Five Ways the Crypto World Has Become Safer than 10 Years Ago

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by Gianluca Longinotti August 29, 2022


In the past, the crypto world was seen as a Wild West where anything and everything went. Investors were at the mercy of scammers, and there were few regulations to protect them. 

However, in recent years things have changed dramatically. Here are five ways the crypto world has become safer than it was ten years ago.

A Fundamental Premise: The Crypto World Has Become More Mainstream 

Before mentioning the five aspects that allowed crypto to become safer, there’s a fundamental premise that needs to be done. And that is the acknowledgment that the crypto world has become more mainstream. In other words, it’s no longer on the fringes of society.

This is a crucial development because when something becomes more mainstream, it becomes subject to more scrutiny. And with more scrutiny comes more regulation and oversight.

#1 Regulations Have Been Put in Place to Protect Investors

Government regulations have been put in place to protect investors from the high-risk nature of cryptocurrencies. These regulations include rules from financial regulators such as the SEC and the Federal Reserve, as well as other government agencies.

One of the most critical aspects of these regulations is investor protection. For example, the SEC has issued several rules and regulations that mandate how companies can raise money through ICOs. 

These rules require that companies disclose essential information about their projects, such as the risks involved and who is behind the project.

The Federal Reserve has also established a working group to monitor cryptocurrencies and their risks. This working group aims to protect consumers and investors from potential scams and fraudulent activities.

Overall, government regulations have helped make the cryptocurrency world safer for investors. By requiring companies to disclose important information and establishing groups to monitor cryptocurrencies, governments are helping ensure that people invest safely.

#2 The Wallets Have Gotten More Secure

Another significant advancement in the crypto world is the security of wallets. These are the software programs that people use to store their cryptocurrencies. If a wallet is not secure, there is a risk of losing money. 

The Rise of the 2FA and Cold Storage Technologies

Fortunately, wallets have also gotten more secure in recent years. They have implemented many security measures, such as two-factor authentication (2FA) and cold storage. 

Two-factor authentication is an extra layer of security that requires users to input a code from their phone in addition to their password. This makes it more difficult for hackers to gain access to accounts. 

Cold storage is another security measure that keeps cryptocurrencies offline in a physical device, such as a USB drive. This makes it impossible for hackers to access the coins because they are not stored online. 

Overall, wallets have become much more secure, making the crypto world safer. 

#3 The Cryptocurrency Market Is Becoming More Sophisticated

One of the ways in which the cryptocurrency world has become safer is through the development of more sophisticated trading platforms. These platforms allow investors to buy and sell cryptocurrencies more quickly and accurately. 

Additionally, they provide investors with several tools and data points that help them make informed decisions about their investments.

This increased sophistication has led to many changes that have made the cryptocurrency world much safer than it was just a few years ago. For example, exchanges are now required to comply with some regulatory measures. 

This helps ensure that investors are protected from fraudulent activities. Additionally, many exchanges now offer insurance policies to protect investors if their funds are lost or stolen.

In general, the cryptocurrency world has become much safer in recent years thanks to the development of more sophisticated trading platforms and the implementation of a number of regulatory measures.

#4 Financial Institutions Are Getting Involved with Blockchain and Crypto

Banks and other financial institutions are getting involved in blockchain and cryptocurrency technology to make the space more secure. There are more regulations in the traditional financial system than in the crypto world, so their involvement could help make the sector safer. 

Major financial institutions are also investing in cryptocurrency and blockchain startups. This will help bring more stability to the crypto world and could lead to even more advances in this innovative technology.

A Real-Life Application of Blockchain Technology to the Banking System

For example, banks are starting to use blockchain systems to speed up transactions and make them more secure. JPMorgan Chase is one of the largest financial institutions involved in blockchain. They developed their blockchain system, Quorum, to help speed up transactions and reduce costs. 

This is just one example of how financial institutions are getting involved in blockchain technology to help make the space more secure. As more institutions get involved, we can expect even more security advances.

Traders Are More Educated on the Risks of Investing in Crypto

One reason the industry has become safer over the past ten years (when Bitcoin dominated the market) is that traders are more educated on the risks of investing in crypto. 

This is possible thanks to several significant events in the investors’ mindset, such as:

1)    In the early days of crypto, many investors were drawn to the asset class because it was new and exciting. They were not as focused on doing their due diligence and understanding the risks involved.

2)    The Mt. Gox hack in 2014 was a wake-up call for many investors. It showed that even the most popular exchanges are vulnerable to hacks. This led to more investors researching and only investing in exchanges they trust.

3)    The 2017 ICO craze showed that many projects are nothing more than scams. This led to investors becoming more cautious with their money and only investing in projects with solid teams and use cases.

These three shifts have led to a more educated investor base, making the crypto world safer.

Wrapping Up – Toward a Safer Market

The crypto world has become much safer in recent years due to the development of more sophisticated trading platforms, the implementation of a number of regulatory measures, and the increased involvement of financial institutions. 

These changes have made it much harder for scammers to operate and have led to more informed investors. As blockchain technology continues to develop, we can expect even more advances in security that will make the crypto world an even safer place to invest.



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Judith Harvey is a seasoned finance editor with over two decades of experience in the financial journalism industry. Her analytical skills and keen insight into market trends quickly made her a sought-after expert in financial reporting.