The “Lehman crisis” caused by the FTX incident has deteriorated. In the past week, the market value of the crypto market hit a new two-year low due to the crash; BTC, which had been revived by the good news of the fall of the US CPI index, was also unable to overcome the extreme panic of the market, falling nearly 24%, and the ETH was also hit by a setback and fell to as low as $1,095. The SBF tokens, led by FTT, were blood washed overwhelmingly: FTT collapsed and plummeted by more than 90%, SOL fell by more than 60%, and APT fell by nearly 50%. According to media analysis, the impact of this FTX event may exceed that of LUNA and the Three Arrows event.
Earlier this year, we witnessed a series of crises such as the collapse of UST and LUNA, as well as the bankruptcy of Three Arrows Capital and the founder’s running away. How can users suffering from repeated storms in institutions stop loss or save themselves in time during crisis events?
1. Select An Exchange with 100% Proof of Margin
In the emerging hot land of crypto asset trading, the Proof of Margin is a way to show comprehensively and transparently whether an exchange misappropriated user assets without authorization.
The Proof of Margin is audited by a third-party independent audit company: each account in the exchange is an acct node. The balance and account name of each account are calculated by SHA256. The hash value obtained is then calculated with the adjacent value. The final hash value obtained layer by layer represents the total assets owned by the exchange. When the amount is greater than or equal to the total assets held by all users of the exchange, we can judge that the exchange provides a 100% margin. In the whole process, the asset data of each user is included. When TA attempts to tamper with the data, the final hash value will change dramatically.
Digital currency has great potential, but it also contains some risks due to decentralization, anonymous letters and other factors. Choosing an exchange that provides 100% Proof of Margin as your trading home can add a layer of security to your crypto trading journey. Among all digital currency exchanges, Gate.io is the first exchange to carry out third-party design and provide users with 100% Proof of Margin (Users can view the results of this Gate.io asset audit on the Armanino official website).
2. Holding the Vast Majority of Your Digital Assets
Although it is a little more trouble to use digital wallets than to store assets directly in exchanges, it is a safe way to have several reliable digital wallets and store most of your digital assets in wallets.
In terms of convenience, speed, and security, wallet.io uses a more balanced scheme to ensure the security of user assets:
a. Users do not need to record or save mnemonic phrases and private keys, and do not have to worry about their mobile phones or computers being invaded by hackers, because users’ private keys are stored in the platform with high-strength encryption, and users and the platform cannot obtain private keys independently. The withdrawal password of the user is stored through multiple cryptographies, so the platform cannot obtain the private key. The private key is controlled by a discretionary user. The private key will be encrypted for use by the user when transferring money and will be deleted immediately after use.
b. The platform cannot use the funds stored in wallet.io by users, and the user’s assets are clear and traceable on the chain, which cannot be counterfeited.
Meanwhile, wallet.io supports login through Gate.io authentication. users can log in to the exchange and personal wallet with one account simultaneously so that users can instantly exchange and transfer money.
3. Take BTC and ETH as the Beginning and Focus on Crypto Asset Transactions
Presently, there are more than 6,000 cryptocurrencies on the market. These cryptocurrencies have their own goals to solve problems and operating rules, but there is no limit on the rise and fall of the cryptocurrency market. The current price is formed solely by the actual transactions between the buyer and the seller in the market. 3% of the daily rise and fall is normal, and 10~20% of the fluctuations are more frequent. For the purpose of investment, it is safer to choose BTC and ETH, which occupy a dominant position in the market. Investors can trade BTC/USDT at the Gate.io exchange.
As of 19:00 on November 14, 2022, the market value-based trending figure of the crypto market
The dominant market position can intuitively show the application value and user trust of the token to a certain extent, but it does not mean that “it” is 100% trustworthy. The principle of “scattering eggs into different baskets” applies to any investment scenario, where your assets are distributed to a variety of investment products (virtual, physical, spot, futures, etc.) and geographical locations (domestic and foreign). It can effectively hedge risks in the current economic downturn and politically volatile environment.
4. “Do Your Own Research” Is An Eternal Truth
In the current situation of economic downturn and market chaos, people’s emotions are more vulnerable to the impact of information. Some opinion leaders rely on soft advertising expenses to survive, while some token project parties aim to plunder user assets from the initial stage of development projects. What’s more, in the seemingly lively and active community, there is an online water army, which exaggerates the unlimited potential of the project and lures users participating in the community into fanaticism. In the face of mixed network information, we can make decisions without being blinded by our own research and independent judgment of the authenticity and reliability of the information.
Meanwhile, after several explosive developments, the crypto industry has become a relatively complete industry. Compared with the initial iteration speed of products and projects, the information update speed has jumped a level. When you obtain some relevant information, even if it is reasonable and objective, you need to judge its timeliness and whether it matches the current market environment.
When the crash broke out, it was only a matter of time before the domino collapsed. It may be too late to talk about self-help when we are in a chaotic situation. In the face of the market, it is the absolute armor to always be prepared and cautious.
The post 4 Self-rescue Guides for Users in “Chaotic Market” first appeared on BTC Wires.