The complete meltdown of FTX over the ladder part of the week and continues into the weekend as rocked the crypto industry to its core.
I have been listening into Twitter Spaces all weekend that have seen cameos from some of the biggest names in the space as well as finance in general. Elon stopped by and gave his opinion, CZ came in along with Rex from Paxos, Brad Garlinghouse from Ripple, Kim Dot Com, and many many more.
The constant unfolding of the situation has shown me that this industry is just as much of a house of cards as the traditional markets, but way worse due simply because of the immaturity of the space overall.
Game Has Changed
We see that the main issue with the crypto industry is not crypto or the blockchain technology itself. It’s the centralized entities that people are stupidly trusting their money with.
I know I have been one of them as far as my trading funds, but that is changing now as well. I have been trading on a decentralized leverage trading platform, but with the insanity that has been happening lately, scalping has been extremely difficult and if you are not careful you will blow up your account and lose your funds.
Right now, the safest way that you can trade crypto is using a decentralized exchange like Uniswap, Pancakeswap, Sushi, etc. these exchanges are nothing more than smart contracts that swaps tokens directly in and out of your wallet, so you hold the keys and you keep control.
Back To Spot Trading on DEXs
After blowing up my trading account using leverage, the last blow up was trying to short FTT and liquidity just started to disappear which led to massive spikes that ended up liquidating my trade which put me back on the sidelines.
This has led me back to spot trading anyway to get myself back up and going while also rebuilding the account without really risking the complete loss of my money. With spot trading, you don’t lose your funds when you are wrong, you still have the token you are trading so you haven’t really lost, unless you trade back at a lower cost.
With the issues going with FTX, this is a great time to get back to that kind of simplistic trading and keep my money safer.
Expanding Back To Stocks
I have even been thinking about getting back on Robinhood and doing some trading there, so that I can also get back into some stock and if I get back to leverage, might hit some options. At least with Robinhood, they are fully regulated and insured.
We do not know how bad things will get n the crypto space so this could be a time to look into other investments for a time. This can also expand your market knowledge as well.
Rough Times Ahead
The crypto industry is in for some turbulent times. Being that it is coming out that FTX was even possibly behind the LUNA/UST crash as well, it’s going to be hard selling crypto to the public. This has created a massive skid mark on the industry as a whole, whether of it was involved with FTX or not. Exchanges are about to be under some major scrutiny. Governments are paying close attentions now and our little industry is about to be seriously regulated.
Your best chance is to chose completely decentralized blockchains and using cold storage wallets like a Ledger Nano.
So safeguard your funds and get them off of exchanges. The whole point of this industry is to be your own bank, so why keep your assets with a company that wants to be a bank but is not regulated as one?
Not your keys, not your coins!
Until next time everyone…
Be Cool, Be Real, and always Abide!
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I would avoid the markets when there is just that much volatility. It's tough to trade and being on leverage just makes it worst. The swings will be large on both sides and I am not surprised about the lack of liquidity.
Posted Using LeoFinance Beta
Yeah, thought I was being smart after nailing a solana short, lol. Yeah, didn’t work out. But yeah, as we like volatility, that much was insane, lol
What a mess. This week should be real telling. Traditional markets (Wall St) has me spooked too. Turbulent times ahead IMHO.
Yeah man, I am really not sure which way to turn, back to grub hubbin, 😂
This shows more and more when we need to get out of centralized exchanges and products.
FTX is not the first likely not he last but this might be the biggest for sure
Posted Using LeoFinance Beta
It's crazy to think that the FTX collapse would have such a massive effect on the market. I didn't even know what it was until recently.
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