What did the FTX collapse in 2022 show?

A big platform can fail and freeze your money

Crypto basics | TradeLiga

A cryptocurrency is a digital asset recorded on a blockchain: a shared ledger copied across thousands of computers, so no single bank keeps the books.
Bitcoin launched in 2009 with a hard cap of 21 million coins. Thousands of other coins followed; many are now worth little or nothing.
It swings hard. Bitcoin fell about 77% from its November 2021 peak to its low a year later. Smaller coins often fell 90% or more.
Rules differ by country. In Indonesia crypto is a legal asset supervised by the financial regulator (OJK), the EU licenses providers under its MiCA rules, and China bans crypto trading.
Platforms can fail. In November 2022 FTX, then one of the world's biggest crypto exchanges, collapsed, and customers' money was stuck for years.
Common mistake
Mistake: trusting anyone who promises “guaranteed” crypto profits. That phrase is the number-one sign of a scam. Fake coins, fake apps and fake mentors are everywhere.
Key takeaway
Crypto is high-risk and swings hard. Use licensed platforms, never share your keys or passwords, and only risk money you can afford to lose.

Crypto rules around the world are... Different in each countrySome countries license crypto, some restrict it and a few ban trading completely.
Bitcoin's price is... Very volatileNo one sets its price; it can rise or fall more than 50% within a year.
A promise of guaranteed crypto profit is... A red flagNo honest investment can guarantee profits, least of all something as volatile as crypto.
What did the FTX collapse in 2022 show? A big platform can fail and freeze your moneySize isn't safety. Crypto platforms usually lack the deposit insurance banks have.