Crypto traders urged to prepare for bull run

Crypto traders urged to prepare for bull run

Investors should exercise caution when trading cryptocurrencies and prepare for risks as the market is entering a bull run year in 2024, says Suppakrit Boonsat, director of Thai Digital Asset Association.

Mr Suppakrit, also a founder of digital asset education organisation Bitcast, said that cryptocurrencies have been gaining in value recently, attracting many investors who want to cash in on an anticipated bull run in the industry this year.

The price of Bitcoin surged past US$50,000 after spot Bitcoin exchange-traded funds (ETFs) were approved by the US regulator earlier this year.

As transaction volume is expected to surge, Bitcast recommends investors keep digital assets in a hardware wallet to cope with risks in a bull market, he said.

"Digital assets are considered a high-risk asset and having basic knowledge about them is important. The first thing investors should understand is to store the assets in an appropriate way," said Mr Suppakrit.

"A self-storage digital asset device is the most important factor when navigating the world of cryptocurrencies. Hardware wallets, or offline crypto wallets, are considered a safe method of storage at the lowest cost."

He said hardware wallets are better at protecting digital assets from cybertheft than storing them on cryptocurrency exchanges or mobile software.

Each hardware wallet model has different features and prices.

Users should study relevant information before deciding on a purchase, said Mr Suppakrit.

"Most digital asset investors store cryptocurrency in a 'hot wallet' that is always connected to the internet for use at any time, such as trades or transfers," he said.

"However, this isn't 100% safe, especially for a long-term investment that takes many years. It's not a good option for long-term investors."

As spot Bitcoin ETFs have given institutional and retail investors better access to cryptocurrency, there have been some price corrections recently, said Mr Suppakrit.

"As a long-term investor, I advise others interested in long-term investment not to buy or sell cryptocurrencies greedily," he said.

"Stick to your own rules and use dollar-cost averaging as a simple method to obtain appropriate returns."

With more than seven years of experience trading in digital assets, Mr Suppakrit said he founded Bitcast to provide useful knowledge to the cryptocurrency community.

"We recognise the importance of providing accurate and practical knowledge, which is particularly necessary this year. Risk prevention is important," he said.

"I warn investors entering this market to prepare, as we are entering a bull run this year."

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