Bigger Pockets: FTX, Fraud, and the Case for Cryptocurrency in 2023

While both stocks and bonds took a big hit last year, the cryptocurrency space was hit even harder. Major cryptocurrencies lost more than two-thirds of their price. Those who enjoyed the big gains of 2020 and 2021 were devastated by the collapse.

The price drop was made even worse by the collapse of a number of cryptocurrency brokerages. That includes the collapse of one of the largest, FTX.

Cryptocurrencies have been around for almost 15 years now. They’re an emerging asset class. And they’re incredibly volatile.

Every few years, the space has been prone to large selloffs. Many of the early alternative cryptocurrencies have collapsed. The current bear market may result in a similar outcome.

The issue? While designed to move away from the current financial system, cryptocurrencies grew largely thanks to centralized exchanges. That created a third party, such as FTX.

When those third parties get into trouble, they may end up freezing customer accounts. Or, worse, using customer accounts to try and fix whatever trouble they got into.

That’s why crypto investors should store their crypto in a digital wallet, rather than on an exchange.

With crypto here to stay, even if many crypto projects aren’t, investors may want to use the current crypto winter to accumulate big names like Bitcoin and Ethereum.

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