Prominent Dogecoin enthusiast Mishaboar, known for his lead role in the DOGE community, has issued an important warning for crypto investors, particularly those new to the scene. Reflecting on past bull markets, Mishaboar stressed the dangers of “earn” programs and keeping large sums of cryptocurrency on exchanges.
The contributor stressed that during the last bull market, many ignored warnings about unstable platforms, leading to significant losses. Even well-regarded exchanges like FTX were not immune to failures. Advice is clear: Avoid holding large amounts of Dogecoin (DOGE) or other cryptocurrencies on exchanges.
“Not your keys…”
For those holding or trading Dogecoin in particular, Mishaboar advised against storing large amounts of crypto in hot wallets, such as smartphone wallets or Telegram bots.
Dear #Dogecoin: whatever you are holding or trading, do not keep huge amounts of any crypto into hot wallets (e.g. smartphone wallets) – or, god forbid, telegram bots and wallets.
Store crypto you do not plan to trade in cold wallets, and remember to backup your seed phrase (my…
— Mishaboar (@mishaboar) July 21, 2024
Instead, he recommended using cold wallets for assets not intended for immediate trading. He mentioned Trezor’s Safe 3 model as a reliable and affordable option, while expressing concerns about Ledger’s shift toward centralized services.
A key takeaway from Mishaboar’s message is the importance of self-custody. While it may require more responsibility, such as backing up seed phrases and keeping them offline, it provides a crucial safeguard against potential losses or prolonged access issues. Self-custody may not seem as convenient, but it significantly reduces the risk of losing digital assets.
DOGE enthusiasts were also advised against exchange programs with yield due to their inherent risks and complexities. These programs might promise high returns, but they come with terms that many users do not fully understand, posing unmeasurable risks.
