As we enter a new year, it’s time for crypto fans 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 in this rapidly evolving space.
1. Be More Vigilant Against Scams and Rug Pulls
The crypto market has seen a surge in scams and rug pulls, with 31 incidents occurring on November 14 alone, resulting in cumulative losses of $15 million. The Hawk Tuah (HAWK) dump is a sobering reminder of how many people willingly ape into tokens that are obvious bad ideas or outright scams.
- Do your research: Before investing in any project, thoroughly research its technology, team, and market potential.
- Be skeptical of quick profits: Scammers prey on people’s greed, so be cautious when promises of quick profits seem too good to be true.
- Scrutinize even legitimate projects: Even well-known figures can be associated with questionable projects, so exercise caution.
2. Transform Your BTC into a Passive Income Opportunity
Bitcoin has evolved beyond being a store of value (SOV) due to innovative layer-2 solutions and smart contract platforms like Stacks, Rootstock, Liquid, and Babylon. These projects have redefined Bitcoin’s capabilities, bringing DeFi functionalities to the network.
- Explore BTCFi opportunities: Projects like Core Chain enable users to earn yields while maintaining custody of their Bitcoin.
- Bitcoin-based DeFi protocols: 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.
3. Encourage Your TradFi Friends and Family to Dip a Toe into Bitcoin
The crypto market’s growing institutional adoption has opened up diverse investment pathways for traditional investors. The landmark approval of 11 US spot Bitcoin ETFs in 2024 was a watershed moment, enabling crypto exposure accessible through traditional investment accounts.
- ETF opportunities: Assets like Ethereum and potentially even XRP are being considered for ETF offerings.
- Minimizing volatility-related risks: Platforms like BlackRock’s BUIDL offer tokenized funds investing user capital across dollar-equivalent assets.
4. Make More Payments Using Crypto
A growing number of brick-and-mortar retailers have integrated crypto payment solutions into their digital frameworks. US-based convenience store chain Sheetz recently announced that it had started accepting Bitcoin and Ethereum payments across all 750 of its stores.
- Bitrefill’s crypto expenditure options: Gift cards, mobile top-ups, and more are available for over 1,650 businesses across 170 countries.
- Travala.com: Accepts crypto for hotel bookings and flight reservations among other things.
5. Upgrade the Security of Your Crypto Assets
Portfolio consolidation and secure storage have never been more important. Rather than spreading funds 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: Ledger and Trezor are the gold standard for storage thanks to bank-grade security solutions.
- Multisignature setups: Crypto firms and DAOs use this method to access onchain smart wallets like Safe Wallet.
6. 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. Instead of promising quick profits or pressuring friends and family to invest, crypto enthusiasts should consider sharing their journeys, lessons learned, and factual information with their peers.
By adopting these resolutions, you can refine your approach to the crypto market and stay ahead of the curve in this rapidly evolving space. Happy New Year!