The global cryptocurrency market peaked at $2.9 trillion in November 2021, but it has faltered so far this year. (File photo)As the cryptocurrency market plunges, retail investors are increasingly selling off their digital assets. This market crash can be owed to several factors, including the Luna Terra stablecoin fiasco and several crypto companies suspending withdrawal services.
It won’t be wrong to say that this has been the harshest crypto winter of all time. For the first time, companies like WazirX and Binance fought over the ownership of the company. Not to forget, the regulatory uncertainty from global regulators has deepened the wound of investors who have lost their entire life savings.
So, if you plan to leave the the world of cryptocurrency, here’s a step-by-step guide on exactly what to do.
Step 1: Sell everything
To leave the crypto space, one thing you should do is sell all your digital assets and liquidate them via a crypto exchange. Any crypto platform that holds your cryptos should be able to help you withdraw your assets.
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Step 2: Send your cryptocurrency to a wallet
If your portfolio is bleeding red but you don’t plan on quitting crypto yet, then the best option is to send your cryptos to a safe and secure hardware wallet. Store them until the bear market reverses. However, make sure that you always remember your private keys (equivalent to your crypto password). Keep it in a safe place so that you always have access to them. Cryptocurrencies are stored in your crypto wallets built on blockchain technology— that stores digital assets cryptographically, making it impossible for someone to hack your private keys.
Without private keys, you cannot claim ownership of any crypto assets. Court orders or any other legal document won’t be worth it if you don’t have private keys.
Step 3: Stop following charts
Crypto market is volatile. Every day you see a potential investment opportunity. What makes it difficult to leave crypto space is when you keep on tracking new coins. You have to prevent a “change of heart”. Try exiting all crypto groups on Telegram, Reddit and everywhere on social media. These groups can build false narratives and promote new coins.
Step 4: Look for other alternatives
The best investment option for a distraction could be a regulated space like the stock market. If you’re keen on investing your money, learn more about the stock market, portfolio building, and switch your interest from crypto to equity markets. It is worth noting that while the stock market is subjected to volatility as well, it has something called a ‘daily lower circuit’ which safeguards you from losing out on your investment.