In the wake of recent WazirX hack resulting in loss of over Rs 2000 crore worth of investor funds, Unocoin co-founder Dr. Sathvik Vishwanath has advised to investors to keep their crpto investments under 20% of total wealth to ensure prudence.
Dr. Sathvik Vishwanath highlighted the importance of owning your keys and avoiding large sums on exchanges for long periods. He advised withdrawing funds promptly, even with transaction fees. For better security, he suggested using multiple exchanges for custody and trading.
Drawing a parallel to the WazirX situation, he emphasized that both exchanges and users must learn from it. Exchanges like WazirX and Unocoin need to uphold trust and transparency, while users should understand and mitigate the risks of crypto investments.
The Sathvik further elaborated on the concept of diversification, stating that investors ought to diversify their assets in terms of classes, coins, tokens, custody solutions, and countries. This approach minimizes risk and increases safety in the unpredictable crypto space.
Sathvik stated, “In every possible way diversification is the key: different asset classes, different coins/tokens, different custody options, different countries if possible and definitely different exchanges etc.”
Sathvik said this and wished the victims of the WazirX incident justice and urged the crypto community not to lose hope. However, he was quick to state that crypto is still a good investment product that should be utilized by its users, responsibly and diversely.
Unocoin remains ready to assist its users by providing them with the ability to withdraw and store their funds safely. The co-founder further explained that this message has been with him for a long time, and he wants to protect and make sure that investors in the crypto space are safe.
Also Read: Pressure mounts on WazirX to return investor funds post 3 weeks of hack
