During this weekend, the price of the Bitcoin has fallen more than 10% due to a new attack on us cryptosavings. On this occasion the attack has been directed towards Coinrail one of the Exchanges in what is already known as the ‘Coinrail hacking’, and the cybermalotesThey have managed to carry the $46 billion friera… there’s nothing.
Do you remember what a Exchange? We discussed it a few weeks ago in This entry. It’s basically the place where we can buy and sell cryptomonedas through FIAT money or other cryptomonedas like Bitcoin.. The problem is that these exchanges are a very juicy target for the bad, let’s see why:
– Most Exchanges have come out of small startups with no experience in the world of cryptomonedas.
– Most Exchanges have been created by groups of young entrepreneurs who want to do things… but without experience, there’s no Exchange with giants behind it like Microsoft, Amazon or Apple.
– Most Exchanges have small groups responsible for CyberSecurity.
– Move a lot of money not only the Exchange itself, but also
the users who trust the Exchange to store their portfolios (Coinrail moves approximately 2,7 million dollars ON THE DAY)
In this case, people from Coinrail says only 3 of the altcoins operating (Pundi X (NPXS), NPER and Aston (ATX) have been affected) And, of these, only 30% of the total… and that’s $46 billion! So imagine the money that moves one of the biggest Exchanges as it can be. Coinbase or Binance.
We still don’t know anything about the attack.
There is not too much technical information on how the attack has been conducted, so we still can’t know what kind of profiles are involved and whether it could happen with any other cryptomonedas. On the site of the Exchange just tells us that they are investigating the incident and that in the meantime all operations are suspended (imagine the nerves that users who have money on the platform will have):
This brings us back to the reflection we did a few days ago: is it preferable to leave our portfolio in the hands of a Exchange or have all the necessary safety measures on our computer to be able to store the cryptomonedas ourselves?
What is the FOD?
The news has caused the price of Bitcoin and cryptomonedas in general to fall by between 5% and 10%… a good fall. This is because of the FOD, one of the words in the vocabulary of the cryptomonedas that means in English Fear, Uncertainty and Doubt. People lose their trust, they raise doubts about the safety and future of cryptomonedas and that makes them sell and fall the price. Actually it is not that the attack has a direct impact on the price of Bitcoin, but that people are afraid and sell and by the law of supply and demand the price is immediately plagued.
Personally I think the only thing you can do right now is HODL, another word in the vocabulary cryptomonedilI mean, maintain position and not sell in losses. If we have a cryptomoneda as an investment and for an event of this kind falls by 10%, it means that it will most likely be below the price at which we buy it, so selling it at that price is to lose money yes or yes (and that the price continues to fall). However, maintaining the position will keep the price at that -10% and from there start to recover when new capital enters the market because
people regain confidence. It must also be borne in mind that many of the large investors (whales, point out another word from the crypt- dictionary, one day I will collect them all in one entry) They take advantage of these falls to invest more money and buy cheap… keep in mind that at the price that some of the cryptomonedas have left, it is rare that they are again, so if you now invest more money because they are almost on your ground it is very likely that in a few days you will have a considerable profit… or not.
What are you gonna do? Sell in losses to make sure you don’t keep losing money even if you keep going down? Or keep your position waiting for the market to recover?