What are common risks involved in crypto?

[_act_]

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.

[Z-tight]

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.

[LogitechMouse]

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.

[The Odd Ducks]

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.

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

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

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.

[Chilwell]

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.

[JoyMarsha]

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

[LogitechMouse]

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.