Five NFTs from the BNB chain to give someone during the holiday season

The latest systemic concerns for the crypto markets have rolled into fears of Binance’s insolvency and what it could do to the entire market. I have felt some of this fear and taken the time to reassess my personal crypto holdings and positions to determine whether or not I am diversifying properly, not only by asset but also by platform.

Here are some important ways to protect yourself in times of uncertainty.

Important note: I don’t personally believe that Binance will have insolvency problems, but it may still be wise to challenge your own beliefs and ask “what if.” If the Binance insolvency scenario leaves you massively exposed, you may want to rethink your holding strategy.

Five steps to deal with market fear

1. Self-care

Unless you are actively trading, currency risk is something you don’t really need to have. The FTX fallout has shown us that even the biggest players can behave cruelly. Self-storage ensures that the actions of others are unlikely to affect your holdings, and your tokens are safe while you sleep. Trust Wallet, SafePal and Ledger are all excellent modes of self-storage. Exchanges like Binance, Crypto.com, and Coinbase even have built-in services to help their customers offload their assets to a self-custody solution.

2. Live transverse chain

With all the competing blockchains in the space, there is no reason to stick to just one. Each chain has its own wrapped assets, and each has its points of failure. This can be handled by using only native assets, but those in the Decentralized Finance (DeFi) world will often use wrapped tokens. Arguably, a DeFi investor cannot avoid wrapped tokens in their investment strategy, so diversifying funds across blockchains will ensure that there is no single point of failure in a portfolio. This space is not for the faint of heart and is not yet easy or intuitive to navigate.

3. Get some funds out of crypto

There is absolutely nothing wrong with removing some or all of your assets from the crypto space. If the idea of ​​losing your crypto investments keeps you awake at night, you probably own too much. Perform an internal stress test on your individual financial position. What would happen if all your cryptos were gone tomorrow? could you eat Do you have a place to stay? If so, how long. Now is not the time to listen to FOMO––you never should––but rather the time to rethink and protect yourself.

You can always re-enter the market.

4. Diversify your stablecoins

Stablecoin risk is real, and UST taught the market that there is a real need to diversify among stablecoins. Take the time to research how each is supported. BUSD, USDC and USDT all produce reports on their treasury support. With the easy access to all three big-name stablecoins, there is no reason not to diversify among them.

5. No market guru knows what will happen next

I don’t know what will happen next, neither does the person at CNBC or the large following account on Twitter. I think this room has a bright future, but I can’t predict tomorrow, next week or next month. I aim to have exposure that satisfies my belief in the future of this area, while protecting my family’s finances should the worst happen.

In conclusion, the simple thoughts are never invest more than you can afford to lose and when you do invest, diversify across assets and platforms. This current period of fear will eventually end and either Binance will be stronger than ever or the market’s worst fears will materialize. I’m working on positioning myself for both scenarios, and when the dust settles from the non-stop media engagement, I’ll be ready for what’s to come.