In addition to the loss and theft of cryptocurrency because of hackers, there are many cases that stem from the player factor. Here are 5 typical mistakes that many crypto players make.
Lost crypto wallet key
Cryptocurrencies operate on the basis of blockchain technology (blockchain). With its "decentralized" nature, the technology provides a high level of security for digital assets without the need for a centralized manager.
On it, each generated transaction is secured with a private key - considered a unique identifier to be able to access the e-wallet. However, this private key has the feature of being unrecoverable by any means and the wallet owner will lose access to all digital assets stored in that wallet if he forgets or mistypes it. lost keycode.
According to statistics from analytics firm Chainalysis, losing a wallet key is one of the most common mistakes made in the crypto space, and more than 20% of the 18.5 million Bitcoins mined have been lost forever. forever "stayed" in the wallet because the wallet owner forgot the key.
Therefore, experts recommend that users store the phrase by writing it down on paper and storing it carefully. And if you save it on a browser, cloud platform or on a computer, you need to be careful about the risk of being stolen by hackers.
Storing tokens on exchanges
To be flexible and convenient for transactions, many people have the habit of storing tokens right on hot wallets and exchange wallets. Although every wallet is committed to security, in reality, no wallet is completely secure and can be hacked at any time.
Recently, there have been many exchanges hacked and hackers stole a huge amount of money. Recently, BitMart exchange was hacked, causing users to lose tens of thousands of dollars. Before that, the Coincheck exchange had a total of 500 million USD worth of tokens stolen in 2018, or the Mt. Gox lost 850,000 bitcoins in 2014. At the time Mt. Gox encountered a scandal, 850,000 bitcoins worth $480 million, then this exchange filed for bankruptcy.
According to experts, users should store coins on cold wallets - a specialized device for storing digital money, in the form of USB.
The 'Fat-finger'
Fat-finger (roughly translated as "fat finger") is an error of accidentally entering the wrong amount in a transaction order, usually entering the wrong amount to sell, causing the token to be sold abnormally cheaper. Not only cryptocurrency players, stock investors also often make this mistake.
Similar to the fat-finger error, some users also encountered the problem of entering the wrong virtual currency unit. Most recently, blockchain data shows that NFT collector Dino Dealer has put NFT EtherRock #44 for sale for 444 wei (worth less than 1 US cent, just around 200 VND), instead of 444 ETH (more than 1 million). USD), causing this collector to lose the work.
Sent to wrong address/network
Every blockchain network, every cryptocurrency wallet has a unique address. Currently, some popular remittance networks include ERC20, TRC20, BEP2, BEP20...
Since cryptocurrency wallets on popular networks all have the same structure, consisting of 42 characters in the form of 0x123a2b345c..., many users will easily misunderstand and lead to sending tokens to the wrong address.
Once sent, the token cannot be retrieved, unless it is determined who the owner of the destination wallet is and whether they are willing to pay. With the decentralized nature, knowing who is the owner of the receiving wallet is very difficult, so this possibility is almost rare and special.
CoinTelegraph considers this to be one of the most common and easy to lose mistakes for newcomers to the cryptocurrency market.
''Hug'' many tokens
Often new entrants to the cryptocurrency market have the habit of "hugging" a bunch of tokens.
However, experts say this diversification is a mistake, is a pile of underperforming assets and can cause significant losses. To ensure safety, crypto players should only buy tokens when they have a good understanding of it and only diversify when the capital is large enough and experience is enough.
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By Matthew Curtis3 days ago in Humans
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