Staying safe with Binance and other exchanges
I'm not sure how many people have been following the Binance Vs SEC news. I only read about the initial things and later I couldn't keep myself updated. But this incident is a big eye-opener for sure. I had many tokens on Binance and most of the tokens were locked for giving me some passive income. There were no other platforms that gave me any returns on some of the coins. I decided to keep my coins on Binance.
After the recent news, I was able to see many people staying away from Binance. Some of my friends told me that they cashed out or moved their crypto from binance to wallets. Some people also disabled their trading bots that were dependent on Binance. I still have not decided what I should be doing. Some of my funds are locked in some investment scheme there and if I take it out it may not give me proper returns.
There are a few coins that are very costly in terms of transaction fees. For example, it is very costly to send my Polkadot to a wallet and retrieve it back when needed. The transaction fees are very high. For someone who is coming from a blockchain like Hive that has Zero transaction fees, this is really annoying and that's one of the primary reasons why I don't get a great feeling about Polkadot and Ethereum.
Being careful with all exchanges
Today it is Binance that is getting into the problem and we don't even know the outcome. I cannot say for sure what would happen to Binance or if will it win against SEC. But the biggest learning here is that we have to keep our funds safe and preferably having the funds in the wallets is highly helpful instead of keeping them inside the exchanges. There are mobile applications like Token Pocket that can help us create our wallets and save seed phrases. For example, I have my Tron inside my wallet. I have been holding this Tron for over 4 years.
The best place to keep the funds is inside the wallets. But there is a high chance that the money would be sitting idle and wouldn't earn anything much for us. Compared to losing all the funds because of an issue, it is always better to just hold the crypto for the long term and wait for the right opportunity to book our profits. Moving to private wallets is better where we get to have control over the wallet keys and we can be sure that our funds would be safe there.
Move to exchanges when the funds are needed
It is good to move the funds to exchanges only when there is an absolute necessity. In that aspect I again like Hive because the deposit fees are also very small on Binance and moving the funds from one exchange wallet to another exchange wallet is also very cheap. Internally moving funds from one wallet to another wallet on the chain is free.
Hope this incident shouldn't matter much for Binance. We are also able to see the price of all the top cryptocurrencies going down. I'm not sure if the Binance issue is the reason but it does have an impact on this and hopefully, things should get back to normal and we should be able to see the price improving.
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Posted Using LeoFinance Alpha
They say it's better to have a small percent of something than 100% of nothing. On some rare occasions, a loss is still a win.
Well said. Good motivation.
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I personaly still use binance and have some funds here, of course compared to my hive assets it's not much and likly i use it like a hot wallet to fast make trades on specific coins. Good that I no longer play on futures so I not worry much about it. long term I will hodl some alt coins during this bear market!
I also have funds on Binance but mostly less compared to keeping it in wallets. Just to be on the safer side.
Hopefully, Binance survives and crypto prices go up. Nowhere is really truly safe when it comes to crypto.
I also hope the same happens. Every time crypto falls down for different reasons, it heals back again. Hope that happens.
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The major advantage of "proof of stake" was the ability for investors to stake their coins and earn passive income, as mentioned previously. However, the SEC scrutinizes all coins and the recommendation to store coins in cold storage. In some networks, such as Ethereum, the coins are locked, making it impossible to withdraw them. As a result, not only do you lose the benefits of staking, but you also risk losing your coins altogether. Michael Saylor's statement to Raoul Pal that everything outside of Bitcoin may be considered securities and face issues with the SEC appears to hold some truth. Thank you for providing an insightful article.
Thank you for your well detailed comment.