Whenever someone says they lost Bitcoin, people will start to assume that losing Bitcoin means you were hacked, but most people, as far as I can tell, don't actually lose their Bitcoin because of hackers. They lose Bitcoin because of the type wallets they are using and the assumptions they make surrounding wallets.
Here is what I mean.
1. We Trust Custodial Wallets a bit too much
Most of the people here start with custodial wallets because they are very simple, all you need to do is sign up, then login and everything will feel familiar almost like how bank apps are. It is later that the problems surface: problems like; Accounts get frozen, withdrawals get delayed and new rules are enforced overnight. See is at this point, most people will understand that they never had control over Bitcoin in the first place. So there is nothing to recover because the wallet was never fully yours.
2. Not Your Keys pushes some people too fast.
On the other hand, people hear of ‘not your keys, not your coins’ and jump straight to non-custodial wallets without even slowing down to understand things probably. That's how we will start hearing stories like: my phone got stolen, the seed phrase was not backed up or the wallet got reinstalled and funds gone.
3. People Often Chose Wallets For The Wrong Reasons
Let us say the truth, a lot of wallet choices was simply because; my friend is using it, the wallet is popular online or wallets that actually promise extra features. It is just very few people that ask basic questions like; who really controls the key here? What will happen if I lost my phone or can the wallet lock me out? And these questions are even more important than the brand name.
4. Hardware Wallets Aren't a "Set and Forget" Solution.
Most people actually think that once they buy a hardware wallet, they can't lose their money and can be safe forever. But if you store your seed phrase carelessly and don't cross check your transactions, you will still lose money. The tool really do helps, but only if the user understands it.
5. Most Losses Happen Quietly.
When someone gets hacked everyone hears about it. When someone messes up their wallet setup, they will keep it to themselves. That is the reason why we hear more about hacking, when user mistakes are actually more common.
6. It Usually Comes Down To A Mismatch
Most losses happen because; Beginners are using wallets that are for advanced users, long-term savings are sitting in custodial apps, large amounts are treated like spending money. Bitcoin wallets are just tools, using the wrong one at the wrong time is a problem.
Few Simple Things That Could Help:
Nothing is actually complicated;
.Understand custody before you choose a wallet.
.Separate your spending money and savings.
.Make your back up offline and do it correctly.
. Avoid using wallets that you don't understand.
Even if they are popular, do these simple things and maybe you won't have regrets.
Most people did not really lose Bitcoin because Bitcoin is unsafe. They lost it because understanding something is not as convenient as keeping it safe.
Bitcoin enforces rules equally.
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When people say “I lost my Bitcoin,” others assume it was due to hacking. But in reality, most losses happen because users misunderstand how wallets and custody work.
