FTX’s collapse has sent shockwaves through the crypto sector and put regulators on their toes. The damage caused by Alameda Research and FTX is so extensive that at least $1 billion of their clients’ money is still unaccounted for.
Recent documents have revealed that FTX CEO Sam Bankman-Fried and his cohorts secretly transferred $10 billion of customer funds to Alameda Research. Many believe that this was done to cover up losses incurred from several high-risk investments that Alameda Research made.
Besides clients, various crypto exchanges have been hit hard by the recent instability. With crypto exchange Swyftx being one of those firms. Check here if you want to find reliable exchanges and cryptocurrency wallets in Australia.
Swyftx reduces its headcount
Swyftx is an Australian crypto exchange that first appeared on the scene in 2017. It is the brainchild of founders Alex Harper and Angus Goldman. The exchange allows users to trade a variety of cryptocurrencies ranging from Bitcoin and Ethereum to Litecoin and Dogecoin.
However, Swyftx has been forced to implement various cost-cutting measures over the past few months. While the firm claims that it has no exposure to FTX, management have decided to cut 35% of their staff as they brace for a “worse-case scenario”. This is likely due to the uncertainty in the cryptocurrency market and fears of another impending downturn.
So, what can a crypto investor do to protect your assets? Quite a lot surprisingly. If you’re willing to do your research and stay disciplined, there are many ways for you to stay safe.
But first of all, keep the following in mind:
1. Cryptocurrencies are unregulated and 100% decentralized
One of the reasons why digital assets are so volatile is because they are not backed by governments or financial authorities. Unlike fiat currencies, cryptos can be distributed by any individual or company. They are not controlled by a single body nor are they backed by any governments.
2. Invest only what you’re prepared to lose
When TerraUSD and LUNA crashed, thousands of investors lost their entire life savings in the blink of an eye. As a result, this sparked fears that many would harm themselves or try to end their own lives. This is why it’s especially important to never speculate on cryptos and always do your own research.
3. Crypto may not be legal where you are
Depending on where you live, there is a chance that cryptocurrencies are illegal in your home country. And consequently, trading, owning, or investing in digital assets can potentially land you in hot water. So, be sure to check out what the local authorities have to say before you jump right in.
4. DYOR (Do Your Own Research)
Do Your Own Research (DYOR) is a mantra that crypto investors live by. It’s easy to get lost in the hype and shiny lights of crypto, but you need to be able to separate good investments from bad ones. So that way, your funds don’t get wasted on something that ends up worthless.
The best way to do this is by doing your own research on whatever it is that you’re thinking about investing in. If someone else tells you about how great something is, ask yourself if their advice makes sense for your situation or not.
Don’t just listen to anyone who says they know what they’re talking about — make sure their track record shows them as an expert in the field before taking their advice seriously.
5. Keep calm and wait for the bull run
To be a successful crypto investor, you have to understand how to properly manage your emotions. When the market is in a bear run and prices are going down, it’s easy to get emotional and start panic selling.
However, if you can keep calm and wait for the bull run, then you will be rewarded when prices go back up. This way of thinking is called “buy low sell high” which means that if you buy at a low price and sell when the price gets higher later on, then this strategy will make money for you over time.
You should not get emotional about your investments because it will only lead to bad decisions like panic selling or buying into projects that have no potential just because they are cheap at that moment in time (this is called FOMO – fear of missing out).
This is just a small sampling of the many investment strategies you can use to increase your chances of success while trading, investing or even gambling.
The key takeaway here is that there are no “secrets” or “tricks” to making money in the crypto world. What matters most is having patience and good planning skills — and knowing that it takes time for anything worthwhile to come into fruition.