Why is Bitget stopping withdrawals now?

Bitget, a major player in the cryptocurrency exchange world, has declared a stop to the withdrawal services for three blockchain networks: COOKIE-BASE, COMAI-COMAI, and FUEL-ERC20. This stop is set to begin on December 29, 2024, and is meant to improve the trading experience for users. However, trading remains open during this time, allowing users to continue making transactions.

What measures does Bitget take to keep things stable?

To keep things stable during network suspensions, Bitget does a few key things. They stop deposit and withdrawal services to protect user assets during needed upgrades or maintenance. This is similar to what Upbit did with the NEAR Protocol network upgrade, where trading kept going while deposits and withdrawals were on hold. Bitget also sticks to stringent security standards, which include managing keys, two-factor authentication (2FA), anti-money laundering (AML) and know-your-customer (KYC) protocols, and regular audits. Constant monitoring along with an incident response plan are also in place to maintain stability.

What risks are there if you only use one crypto exchange?

Using a single crypto trading exchange for managing your digital assets carries a number of risks:

1. Security Risks: If the exchange is hacked, users could lose their money, as seen in the Coincheck hack where over $500 million was stolen.
2. Missing Protections: Many exchanges don’t have critical protections in place, making them more vulnerable to hacks and operational risks.
3. Structural Issues: Centralized exchanges are often susceptible to congestion and high fees. The collapses of entities like FTX and TerraUSD show this risk.
4. Market and Fraud Risks: Users could face market volatility, fraud, and liquidity risks.
5. Regulatory Risks: Not following regulations can lead to plummeting crypto prices and financial instability.

How can operational disruptions affect small businesses?

Operational disruptions in digital currency platforms can hit small businesses hard, especially in cross-border payments:

1. Trust Erosion: Security issues can damage the trust in the platform, affecting the financial institution's reputation.
2. Efficiency Issues: Delays in payments can disrupt supply chains and hurt customer satisfaction.
3. Stability Risks: Disruptions can create instability and affect public confidence, leading to delayed or failed transactions.
4. Financial Strains: Extra fees and bad exchange rates can squeeze small business finances.
5. Compliance Issues: Dealing with multiple regulatory environments can be hard, especially during disruptions.
6. Global Growth Barriers: Inefficient payments can hinder small businesses from expanding and competing internationally.

Are there exchanges offering instant withdrawals during suspensions?

Most cryptocurrency exchanges, including MEXC, CoinEx, Changelly, and BloFin, halt withdrawals during any network maintenance or suspension. They do not offer instant withdrawals during these times, which is standard. For example, Binance also pauses withdrawals during network upgrades.

Summary

Bitget's suspension of withdrawal services on COOKIE-BASE, COMAI-COMAI, and FUEL-ERC20 networks is a strategic measure aimed at improving user experience while keeping trading activities ongoing. By implementing security measures and maintaining open communication, Bitget works to ensure stability during these suspensions. However, relying solely on one crypto exchange carries significant risks, including security breaches and regulatory issues. Additionally, operational disruptions can negatively impact small businesses engaged in cross-border payments. At this moment, no exchanges provide instant withdrawals during network suspensions, emphasizing the need for continuous improvement in the crypto space.