Altcoins Talks - Cryptocurrency Forum
Learning & News => For Beginners => Basic Questions about Cryptos => Topic started by: Dabbystar on November 26, 2021, 01:38:13 AM
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As you become involved in the new digital monetary system known as cryptocurrency, it doesn't take long to recognize there's risk involved in these transactions.
Many investors today had faced many challenges as a result of their ignorance of the cyber thefts. And most are not willing to share their ugly experiences from thier omen. Of which I have experienced during my short stay as an investor.
Here are some common risks one could encounter during their process of stay in the crypto and Blockchain ecosystem.
1. As the world globally grow everyday digitally, so is the brain of a good scammer, here some scammers send you some email and it appears exactly as tho it was sent by a legitimate crypto currency company,.. don't be in a haste to invest with them, don't even try to click on the links in their message, try check if the logo of the company is identical and there's no slight difference or better still confirm from the help centers of the particular Blockchain using their websites.
2. What wallets do you use to store up your treasure?
So many fake wallets are in existence today, and these apps were created by scammers as a trap to withdraw every single coin you have stored into it. Watch the type of DExs of CExs wallets you use to store up your coins.
There are so many others everywhere, feel free to share some to get everyone especially the newbies aware of them and how not to fall for them. Thank you..
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Here's the story of my experience with Auschain Mining
In mid-November 2021, I was contacted on Telegram by a user name Evelyn Galya who has messaged me many times on Telegram trying to get into her false Bitcoin mining platform.
After several unsuccessful attempts, she said she will open up an account for me and make a deposit on my behalf in order to prove to me that this platform really pays. It was indeed paying on small amounts and I was investing every 5 days all the profit.
On 1.02.2022, this platform has claimed that they had maintenance work on their site and that my account encountered a down glitch. Due to this fact, I need to make another 50% deposit of my current account balance, in order to be able to withdraw the funds I had before the maintenance. This is a true scam!
I'd like to point out that all this time, Evelyn almost every day was messaging me trying to convince me to move to the next investment plan, saying that I will make a lot of money and will never regret investing with this company.
Besides that, she was pushing me to present this investment platform to my friends and family members because this platform has a Referral program and I will make even more money (What a BS!).
My husband invested $250 worth of Bitcoin, referred one of his friends, and I also opened up an account for my mother. Only me and my husband should receive a withdrawal of more than $1K each.
Should I mention that the technical support is awful? They are using Google Translate when speaking to you! Like robots answering your questions, when you are asking one thing, they are responding totally another thing.
I hope my story could help people stay away from this scammer!
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the security of the website? and the compensation policy?
lack of experience?
I am currently using copy trading on Bitget and MoonXBT.
Would u mind telling me if this is a good choice for a newbie?
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Biggest risk is clearly "stupidity" in general like putting all eggs on the same basket. Like keeping coins on single exchange or wallet, not to be aware of all ways you can be scammed or how your devices can be compromized, or how tax man is accessing account details if you don't have declared everything etc. In DeFI we trust and stupidity emptiess your wallet :)
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Cryptocurrencies of money aren't upheld by an administration or national bank. In contrast to most traditional currenciesforms, like the U.S. dollar, the worth of a cryptographic money isn't attached to guarantees by an administration or a national bank. On the off chance that you store your cryptocurrency on the web, you don't have similar insurances as a bank account.Buying, selling and holding cryptocurrency is profoundly speculative and implies a significant degree of risk.If you want to explore more about how to invest in social trading cryptocurrency and their best platforms to invest in it .
Visit us to know :
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These are some common but underrated risks involved in Cryptos:
Buying a cold wallet to keep Crypto from a Malicious website
No central authority means no third-party protection like the traditional system
Irreversible transactions risk
Price Volatility
Unexpected hikes of Government Tax
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Cryptos are volatile - There have been many instances when we have witnessed sudden movements in the crypto market. Even the most popular 'Bitcoin' fell from $61,837 in Oct 2021 to $20,108 in June 2022.
No central authority - Though decentralization is the root cause of the emergence of Crypto coins, it can be the biggest threat to its future.
Government taxes or sudden bans - There is a high risk of the government imposing hefty taxes on crypto trade or even banning it in their country to safeguard the centralized banking system.
Losing Private Key - It is always recommended to note down the private keys and keep them somewhere secure but what if the keys are lost? There is no way one can recover their private key.
Irreversible transaction - Once a transaction is done, it can never be reversed. We are humans and we make mistakes but in the crypto world, a mistake can cost us a lifetime of wealth.
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While in principle the Bitcoin blockchain has proven to be among the most cyber resilient innovations thus far, the companies that plug into it, like other cryptocurrencies, are often new entrants with lax cybersecurity standards and wherewithal.
By this measure, not all cryptocurrencies are created equal in term of their traceability, transaction ledgering and levels of trust or fiduciary responsibility.
For this, risks as simple as ‘mysterious disappearance’ and as complex as ransomware attacks and bots scouring the Internet for weak links and easy prey are complex and fast-moving perils.
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The common risks involved in crypto include volatility in prices, hacking attacks on exchanges and wallets, regulatory uncertainty, and the potential for scams and frauds in the industry. It's important to stay informed and take measures to protect your investments. The Moon provides you with all the latest updates related to cryptocurrency.
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Cryptocurrencies have their advantages but also their disadvantages. In this there are many cases where hackers have unethically stolen money from many people. Among those who join various airdrops, some airdrops often ask to connect a wallet, which can put you at risk in most cases. Through this they can attack your wallet. So I would say stay away from campaigns that are run with the lure of paying some money on various airdrops. Also it is better to keep your cryptocurrency password or pass key in an offline medium instead of digital medium. Otherwise, your account may be at risk. There are also many other things.
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The most common risk which newbies usually experience is lost of asset to scammers and also the risk of volatility of cryptocurencies which can cause an investor's asset to get liquidated. Crypto enthusiasts whose assets are likely to be liquidated are traders. For scammers, it's one thing that is inevitable in the crypto space and newbies who lack a quality knowledge about crypt will always fall victim.
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As the world globally grow everyday digitally, so is the brain of a good scammer, here some scammers send you some email and it appears exactly as tho it was sent by a legitimate crypto currency company,.. don't be in a haste to invest with them, don't even try to click on the links in their message, try check if the logo of the company is identical and there's no slight difference or better still confirm from the help centers of the particular Blockchain using their websites.
Good advice but you can minimize the risk of getting scammed through a phishing links by not making use of the same device for storing your funds and online activities. Store a large chunk of your digital assets in a cold storage and keep a small portion on your online software wallet for daily transactions. Also, avoid displaying your email on public forum or signing up on malicious websites.
