Many holders of cryptocurrencies suffered heavy losses in the recent market crash. However, history has shown that periods of market volatility are always followed by a bull run. To ensure the safety of their crypto assets, investors can choose an exchange with a robust security track record.
The prices of many popular tokens took a beating in the market last week. Bitcoin, for instance, fell below US$18,000 – down more than 70% compared with its US$69,000 peak last November. This has exacerbated the pall cast over the market by the Terra/Luna collapse in early May.
Some crypto exchanges appear to have been impacted by the market crash, with several setting withdrawal limits and other operational adjustments, according to media reports.
A Decrypt report noted that crypto derivatives exchange CoinFLEX on Friday announced that it is discontinuing account withdrawals on its platform, citing “extreme market conditions last week and continued uncertainty involving a counterparty.”
CoinFLEX was the latest crypto firm this month to stop withdrawals. Apart from CoinFLEX, some crypto lenders have also faced liquidity concerns. Celsius, for example, kicked off the trend by suspending withdrawals on June 13. Babel Finance followed suit four days later.
In addition to the withdrawal suspensions, crypto broker Voyager Digital lowered its daily withdrawal limits from US$25,000 to US$10,000, according to an update on the company’s website.
Learning how to avoid risks amidst the market turmoil has taken on new urgency for investors. For many investors, awareness of investment risks could be their first lesson.
Beginners should always pick up basic knowledge about any kind of investment to prevent, manage and control risks. For instance, beginners should start by trading more popular and established tokens and avoiding high leverage.
In addition, how to choose a trusted and reliable exchange is another crucial consideration. Such an exchange should have stable operations, strict risk management and be well-capitalized.
Since its inception, the crypto industry has experienced many ups and downs. The lesson from this is that the greater the market turbulence, the more prominent the role industry leaders can play to restore stability in the market. In these troubled times, there is an increasing need for a safe and stable exchange like Huobi Global to hedge against market upheavals.
Huobi Global has a comprehensive process to manage both risks and security incidents, as part of its risk management capability which is unmatched in the industry. The exchange’s strength in this area has ensured a stellar track record of zero security incident, in the nearly 9 years since its inception. Following the recent market turmoil, Huobi Global immediately stepped up measures to protect users’ assets from serious security incidents. Its daily operations including deposits and withdrawals remained normal.
“The current market turmoil is caused by several factors. However, Huobi Global remains positive about the future of the blockchain industry. Our top priority is the security of our users’ assets. We have never frozen any user asset or imposed withdrawal limits without due cause. We are committed to the stability of the market and make every effort to uphold it,” said Lily Zhang, CFO of Huobi Group.
She added: “In a turbulent market, industry players should spare no effort to maintain the health and stability of the market. Industry leaders have a responsibility to support promising projects impacted by market developments, and to protect the integrity of the blockchain ecosystem.”