From widespread adoption to electing a crypto-friendly government in the US, the past year has solidified cryptocurrency's position as a reformative force in the global economy. Stepping into the new year is an ideal time for cryptocurrency enthusiasts to reflect and refine their approach to the digital asset market.
Whether a seasoned investor or an enthusiastic newcomer, adopting some meaningful resolutions can change your approach and help you grow. From spending smarter to educating others, these resolutions are not only about personal growth but also about shaping the future of a technology that is rewriting the rules of finance.
Be more cautious of scams, rug pulls, and worthless tokens.
Despite countless warnings and educational materials, cryptocurrency scams continue to harm many victims at an alarming rate. This issue was starkly evidenced on November 14, when a record 31 rug pulls occurred in a single day, resulting in cumulative losses of 15 million USD just that month.
Distribution of rug pulls from mid-October to November (Source: TenArmor).
Most recently, the collapse of the Hawk Tuah Token (HAWK) has served as a sobering reminder that many people still rush into tokens that are clearly bad ideas, if not outright scams. After launching HAWK, its market cap skyrocketed to 490 million USD, only to plummet 91% to 41.7 million USD in less than three hours.
See more: Chainlink partners with Coinbase asset platform.
Do thorough research, maintain a skeptical attitude towards promises of quick profits, and remember that scammers exploit human greed — so be cautious when you find yourself becoming greedy. Even seemingly legitimate projects backed by celebrity figures should be scrutinized as thoroughly as possible.
Transform your BTC into passive income opportunities.
Bitcoin has evolved over the past year into something more than just a store of value (SOV). While critics have pointed out Bitcoin's limitations compared to other blockchains, the landscape has changed significantly with the emergence of advanced layer-2 (L2) solutions and smart contract platforms.
Projects like Stacks, Rootstock, Liquid, and Babylon have redefined Bitcoin's capabilities, bringing advanced DeFi functionalities (referred to as BTCFi) onto the network — effectively bridging the gap between Bitcoin's robust security and Ethereum-like programmability, enabling everything from yield farming to lending and liquidity provision.
Total value locked of BTCFi from Q1 2023 Source: DefiLlama.
In terms of numbers, the market has reacted strongly to these developments, with the total value locked (TVL) across all Bitcoin-based DeFi protocols soaring from 306 million USD in Q1 2024 to an impressive 7.4 billion USD in Q4 (an increase of 2,180%).
While some Bitcoiners remain concerned about converting or connecting their BTC for use on an EVM-compatible chain, projects like Core Chain allow users to earn profits while maintaining control over their Bitcoin.
Encourage your financially traditional friends and family to experiment with Bitcoin.
The cryptocurrency market recently reached an unprecedented peak, with a total market capitalization exceeding 3.9 trillion USD in November. This milestone, along with increasing acceptance from institutions, has opened up diverse investment avenues better suited for traditional investors.
See more: XRP price warning after a 300% increase in two months.
The important approval of eleven spot Bitcoin ETFs in the US in 2024 is a significant milestone. These products, managed by financial giants like VanEck, WisdomTree, and Franklin Templeton, among others, have helped make cryptocurrencies more accessible through traditional investment accounts.
Cash inflows/outflows of each Bitcoin ETF since January 2024 Source: CoinGlass.
There are also investment opportunities in ETFs for assets like Ethereum (and possibly XRP in the near future) — as well as products from BlackRock and Fidelity seeking to mitigate volatility-related risks. For example, BlackRock's BUIDL platform offers a crypto fund that invests users' capital into USD-equivalent assets like cash, US Treasury bonds, and repurchase agreements. It is backed by short-term US Treasury bonds and is currently managing assets worth 540 million USD.
Conduct more transactions using cryptocurrency.
With the number of cryptocurrency owners reaching 562 million by 2024 — up from 420 million in 2023 — there has never been a better time to start using digital assets for everyday transactions, especially with the significantly matured cryptocurrency spending infrastructure over the past year.
Services like Bitrefill allow users to use Bitcoin, Ethereum, USDT, USDC, etc. for everyday transactions, providing gift cards, mobile top-ups, and more for over 1,650 businesses across 170 countries. Similarly, BitPay has developed a robust platform that enables businesses worldwide to seamlessly accept various cryptocurrencies.
See more: MicroStrategy raises 17 billion USD from Bitcoin.
Popular cryptocurrency spending options from Bitrefill (Source: Bitrefill).
More and more physical retail stores are integrating cryptocurrency payment solutions into their digital models. To date, the US-based convenience store chain Sheetz recently announced that it has begun accepting payments in Bitcoin and Ethereum at all 750 of its locations, allowing customers to purchase everything from a cup of coffee to fuel with their digital tokens.
The travel industry is also embracing this technological revolution, with platforms like Travala.com accepting cryptocurrency for hotel bookings and flight reservations among other things.
Upgrade the security of your cryptocurrency assets.
Consolidating portfolios and secure storage has never been more important. Instead of spreading their funds across 620 lesser-known tokens stored on multiple exchanges and hot wallets, investors should consider consolidating their assets into a carefully curated mix of proven cryptocurrencies and storing them in cold storage solutions.
Popular hardware wallets like Ledger and Trezor are the gold standard for storing digital assets thanks to bank-grade security solutions, protecting them from online threats while providing complete control over one’s private keys.
This shift towards cold storage solutions has gained significant momentum, with the amount of BTC stored on various centralized exchanges declining to record lows over the past twelve months.
Cryptocurrency companies and DAOs tend to use multi-signature setups to access on-chain smart wallets, such as Safe Wallet.
Bitcoin price relative to its balance on centralized exchanges Source: Cryptoquant.
Share your cryptocurrency knowledge, but don't pressure your friends.
There remains a thin line between sharing insights and evangelizing to the point that others invest in something they don't truly believe in.
As a result, the most effective cryptocurrency advocates in history are those who have focused on explaining the potential of the technology and its practical applications while acknowledging its risks and complexities.