This morning, I woke up to a tweet from BlockFi stating that they are pausing withdrawals as a result of the FTX disaster. Another day, another bad news. This crypto winter is harder than I have ever expected. There is a blood of blood in the streets and some are not surviving this crypto winter, even big names in the crypto industry like Celsius, Terra Luna, and FTX.
This situation is a disaster for the whole crypto space, for CeFi as well as DeFi. DeFi is completely unregulated and as you see in the case of Terra Luna, DeFi is not a safe place. I would say that the opposite is the case when you look at the high number of scam tokens and rug pulls on the Ethereum, Polygon, or BNB Chain network.
Many users got burned and lost a hell lot of crypto, not only in CeFi but also in DeFi. That's the sad truth.
All that counts now is surviving the bear market. So the best thing that you can do right now is to keep your crypto in a non-custodial wallet where you hold the keys to. You may miss out on some interest or staking rewards but you know that your crypto is in safe storage and then take a walk in nature. This is probably the best thing that you can do right now.
Then when you come back from your walk in nature, sit down, relax and remember this day exactly one year ago. Bitcoin was at the All-Time-High of $67k. It was the peak of the bull market, everyone was extremely euphoric and you had the feeling that this bull market will never end and prices will go up forever.
Well, here we are one year later and the bull market did come to an end and we are in the bloodiest bear market that the crypto space has ever seen. Now you may feel that this bear market will never end and all your crypto is going to zero.
Hey, you are wrong again! This bear market won't last forever. Also, this crypto winter will come to an end. No cycle lasts forever.
Then when you make a lot of money during the next bull market, slap everyone in the face who is telling you that you did not work for your money! Tell him what you have gone through in this crypto. Investing is hard work and not everyone can manage that.
When you just survive this bear market, you can say that you had been smarter than some of the biggest players in the industry that died in this crypto winter.
My heart goes out to everyone who lost access to their funds on any of these platforms. These are tough times but please keep in mind that money comes and goes. The most important thing is to stay healthy.
