Don’t Learn the Hard Way — Share & Learn from Real Crypto Lessons

[The Cryptovator]

In our crypto journey, often we see a lot of incidents; it could be with me, you, or some other crypto users. We can easily take a lesson from our mistakes. But if we always want to learn a lesson from our own mistakes, then we may need to spend a whole life but can't complete the lesson. So we must take lessons from others. So it would be applicable for our own life. So let's share your costly lesson from which we can take a lesson. I will express my costly lesson below.

I had been using Binance for trading. Though I know we shouldn't store our funds in an exchange, I trust Binance blindly and store a big amount of funds. I don't want to mention the amount; you might call me stupid. However, for business purposes, I take a payment from my client. He sent me BNB from Tornado Cash. So Binance flagged my account and froze funds. I have a lot of chats and explanations with them. But they don't release my funds. After a month I start writing their social media, and eventually they release my funds. But still they restricted my account, meaning I can't use Binance anymore. So it was my costly lesson, though I got back my funds. Honestly, I thought they would never refund me.


So the lesson is not your key, not your coins. Don't store funds in a custodian wallet.

[Churchillvv]

My dad always told me a story of three brothers, whose parents tested with life questionnaires and here is the question; how many times will a thing happen to you before you learn your lesson?
First person responded, 4 times the third time I will definitely learn my lesson.
Second person said; 3 times and he would learn his lesson at that point and lastly.

The third person said; "it doesn't have to happen to me before I learn my lesson, instead I will learn from when it happens to my brother's."

This is a very important lesson in my life and I hope some one here gets the key message, you must not learn your lesson through your personal experience, those stories you read in news, social media concerning your bitcoin or crypto custody is enough for you to learn.

[Charles-Tim]

I still remember you posted something like this on a board on this forum before. I searched through your post history and I saw it.

This is it:
Eventually Binance closed my account

After a month I start writing their social media, and eventually they release my funds. But still they restricted my account, meaning I can't use Binance anymore.

You are not missing anything at all. There are other exchanges and they are better like Binance. In fact, trading experience on few other exchanges is better. I just do not want to mention names.

You do not have to use just one exchanges. You can have the coins that you are using for trading on like 3 exchanges instead. While the coins that you do not use to trade can be on a noncustodial wallet.


I remember a time I like to buy altcoins, they showed me losses. I lost so much.

[Jazzterbit]

I lost my assets in a non-custodial wallet, Trustwallet. Trustwallet isn't completely open source for some, but I still use it. That's not the lesson or story I want to share. The story goes that I was once browsing an adult video site until a pop-up appeared recommending downloading a file so I could browse there smoothly.

I did that at night, until morning came & I wanted to check my portfolio on Trustwallet, all the assets were gone, transferred to an address I didn't know. I'm sure it must have come from the file I downloaded, the lesson you can take is don't download files carelessly, coz it can be risky for you.

[Doan9269]

In my early days on trading and investment, I make series of mistakes and couldn't discover the difference between altcoins and bitcoin in cryptocurrency, then I continue to invest more on altcoins and before I know it, almost 70% of my portfolio goes for altcoins and bitcoin was not that really much, then I keep holding till I lost more than half of my assets before realizing what's at stake, now I've already made the decision right, the table is turned and I reverse the entire process as against how I was holding before, bitcoin is my major holding, I trade for a short time, buying the dip and holding, selling high and reinvesting when the market falls, I buy upon every dip, while my altcoins portfolios are for holding within a particular season they all perform well.

[George Edward]

My dad always told me a story of three brothers, whose parents tested with life questionnaires and here is the question; how many times will a thing happen to you before you learn your lesson?
First person responded, 4 times the third time I will definitely learn my lesson.
Second person said; 3 times and he would learn his lesson at that point and lastly.

The third person said; "it doesn't have to happen to me before I learn my lesson, instead I will learn from when it happens to my brother's."

Wow 😆, that was really funny and a smart move for the third person. Well, everyone makes mistakes, it's a part of being human that is inevitable. And those mistakes serve as a lesson to us, so it's not totally wrong to make a mistake. Don't get me wrong, I'm not trying to say a mistake is a good thing. But In this our cryptospace we make mistakes, but we can learn from them and become better investors and users.

[Russlenat]

So it looks like Binance understands that if they don’t release your funds, their reputation could take a hit. That alone shows they aren’t strictly following the guidelines of whoever’s supposed to regulate them. Because if what you did was truly illegal or clearly against their TOS, they should’ve stood by their original decision to freeze the funds, not backtrack just to avoid bad PR.

