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How to Prevent Losing Bitcoin from Cryptocurrency Exchange like Binance, Coinbase, or FTX

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If you are concerned about the possibility of a cryptocurrency exchange going bankrupt and losing your bitcoin, there are a few steps you can take to protect yourself.

  1. Use a hardware wallet: One of the most secure ways to store your bitcoin is on a hardware wallet. These devices, such as the Ledger Nano or Trezor, store your bitcoin offline and allow you to access it with a unique set of security keys. This means that even if the exchange goes bankrupt, your bitcoin will be safe as long as you have access to your hardware wallet.
  2. Spread your risk: Instead of storing all of your bitcoin on a single exchange, consider spreading your risk by using multiple exchanges or by keeping some of your bitcoin in a hardware wallet. This way, if one exchange goes bankrupt, you will still have access to your other bitcoin.
  3. Use a reputable exchange: Do your research and choose a reputable exchange that has a track record of security and stability. Look for exchanges that are regulated and have strong security measures in place to protect your bitcoin.
  4. Enable two-factor authentication: Two-factor authentication (2FA) adds an extra layer of security to your account by requiring you to enter a code from a separate device before logging in or making a transaction. This can help prevent unauthorized access to your account if your login credentials are compromised.
  5. Keep your software and security measures up to date: Make sure to keep your hardware wallet software and any other security measures (such as antivirus software) up to date to ensure that your bitcoin is protected from potential vulnerabilities.

By taking these precautions, you can greatly reduce the risk of losing your bitcoin if a cryptocurrency exchange goes bankrupt. It is important to remember that even with these measures in place, there is always a risk involved when storing your bitcoin on an exchange or online.

Why You Must Have Bitcoin In Your Portfolio

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Wait, I’m sure you’re sick of seeing articles like these convincing you to buy “scams” like bitcoin… but please hear me out. It’s not a scam. It can even save you from potential disasters: no one knows the future.

A New Asset Class

Anything could go to zero. Anything. Companies could go bankrupt, countries could default and/or be erased from existence, and even your health is unpredictable. There’s always that possibility of a “worst case scenario.” As an investor, you’d want to reduce that possibility. And the way to do that is to diversify by different asset classes.

The Stock Market itself can be considered an asset class. Real Estate is another. Precious metals like gold are also an asset class.

Bitcoin (not “crypto”) is a new asset class that was recently discovered by Satoshi Nakamoto. It is outside of The System. It is decentralized, borderless, permissionless, uncensorable, and neutral form of asset. Not even the US and China combined can ban it. That is why it’s valuable.

30 /30 / 30 / 10 Rule

My rule is simple. 30% Stock Market (not just US, but also the World), 30% Real Estate & Other Things, 30% Bitcoin, and 10% Cash.

You don’t just want to invest in the US in the Stock Market. The future’s unpredictable, and the current trajectory tells us that China and other emerging markets are going to takeover US’ economic domination (look up Ray Dalio’s thoughts on this). It has already shown signs of weakness, and will only continue to weaken as time goes by. Nothing stays forever. So it’s important to separate our attachment to nations and remind ourselves of our goal: to make money & not get wrecked.

Life’s short, so it’s important to enjoy it. If you have something to buy, make sure it’s worthwhile – and having a property is a great investment that you can enjoy. And by property, I mean any kind of tangible property. Whether that’s a house, a condo, or even collectible watches like Rolex or Pokemon cards.

As I’ve mentioned, bitcoin is outside of The System. A rogue government could threaten you, and confiscate your stocks, house/condo, or even your hard-earned cash (via inflation). So you can protect yourself with bitcoin while maintaining the wealth you’ve been building for yourself and even future generations.

Finally, cash. It’s only temporary as governments try to figure out what to do with bitcoin – ban it, or make use of it. Hopefully, the latter, since it can be good for them too! If you’re feeling optimistic, you can go 100% cash/fiat-less. If you need it, you can just use your bitcoin as collateral for cash.

Conclusion

No one can predict the future. Investing is risky, so you need to diversify to reduce risks. If bitcoin is truly outside of The System, there’s no reason not to include it in your portfolio. When in doubt, go & learn about it.