What wallets do you use to store up your treasure?
So many fake wallets are in existence today, and these apps were created by scammers as a trap to withdraw every single coin you have stored into it. Watch the type of DExs of CExs wallets you use to store up your coins.
Hardware wallets are the safest but it is advisable to only purchase from the official website or authorized merchants to avoid buying a tempered hardware device. Electrum, sparrow and blue wallet are also good open source software wallets but make sure to download from the official website.
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Common risks that are involved in crypto?
Well, here are may be the simple lists:
1. Losing money, the reasons:
- Involved in scam projects
- Future trading done by newbies
- Buying hype coins without understanding the scheme
- Panic buying and panic selling without any wise consideration
2. Hacked assets because of low security system
3. Losing assets because of still using exchange or even online wallet
And some others.
That is why after knowing some of the risks, we must be ready for the risk. After that, we must prepare how to at least avoid the risk as can as possible. Those risks will be higher if we are entering crypto without any good preparation in many thing, especially the knowledge.
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People who do not know what they are doing and those who have bad opsec usually lose their coins, the first risk is buying BTC or any other crypto without research and knowledge of what you are actually doing, so many people buy coins because others are buying and they think it will make them reach.
Operational security is also very important, and it covers the wallet you use, the enviroment you use it in and how your back up and store your seed phrase, users with great opsec hardly lose any funds.
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2. What wallets do you use to store up your treasure?
So many fake wallets are in existence today, and these apps were created by scammers as a trap to withdraw every single coin you have stored into it. Watch the type of DExs of CExs wallets you use to store up your coins.
Since I stick to the principle of "Not your key, not your coin," I always use non-custodial wallets to store significant amounts of assets. Up to now, I still keep them in Electrum for Bitcoin assets, while for some altcoins, I store them in Unstoppable Wallet. For larger amounts of altcoins, I use Metamask for storage.
The best advice is to use a cold wallet or a hardware wallet. That way, you can securely store both Bitcoin and altcoins. The added layer of security provided by these USB devices enhances the safety of your wallet, giving you extra peace of mind.
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When we are talking about the risk of involved in crypto, it may tend to be how we may lose our money.
Many people enter the world of cryptocurrency because they want high profits. Crypto is considered to be one of the things that really provides high profits. However, some people forget that crypto also has very high risks.
Many people lose money in crypto because their mindset is that they want to have a lot of money later. Moreover, they don't have sufficient knowledge and then give up investing in bad projects. This would actually be very dangerous and pose a high risk to anyone. and I think losing money is a very bad thing for some people or maybe most people.
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Many people lose money in crypto because their mindset is that they want to have a lot of money later. Moreover, they don't have sufficient knowledge and then give up investing in bad projects.
It happens a lot, it is going to be very difficult to educate people that BTC is not a get rich quick scheme, once they hear about BTC, to them it is an opportunity to make money, but that is not so. It is easy to invest your money into a scam or useless project when you are desperate to get rich quick, before buying crypto you must know what the risks are, and do your research about the coin yoy want to buy.
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The most common risk in the crypto market is that the market is uncertain and anything can happen at any time in the market and you have to risk money in this uncertain market. I think this is one of the most common risks in the crypto market. No trader or any investor can say for certain which direction the market will go but those who have enough knowledge about the business and those who understand the market well can make some predictions and with some guidance can imagine which direction the market will go. But it is a very common thing that skilled new old investors of all types or traders of all types must take money risk.
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Risk in cryptocurrencies refers to losses after investing or trading. There are many other risks beyond these two which I am not in a position to tell in detail but will give some hints. Many times we invest without understanding anything before making a decision to invest, so if we don't feel the need to do any research about the project, there is definitely more chance of loss than profit from this investment. Moreover, we often invest in Shit coins while investing in haste, there is a big risk in this too.
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Moreover, we often invest in Shit coins while investing in haste, there is a big risk in this too.
Losses will not look at anyone, even if the person is a professional trader and investor.
I myself quite often enter shitcoin only at a few moments of hype and get quite a lot of profits and fast.
But in the end it also gave me a big loss.
The shitcoin project I bought was too fast for scam and Rugpull,
This became a lesson for me personally to be more vigilant though against any project, not just on shitcoin.
See how LUNA, UST who has Dev is thief and irresponsible.
Though LUNA is the top coin, so must be wary of everything.
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Moreover, we often invest in Shit coins while investing in haste, there is a big risk in this too.
Losses will not look at anyone, even if the person is a professional trader and investor.
I myself quite often enter shitcoin only at a few moments of hype and get quite a lot of profits and fast.
But in the end it also gave me a big loss.
The shitcoin project I bought was too fast for scam and Rugpull,
This became a lesson for me personally to be more vigilant though against any project, not just on shitcoin.
See how LUNA, UST who has Dev is thief and irresponsible.
Though LUNA is the top coin, so must be wary of everything.
There is no problem investing in Shitcoin just make sure that you did good research before you invest and you're right professional traders are investing in shitcoin because they know the higher the risk the higher reward they can get.
I'm not the same as traders who buy them in my case before I earn them by promoting them or by doing captchas I hold them for the long term and after block halving I got a big profit holding those shitcoins even it is risky to hold them since I got it free by promoting or by doing captcha I'm not afraid to lose them because I just earn without investing them. That's only difference but without the risk we can't make a good profit.
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Maybe I should try a little more higher in listing some observable common risk we often take without knowing while trying to get involved in any cryptocurrency related activities in the economy, some of them were as follows.
1. Risk
2. Too know
3. Impatient
4. Absent of information
5. Careless attitude
6. Indecision
These and many more are the constitutes of how we got involved in the cryptocurrency risk on ourselves, we can see that the ones we mostly contributed are more than the ones we often encounter in crypto.
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Here's the story of my experience with Auschain Mining
In mid-November 2021, I was contacted on Telegram by a user name Evelyn Galya who has messaged me many times on Telegram trying to get into her false Bitcoin mining platform.
After several unsuccessful attempts, she said she will open up an account for me and make a deposit on my behalf in order to prove to me that this platform really pays. It was indeed paying on small amounts and I was investing every 5 days all the profit.
On 1.02.2022, this platform has claimed that they had maintenance work on their site and that my account encountered a down glitch. Due to this fact, I need to make another 50% deposit of my current account balance, in order to be able to withdraw the funds I had before the maintenance. This is a true scam!
I'd like to point out that all this time, Evelyn almost every day was messaging me trying to convince me to move to the next investment plan, saying that I will make a lot of money and will never regret investing with this company.
