The past year has been transformative for the global economy, with crypto emerging as a major player in finance. As we step into the new year, it’s essential to reflect on our approach to the digital asset market and make meaningful resolutions that can help us thrive.
Be More Vigilant for Scams, Rug Pulls, and Dumb Tokens
Despite the numerous warnings and educational resources available, crypto scams continue to claim victims at an alarming rate. The record-breaking 31 rug pulls in a single day in November resulted in cumulative losses of $15 million that month alone. This issue is a stark reminder of the importance of due diligence when dealing with digital assets.
When navigating the complex world of crypto, it’s essential to be skeptical toward promises of quick profits and remember that scammers prey on people’s greed. Even seemingly legitimate projects backed by known figures should be scrutinized as closely as possible. Be wary of tokens that seem too good to be true or offer unrealistic returns.
Transform Your BTC into a Passive Income Opportunity
Bitcoin has evolved significantly over the past year, becoming more than just a store of value (SOV). The emergence of innovative layer-2 (L2) solutions and smart contract platforms has redefined Bitcoin’s capabilities. Projects like Stacks, Rootstock, Liquid, and Babylon have brought sophisticated DeFi functionalities to the network, enabling everything from yield farming to lending and liquidity provision.
The total value locked across all Bitcoin-based DeFi protocols surged from $306 million in Q1 2024 to an impressive $7.4 billion by Q4 (representing a staggering 2,180% increase). While some Bitcoiners are still nervous about transforming or bridging their BTC for use on an EVM-compatible chain, projects like Core Chain enable users to earn yields while maintaining custody of their Bitcoin.
Encourage Your TradFi Friends and Family to Dip a Toe into Bitcoin
The crypto market reached unprecedented heights recently, with its total capitalization surging past $3.9 trillion in November. This milestone, coupled with growing institutional adoption, has opened up diverse investment pathways that suit more traditional investors. The landmark approval of 11 US spot Bitcoin ETFs in 2024 was a watershed moment.
These offerings, managed by financial giants like VanEck, WisdomTree, and Franklin Templeton, have made it easier for mainstream investors to access the crypto market. As a result, it’s essential to share your knowledge with friends and family who may be hesitant to invest in Bitcoin.
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 your private keys from online threats is crucial when investing in crypto.
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. This approach helps build credibility for the entire ecosystem while respecting everyone’s individual financial decisions.
Conclusion
The new year is an excellent opportunity to reflect on our approach to crypto and make meaningful resolutions that can help us thrive in this rapidly evolving market. By being more vigilant for scams, transforming our BTC into a passive income opportunity, encouraging others to invest, upgrading security, and sharing knowledge responsibly, we can navigate the complexities of crypto with confidence.
Further Reading
- Magazine: Story Protocol helps IP creators survive AI onslaught… and get paid in crypto
- Explore more articles like this
- Subscribe to our Crypto Biz newsletter for weekly insights on key business trends in blockchain and crypto.