How Bitcoin Can Be Part of Your Investment Portfolio

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Bitcoin and other cryptocurrencies have captured the attention of investors and the general public alike. These digital assets are not tied to any country or government and are not subject to any central banking authority. Instead, they are decentralized virtual currencies that operate on a peer-to-peer basis without a central authority, such as a bank or clearing house. Investors who are new to cryptocurrencies or who are looking to diversify their portfolios can consider adding a small percentage of their savings to a cryptocurrency investment portfolio. There are a variety of ways to do this and even fewer require that you own a particular cryptocurrency. Here is an overview of how you can invest in a cryptocurrency portfolio.

The Basics

There are a few basics that you’ll want to keep in mind when it comes to investing in cryptocurrency. First, keep in mind that these investments are extremely risky. The prices of cryptocurrencies can fluctuate widely, and sometimes unpredictably, making it difficult to predict how your investment will perform. It’s important to remember that the value of cryptocurrencies can go up and down, and past performance is not indicative of future results. These investments are highly speculative, and you could lose your entire investment.

Pick An Allocation To Your Portfolio

The second basic is to pick an allocation to your portfolio. This is an important step because some investors incorrectly believe that you can simply invest in cryptocurrencies 100% of your portfolio. This is not a good idea, and you’ll want to pick an allocation that is small enough to be manageable while still having an allocation to your portfolio that has high potential returns.

Centralized Cryptocurrency Exchanges

The most popular way to buy cryptocurrencies is through centralized cryptocurrency exchanges. You can find a list of cryptocurrency exchanges here. These exchanges provide a variety of services to investors, including the ability to buy and sell cryptocurrencies, create investment portfolios, and manage your portfolio. There are a number of popular cryptocurrency exchanges:

Each of these exchanges supports a variety of different cryptocurrencies, and you can trade a variety of different assets on these exchanges. If you want to buy a specific cryptocurrency, make sure you pick a cryptocurrency exchange that supports that asset. You can store your cryptocurrencies on any type of cryptocurrency storage service, including a digital wallet, a hardware wallet, or a software wallet. Most cryptocurrency exchanges provide you with a digital wallet. If you’re looking to store your cryptocurrencies offline (which we recommend), a hardware wallet like Trezor is best way to go.

Centralized cryptocurrency exchanges have been the target of hacking attempts. If this occurs, all of the cryptocurrency funds on the exchange would be at risk of being stolen. Centralized cryptocurrency exchanges are often highly regulated and are subject to regular audits by government authorities.

Decentralized Cryptocurrency Exchanges

Decentralized cryptocurrency exchanges are similar to p2p exchanges, such as LocalBitcoins. However, instead of operating like an exchange that holds funds and then matches buyers and sellers, decentralized exchanges act as a marketplace where buyers and sellers create market orders without the need for a third-party intermediary, such as an exchange. The advantage of decentralized exchanges is that there is little to no risk of hacking or theft. These types of exchanges do not hold funds and simply connect buyers and sellers. When a trade is completed, the marketplace returns the funds to the buyer and seller, resulting in no funds being held by the exchange. Investors who want to purchase cryptocurrencies on a decentralized exchange should keep the following things in mind:

  • Decentralized exchanges are not as widely used as centralized exchanges, so you may be paying a premium when you trade.
  • Decentralized exchanges don’t offer as wide a selection of cryptocurrencies as centralized exchanges do.
  • Decentralized exchanges don’t have the same level of regulatory oversight that centralized exchanges have.

Buying Bitcoin

Bitcoin is the most popular cryptocurrency and has the largest market cap. It is the blue-chip of cryptocurrency, so it is the “safest”. We recommend 50% allocation of bitcoin to your cryptocurrency portfolio. It can be purchased through a number of different methods, including through exchanges and through a number of peer-to-peer exchanges. It can also be purchased using a number of different payment methods, including credit cards, gift cards, and PayPal.

Final Words

Cryptocurrencies are an extremely new and exciting investment vehicle. While they are still in the early stages, they have the potential to radically change the financial landscape. Also, cryptocurrencies are completely decentralized, and there is no central authority that can shut them down or regulate them. This makes them a very attractive investment option from diversification point of view. The best way to get started with investing in cryptocurrencies is to pick a cryptocurrency exchange and pick a small allocation to your portfolio.