Besides that, she was pushing me to present this investment platform to my friends and family members because this platform has a Referral program and I will make even more money (What a BS!).
My husband invested $250 worth of Bitcoin, referred one of his friends, and I also opened up an account for my mother. Only me and my husband should receive a withdrawal of more than $1K each.
Should I mention that the technical support is awful? They are using Google Translate when speaking to you! Like robots answering your questions, when you are asking one thing, they are responding totally another thing.
I hope my story could help people stay away from this scammer!
The story you shared about your encounters with scammers is mostly about the way they operate. They would like to bring you a special offer that will get hooked up with them, like paying the amount they are requesting so that you can be able to withdraw your balance with them.
A friend of mine experienced the same thing as yours a few months ago and she felt like killing herself because of it. They scammed all of her money just because she wanted to withdraw the money stocked on the scammer's site because of their lies about "maintenance".
Why people fall victim to this kind of scam mostly because of greed, to get more. If someone would remove greed from their mind, they would hardly fall victim to scams because they wouldn't be moved by their fake offers
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Why people fall victim to this kind of scam mostly because of greed, to get more. If someone would remove greed from their mind, they would hardly fall victim to scams because they wouldn't be moved by their fake offers
Greed is one very strong reason why people fall for scam, but there are others, like when one has bad opsec, that person could expose their seed phrase without even knowing it, or when a person has no knowledge about the network and the industry, they could store a large amount of coins in an exchange or in an online wallet.
It is recommended that people know what they are doing before buying crypto, if you only think about getting very rich after buying it, you will lose the coin before you even start dreaming.
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There is no problem investing in Shitcoin just make sure that you did good research before you invest and you're right professional traders are investing in shitcoin because they know the higher the risk the higher reward they can get.
If we have good knowledge about the shitcoins, it is okay to invest in them. It is only a problem if we have lack of knowledge about them. It will be very risky because the prices are very volatile, the prices easily changed drastically. For average investors/traders, it is better to choose reputable coins only. The top 20 coins are quite safe for the investment for average people.
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I'm not the same as traders who buy them in my case before I earn them by promoting them or by doing captchas I hold them for the long term and after block halving I got a big profit holding those shitcoins even it is risky to hold them since I got it free by promoting or by doing captcha I'm not afraid to lose them because I just earn without investing them. That's only difference but without the risk we can't make a good profit.
Do you want to say about DOGE that you got easily before the price went crazy.
In the past, DOGE was only considered a shitcoin or memecoin that did not have any utility,
so it only looked like a worthless and very cheap junk coin.
But after Elon Musk became a fan, DOGE became The Father of memecoin or Shitcoin.
Long-term holding will give tremendous profits.
I also made thousands of dollars profit overnight when Elon Always posts about DOGE on Twitter.
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I would say that there are basically two common risks to consider and ways to mitigate them: Avoid borrowing money to buy crypto, and refrain from staking high amounts if you tend to be too emotional. Our response to situations in the crypto space influences how long we can hold.
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There is no problem investing in Shitcoin just make sure that you did good research before you invest and you're right professional traders are investing in shitcoin because they know the higher the risk the higher reward they can get.
It's never a problem if the amount you invest doesn't affect your finances when you lose it. High risks often appeal to some people, so it's understandable if some see it as not dangerous (because they understand it) and others see it as risky because the stakes aren't small.
For those hoping for gains from "shitcoins," it's wise to stick to effective investment strategies. Shitcoin movements can be highly volatile.
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Do you want to say about DOGE that you got easily before the price went crazy.
In the past, DOGE was only considered a shitcoin or memecoin that did not have any utility,
so it only looked like a worthless and very cheap junk coin.
But after Elon Musk became a fan, DOGE became The Father of memecoin or Shitcoin.
Long-term holding will give tremendous profits.
I also made thousands of dollars profit overnight when Elon Always posts about DOGE on Twitter.
Actually, these are the only coins that you can earn from faucets before Doge, LTC, and Bitcoin when I entered into crypto someone paid me in Dogecoin by doing captcha typing it is safe than investing I hold them and make a profit even without the help of influencer like Elon Musk Doge coin increase every altcoin season or every end of the Bitcoin BlockHalving months or a 1 year you should be able to see the price increase of this memecoin.
Yes, it is a shitcoin but dev cores have become serious about developing this coin until now.
Look at the market almost all exchanges doge coin is listed do you think this coin is still a shitcoin? For me, no there is no shitcoin that survives long the same as dogecoin.
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I would say that there are basically two common risks to consider and ways to mitigate them: Avoid borrowing money to buy crypto, and refrain from staking high amounts if you tend to be too emotional. Our response to situations in the crypto space influences how long we can hold.
I think there are more to the ones you have mentioned. If you must buy a coin, let it be the coin that you understand, you don't buy a coin because other people feel like buying it, you will enter danger zone that you may find difficult to get out from. You should also avoid keeping coins on exchange, this is another risk that is less discussed because the centralized exchanges has brains braijsn wash their head, they don't realize untill it has fell off.
If you want to last long in crypto, avoid coins that are been influenced by the influence, most often the coins are always and even when there is bad side of the coin, they influencers don't talk about it. We have many of them that were later dragged last year for telling them to buy coins that are not worth it and they are all dead now because they have sold their bags.
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There are so many others everywhere, feel free to share some to get everyone especially the newbies aware of them and how not to fall for them. Thank you..
The most common factor is greed, when we are greedy we are blinded by the hype and false marketing of fake projects, we should educate ourselves on what to look for in a project with good potential in the market not just greed for profit, we need to check the usability of the token, the roadmap and check the credentials of the people behind the project, and second is lack of knowledge on what to look for a project, majority of the projects now are fake or cash cows of its developers, only if you are educated enough can you avoid these type of coins.
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I don't know why some people don't first try to analyze the risk involved in cryptocurrency before going into it, they most especially use to have a different perception far from what the digital network is all about, another thing is that they don't also make research on any crypto before investment, i don't know maybe its all about their laziness or the way they least place value on their crypto asset.
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and second is lack of knowledge on what to look for a project, majority of the projects now are fake or cash cows of its developers, only if you are educated enough can you avoid these type of coins.
Truly there are a few things to check if you want to invest in a new project, but take note that checking all of that does not mean you are going to be lucky and get a good project, you may still be scammed or buy a project that ends up useless in no time. Avoiding scam coins is very difficult if you buy a lot of new projects, the chances that you won't buy many useless coins is slim to none.
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I don't know why some people don't first try to analyze the risk involved in cryptocurrency before going into it, they most especially use to have a different perception far from what the digital network is all about, another thing is that they don't also make research on any crypto before investment, i don't know maybe its all about their laziness or the way they least place value on their crypto asset.
