New Year, New Approach: 6 Resolutions to Help You Thrive in the Crypto Market
As we step into a new year, it’s essential for crypto enthusiasts to reflect on their approach to the digital asset market. Whether you’re a seasoned investor or a passionate newcomer, adopting meaningful resolutions can help you thrive and contribute to shaping the future of this transformative technology.
In this article, we’ll explore six key resolutions that can make a significant impact on your crypto journey:
1. Be More Vigilant for Scams, Rug Pulls, and Dumb Tokens
Despite countless warnings and educational resources, crypto scams continue to claim victims at an alarming rate. The severity of this issue was starkly illustrated in November, when a record-breaking 31 rug pulls occurred in a single day, resulting in cumulative losses of $15 million that month alone.
The distribution of rug pulls between mid-October and November shows a concerning trend:
| Date | Number of Rug Pulls | Cumulative Losses (USD) |
| — | — | — |
| Oct 15 | 10 | $2.5M |
| Nov 1 | 12 | $4.8M |
| Nov 14 | 31 | $15M |
These statistics highlight the need for increased vigilance and caution when dealing with cryptocurrencies.
To combat this issue:
- Do your research, and be skeptical toward promises of quick profits.
- Remember that scammers prey on people’s greed, so be fearful when you notice yourself getting greedy.
- Scrutinize seemingly legitimate projects backed by known figures as closely as possible.
2. Transform Your BTC into a Passive Income Opportunity
Bitcoin (BTC) has evolved over the past year into something greater than a mere store of value (SOV). While critics once pointed to Bitcoin’s limited functionality compared to other blockchains, the landscape has changed dramatically with the emergence of innovative layer-2 (L2) solutions and smart contract platforms.
Projects like Stacks, Rootstock, Liquid, and Babylon have redefined Bitcoin’s capabilities, bringing sophisticated DeFi functionalities (referred to as BTCFi) to the network. This enables everything from yield farming to lending and liquidity provision.
The total value locked (TVL) across all Bitcoin-based DeFi protocols has surged from $306 million in Q1 2024 to an impressive $7.4 billion by Q4, representing a 2,400% increase.
To harness this opportunity:
- Explore BTCFi solutions and their applications.
- Consider investing in proven cryptocurrencies with strong use cases.
- Develop a diversified portfolio to minimize risk.
3. Upgrade the Security of Your Crypto Assets
Portfolio consolidation and secure storage have never been more important. Rather than spreading one’s funds across 620 little-known tokens stored across multiple exchanges and hot wallets, investors should consider consolidating their holdings into a carefully selected mix of proven cryptocurrencies and storing them in cold storage solutions.
Popular hardware wallets like Ledger and Trezor are the gold standard for storage thanks to bank-grade security solutions for digital assets. These wallets protect your assets from online threats while offering complete control over your private keys.
The amount of BTC held across different centralized exchanges (CEXs) has dropped to historic lows over the last 12 months, indicating a shift toward cold storage solutions:
To enhance your portfolio’s security:
- Consolidate your holdings into a carefully selected mix of proven cryptocurrencies.
- Store your assets in cold storage solutions or hardware wallets.
- Regularly review and update your portfolio to ensure it remains aligned with your investment goals.
4. Share Your Crypto Knowledge, but Don’t Pressure Your Friends
There remains a fine line between sharing insights and proselytizing to a point where others invest in something they don’t truly believe in. As a result, historically, the most effective crypto advocates have been those who have focused on explaining the technology’s potential and real-world applications while acknowledging its risks and complexities.
To share your knowledge effectively:
- Focus on explaining the technology’s potential and real-world applications.
- Acknowledge the risks and complexities associated with cryptocurrencies.
- Share your journeys, lessons learned, and factual information with your peers.
5. Explore Crypto Payment Solutions
A growing number of brick-and-mortar retailers have integrated crypto payment solutions into their digital frameworks. To this point, US-based convenience store chain Sheetz has recently announced that it had started accepting Bitcoin and Ethereum payments across all 750 of its stores.
To explore crypto payment solutions:
- Research and identify retailers that accept cryptocurrencies.
- Consider using platforms like Bitrefill or Travala.com for online transactions.
- Evaluate the benefits and drawbacks of using cryptocurrencies for daily purchases.
6. Stay Informed and Continuously Learn
The crypto market is constantly evolving, with new developments and advancements emerging regularly. To stay ahead of the curve, it’s essential to remain informed and continuously learn about the latest trends and innovations.
To stay informed:
- Follow reputable sources and news outlets for updates on the crypto market.
- Engage with online communities and forums to discuss the latest developments.
- Attend webinars, conferences, and workshops to expand your knowledge and network.
By adopting these six resolutions, you’ll be better equipped to navigate the complexities of the crypto market and make informed decisions about your investments. Remember to stay vigilant, adapt to changing circumstances, and continuously learn to thrive in this exciting and rapidly evolving space.