Author: Miles Deutscher
Original compilation: Biteye core member Crush
The FTX debacle has had a huge impact on the entire crypto industry, and at the same time, it has also permanently changed my view of the crypto industry.
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01 Don't hold blindly
Rethink your strategy regularly, for example, review your portfolio each month and ask yourself:
A: Why should I buy this coin?
B: If I didn't buy it before, would I buy this coin now?
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02 No matter how big the whale is, it will die
Just like the previous LUNA (now FTX), no matter how big it is, it will also face collapse.
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03 Avoid unnecessary risks
In the field of encryption, it seems that there is never a false rumor. If you hear any rumors of an exchange going bankrupt, be sure to withdraw your funds as soon as possible.
If there is no problem, even if you deposit it later, although it is a bit troublesome, it is better than losing it all.
For all kinds of FUD, it is better to believe what it is, not to believe what it is not, rather than refute it based on inherent prejudice as soon as it comes up.
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04 No private key, no assets
Although this sentence is a bit cliché, it is indeed a wise saying in the field of encryption.
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05 Learn to trade on DEX
If you want to avoid CEX risk completely, then you can consider using DEX (Decentralized Exchange). There are many places where derivatives can be traded, such as GMX, Gains Network, APEX, investors do not need to trade in CEX.
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06 Consider the consequences
Whenever such a black swan event occurs, please think deeply about two questions:
a) What are the associated tokens (eg SOL)?
b) Impact on the industry as a whole?
Events like these are shaping entire industries and require you to think critically to correct bias.
Each crash has a positive effect on a particular track or narrative. For example, the volume of DeFi transactions is gradually increasing now, and what we have to do is to follow the direction of capital flow.
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07 Act fast
When FTX started to crash, there was actually a huge opportunity to profit by shorting the affected tokens (like FTT, SOL).
If an incident like this happens again, please don't sit on the sidelines in shock. You should immediately adjust your strategy quickly based on the information you currently have, and trade pragmatically.
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08 Look for bugs
When researching a token or a company, we often unconsciously see its positive side, such as:
• "FTX is a big exchange, they won't go bankrupt."
• "SBF is so smart, how could he fail?"
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09 Seeking Transparency
If a project or entity does not specify their balance sheet or allocation of treasury funds, please take this as a major red flag.
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10. Maintain good cash flow
After experiencing this thunderstorm, many people became disheartened and decided to quit this circle completely. This is irrational, just as it is irrational for you to invest all your funds in FTX.
What we need is a fair allocation of assets, always keeping some cash on hand to take advantage of new opportunities. If you do, you're at least in a better position than someone who doesn't.
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