On Monday, a new round of fear, uncertainty, and doubt (FUD) based on potential regulatory crackdowns once again gripped the bourgeoning cryptocurrency sectors. Major cryptos such as Bitcoin (CRYPTO:BTC), Ethereum (CRYPTO:ETH), Cardano (CRYPTO:ADA), and Binance Coin (CRYPTO:BNB) lost over 10% of their value in a single trading day before recovering. Most of the over 12,000 altcoins out there suffered worse sell-offs.
But it’s important to keep in mind that despite the steep sell-off, they are still up over five- to six-figure percentages since their inception. So let’s look at the best plan of action for investors to take to protect their blockchain portfolios.
Piercing the shrouds
Contrary to popular belief, regulatory fears are not the main reason for brutal drawdowns in the cryptocurrency sector. This is apparent to anyone who understands the basic cryptography protecting digital currencies, which allows for the encryption of data in seconds and ensures that it can take decades or millions of years to decrypt them. In addition, recent innovations such as decentralized finance (DeFi), decentralized applications (dapps), and decentralized exchanges (DEX) operate on global peer-to-peer networks and do not have centralized servers. So it’s not possible for regulators and police to simply raid a “crypto-headquarters” and seize the servers since there aren’t any. In early 2018, Bitcoin…