As we step into a new year, it’s essential to reflect on the past year’s events in the crypto space. From mainstream adoption to the election of a pro-crypto administration in the US, 2024 has solidified cryptocurrency’s place as a transformative force within the global economy. This article will outline several resolutions that can help crypto fans thrive in the digital asset market.
Be More Vigilant for Scams, Rug Pulls and Dumb Tokens
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 November 14, when a record-breaking 31 rug pulls occurred in a single day, resulting in cumulative losses of $15 million that month alone.
The 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.
To avoid falling prey to these scams, 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) in BTCFi reaching new heights. This growth is a testament to the increasing adoption of Bitcoin-based DeFi applications and highlights the potential for passive income generation through these platforms.
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.
Bitcoin Price Versus Its Balance on Centralized Exchanges
Source: CryptoQuant
Share Your Crypto Knowledge, But Don’t Pressure Your Friends
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.
By implementing these resolutions, crypto fans can navigate the increasingly complex digital asset market with confidence. Whether it’s being more vigilant for scams or transforming BTC into a passive income opportunity, taking control of one’s crypto journey is essential for success in this rapidly evolving space.
Additional Resources:
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