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Author: Admin | 2025-04-28
Provides users with various options to suit their preferences for security, accessibility, and management of their digital assets. It is crucial to weigh the advantages and risks associated with each type of wallet to make informed decisions regarding the storage and protection of cryptocurrencies.Lessons to be learned from the past errors: the two cases of FTX and Terra LunaFTX was a centralised cryptocurrency exchange, providing crypto derivatives and leverage trading services. Still, the primary use for centralised exchanges is to enable customers to buy and exchange different cryptocurrencies. The main problems resulting from the collapse of FTX also apply to all other centralised cryptocurrency exchanges currently in operation. Cryptocurrency exchanges are not regulated, which leads to individuals taking risks without the approval of the asset owners, which is an oversimplified description of why centralised cryptocurrency exchanges should not be allowed to operate without regulations. Individual savers are not always keen on keeping their assets on a USB drive or writing the private keys on a piece of paper, which, if lost, would result in the loss of their savings. Hence, many small crypto savers use centralised cryptocurrency exchanges (such as FTX) to store their crypto savings and earn interest—similarly to the traditional banking system. Despite all the warning signs, individual savers are still locking their crypto savings in unregulated centralised exchanges.This presents three options to the UK government and all other governments worldwide. 1. The first is to create standards and regulations for cryptocurrencies because as of today (08 Jan
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