The FTX platform exploded, and his 2,000 BTC could not be withdrawn
The most explosive event in the crypto world in November was the FTX explosion, which shook the entire market.
As the first big thunder exploded, a chain reaction hit one after another. There have been runs on trading platforms one after another, and some platforms have closed deposits and withdrawals, catching players by surprise.
FTX has now entered the bankruptcy filing process. Players who did not withdraw cash in the early days are completely inoperable now; most of the quilted users are relatively loyal players of the platform. The greater hope, the greater disappointment.
There is a player who can’t withdraw his 2,000 BTC mortgaged in FTX now. He is desperate now. Even if BTC falls to $16,250, it is more than $32 million in assets.
Now we can only expect that after the bankruptcy and liquidation of FTX, personal assets can be protected and corresponding compensation can be obtained; but this possibility is very low, just like the leading trading platform Mt.Gox that once collapsed.
The bull market started in 2013, and the price of BTC rose to $1,154 at the end of the year, which was an all-time high at that time, and then entered a downward cycle.
In 2014, the price fell from $1,017 to $300, and even fell to $171 in 2015, the biggest drop in this bear market was more than 85%.
In February 2014, the top trading platform Mt.Gox was attacked by hackers, and a total of 850,000 BTC were stolen. Three days later, Mt.Gox filed for bankruptcy protection.
However, the damaged users of the platform at that time are still on the road of rights protection, and they have not been able to recover their assets. The road to rights protection has no end.
On the centralized trading platform, users are relatively more convenient to operate, with multiple authentications, which relatively guarantee the security of user assets. However, once a major accident occurs, such as running away, it is completely powerless and will be destroyed along with the platform.
For example, Mt.Gox in 2014, and FTX in 2022, as well as other well-known trading platforms, have closed down a total of 75 trading platforms, and there may be platform explosions in the future.
Players who want to protect their personal assets in the crypto market must learn to use digital wallets. Only by mastering the private key can they master their own wallet.
How to use digital wallet?
Digital wallets can store encrypted assets. Users create wallets and generate a set of private keys or mnemonics. Only by keeping the mnemonics can they keep their wallets.
Commonly used wallets such as Metamask, imToken, BitPie, etc., generally choose a decentralized, completely open source wallet system that stores private keys locally.
Or hardware wallets, such as Ledger, generate wallet mnemonics locally, without networking, there is no risk of mnemonic leakage, and it is relatively safer.
What problems should be paid attention to when using digital wallets?
There are thresholds for the use of digital wallets, and it is easy to be stolen if you are not careful. Once the mnemonic is stolen or lost, the wallet is no longer his own, and the person who gets the mnemonic can operate the wallet at will.
Log in with the wallet or interact with some projects. If the project is at risk, the wallet is also at risk of being stolen.
In the hacking market in the crypto world, for example, if a certain project vulnerability is discovered by hackers, the entire project may be hacked, assets may be stolen, and players on the platform are also at risk.
If a wallet is to store the main encrypted assets, the wallet should be kept as pure as possible, and do not do too much interaction, because if you don’t know which operation, you will bury security risks.
In particular, players who often Mint various NFTs and do interactive testing, it is best to register a new wallet to participate.
On a centralized platform, there may be a risk of platform exposure; using a digital wallet, there is a risk of mnemonic being stolen, and the wallet will be reset to zero accidentally.
The crypto market fluctuates hugely, and sometimes skyrocketing and crashing only happen in an instant. If you want to gain something in this industry, you must do the basics first.
During this time, the price of Bitcoin fluctuated up and down, and the ups and downs were greatly affected by market news.
Contract players may liquidate their positions in the short term, and spot players will also affect their mood when watching the price.
If you want to gain something in the market, you must adjust your mentality. When the market is uncertain, it is better to just wait and see, and do not operate.
The above is just my personal opinion, no investment advice. I’m Chuxiao Chain, and I’m following the metaverse and web3.
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