A Transformative Force in Global Economy
The past year has seen significant milestones for cryptocurrency, solidifying its place as a transformative force within the global economy. From mainstream adoption to the election of a pro-crypto administration in the US, this growth has reshaped the financial landscape.
Be More Vigilant: Scams and Rug Pulls
Despite numerous warnings and educational resources, crypto scams continue to claim victims at an alarming rate. The severity of this issue was starkly illustrated on Nov. 14, when a record-breaking 31 rug pulls occurred in a single day, resulting in cumulative losses of $15 million that month alone.
- Distribution of rug pulls between mid-October and November Source: TenArmor
- Most recently, the Hawk Tuah (HAWK) dump was a sobering reminder of how many people willingly ape into tokens that are obviously terrible ideas, if not outright scams. Following HAWK’s launch, its market capitalization skyrocketed to $490 million, only to crash by 91% to $41.7 million in less than three hours.
Do your research, be skeptical toward promises of quick profits and remember that scammers prey on people’s greed — so be fearful when you notice yourself getting greedy. Even seemingly legitimate projects backed by known figures should be scrutinized as closely as possible.
Transform Your BTC into a Passive Income Opportunity
Bitcoin (BTC) has evolved over the past year into something greater than a mere store of value (SOV). While critics once pointed to Bitcoin’s limited functionality compared to other blockchains, the landscape has changed dramatically with the emergence of innovative layer-2 (L2) solutions and smart contract platforms.
- Projects like Stacks, Rootstock, Liquid, and Babylon have redefined Bitcoin’s capabilities, bringing sophisticated DeFi functionalities (referred to as BTCFi) to the network, effectively bridging the gap between Bitcoin’s robust security and Ethereum-like programmability, enabling everything from yield farming to lending and liquidity provision.
- BTCFi total value locked since Q1 2023 Source: DefiLlama
- Numbers-wise, the market has responded emphatically to these developments, with the total value locked (TVL) across all Bitcoin-based DeFi protocols surging from $306 million in Q1 2024 to an impressive $10.6 billion that year.
Consider consolidating your holdings into a carefully selected mix of proven cryptocurrencies and storing them in cold storage solutions, such as popular hardware wallets like Ledger and Trezor. These solutions offer bank-grade security for digital assets, protecting them from online threats while providing complete control over one’s private keys.
Upgrade the Security of Your Crypto Assets
Portfolio consolidation and secure storage have never been more important. Rather than spreading one’s funds across 620 little-known tokens stored across multiple exchanges and hot wallets, investors should consider consolidating their holdings into a carefully selected mix of proven cryptocurrencies and storing them in cold storage solutions.
- Popular hardware wallets like Ledger and Trezor are the gold standard for storage thanks to bank-grade security solutions for digital assets, protecting them from online threats while offering complete control over one’s private keys.
- This shift toward cold storage solutions has gained momentum, with the amount of BTC held across different centralized exchanges (CEXs) having dropped to historic lows over the last 12 months.
Share Your Crypto Knowledge
There remains a fine line between sharing insights and proselytizing to a point where others invest in something they don’t truly believe in. As a result, historically, the most effective crypto advocates have been those who have focused on explaining the technology’s potential and real-world applications while acknowledging its risks and complexities.
Instead of promising quick profits or pressuring friends and family to invest, crypto enthusiasts should consider sharing their journeys, lessons learned, and factual information with their peers — thus helping build credibility for the entire ecosystem while respecting everyone’s individual financial decisions.
