Do not keep the money idle in exchanges
Keeping the money idle is not good in the real world. The same applies to the crypto world too. It is also a huge mistake to keep the money idle in exchanges because there is a high possibility that the funds might get stolen easily because we are not the owner of the exchange wallet. If the exchange gets hacked, our funds would get lost too. It is very important to note that having the funds inside the wallet is extra safe compared to having the funds inside an exchange.
The focus should always be on multiplying the money we have. There are enormous opportunities available to do that. Some opportunities require doing some groundwork and other opportunities are pretty much straightforward. But investing in the right thing to get a decent income is very important. If we make a bad move, we might end up losing both the principal as well as the returns.
Idle money is a missed opportunity
Keeping the money idle is a missed opportunity because when we have money in hand, it is great liquidity and it has to be spent wisely. It has to either be invested in something that would give a high return or make the money make more money for us. There are several methods in the crypto world that provide us the opportunity to multiply our money. We all know about how inflation works. Imagine if someone is keeping some money at home for a few years. They don't spend it or do anything with that money. What would be the value of the money after 5 or 10 years? That's how inflation works.
We have to also understand how the bull market and bear market works. There will be opportunities for investment during the bear market and wait for the bull market. When there is a bull market, we shouldn't be hesitant to book our profits and wait for the next bear market to invest again. Keeping the money idle can be avoided through this method of investing.
Investment opportunities in exchanges and wallets
There are several investment opportunities available in exchanges as well as blockchain wallets. For example, the Hive blockchain offers many investment opportunities for our money. We can either keep the money as Hive or HBD in Hive blockchain where both give returns close to 10% and 20% APR. Similar to the rewards we get on the Hive blockchain, there are also other blockchains where there are on-chain earning opportunities available which would be in the form of staking rewards or another type of rewards.
If we would like to make use of the opportunities available on an exchange, we have to understand the risks but the opportunity is definitely good. For example, I use a feature called Earn on Binance that provides me with some earnings for locking my coins on the exchange itself. I know it is not safe to keep the coins in exchanges but considering the fact that they can earn something when kept in exchanges, I wanted to give it a try and the value is also not very big which is okay even if in a worst-case scenario I lose it.
If you like what I'm doing on Hive, you can vote me as a witness with the links below.
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Laughs, I think a lot of people learned the hard way with all these exchanges falling one by one! And most have likely put an end to that habbit, it's a shame really because it's shedding a bad light on the crypto world as a whole.
Because people are ignorantly stupid! Laughs!
It is nothing but the truth! Money has to make us more money! Otherwise we are not using it right.
Yes we make money and let the money make more money for us.
A lot of us does not always learn. Even after we faced the same thing, we still faced the same issue and still keep repeating the same mistakes which is not good
Cash is always a position when you are waiting on a setup, but yeah don't just keep your money on exchanges. Actually, get it off ASAP!
Trade on DEX's and keep control of your moneies!
Agreed 💯
I don't keep large amount in the exchange, I mainly store my crypto in my wallet, but still no harm to put small amount there to earn interest on USDT there as long as you know the potential lost if the exchange run away, and you can suffer the result.
Yeah same here. I have a small amount of money in exchanges too for some quick trades.
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Just like that we shouldn't trust the exchanges at all because the way we've seen FTX has cost people hundreds of millions of dollars, it's better for a person to keep their crypto and crypto within their wallet. And those who haven't entered the digital market yet will regret it a lot within the next 10 years because the time is coming for this industry.
Yes if long term is the plan then exchanges are not a good place to keep the crypto.
Yeah I totally agree with you.
I am a long hodler, i don't like trading much.
Then wallet is the best place.