Lack of adequate knowledge, greed, misinformation and laziness that you mentioned can actually cause Newbies to fall victims of the risk that are involved in cryptocurrency. I remember I fel victim a few times too when I early started my journey in crypto but I learned from my mistakes and become better in crypto dealings.
If anyone wants to go into cryptocurrency, let them first learn and understand all the necessary education which they need because that's what will prevent them from falling victim.
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It seems that you have only mentioned the risk of frauds and hacking, but there are other typical risks connected to cryptocurrencies as well.
One of the main risks connected to cryptocurrencies is volatility. Cryptocurrency investments are dangerous since their value can change quickly and without warning. For example, in 2017, the price of Bitcoin rose from around $1,000 to nearly $20,000, before crashing back down to around $3,000. This rapid and unpredictable rise and fall was due to a combination of factors, including speculation, hype, and news events. This volatility increases the chance of losing money even if it can also present opportunities for gain.
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Actually, these are the only coins that you can earn from faucets before Doge, LTC, and Bitcoin when I entered into crypto someone paid me in Dogecoin by doing captcha typing it is safe than investing I hold them and make a profit even without the help of influencer like Elon Musk Doge coin increase every altcoin season or every end of the Bitcoin BlockHalving months or a 1 year you should be able to see the price increase of this memecoin.
Yes, it is a shitcoin but dev cores have become serious about developing this coin until now.
Ahh ok-ok, you seem to really enjoy a job that initially only looks like a toy, just typing Captcha and getting paid with cheap Coins like DOGE back then.
You start your crypto journey with DOGE, which became a legendary coin and can even hold it for the long term.
Elon Musk is just like a new student who entered the Doge ecosystem and became a big fan.
Shitcoin like DOGE alone has a lot of community, and they also do DOGE mining, this is certainly very amazing.
Look at the market almost all exchanges doge coin is listed, do you think this coin is still a shitcoin? For me, no, there is no shitcoin that survives long the same as Dogecoin.
I first came to Crypto that I saw only 3 Coins, BTC, LTC and DOGE, Not almost but all exchanges automatically register DOGE as the main coin and as History of Crypto.
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Shitcoin like DOGE alone has a lot of community, and they also do DOGE mining, this is certainly very amazing.
It was also my first coin, and regardless of what others think, I would not agree that we should put it in the "shitcoins" category, because it has survived to this day, unlike most of those that failed long ago. What has set that coin apart from others has always been a large community that has actually maintained it until today, and what prevents it from having a higher value is the fact that it has an unlimited supply.
What are common risks involved in crypto?
Regardless of what others have already mentioned, I think ignorance and rashness are the main reasons people lose their investment. If you know that everything that is too good to be true very likely implies that it is a scam and if you are not hasty in your decisions, in 99% of cases you will make the right decision.
Although I would take a step back and say that the internet as a tool is a huge risk, and that all those who do not know how to use it should avoid investing in cryptocurrencies.
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There's this two common risk and mistakes people often do in cryptocurrency and this is more common to newbies that are just being newly introduced to crypto.
the first one is investment non shitcoin scam, not everyone knows the way to go about in choosing the right coin for themselves, instead they go by the way some of these coins were being advertised.
the second one is the trading risk in cryptocurrency, some believed that since they have the opportunity of earning through crypto trading, they can just start without having the experience of doing it and eventually lose at the end
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There's this two common risk and mistakes people often do in cryptocurrency and this is more common to newbies that are just being newly introduced to crypto.
the first one is investment non shitcoin scam, not everyone knows the way to go about in choosing the right coin for themselves, instead they go by the way some of these coins were being advertised.
the second one is the trading risk in cryptocurrency, some believed that since they have the opportunity of earning through crypto trading, they can just start without having the experience of doing it and eventually lose at the end
I think both points you've mentioned are interconnected with each other because a person who lacks knowledge and experience will not know which cryptocurrencies are good and which are bad and which they should choose for their investments.
So the most common mistake among newbie investors is that they don't gather or gain enough knowledge before they venture into trading which is why many of them lose money and then start abusing the market and leave trading and cryptocurrencies forever instead of correcting themselves and their mistakes.
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1. As the world globally grow everyday digitally, so is the brain of a good scammer, here some scammers send you some email and it appears exactly as tho it was sent by a legitimate crypto currency company,..
Scams, are always existed in the crypto business.
As you said, it can be in the form of scam projects, scam platform pretending like the official ones, phishing links, and other scam methods. And commonly, most of them are quite the same if we analyze the method.
Even it is a free program like airdrop and other project type promotions, if they are asking for some funds at first or they need to see your wallet seed phrase or other important data, we must be careful of this.
Cz it is suspicious enough to do it. And it is better to avoid this kind of involvement.
Related to the phishing links, never click immediately a link sent to your email. Watch out of any possibilities.
2. What wallets do you use to store up your treasure?
If making it for long term, it is much better if storing our assets in the hard wallet. But sometimes, it is different if we are willing to use the coins for trading, we may diversify it into reputable exchange.
Other risks of being in crypto spaces:
- Loss the money because of future / even spot trading
- Being stressful and frustrated because dropped value of investment assets
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Shitcoin like DOGE alone has a lot of community, and they also do DOGE mining, this is certainly very amazing.
It was also my first coin, and regardless of what others think, I would not agree that we should put it in the "shitcoins" category, because it has survived to this day, unlike most of those that failed long ago. What has set that coin apart from others has always been a large community that has actually maintained it until today, and what prevents it from having a higher value is the fact that it has an unlimited supply.
Yea, you are right, @Lucius. I was a very big fan of altcoins, but due to the experiences I had with failed projects and the fact that my investment was lost, I just lost interest in altcoin projects. Dogecoin was already in existence before I started my journey in space, and then the price of a doge coin was worthless, and there were so many airdrops I did then and earned billions of free doge coins. I will also not classify the doge coin as a shit coin because it has survived through the passage of time. Many shitcoins have failed, but the doge coin was still standing tall.
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Yea, you are right, @Lucius. I was a very big fan of altcoins, but due to the experiences I had with failed projects and the fact that my investment was lost, I just lost interest in altcoin projects. Dogecoin was already in existence before I started my journey in space, and then the price of a doge coin was worthless, and there were so many airdrops I did then and earned billions of free doge coins. I will also not classify the doge coin as a shit coin because it has survived through the passage of time. Many shitcoins have failed, but the doge coin was still standing tall.
