Most people that are just joining cryptocurrency don’t really understand cryptocurrency, they believe is a place which you just invest your money and you are rich already, some people don’t believe you can even lose your coin or money, but their are some mistakes which if you make you will be losing your money, which I listed some below, some people will lose money just because they are tricked, scammers are everywhere and they are increasing on a daily basis, coming with new strategies to scam people and mostly they are always targeting newbies, so I will be talking about few ways which you can lose your coin and possible ways to avoid I that mistake which includes;
1,
phishing attack; The most common phishing attack comes from receiving a message from social media like Telegram, where the attacker will change his name to group admin and private chat you claiming to be from the team, convincing you they want to help you and you will be asked to follow some steps which you will be asked to follow after you have been tricked into giving out sensitive information about your wallet address under false pretenses. They will usually provide you a link and ask you to enter your information, including sensitive information about your wallet like as your private key.
PREVENTION; whenever you make a complain in a public group and you receive a private message, don’t respond to the message, instead just report and block the person who sent you the message, if you make complaint in a public group, no admin will private chat you, they will respond to your complain in the group. On no condition should you input your wallet private key in any website, no matter where you receive the link to the website from don’t input your private key on a website.
2,
Free giveaway; free giveaway; giveaway is another way that people are losing their coins on a daily basis because they are after free coins, which is really bad. In 2021, some influential people's social media accounts were hacked, and the hacker claimed to be doing giveaway. Some will ask you to send a coin and they will help you double it within a few minutes or hours, but once you send the coin, your money is already gone and there is no way to get it back. Some may send you a link and instruct you to click it and connect your wallet address; if you do so, they will have automatic access to your account and will be able to to move all your funds.
PREVENTION; Don't believe anyone you meet online, no matter how influential they are, and don't believe in any kind of giveaway; nobody will double your money for you in a few minutes or hours, and anyone telling you to invest and they will double your money for you is trying to con you; nobody will double your money for you in crypto. When you see a link online and are asked to connect your wallet to it, you must be very careful and double-check the link to ensure you are not connecting your wallet to the wrong link. You should also avoid sharing your private key or other confidential information online.
3,
Exchange hack; We have seen multiple exchange hacks, and we should expect more in the future. When an exchange is hacked, the exchange owners and people who have coins in the exchange are always affected. I will list some exchanges that were hacked in 2021 which include;
Bitmart on December 21, 2021, Liquid on August 19, 2021, Hotbit on April 29, 2021, and AscendEX on April 29, 2021.
https://www.hedgewithcrypto.com/cryptocurrency-exchange-hacks/The majority of newbies that are just joining crypto trading always keep their coins on exchange, which is bad because they can quickly lose them.
PREVENTION; Never store your coin on an exchange because anything can happen to it at any time. After purchasing a coin, make sure you transfer the coin from the exchange wallet to a non-custodian wallet address and secure your private key. (Remember, it's not your key, it's your coin.)
4,
Send to wrong chain; beginners frequently make mistakes when transferring coins and as a result they always endup sending coin to wrong chain resulting in the loss of their funds. There are various types of chains in cryptocurrency, including the Binance smart chain, Ethereum chain, Polygon chain, Solana chain, and Tron chain (TRC20). When making transactions, some people make the mistake of selecting the incorrect chain, resulting in the loss of their coin most especially if they are sending to exchange.
PREVENTION; The solution to this problem is to ensure that you are very careful when doing transactions, and that the network you choose to deposit on is the same as the network you choose to withdraw from, or you may lose your coin.
