Responses to Shutdown of Cryptocurrency Exchanges

Influenced by regulations of some countries, numerous people are worried about unavailable transactions caused by the shutdown of cryptocurrency exchanges recently. How to cope with the shutdown？ Several solutions are introduced herein.

1. Transfer withdrawals to decentralized crypto wallets.

A decentralized wallet is system software where the private keys are stored to enable users to access their records and cryptocurrencies on a digital ledger, which is based on blockchain technology that reduces the risk of hacker attacks. Only users can hold their mnemonic passphrases so that they can manage their digital assets on blockchains.

2. Choose exchanges in other countries.

Users can directly choose exchanges of other countries if they fear the shutdown of those in their motherlands as exchanges in many nations are allowed to legally operate businesses.

3. Use decentralized exchanges (DEX).

As for trading through decentralized exchanges, direct peer-to-peer cryptocurrency transactions are allowed without the need for an intermediary, and the capital is stored in users digital wallets or smart contracts. Exchanges execute smart contracts for completing transactions when users start trading. Everything during transactions is transparent as the transfer of assets is operated on a blockchain or distributed ledger where trading records can be accessed.

4. Leave cryptocurrency trading.

If you are skeptical about the role of the aforementioned approaches or worried about anything else, please sell all your holds for cashing and never speculate cryptocurrencies in the future.

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