That is one of the risks presented by altcoins, because altcoins sometimes provide a lot of profits, sometimes they also provide losses, it depends on you how you can respond to this wisely because it has been informed that altcoins always have very high risks, including meme coins like Doge, Shiba and others. So you have to be more careful when entering altcoins and make it an important experience so that you don't choose the wrong new project.
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2. What wallets do you use to store up your treasure?
So many fake wallets are in existence today, and these apps were created by scammers as a trap to withdraw every single coin you have stored into it. Watch the type of DExs of CExs wallets you use to store up your coins.
When a new technology is having an uprise, it’s not out of place that it would be persecuted and leveraged by anyone and everyone who sees an opportunity within that space, legally or illegally.
Scammers have been everywhere and some means by which they’ve been able to divert user funds is by creating these cloned wallets.
Scammers basically clone wallets, websites and create fake investment platforms to trick you into having the confusion that it’s the original and with the irreversible nature of cryptocurrency transactions, once it’s sent and have got a single confirmation on it, it’s no longer within your rights to own it.
Hence. It’s become of great importance to do roper research on what wallet or site you’re saving or investing your money as, these clones does exists and is a window for losses. Always looking up for official website and downloads from there links has been some ways to save yourself the trouble.
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When a new technology is having an uprise, it’s not out of place that it would be persecuted and leveraged by anyone and everyone who sees an opportunity within that space, legally or illegally.
Scammers have been everywhere and some means by which they’ve been able to divert user funds is by creating these cloned wallets.
Scammers basically clone wallets, websites and create fake investment platforms to trick you into having the confusion that it’s the original and with the irreversible nature of cryptocurrency transactions, once it’s sent and have got a single confirmation on it, it’s no longer within your rights to own it.
Hence. It’s become of great importance to do roper research on what wallet or site you’re saving or investing your money as, these clones does exists and is a window for losses. Always looking up for official website and downloads from there links has been some ways to save yourself the trouble.
Unfortunately, nowadays it is increasingly difficult to track sites that try to phish or hack from sites connected to your personal wallet. When you want to make a transaction on a site, I prefer to use a second wallet so that the transaction is safer and does not pose a threat to The main wallet that has a lot of stored assets.
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Ignorance is one big risk that everyone investing in cryptocurrency should avoid. People have made costly mistakes that cost them their hard earned investment out of ignorance. It is not usually easy recovering from a huge loss simply because you didn't know and was never informed about the consequences of the actions you took. It is better for every cryptocurrency investor to first make researches about what they are investing in, read lots of contents on cryptocurrency, best wallet to store your earnings and cyber security tips. Don't stop reading and asking questions because ignorance is very risky.
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It is better for every cryptocurrency investor to first make researches about what they are investing in, read lots of contents on cryptocurrency, best wallet to store your earnings and cyber security tips. Don't stop reading and asking questions because ignorance is very risky.
Yes, every beginner investor should implement this kind of thing to keep their investment safe.
After all, the crypto market is risky and unpredictable.
Many dangers will threaten the assets we have, and even professional people are not spared from these dangers.
See how people who have been in crypto for a long time lose their money very easily in crypto due to hacking.
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The common risks in crypto is lacks concrete financial metrics ,making valuation ambiguous , some common risks , regulatory risks, volatility complexity risks ,liquidity risks , market, black mailing scams, security, fake crypto exchanges , operational risks and many more.
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Common risks in cryptocurrency include market volatility, security vulnerabilities leading to hacking and theft, regulatory uncertainty, liquidity issues, technology flaws, adoption challenges, operational disruptions, scam and fraud schemes, and the risk of losing access to funds. It's crucial for investors to understand and manage these risks effectively when participating in the cryptocurrency market.
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There's a lot of common risk involved in crypto maybe include the market volatility, fake crypto exchange, regulatory supplies, adoption challenges and those risk lets be consider.
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The general risk in cryptocurrency is our own responsibility because I am sure that looking at how cryptocurrency works, it is absolutely all within ourselves, losing money or being hacked will all be up to ourselves.
Not to mention the very rapid rise and fall in prices and this means that we will definitely experience a decline in portfolio and that is absolutely within our own control.
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As you become involved in the new digital monetary system known as cryptocurrency, it doesn't take long to recognize there's risk involved in these transactions.
Many investors today had faced many challenges as a result of their ignorance of the cyber thefts. And most are not willing to share their ugly experiences from thier omen. Of which I have experienced during my short stay as an investor.
Here are some common risks one could encounter during their process of stay in the crypto and Blockchain ecosystem.
1. As the world globally grow everyday digitally, so is the brain of a good scammer, here some scammers send you some email and it appears exactly as tho it was sent by a legitimate crypto currency company,.. don't be in a haste to invest with them, don't even try to click on the links in their message, try check if the logo of the company is identical and there's no slight difference or better still confirm from the help centers of the particular Blockchain using their websites.
2. What wallets do you use to store up your treasure?
So many fake wallets are in existence today, and these apps were created by scammers as a trap to withdraw every single coin you have stored into it. Watch the type of DExs of CExs wallets you use to store up your coins.
There are so many others everywhere, feel free to share some to get everyone especially the newbies aware of them and how not to fall for them. Thank you..
The value of a cryptocurrency might fluctuate greatly and continuously. A thousand dollars' worth of investment now might only be worth a hundred dollars tomorrow. There's no assurance that the value will climb again if it drops. Cryptocurrencies are not a risk-free investment because of anything.
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The value of a cryptocurrency might fluctuate greatly and continuously. A thousand dollars' worth of investment now might only be worth a hundred dollars tomorrow. There's no assurance that the value will climb again if it drops. Cryptocurrencies are not a risk-free investment because of anything.
Hmmm... that is indeed a risk too, but it is a risk from the market, not a risk from the existence of cryptocurrency in general.. what I mean is that with cryptocurrency, someone could experience losses or become a victim of crime... be it fraud, or hacking... this is a more general risk regarding cryptocurrency without linking to market conditions or investment.
Some suggestions that might need to be considered are, when you find out that your important data has been hacked, it means that there is something unsafe for everything around you... whether the device you are using has been hacked, or maybe someone close to you is trying to do something to your property... so, make sure not to interact too often with your sensitive data on the internet, it is really something dangerous.
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For new crypto users, the amount of such risk will be high. Investing in cryptocurrencies may seem attractive to new investors who want to make easy profits with little risk. However the simple investments in cryptocurrencies can be high in risk. Many have profited even become millionaires from investing in cryptocurrencies, but the volume of that story is small. I think most newbies are more prone to scamming in crypto. Since there is no regulatory authority for cryptocurrencies, many new investors fall into scams and lose everything.