[AmaGold70]

One of the biggest mistake I've made in my crypto journey is making transactions with a sleepy eye, even up to this day I still haven't made peace with myself for loosing such amount of money. I don't know if something similar has ever happened to anyone here and I want to use this opportunity to tell y'all that making any crypto transaction with a sleepy eye or when you are tired or exhausted from work is a huge mistake as things could go wrong and I've learnt my lesson the hard way and I want us to know that when ever we feel sleepy our brain doesn't function 100%

[sokani]

There was a time an altcoin was so hyped, and I wanted to invest after doing my own research. My heart was telling me not to invest, while my head was telling me otherwise. I went ahead and bought some tokens during the presale, thinking that after doubling my bag I would sell and invest the funds in Bitcoin. After the launch, the price started going down sharply as if it wanted to discover oil. I quickly sold my bag but also lost some amount of money. I learnt never to invest in any shitty project again.

[Alpha Marine]

You were lucky to ge your funds back. I knew someone similar who didn't get his back. What made his case was that some of the funds were not his, so that put him a lot of debt. His case was a fraud case so it was more complicated and even got to court.

In life generally, we must try to take lessons from everything. There is this mindset that a lot of people have where they believe "it can't happen to me". I read a post here about how a user was blaming another user for breaking Coinbase rules, which is why his funds were frozen. The user blaming the other guy believes it can't happen to him, but he is so wrong. It can happen to anybody.
People also have this attitude towards insurance. In life, it is best to always take precautions. They say it is better to hope for the best but prepare for the worst

[Stormisover]

My dad always told me a story of three brothers, whose parents tested with life questionnaires and here is the question; how many times will a thing happen to you before you learn your lesson?
First person responded, 4 times the third time I will definitely learn my lesson.
Second person said; 3 times and he would learn his lesson at that point and lastly.

The third person said; "it doesn't have to happen to me before I learn my lesson, instead I will learn from when it happens to my brother's."

This is a very important lesson in my life and I hope some one here gets the key message, you must not learn your lesson through your personal experience, those stories you read in news, social media concerning your bitcoin or crypto custody is enough for you to learn.

There is every reason while we need to learn from the mistakes of others without wanting to learn from our own mistakes, though most person prefers that they make this mistake and learn from it but in reality they forget that not everyone can have the same opportunity of learning from their mistakes, some can be lucky enough while some may not even live to tell the full story let alone to learn from it, a wise man once said that a word is enough for the wise, it is a privilege to learn from the mistakes of others and should be nothing to wish for because you can't be certain how it will end.

[Ishicryptic]

Before joining this forum and buying my first cryptocurrency I had an option whether to buy Bitcoin first or one of the altcoins, I was lucky that I chose to buy Bitcoin because that time I saw all of them as cryptocurrency. It was in this forum that I began to understand that buying memecoins is like gambling my funds so again I can say that I avoided many mistakes that I could have made in the crypto market from this forum. I have learnt so much crypto phrases, experiences and information on this forum and that is why I don't hesitate to share useful information and my little experiences so that newbies can learn from me as I have learnt from experienced forum members.

[tabas]

I think there was the same story from the forum where their bybit or binance account was also flagged for receiving payment through a mixer. Sure it's a costly mistake and that's why if we are not going to be careful with these transfers and payments that we're receiving, we'll pay for it. It's good to hear that your funds have been released and there is no point in using them when they have already frozen your account and delayed the withdrawal of yours funds. Someone who's got that experience will seriously get out of it and stop using it them as soon as they've received the funds.

[Merit.s]

My own mistake was that as a newbie who just got into the cryptospace with little knowledge about crypto scam. I fell for a keyboard malware attack. I didn't know that my keyboard was affected with malware and I sent funds to my other wallet without rechecking the addres that I wanted to send the funds to.

 This made me to stop buying second hand phones because the phone was already affected with keyboard malware on it. I did not noticed it after I copied and paste my bitcoin wallet address. It was after some hours and my funds haven't arrived in my other wallet was when I checked the address and find out I have fallen a victim. That was how I lost that funds.

