The Top 5 Most Common Causes Of Crypto Loss

#1 - Phishing Scams

One of the most common ways people lose their crypto is through phishing scams. 

These scams involve hackers posing as seemingly legitimate brands or individuals in order to trick you into giving up your private keys or seed phrases. 

These scams can come in many forms, like fake websites, fake emails, or socially engineered messages that appear to be from a high profile person.

#2 - Wallet Hacks

Wallet hacks tend to happen when hackers gain access to your wallet, either by guessing the password, phishing you through the aforementioned methods, or by exploiting a vulnerability in your wallet software. 

Once they have access, hackers can steal your crypto in an instant. 

To prevent this, it’s important to use a strong password and to keep your wallet software up-to-date at all times.

#3 - Scams

Scams can include Ponzi schemes, pyramid schemes, or other fraudulent investments that promise high returns but are actually designed to steal your money. 

These scams can also come in the form of “pump & dumps” and are often difficult to spot if you aren’t paying attention. 

The trick here is to never assume good intentions, instead, do your research and backcheck every avenue - and never put all your eggs in one basket.

#4 - Human Error

People often lose their crypto to human error - and this one is super common, so don’t take it for granted.

Whether you lose access to your private keys or seed phrases because they weren’t properly stored, or you accidentally send cryptocurrency to the wrong address - there are loads of mistakes you can make in this web3 world. 

To prevent these mistakes, it’s important to always keep a backup of your private keys or seed phrases and to double and triple-check a recipient address before sending any cryptocurrency. As a rule, you should triple-check every crypto-related decision you make, or your funds could be lost in an instant.

#5 - Careless Use

Lastly, you may also lose your crypto through simple misuse. This can include leaving your crypto on an exchange or other third-party service for an extended period of time, sharing private keys or seed phrases with friends & family or just being negligent with the software you download. 

You should always have a cold wallet for example, and you should buy it directly from the source not from Amazon or e-Bay, as these products may be tampered with to create backdoors that can access your data.

Oh, and if you want that EXTRA layer of protection - you can always contact us here at CryptoLock - we help people maximise the chance of recovering any lost crypto, by connecting you with experts & professionals at the highest level.

Best Of Luck!