How can investors protect their digital assets during a bitcoin crash?

1 answers

• Fit ImpactNov 24, 2022 · 3 years ago
  At BYDFi, we understand the importance of protecting digital assets during a bitcoin crash. One strategy investors can employ is to utilize decentralized exchanges (DEXs) instead of centralized exchanges. DEXs allow users to trade cryptocurrencies directly from their wallets, eliminating the need to deposit funds into an exchange. This reduces the risk of losing assets due to exchange hacks or insolvency. Additionally, investors can also consider using stablecoins as a hedge during a bitcoin crash. Stablecoins are cryptocurrencies pegged to a stable asset, such as the US dollar, and their value remains relatively stable even during market downturns. By holding a portion of their portfolio in stablecoins, investors can mitigate the impact of a bitcoin crash on their overall portfolio value. It's important for investors to do thorough research and choose reputable DEXs and stablecoins to ensure the security of their digital assets.
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