Crypto 2023 was a bad & good year for the crypto sector. This year was a type of inflection point for the crypto growth line. All the crypto investors & entrepreneurs should learn the lesson from the bad & good events that occurred in 2023.
The beginning of 2023 for this innovative sector was very bad because it was a time for a huge number of crypto investors to regret using the FTX exchange.
Following the bankruptcy of the FTX, the majority of the law enforcement agencies in the US & other countries suddenly started to show strict action against crypto companies and in this phase, the majority of the crypto entrepreneurs were worried for their future with their corresponding existing crypto businesses startups.
Lesson for crypto startups
In Q1 2023, the majority of the crypto companies noted that it was not easy to do crypto business in the US because of a highly intense & hostile regulatory environment. Under those situations, the majority of the crypto companies decided to expand their services in other jurisdictions & also diversified their business activities.
This action & reaction gives a lesson for the crypto entrepreneurs to always remain aware of the future and always try to focus on the proper diversification of the business & business should always be based on a proper business model with a better management team.
Lesson for Crypto traders
The bankruptcy of crypto lending & trading platforms e.g. Celsius network, Blockfi, Genesis Trading, Voyager Digital, FTX, and Alameda Research give basic lessons for the crypto traders to not trust any crypto or non-crypto platform blindly.
It is better to use multiple platforms to maintain crypto trading activities but it doesn’t mean that we should shift to self custody crypto wallets. Better to use some top centralised & decentralised platforms to trade cryptocurrencies.
Reduce risk of investment
The collapse of stablecoins and cryptocurrencies e.g TerraUSD (UST), Terra (Luna), Acala USD, flexUSD, Deus Finance, Empty Set Dollar, Coffin Dollar, OpenDAO, etc all are examples of the degree of risk of investment in the cryptocurrencies.
Crypto Investors should learn a lesson from the failure of these cryptocurrencies and never invest a very big amount in a single crypto token. Better to invest in more than 10-20 top cryptocurrencies with equal amounts, to reduce the risk of investment and never hold all the funds in single stablecoin.
Read also: Leading privacy crypto token Monero (XMR) at the verge of a big crash
Crypto Investors & crypto startups should learn these things from 2023
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