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At the beginning, I was looking for popular wallets, exactly as they are presented, with of course a search about them before I start using them, however, it turned out to be quite easy for hackers, they waited and managed to steal from me. Now I am in what is the choice of a smaller wallet that is enough to be an extension to the Internet browser, I have been using it longer than the stolen one that works and functions at such a good level of security. There is a risk in sending and receiving both from the wallet and from any exchange office, but the problem is in the wallet, which is marked for theft by them.
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I don't know why some people don't first try to analyze the risk involved in cryptocurrency before going into it, they most especially use to have a different perception far from what the digital network is all about, another thing is that they don't also make research on any crypto before investment, i don't know maybe its all about their laziness or the way they least place value on their crypto asset.
Exactly, and this is the reason why many people get scammed or lose their money in the name of investment because they lack the knowledge of how the coin they invested works; they don’t care to know the fact that about that coin all they want is profit from their investment; they forget that it won’t work that way.
However, this is not laziness but the way they least value things, even when they know that this is crypto and everything can happen to your money if you try any careless move. They don’t care how it goes; all they want is to make money.
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I don't know why some people don't first try to analyze the risk involved in cryptocurrency before going into it, they most especially use to have a different perception far from what the digital network is all about, another thing is that they don't also make research on any crypto before investment, i don't know maybe its all about their laziness or the way they least place value on their crypto asset.
Exactly, and this is the reason why many people get scammed or lose their money in the name of investment because they lack the knowledge of how the coin they invested works; they don’t care to know the fact that about that coin all they want is profit from their investment; they forget that it won’t work that way.
However, this is not laziness but the way they least value things, even when they know that this is crypto and everything can happen to your money if you try any careless move. They don’t care how it goes; all they want is to make money.
Falling victim of such scam is common for beginners who are very lazy to learn or do research about cryptocurrency. Sometimes, FOMO is another cause of getting scammed or losing money in cryptocurrency because most of our newbies are after quick profit, and they will be after what any coin that is trending, and they will just invest in the coin regardless of the outcome, they don't care about doing research on any project, which is very wrong.
For newbies with the aim of getting quick money, they should consider learning crypto trading tat they can gain always if they have good knowledge and great strategy.
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However, this is not laziness but the way they least value things, even when they know that this is crypto and everything can happen to your money if you try any careless move. They don’t care how it goes; all they want is to make money.
it’s still both laziness and greed imo
they are so greedy and want to get rich quickly i mean who doesn’t but these people are so desperate to get money but too lazy to actually put in the effort of learning people seem to think that money grows on trees or falls from the sky
there is no easy money and if you are too lazy to make hard work then don’t even expect to get rich
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For new crypto users, the amount of such risk will be high. Investing in cryptocurrencies may seem attractive to new investors who want to make easy profits with little risk. However the simple investments in cryptocurrencies can be high in risk. Many have profited even become millionaires from investing in cryptocurrencies, but the volume of that story is small.
New users will usually look at the potential profit and not the possible risks hence we have new investors who lost money with memecoins that they think will soar in value but instead went to grave. Yes, only a small percentage of investors with risky new coins do make big money and since they are making headlines more and more new investors are thinking they can experience the same. There are many opportunities in the cryptocurrency market but at the same time there will always be big risks involved especially if one is not really careful...there are so many scams and frauds going around aside from possible hack one may experience in one's wallet. Right now, we are still in the Wild Wild West era of cryptocurrency so one must educate himself to separate the wheat from the chaff. With one has experienced being scammed, one will surely learn a lot.
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New users will usually look at the potential profit and not the possible risks hence we have new investors who lost money with memecoins that they think will soar in value but instead went to grave. Yes, only a small percentage of investors with risky new coins do make big money and since they are making headlines more and more new investors are thinking they can experience the same. There are many opportunities in the cryptocurrency market but at the same time there will always be big risks involved especially if one is not really careful...there are so many scams and frauds going around aside from possible hack one may experience in one's wallet. Right now, we are still in the Wild Wild West era of cryptocurrency so one must educate himself to separate the wheat from the chaff. With one has experienced being scammed, one will surely learn a lot.
You said well, we must have enough knowledge that we could separate the wheat from the chaff, as it doesn't ensure you will be safe from hacks and scams as only we will be responsible for our mistakes, like if we click on some spam link even have the necessary knowledge, but in hurry, we clicked on it or downloaded some pirated or malicious program on our device can also lead to such scams.
The era of crypto at the moment is so wild that hackers hack the accounts of celebrities and they share some news about "Investing in some X coin" that X coins go high and the scammers rug pull the X project when getting enough liquidity or they ask followers to connect their wallets to receive some NFT (like happened with Vitalik's account).
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For new crypto users, the amount of such risk will be high. Investing in cryptocurrencies may seem attractive to new investors who want to make easy profits with little risk. However the simple investments in cryptocurrencies can be high in risk. Many have profited even become millionaires from investing in cryptocurrencies, but the volume of that story is small. I think most newbies are more prone to scamming in crypto. Since there is no regulatory authority for cryptocurrencies, many new investors fall into scams and lose everything.
For the newbies, I agree with what you said because newbies loves to hear crypto that gives crazy profits, they are obsessed with any coin that can make them millionaires and that's why you see them hanging around altcoins all the time, they just want to make money and in the process of making the money, they invest into something that is very bad.
Now that crypto is full of meme trends, rate at which people are losing money into meme is crazy because the profits some of them has made for some people is unbelievable just for buying meme coins but that doesn't mean if another person tried it meme coin investment is going to work
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The general risk in cryptocurrency that I seem to notice is hacking because the word "hacking" is very common to see in various Telegram channels. Hopefully everyone who trades, invests or is in the cryptocurrency circle can avoid hacking. For example, I have 1 Solana coin in a personal wallet and then it is hacked, of course I will feel disappointed and depressed because my 1 Solana coin asset was stolen by a hacker.
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People who do not know what they are doing and those who have bad opsec usually lose their coins, the first risk is buying BTC or any other crypto without research and knowledge of what you are actually doing, so many people buy coins because others are buying and they think it will make them reach.
Operational security is also very important, and it covers the wallet you use, the enviroment you use it in and how your back up and store your seed phrase, users with great opsec hardly lose any funds.
Yes you are right buying cryptocurrencies like Bitcoin without knowing risks can lead to financial losses. Some of us invest just because others do hoping to make quick money. By the way security is important. Using secure wallet and being careful online and safely storing backup codes reduces risk of losing funds.
Investing wisely requires research. Do not invest just because others are doing. Learn about cryptocurrency risks and take steps to protect your money. So always be careful and don't compromise on security.
