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What a crazy month it’s been.

There’s been a major contagion effect that has spread throughout the decentralized finance (DeFi) market, their buyers & users are suffering major losses.. This has created a massive Domino effect throughout the DeFi space.

Is your crypto safe? If it’s not in a cold storage device, it isn’t, this is a lesson I teach to everyone that asks me about crypto.

“Not your keys, not your coins” is the saying in this space..

How did we get to these massive sell offs? How did this contagion spread so quickly? 

Keep reading and I’m sure you’ll learn something.

👀Venture Capitalist Going Bankrupt?👀

The amount of money that has flown into crypto from venture capitalists (VCs) has been astronomical the past two years. Some of these billion dollar entities, like Three Arrows Capital are suffering by their own poor decisions and risk analysis. 

Learn from their mistakes. They’re playing crypto far too risky to maximize their potential. As a trader, risk assessment and analysis is crucial! The same goes for these major VCs…

For a full list of their portfolio, check it out here. Can you spot the major losses they’ve seen by holding onto these coins?

There, possibly soon to be insolvency, has spread like a wildfire to other lending platforms like Celcius.

🔴The Celsius Lock Up, Crypto Frozen In Time🔴

For those that don’t know, Celsius is a centralized lending platform that pays interests on assets that are borrowed by other individuals and institutions. This is not Defi, it’s centralized finance around decentralized assets.

One of the biggest mistakes Three Arrows did was lend out A LOT of crypto to this centralized lending platform Celcius. This decision has led to a contagion effect that has affected EVERY Celsius user. 

This decision by Three Arrows Capital and Celcius has led to a complete freeze of everyone’s crypto that used Celcius. Millions of dollars of crypto assets have been frozen from withdrawal on Celcius..

Imagine if you had $1,000, $10,000, or even $100,000 of locked up crypto that you couldn’t access…

That’s why we always say, “not your keys, not your coin”.

How Do You Keep Your Assets Safe?

Easy answer, a cold storage wallet. My personal favorite and what I use daily is a Ledger.

You can think of cold storage wallets as your crypto safe or vault. It’s more difficult to access than crypto on an exchange, however it’s 1000% more secure. So if you have a favorite crypto you want to save for years and years to come, or even a few months, get a cold storage wallet.

If you are looking at cold storage wallets, NEVER buy a cold storage wallet from a third party vendor. Go directly to their sites, here’s a link in case you need it.

These are without a doubt the safest way to KEEP your assets.

The Bottom Line

You’re already in the riskiest asset market on the planet, why not do so in the safest way possible? Especially if you plan on being in this space when it DOES replace traditional financial markets. That won’t be possible without a hardware/cold storage wallet.

The safest way to hodl on is in cold storage hands down, sure you can earn a 5% APY or something around that by lending out your crypto. However, if you can never access that crypto again, it just isn’t worth the risk.

Learn from others’ mistakes, keep yourself secure, and remember this saying.

Not your keys, not your coin.

Author:
Jake McCarthy

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