[Churchillvv]

~~~

Wow 😆, that was really funny and a smart move for the third person. Well, everyone makes mistakes, it's a part of being human that is inevitable. And those mistakes serve as a lesson to us, so it's not totally wrong to make a mistake. Don't get me wrong, I'm not trying to say a mistake is a good thing. But In this our cryptospace we make mistakes, but we can learn from them and become better investors and users.

The goal of the story I told earlier is to tell us that yes mistakes are inevitable in the crypto space but there is enough mistakes in the same category that will be a lesson to us already, we mustn't make them by ourselves instead others mistakes could be the opium of our lessons.

My dad always told me a story of three brothers, whose parents tested with life questionnaires and here is the question; how many times will a thing happen to you before you learn your lesson?
First person responded, 4 times the third time I will definitely learn my lesson.
Second person said; 3 times and he would learn his lesson at that point and lastly.

The third person said; "it doesn't have to happen to me before I learn my lesson, instead I will learn from when it happens to my brother's."

This is a very important lesson in my life and I hope some one here gets the key message, you must not learn your lesson through your personal experience, those stories you read in news, social media concerning your bitcoin or crypto custody is enough for you to learn.

There is every reason while we need to learn from the mistakes of others without wanting to learn from our own mistakes, though most person prefers that they make this mistake and learn from it ~~.

I haven't seen anyone want to make mistakes that cost them money by themselves before they learn and here you use the word most maybe I'm not from the same part of the world you experience but however, I don't really think anyone will want to make an obvious mistake themselves just to prove a point and learn from it.

[Findingnemo]

I got two.

1. Fake exchange deposit: Yes, I was a victim for that scam which used to be very common back in 2018 days, someone contacted me and claimed his funds were stuck and help me with the withdrawal of his funds and he also tempted me he will give 50% of the funds, poor me thought I got nothing to lose here and visited the domain he gave and saw the numbers in there. When I tried withdrawal they asked me for verification and I completed it too then I tried withdrew the funds they now started telling me some stories and need to reactivate the account back with a small deposit and guess what I fell for it and deposited without giving a clear thought and they swept the money immediately then only I realized there's no real funds in there, it's just a scam.

2. Depositing funds from a casino into Coinbase: I usually go through the terms of a service and I did too for years and constantly depositing funds from the casino into my Coinbase but all of a sudden, I received a mail that said "we will be terminating your account and you can't use our service anymore" but luckily they let me withdraw all the funds there which is the time I am actively involved in intraday trading but luckily no funds lost but only the access to the platform but it could be turned worse if they didn't let me withdraw the funds so it got two lessons in it, not your keys not your coins and then never deposit money from casino into an exchange account.

[Btcdeybodi]

Learning the hard way can also be an eye opener because there are people is this life that are fond of doubts and they never learn lessons from others except it happens to them directly. You will tell someone not to store their coin in custodial wallets and centralized exchanges but they will be telling you that did you know how much they will spend as gas fee when you want to make a transaction with your coin. Does it mean that they are more concerned about the amount that will be charged as transactions fee than the security of the coin? many times we have warned users about the dangers of keeping funds in custodial wallets.

[Marykeller]

Just because it hasn't happened to you, doesn't mean it won't someday. Some people, after finding out a particular act is not advisable, still go ahead to do it, thinking that the mistake of others is not their portion yet.

Not your keys, not your coins has been sounded like a warning given to everyone in this forum not to make the mistake of storing their crypto coins on an exchange, but still we will find some fellas doing that shit.

I hope that the Binance restriction given to you is not giving you a heads up, compare if your crypto assets were seized, never released. Just thank your God that your crypto coins were all released. Not everyone will be this lucky for Binance to release their coins.

[sheenshane]

So the lesson is not your key, not your coins. Don't store funds in a custodian wallet.

IMO, a golden rule in crypto that we should always remember, if we understand this principle, we will never store our Bitcoin in a custodial wallet or exchange.  These platforms should be used for trading or investing, not for the long-term storage of your coins.

Fortunately, I haven't made any costly mistakes in crypto because I never keep my assets on an exchange.
There’s a risk that you might be flagged while using the exchange for your transactions.  Bitcoin payments should be a good idea, but not directly through your Binance account, as this could expose you to risk.

It's normal for failure to be part of the learning process, but costly mistakes are another matter entirely.
That's the terrible aspect.

[CryptoHeadlineNews]

After a month I start writing their social media, and eventually they release my funds. But still they restricted my account, meaning I can't use Binance anymore. So it was my costly lesson, though I got back my funds. Honestly, I thought they would never refund me.


So the lesson is not your key, not your coins. Don't store funds in a custodian wallet.

It's actually good to know that you finally got your funds afterwards, even though it took you a period of 5 months before having access to it, because to be frankly speaking, I'm sure you must be among the lucky few to have had their account unlocked after been frozen by Binance, and given access to make withdrawal before finally deactivating it entirely.

However, for me, I can say one of the crypto lessons I learnt the hard way while growing up learning about Bitcoin was falling victim to p2p scams. Because to be frankly speaking, I can testify that while I was still a newbie, searching for ways to make money buying and selling cryptocurrencies, I stumbled upon a Facebook ads promising to sell cheap USDT, where I can buy and resell on exchange at a higher price and make profit, and I ignorantly fell for it. Simply because I was just new into crypto. But only to learn the hard way to never trust any third party sites for p2p transactions except a reputable crypto exchange. E.g Binance, Bitget and Bybit.