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Let's start with how you invest. For lack of knowledge about crypto is one of the common risks. We entered crypto here to earn from our investment. Meaning, if we don't know what we are doing we will lose our money. One of those is if you don't know how to analyze the market fundamentally and technically. Second is the basics of trading cryptocurrency, if you type wrong numbers such as prices you may lose. Those are common risks that should not be ignored for me.
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Scams and Scammers that I have noticed so far are present in cryptocurrency because when I first learned about cryptocurrency it was through Telegram and there were so many scammers who DM me giving strange links that I thought were Scam links. For example, I click on the website and then go to their website, the result will change to hacking.
Maybe in other businesses, there must be scammers and they do it in various ways, but what I have noticed so far is that in cryptocurrency, scammers always send strange and suspicious website links.
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Number 1 rule of thumb, when you open random emails and it says that you've got some free crypto, avoid them and never open them at all. They're trying to trick you into going to their phishing link and this is the reason why many have been hacked due to neglecting the importance of being careful to what they're doing. It's best to check first the link and you don't have to click it but just put your cursor and see if you're familiar with the link or not or it's just best to not open unfamiliar emails.
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The general risk in cryptocurrency that I seem to notice is hacking because the word "hacking" is very common to see in various Telegram channels. Hopefully everyone who trades, invests or is in the cryptocurrency circle can avoid hacking. For example, I have 1 Solana coin in a personal wallet and then it is hacked, of course I will feel disappointed and depressed because my 1 Solana coin asset was stolen by a hacker.
Aside from other risks, I think hacking can really be so sad and can even be really personal to all of us...imagine opening up your own wallet and see nothing in there because somebody moved the assets away from you. I know that terrible feeling because years ago I was a victim of phishing and that pain to see your investment of time and effort gone in some seconds can be so hard to explain. That is why in my opinion being in this cryptocurrency industry can be a never-ending learning curve for all of of us so we can protect the assets we build for years. It is unfortunate that there seems to be a growing industry of hacking as the benefits can be so good for them...to the detriment of their victims.
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The general risk in cryptocurrency that I seem to notice is hacking because the word "hacking" is very common to see in various Telegram channels. Hopefully everyone who trades, invests or is in the cryptocurrency circle can avoid hacking. For example, I have 1 Solana coin in a personal wallet and then it is hacked, of course I will feel disappointed and depressed because my 1 Solana coin asset was stolen by a hacker.
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I know that terrible feeling because years ago I was a victim of phishing and that pain to see your investment of time and effort gone in some seconds can be so hard to explain.
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Oh my god, that is so sad and hopefully it will not happen again for the case you have gone through. But can you give a little explanation of your story of being phished like this? I want to hear and read it so that I can be aware and be on guard someday to avoid hacking, scammers or phishing.
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The most common risk we face when investing in crypto is that we are easily affected by FOMO. FOMO means the Fear of missing out If we try to understand this matter more deeply then this FOMO is a fear inside us due to which we take various types of wrong steps. As Bitcoin is currently 58k dollars and many people have already made a lot of profit by investing in Bitcoin, I have backed away from that, so I should make a huge investment in Bitcoin now this is the effect of the FOMO. And what we must avoid is because of FOMO, it is seen that many big investors make wrong investments and sit at loss.
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The general risk in cryptocurrency that I seem to notice is hacking because the word "hacking" is very common to see in various Telegram channels. Hopefully everyone who trades, invests or is in the cryptocurrency circle can avoid hacking. For example, I have 1 Solana coin in a personal wallet and then it is hacked, of course I will feel disappointed and depressed because my 1 Solana coin asset was stolen by a hacker.
Aside from other risks, I think hacking can really be so sad and can even be really personal to all of us...imagine opening up your own wallet and see nothing in there because somebody moved the assets away from you. I know that terrible feeling because years ago I was a victim of phishing and that pain to see your investment of time and effort gone in some seconds can be so hard to explain. That is why in my opinion being in this cryptocurrency industry can be a never-ending learning curve for all of of us so we can protect the assets we build for years. It is unfortunate that there seems to be a growing industry of hacking as the benefits can be so good for them...to the detriment of their victims.
It is very sad when our wallet is hacked and everything there has moved quickly, and we can only wait because what we have has changed hands because of our own negligence, and I have also experiencedn't when someone wanted to help me take care of the, bounty results., and they cleverly told me to fill out a form with the specified. contents, and surprisingly I felt that this was indeed from their team and followed everything they told me, I didn't know I just realized because the team never sent any form to ask us to fill in and then realized.
Since then, I will not accept any form of assistance because I am traumatized by this.
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There are so many others everywhere, feel free to share some to get everyone especially the newbies aware of them and how not to fall for them. Thank you..
Greedy is one of the common risks newbies face in crypto. Most of them will want to put money into a project that requires investment with huge profits without having any idea of the project, and after sometimes they will run with their money. Newbies should be careful because there's nothing like quick income and free money in crypto.
They should not share their seed phrase with anybody because that is the only weapon they have to safeguard their assets. If something happens to it, they may lose all of their funds. They should also avoid malware downloads and not trust any link or website that they have never used before, they should conduct proper research before doing anything in crypto world.
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Greedy is one of the common risks newbies face in crypto. Most of them will want to put money into a project that requires investment with huge profits without having any idea of the project, and after sometimes they will run with their money. Newbies should be careful because there's nothing like quick income and free money in crypto.
They should not share their seed phrase with anybody because that is the only weapon they have to safeguard their assets. If something happens to it, they may lose all of their funds. They should also avoid malware downloads and not trust any link or website that they have never used before, they should conduct proper research before doing anything in crypto world.
But I personally think that the common risk in investing or trading in crypto currency is being affected by FUD (fear, uncertainty, and doubt). Not only new traders are affected by this matter but also big professional traders are affected in this matter.
As it often happens to me that the value of Bitcoin has risen so much that many have made huge profits, I think I am making a mistake and I want to invest at that time. Even if it happens to me now, I control myself. Because if there is an investment over FUD, that investment is more likely wherever we invest.
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Number 1 rule of thumb, when you open random emails and it says that you've got some free crypto, avoid them and never open them at all. They're trying to trick you into going to their phishing link and this is the reason why many have been hacked due to neglecting the importance of being careful to what they're doing. It's best to check first the link and you don't have to click it but just put your cursor and see if you're familiar with the link or not or it's just best to not open unfamiliar emails.
