Cryptocurrencies are not going through a good time. And not only because of the price of the main cryptos, which has fallen to levels not seen since 2020. The entire ecosystem (coins, platforms, users…) has suffered, and there have been critical situations such as the prohibition of several exchanges, which are the platforms where they buy, sell and sometimes store cryptos, to carry out transactions. We talk about it in today’s video:
June has been a black month for cryptocurrencies, with drops of up to 15% in a single day in Bitcoin, Ether and other major currencies. These situations generate panic that make users, in many cases, sell en masse. Faced with this scenario, throughout June, many exchanges prevented crypto sales operations and fiat withdrawals.
During the current crypto crisis, various exchanges have halted all types of sale and withdrawal operations
Celsius, Babel Finance, CoinFlex, Vauld, Voyager Digital are some of the platforms that have carried out this measure.Why is this being done? Because exchanges, in practically most cases, lack the necessary liquidity in fiat to cope with the volume of cryptocurrencies they handle.
If, in addition, a platform goes bankrupt, it is quite possible that users who had cryptocurrencies stored on it will lose everything, so it is important to keep this in mind.
This happens because, unfortunately, when our cryptocurrencies are inside a platform, they are not really ours, and when faced with these situations of bankruptcy or pause of operations, there is little to do. The only solution is to always have the assets in our own wallets, whether physical or digital. and use decentralized exhanges.
But do not panic. There are hundreds of exchanges, and those that have carried out these practices are a minority. The large and reputable exchanges are resisting well this market debacle and for the moment everything indicates that this will continue to be the case.