2021-06-17 12:31:37
Protecting Yourself in This Space
Much of what is about to be posted falls under the category of things that should be done as a precaution anyway as good practice - but we'll reiterate this here for good measure.
Before you read this list of recommendations, understand that this isn't financial advice and this channel isn't responsible for what happens to you. This is friendly guidance in an attempt to be constructive.
1a. We're not going to tell you to stop trading on exchanges. Sounds crazy because after everything you've read from this channel, you'd expect this to be #1 above all else - but telling people in crypto not to trade is almost like the equivalent of parents telling teenagers to never have sex and wait until they're married. Its unhelpful. Teenagers will have sex just like people will trade. So you might as well educate them on how to be safe while doing it if they do it.
2.
Moving your funds off of exchanges when you're done trading. You only need your funds on exchanges to execute trades but once you go to sleep, log off, etc., there's really no reason for your funds to be on the exchange. If the price starts sliding around, you'll take an L here, admittedly, and if you're in a contract (derivative/options), that could be a limiting factor as well. But if you can, you should
seriously limit the amount of funds you have on exchanges. This is specifically addressing those lazy people out there that are treating Coinbase/Kraken/Binance/BitMax/KuCoin etc., like a bank out of convenience.
Do not treat exchanges like your personal crypto bank out of convenience/laziness. If your funds don't need to be on there - move them to a wallet you own." (
Keyword: 'need' ;
the only person who can determine this is you & you're entitled to make any determination you want for any reason - you owe us no explanation. Its your money.)
3.
Use fiat exchanges if possible. This is a weak one because there's no telling what will happen to the cashflow of major exchanges in this space if Tether/Binance/Bitfinex gets the hammer dropped on them one day. Ultimately, its up to the exchange to honor your withdrawal request. But
at the very least, you want to make sure you're not in Tether at that point because then you're undeniably screwed. TUSD really isn't a better option and perhaps USDC will be viable, but again - consider that Coinbase has recently announced that there is
no FDIC insurance protection for USDC holders in their Terms and Conditions. At least if you have fiat there, you'll have a legitimate claim & a strong case with arbitration (not legal advice, just an opinion).
4.
Evaluate How Much You're Trading With and Whether You Can Live With Losing it All. Seriously. Your life is your life & the same goes for your finances. You have to live with whatever happens and whoever you pay owe bills or buy groceries from isn't going to cut you a break because you lost all your money on the internet because your "digital tokens" can't be accessed. If you losing every single penny you have on exchanges as this very second would put you in a position where eating/paying rent or mortgage/putting gas in your car or traveling/taking care of yourself or family would be next to impossible, you should seriously consider whether that risk justifies whatever gains you think you're about to get out of the market. Again, you have to live with this - no one else.
5.
Don't Procastinate. If you read #s 1-4 above and thought to yourself, '
You know what ?
I should probably _______,
just to be safe '
then do it without delay. Now. Like, right this second - minimize or close whatever app / tab you're using to read this and just get your funds out to a wallet you own if this is something you've decided you want to do . Again, no one is telling you to do this. Don't message the author(s) of this channel because you "listened to us" and removed your funds. You make your own decisions as an adult. But if you've decided you want to move them off, just do it. Don't leave your life up to chance
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