As two major U.S. banks teeter on the brink of bankruptcy, the financial world recalls the collapse of FTX, the major crypto exchange that filed for bankruptcy during a recent bull market. This event shook investor confidence and underscored the risks in both traditional and crypto markets.
Amid current banking instability, some investors are looking to cryptocurrencies as an alternative. Bitcoin is seen as a potential “safe haven,” and stablecoins and DeFi platforms offer ways to manage finances outside of banks. However, crypto’s high volatility and ongoing regulatory scrutiny—exposed by FTX’s downfall—make caution essential.
To stay safe in these uncertain times, experts recommend limiting leverage use. Leveraged positions can amplify both gains and losses, increasing risk during market downturns. By using less leverage and focusing on long-term value, investors can better navigate this period of financial instability while supporting secure, transparent blockchain-based financial solutions.
