safe, as far as you have stored the coins in a hardware wallet. Yes there might be a price drop due to this Binance and Coinbase lawsuits, but after few months, everything will be back to normal. So just don’t panic and I will suggest you to hold your coins also for long time.

Bitcoin doesn't depend on Binance, but cryptocurrencies depend on Binance; it's accountable for the largest transaction volume after all. If Binance supposedly crashed, the whole market would drop like a stone, and whether we like it or not, it would have a huge impact. The OP isn't only referring to the safety of funds in terms of how they're kept but also the ability of his or her investment to retain its value. Certainly, at some point the market would recover, but it wouldn't be a quick recovery; it'd probably take years. Trust is like broken glass; it can't be glued back together, and people won't trust cryptocurrencies anymore, and that's what would be the largest issue.

el kaka22

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Holding? DCA? Those are the best ways to do it if you know what you are doing and there are a lot of people who won't follow that and sell when the price is going down. I am sorry but if you are selling because bitcoin price went down, then I do not think that you are going to end up with anything decent for the long term.

I hope that you would, but that doesn't mean that it will be the case. I know people are reaching to the maximum point of their patience when the price has been this low for this long, it's been 50%+ down from ATH for over 1.5 years now, and that makes more and more people stop waiting and stop holding. But that only means we are getting closer to higher prices again, the longer you hold, the closer you get to breakout of the price to a much higher price.

Reatim

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Quote from: ebookshelves on June 14, 2023, 07:43:00 AM

How might the closure of a prominent cryptocurrency exchange like Binance affect investors confidence in the broader crypto market, and what steps do you think enthusiasts can take to safeguard their investments in such situations? Please share tips.

I'm thinking about closing my key positions for the time being.

Am not sure what protection are you seeking here? meaning you are storing your funds in exchanges ? then if you do so you must be weary about the same situation , try to put your funds outside exchange when you are not trading because with that you will be safer for time of closure .
but as exchanges are being shut down , that does not mean all exchange will have the same faith though this will damage the situation for a while but will be forgotten eventually .

Renampun

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Quote from: ebookshelves on June 14, 2023, 07:43:00 AM

How might the closure of a prominent cryptocurrency exchange like Binance affect investors confidence in the broader crypto market, and what steps do you think enthusiasts can take to safeguard their investments in such situations? Please share tips.

I'm thinking about closing my key positions for the time being.

in today's market conditions, the best way to secure an investment is to hold assets and increase them if necessary. the market won't be like this forever, so when you buy Bitcoin now and hold it until the price goes up you will not only recover your losses, but also make huge profits from it. this way has been done by many investors and most of them are successful.

however, if you are worried and tend to be impatient with current market conditions, it's best if you close your position and convert your assets to stable assets, because if you constantly think about your losses, it might affect your mental health.

Blitzboy

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Binance closing? Its a bummer, not doomsday. This could be the catalyst for overdue change. In the crypto arena, we adapt and march on,.

Facing such perturbations, whats the strategic play? Diversify, thats the name! Scatter your stakes across assorted cryptocurrencies and platforms. Crypto is the people' currency. No need for a single crutch

Shutting down significant positions feels impulsive. But, crypto is a long haul affair. Keep the faith, embrace the prospects, and we'll rise! Are we chasing a quick windfall or a financial renaissance? Ask yourself this

Dr.Bitcoin_Strange

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If Exchange Like binance falls today, it will not affect investors in any way because (unless for those that store their coins there), firstly, a centralized exchange is not a place to store your coins. Well, it's only those that regularly trade on Binance that can get bothered, but normally Binance is not the only trusted centralized exchange, and by right, for more security purposes, a centralized exchange is not where we Bitcoiners should rely on to carry out all forms of Bitcoin transactions. KYC and AML are all attacks on Bitcoin. It would be better if there is more of a decentralized exchange or platform for Bitcoin transactions than a centralized platform, and if Binance goes down, at least it is going to make people have less trust in CEX.

KiaKia

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There's no doubt that the old warning has been repeated on this forum over and over again, get a hardware wallet like Trezor because they're more secure than closed source wallets, but if you don't have the money, electrum wallet is still open source and highly secure. In order to maintain your Bitcoins, you must keep your recovery seed very safe once you have purchased either of these open-source wallets. Your recovery seed is the only thing that keeps them from being stolen.

aylabadia05

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Quote from: ebookshelves on June 14, 2023, 07:43:00 AM

How might the closure of a prominent cryptocurrency exchange like Binance affect investors confidence in the broader crypto market, and what steps do you think enthusiasts can take to safeguard their investments in such situations? Please share tips.

Investors who invest in Bitcoin will be safe even if Binance has to be closed in some countries as long as investors don't keep Bitcoin on the Binance exchange.
Other types of crypto assets chosen as crypto assets will also be safe if you store them in an open source multi-coin wallet.

It seems that the most effective strategy in protecting investments in various situations is to store assets in wallets that are included in the list of recommendations.
It is very true that exchanges are not really the answer for anyone to protect investments.

kryptqnick

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I think the best strategy is to mitigate the risks. The first risk is obvious: centralized platforms can mismanage funds, be hacked, have their assets frozen, etc. Solution: use a non-custodial wallet. As a bonus, if your money isn't on an exchange, you're less inclined to engage in panic-selling because it's now much more effort to sell your BTC than when it's already on Binance or something. The second risk is, IMO, safeguarding access to your wallet, while also ensuring you don't lock yourself out of it. Here, opinions can differ, and one needs to assess what feels right to them regarding the storage of the passphrase.

Ojima-ojo

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Quote from: ebookshelves on June 14, 2023, 07:43:00 AM

How might the closure of a prominent cryptocurrency exchange like Binance affect investors confidence in the broader crypto market, and what steps do you think enthusiasts can take to safeguard their investments in such situations? Please share tips.

I'm thinking about closing my key positions for the time being.

This incidence of exchange closure have only a temporary impact on the bitcoin price and how investors perceived bitcoin most especially if the concern of the investor is just on the price of bitcoin and not that his funds were confiscated in the exchange if it is the former and that the investors have their bitcoin stored in their own personal wallet which have it private keys saved then all that is left for that investor is to wait for the price recovery after the bad news of exchange closure.

But if your balance is held in an exchange wallet and it becomes closed, that means that you may not have access to that fund and since you don't own the private keys to the wallet.

avikz

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Quote from: ebookshelves on June 14, 2023, 07:43:00 AM

How might the closure of a prominent cryptocurrency exchange like Binance affect investors confidence in the broader crypto market, and what steps do you think enthusiasts can take to safeguard their investments in such situations? Please share tips.

I'm thinking about closing my key positions for the time being.

No one can be 100% secure to be honest. But in order to increase the chance of not loosing your hard earned bitcoins, you can follow the below steps.

1. Use cold storage to store your coins. There are multiple options available in the market.
2. If the above is not possible, use wallets with 2FA authentication. Which means any transaction will require a separate authentication before moving out of the wallet.
3. Avoid keeping your bitcoin in any exchanges

This will increase your chance of not getting hacked.

utybbas2

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two words: open source. open source wallets are good for now, electrum and others. this binance thing is just a wave getting rid of the last things holding crypt back imo, good thing await.

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