During a cryptocurrency bull run, coin prices often rise continuously, attracting both new and experienced investors to the crypto market. At the same time, crypto prices also attract more scammers. Besides researching information, understanding risks, choosing appropriate strategies, and investing consciously, securing assets and being aware of usage are also crucial.
Storing crypto often presents several challenges, which have hindered the widespread adoption of crypto. These can be divided into three main categories:
Problems with awareness of secure crypto storage
This is a major obstacle to the development of crypto usage because most people are accustomed to relying on real-world service providers. If something goes wrong, there are people ready to help, and transactions can be recovered or reversed. However, this mindset does not apply to online financial services today. Especially in the world of crypto, reversing transactions is impossible. If you are robbed, your funds cannot be recovered. Therefore, awareness is one of the cheapest and most effective forms of prevention.
Problems with knowledge about crypto and secure crypto storage
Fundamentally, crypto might sound complicated, but in reality, what users need to know is only about proving ownership. In the crypto world, most users only know that they own coins and see them in their wallets, but they don't truly understand how ownership is proven. If we understand how ownership is proven, we will know that what we truly need to protect is not the asset itself, but rather what we use to tell the system that we own it, which is called a Private Key. This is because crypto is inherently secure within its system according to its rules, stored on the Blockchain, making it virtually impossible to hack. Therefore, the point where hackers will attack or attempt to steal is the Private Key, because if hackers obtain the Private Key, they can prove to the system that they own those assets and can do anything with them.
Furthermore, users often don't understand the difference in self-custody of assets, realizing that it's possible without relying on exchanges. The purpose of exchanges is to serve as a marketplace for trading Bitcoin and other digital assets. However, most people view them as places to store Bitcoin and other digital assets simply because service providers have more expertise than average users. In reality, the cost of self-custody, including security, can be very high if we properly follow the procedures.
Technical problems related to technology
As technology grows by leaps and bounds, the general public cannot keep up with this growth. Even people in the industry, if they don't keep up with the news for just a month, many things can change. Technology and programming techniques are constantly being added to protect your digital wealth. On the other hand, hackers are also learning to penetrate systems, find loopholes, and exploit user weaknesses. Users themselves must constantly learn, adapt, and update their knowledge.
Securing crypto requires knowledge and awareness.
If users understand the core components, I believe that asset custody will be easy and far from hackers. Last year, the value of damages from cyber theft, especially those related to crypto, amounted to 24.2 billion US dollars. This year, everyone believes there is a high possibility of a bull market. The main factors will come from market demand to own Bitcoin through a Spot Bitcoin ETF, coupled with this year being a Bitcoin halving year, which reduces the production rate by half and occurs approximately every 4 years. If we look at the total amount of Bitcoin reserved in exchanges, it is at a low level, with both institutional and retail investors buying and transferring it for storage, making it very low. If we imagine the market demand, which we don't know when it will end, meeting the limited supply on exchanges, which currently produces about 900 Bitcoin per day and will reduce to 450 Bitcoin per day. This doesn't even include the impact of the Spot Ethereum ETF, which everyone expects to be approved in mid-this year, and how much it will further boost the value in the crypto market. This year, the broad price range, according to linear regression fit, has the potential to reach $100,000, while resistance is around $380,000 and support is at $35,000.
The rising price of Bitcoin brings an increase in both new players and hackers.
However, the rising price of coins in the crypto market inevitably entices hackers, as their cost of theft remains the same while their potential returns increase. Combined with the growing number of new people interested in entering the market, this leads to an increase in cyberattack damages proportional to the prices of Bitcoin and other cryptocurrencies.
Surviving in the crypto world means you can't rely on or trust anyone but yourself, and we shouldn't trust anyone at all. This should be the fundamental mindset that allows us to survive in the crypto world. A Hardware Wallet is a low-cost yet highly effective protective measure, on par with global enterprises. What I'm saying won't be understood by everyone until they lose Bitcoin or other cryptocurrencies, then they will understand what I'm trying to warn them about.
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