Dogecoin enthusiast Mishaboar warns investors about the risks of “earn” programs and keeping large amounts of cryptocurrency on exchanges during bull markets.
Points
- Mishaboar cautions against storing large amounts of Dogecoin or other cryptocurrencies on exchanges.
- He recommends using cold wallets for long-term storage.
- The warning highlights past losses due to unstable platforms.
Prominent Dogecoin enthusiast Mishaboar, known for his lead role in the DOGE community, has issued an important warning for crypto investors, particularly those new to the scene. Reflecting on past bull markets, Mishaboar stressed the dangers of “earn” programs and keeping large sums of cryptocurrency on exchanges.
The contributor highlighted that during the last bull market, many ignored warnings about unstable platforms, leading to significant losses. Even well-regarded exchanges like FTX were not immune to failures. Mishaboar’s advice is clear: Avoid holding large amounts of Dogecoin （DOGEUSD） or other cryptocurrencies on exchanges.
For those holding or trading Dogecoin in particular, Mishaboar advised against storing large amounts of crypto in hot wallets, such as smartphone wallets or Telegram bots. Instead, he recommended using cold wallets for assets not intended for immediate trading. He mentioned Trezor’s Safe 3 model as a reliable and affordable option, while expressing concerns about Ledger’s shift toward centralized services.
Dear #Dogecoin: whatever you are holding or trading, do not keep huge amounts of any crypto into hot wallets （e.g. smartphone wallets） – or, god forbid, telegram bots and wallets. Store crypto you do not plan to trade in cold wallets, and remember to backup your seed phrase （my…— Mishaboar （@mishaboar） July 21, 2024
A key takeaway from Mishaboar’s message is the importance of self-custody. While it may require more responsibility, such as backing up seed phrases and keeping them offline, it provides a crucial safeguard against potential losses or prolonged access issues. Self-custody may not seem as convenient, but it significantly reduces the risk of losing digital assets.
Mishaboar also advised DOGE enthusiasts to avoid exchange programs with yield due to their inherent risks and complexities. These programs might promise high returns, but they come with terms that many users do not fully understand, posing unmeasurable risks.
解説
- Self-Custody Importance: Self-custody involves holding your own private keys and securing your digital assets independently. This reduces reliance on third parties and minimizes the risk of losing assets due to exchange failures.
- Cold Wallets: Cold wallets are offline storage devices, such as hardware wallets, that provide enhanced security for long-term storage of cryptocurrencies. They are less vulnerable to hacks compared to hot wallets.
- Earn Programs Risks: Cryptocurrency earn programs often promise attractive returns but come with risks that are not always transparent. These programs can be complex and may expose investors to significant risks, especially during volatile market conditions.