Cryptocurrency usage

If you use crypto as a means of payment

Today, I consider this way of using crypto to be enchanting madness. Firstly, the places where the crypt is accepted as a means of payment can be counted on the fingers. Why bother then? And secondly, the exceptionally high volatility of the crypto makes it impossible to estimate its fair exchange rates. It is worth recalling about 2 pizzas bought in 2010 for 10,000 bitcoins. Yes, perhaps this deal was made in order to popularize the cryptocurrency, and no one thought that such a hype would rise, but the fact remains. Imagine that today you bought a Tesla with bitcoins. But what if in a few years the same amount of bitcoins could buy a whole fleet of cars?

However, if you want to play this game, take a look at the Blue wallet and Samourai wallet services.

If you trade and use crypto for medium-term investment projects

The best solution for these purposes is a cryptocurrency exchange. Exchanges provide ample opportunities for trading, including margin trading, as well as various opportunities for passive income, staking, etc.

When choosing an exchange, pay attention to the jurisdiction. US and EU jurisdictions are in the red zone of political risk. These jurisdictions have screwed up by imposing unilateral sanctions. You will never prove to anyone that “out of politics”, and the real goals of the sanctions are not political, so “give me back my money, please” or “I won’t do it again” will not work.

Today, I consider these exchanges to be the safest: Bybit, Bitget, Huobi and FTX.

Do not forget about risk management, do not pour all the funds on the exchanges. Transfer to your account only those funds that you plan to use in trading, keep the rest of the crypto in cold wallets.

If you store crypto for a long time

In this case, you do not need frequent transactions, so the variety and richness of the functionality of the storage service does not make much sense. But what is really important is security, resistance to hacking and theft. For long-term storage, use only hardware or paper wallets.

In my understanding, a wallet is truly secure, provided that your funds cannot be stolen in any other way than by trapping you and torturing you until you give them back yourself.

From hardware wallets, I recommend Ledger and Safepal. Paper wallets are also reliable, but paper can be stolen, and if you steal a usb device, then without two-factor authentication, i.e. without access to your phone, you still won’t be able to steal the crypt.

To date, a universal wallet that would be good in everything does not exist. Wallet / wallets should be chosen depending on your tasks. Choose proven, proven services and don’t fall for unreliable services and outright scams.

It is worth noting that in the foreseeable future, laws regulating the crypto industry will inevitably be adopted in the Russian Federation, they will obviously make adjustments to the use of cryptocurrency, and to crypto trading, and to the methods of its storage. We will keep a close eye on any changes.

I remind you that I post operational information in my Telegram channel. I also share some real-time deals and investment ideas there.