Most Bitcoin Losses Don’t Come From Hacks — They Start With Bad Wallet Choice

[Itz-prisigold]

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.

[Hatchy]

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.

I agree with the point that people don't lose their funds due to hack because we have more of careless investors out there, than those who takes the safety of their funds as priority. I'm not surprised that people still leave their money on custodian wallets.. out of laziness or lack of knowledge they have failed to understand why noncustodial wallets are the best for storing your funds..

Avoid using wallets that you don't understand.

Most popular and open source Bitcoin wallets are beginners friendly.. there isn't much technicality in many of them.. it won't even take you up to 4 hrs if you understand what you are doing to do some research and know how to use them. I just feel people are too lazy headed that's why they keep losing their funds..

[Fiatless]

The summary of what you have said is that people lose money because of ignorance more than wallet hacks. I had an experience about ignorance month with an inlaw who wanted to buy Bitcoin. He told me he had a non-custodian wallet. I had to reconfirm by asking him if he had kept the secret phrase safe. To my amazement, he didn't copy them.

Using a hardware wallet is not a guarantee that your funds are safe, but it is better. For those who are hodling large amounts of Bitcoin, hardware wallet should be used. The bottom line is that our security depends more on us than the wallet we use. That's why we need knowledge.

[Bishop Victor]

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.
[/quote
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.

[casey15]

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.

 

When it comes to this, I think it goes both ways.. in the sense that even as a beginner, you have to use a wallet that hass positive reviews and have been tested by multiple people. Wallets that are secured and gives you control over your money will definitely be what people will talk about.. wallet don't get popular for no reason, it's either they do it well or they do it bad. So as someone who is new and have not used a wallet, I will definitely want to choose a wallet that a lot of individuals have positive reviews about.
Most wallet that are bad, at the point of launch you will find out that they were reliable till the developers or owners decided to do whatever they like... So a brand Identity still pays a role

[Ambatman]

Beautiful thread Imo

We Trust Custodial Wallets  a bit too much

This boils down to our existing economy
Where individuals are used to been dependent on a third party
We did it with bank
And now it's moving to CEX
People still see them like trust worthy banks.

Not Your Keys pushes some people too fast.

The biggest issue many face here is negligence
Believing they won't fall in a situation where they would need it.
Like

My phone hasn't been hacked
I won't loss my phone
Nobody knows the password to my mail
I can just screenshot it because of time
I will save the seedphrase next time