Impending ban does not scare Bitcoin veterans - How to Protect Your Cryptocurrency from the Government
The Chinese and South Korean plans to ban virtual currency trading are causing some investors to panic. Those who have been in business for a while, but stay calm.
Due to the recent market panic, the Bitcoin price collapsed more than a third to about $ 9100 in less than 48 hours. Just before Christmas he was still at $ 20,000. However, as the authorities' efforts to put a stop to the new and previously unregulated cyber-currency market, veterans of the crypto business have only a tired smile left.
"If the government closes all the local exchanges, investors can always open an account abroad," says a South Korean student. "I can ask a friend who studies abroad or goes there himself." A 30-year-old Seoul nurse has reportedly diverted to a Hong Kong stock exchange. According to South Korean industry insiders, there is already a trend towards emigration abroad.
The technology, your friend and helper
But there are also a number of technical options to avoid a ban, experts point out. As a first step, investors could build what is known as a Virtual Private Network (VPN), which transfers data between computers in encrypted form. Some exchanges, such as Shapeshift or Stellar Dex, require no proof of identification from their clients and can be used from anywhere in the world. Deposits opened there can be linked to online crypto currency accounts, so-called wallets, by providers such as Exodus or Jaxx, who also promise anonymity. Balances to Bitcoin & Co can also be bunkered in offline wallets in the size of a USB stick.
"My entire balance is in a hardware wallet the size of my thumb," says a Hong Kong-based investor who claims to hold cryptocurrencies worth about $ 1 million. "I have copies of my encryption passwords in a safe, I have accounts on four exchanges on three continents, if a government wants my money, good luck!"