More to this, seeing some token in your wallet which you didn’t know is where about is also an act of scamming, we should try and take note of that also. You might check your Wallet balance and see some tokens worthless and unfamiliar and you can’t even find them in crypto Market space they are token which scammers use to get rid of your asset after you implement it to your wallet balance most likely they are most found in wallet. It very rare to find those type of token in exchanges like KuCoin, Bybit, Binance and much more.
They can be find in Wallet like MetaMask and many more wallet.
In reference I’m bringing this point cause of our newbies which are very careless and naive most especially our bounty hunters you can understand the type of coins I’m talking about. Coins you don’t know or didn’t even worked for will be in your wallet don’t try and import them they are very risky and full of scam. Before importing coins DYOR please our newbies and other traders too please take note of it also everyone.
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Overnight dump is one of the common phenomenon in crypto field, if the coin in our holdings is like Bitcoin or ETH we can hope that it will rise again but the situation will be completely different if it's a new project let's say a meme coin that's been on the rise for a while which tempted someone to invest but soon after investing the price can crash and there's no guarantee that it will bump again.
Which is why it's always recommended to only invest the money that we can afford to lose, and also we need to select right coins depends on our requirements.
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One common risk i've observed, and i believed it's very common among the newbies is the failure to carry out proper research before making investment. We all know how some suppose crypto influencers promotes shitty projects that ends up becoming a pump and dump scheme, and newbies most times are easily deceived by the green candles, without understanding the moves behind them. So, it's very crucial to make personal research, and also making personal decisions, rather than chasing after what an influencer has to say.
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So, it's very crucial to make personal research, and also making personal decisions, rather than chasing after what an influencer has to say.
Very true, it is good to do your research yourself, influencers are usually paid to promote certain projects, they really do not know anything about the project, neither do they believe in it, but they just promote it because they are paid. I recommend that newbies do their own research and only buy coins that have utility.
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The most common risk in cryptocurrency is lack of know how, when we don't know what is at stake, we may not be able to avoid such when it comes, that is why many will always keep emphasizing that they need to have time in making more discovery about crypto in other to have a reduced tendencies for loss, that is why we shouldn't just go into anything we don't know that much, because they can cost us.
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that is why we shouldn't just go into anything we don't know that much, because they can cost us.
That is true, so many people think of crypto as a get rich quick scheme and that is why they get burnt and lose all their money. Some others get into trading even when they do not have any knowledge of it, but they believe they can make money because they heard people make money from it.
Many peope make the wrong decisions, when it is easy to make the right one by doing their own research.
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Re: What are common risks involved in crypto?
I'm pretty sure many here already shared their opinion about this one, but I'll share mine as well. :)
1. Volatility - We know how volatile the crypto market is and often times, we're seeing a significant increase or decrease in price of coins in just a short span of time and because of this, there are some investors that are either gaining or losing huge amounts of money.
2. Scams and Fraud - We know that the crypto market isn't regulated at all hence, a perfect target for scammers. Scammers often do things like creating a ponzi scheme, phishing links, romance scam, and so on and so forth.
There are more, but I think these are the 2 most common risks with regards to cryptocurrency.
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I would like to share my experience. Admin please advise if this needs to be posted in any other section or please pin this for the information of new users.
I am an experienced trader since many years. Being a part of many telegram groups of tokens/exchanges is common for us.
I was contacted by a random user on Telegram claiming his BTC is frozen and withdrawal is not allowed in his country (Algeria) and he needs my help to recover it for him. He offered me 10% commission for this task.
I knew it was a fraud instantly but I wanted to understand what exactly they do, so that I could educate others. I played along. :o
He told me of this exchange : ECHOTIXBET
I made an account and logged into this exchange, it looks very much authentic, a perfect copy of some good running exchange.
After that he asked for my user ID for an user-user internal transfer and instantly my account reflected BTC worth $14580
I knew that this was just a fake number and there is no point trying, I still tried to withdraw it to see what would happen and was greeted by a standard fraud notice that your account is locked and to withdraw this sum you need to deposit some X amount of Crypto ;D
I told him about this on Telegram and he replied, oh! even you cant withdraw it! Damn!.
Just send the BTC back to me I will see some other user to do this.
By then I had clearly understood their business model and I no longer needed this scammer to bore me more. I blocked him on Telegram, he instantly messaged me from another ID swearing at me and calling me a cheater who robbed his BTC ;D
I blocked him again and after that there was no sight of him. This was my experience which I wanted to share with the crypto tribe, as all users may not be aware and get caught in such tangles.
It makes me remember of another fraud exchange some 5-6 years ago (was even listed on CMC) "Fedelio" or something similar.
This exchange used to have prices more than market rates and that's how I got hooked to it seeing XMR prices almost 10% more. I saw a quick arbitrage opportunity and jumped on only to loose my investment. they took deposits and never let anyone withdraw, they kept asking more funds or their fake agents would contact you to help you resolve it by contacting hackers etc. etc.
Bitter lesson learnt.
Hope more users who have faced something similar share their experience on this.
Thanks
PS: Not your keys, not your coins. Always store crypto on self custody wallets.
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A lots of the forum members has talked about the common risks in crypto, but we can prevent those risks in an appropriate ways: secure your account with strong password. An individual should secure their private key in a trusted wallet and safeguard it to prevent scammers from stealing their funds. Storing your funds in Hardware wallet is advisable and more secure than software. Because hardware wallets usually store private keys offline, hackers can't access the account when the system is off. Hardware wallets usually require either a password or PIN before you can access the device. Hardware wallets also provide a seed phrase backup process, so the owner of the account can recover it if it's lost or stolen. Since they are offline devices, they don't depend on computer software to operate. There are more ways to prevent common risks on crypto, but I've only mentioned a few. An individual also needs to prevent or avoid Fear of Missing Out (FOMO). I would be very happy and grateful if someone could enlighten us more on how to prevent common risks in crypto.
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Not conducting thorough research on any projects you have in mind, thinking crypto is a get rich scheme that you believe what paid influencers say, not diversifying investment, and not being cautious of scams by linking your crypto wallet to any crypto coin offer
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Re: What are common risks involved in crypto?
1. Volatility - We've seen the market went down a few days, and that's the risk when you're into crypto. The market is very volatile that in a few days, the market can go down 20% or even more, but it can go the opposite way as well. This high volatility makes the market very hard to predict.
2. Regulation - There are no regulation right now when it comes to crypto that's why some projects can just launch and can just run away alongside the money and will not go to jail. Yes, there are some instances where the developers are going to jail, but most aren't, and that's another risk in cryptocurrency.
3. Security Risks - There's no need for further explanation for this. I just want to say that always, always secure your assets so that you will not be a victim of hacks.
There are many more, but I believe some already said it here. :)