As the new year approaches, crypto enthusiasts are presented with an opportunity to reevaluate their approaches and make resolutions to navigate the ever-evolving world of digital assets. Here are six key resolutions for crypto advocates to consider as they step into 2025.
-
Heightened Vigilance Against Scams: Despite widespread efforts to boost awareness, crypto scams, including rug pulls, remain prevalent. November witnessed a record 31 such incidents in one day, resulting in $15 million in losses. Recent events like the Hawk Tuah token’s dramatic crash from $490 million to $41.7 million highlight the need for caution. Thorough research and skepticism are crucial amid claims of rapid gains.
-
Utilizing Bitcoin for Passive Income: Bitcoin’s role has expanded beyond a mere store of value, thanks to layer-2 solutions and smart contracts that enhance its functionality. Projects like Stacks and Rootstock have introduced sophisticated DeFi capabilities to Bitcoin, driving the total value locked in Bitcoin-based DeFi protocols from $306 million in early 2024 to $7.4 billion by the end of the year. While some may be hesitant to use Bitcoin on Ethereum-compatible chains, platforms like Core Chain allow users to earn yields while retaining control over their Bitcoin.
-
Introducing Traditional Investors to Bitcoin: The crypto market’s valuation surpassing $3.9 trillion, coupled with the approval of several US spot Bitcoin ETFs, has paved the way for traditional investors to explore crypto. Offerings from major firms like VanEck and BlackRock have made it possible to gain crypto exposure through conventional investment accounts. As more cryptocurrency-based financial products emerge, investors can diversify their portfolios to include assets like Ethereum ETFs.
-
Increased Cryptocurrency Payments: With 562 million cryptocurrency owners in 2024, using digital assets for everyday purchases is becoming more practical. Platforms such as Bitrefill and BitPay facilitate cryptocurrency use across a wide array of transactions. Retailers like Sheetz have begun accepting Bitcoin and Ethereum, making digital currency integration more widespread, including in sectors like travel where services like Travala.com embrace cryptocurrency for bookings.
-
Enhancing Crypto Security: As digital asset ownership expands, securing these resources becomes imperative. Investors are encouraged to consolidate their holdings selectively and store them in secure, cold storage solutions such as Ledger and Trezor hardware wallets. This trend is evidenced by a decline in Bitcoin held across centralized exchanges, underscoring the need for robust storage methods to protect assets from online threats.
-
Educating Others Without Pressure: While sharing the benefits of cryptocurrency is important, it should be done responsibly and without exerting undue pressure on others to invest. Effective advocates focus on sharing knowledge about the real-world applications and potential of crypto, alongside its risks. Encouraging open discussions and learning paves the way for informed decision-making and strengthens the credibility of the cryptocurrency ecosystem.
As advocates plan for the future, these resolutions can guide them in making the most of opportunities within the dynamic cryptocurrency landscape while promoting a secure and informed community.
