When so many people are digging their nose into something that is totally uncontrolled and has so much to explore, it is no wonder that many got hit back really bad. More and more stories of Bitcoin going bust or Bitcoin crush have surfaced on news in recent years. Experts suffer when their stars are aggressive and newbies due to lack of experience. Most importantly, when you jump at the earliest opportunity you get without analyzing all the pros and cons, you are doomed to suffer a blow.
Although all the horror stories you are going to have a glimpse of are matters of the past, they sure teach a good lesson. If you do not want your crypto trading experience to be a horror story too, make sure you read other's stories keenly, and learn from their mistakes to ensure a more sustainable career in the crypto market.
1. What a pitiful experience it would be to lose 7500 Bitcoin overnight
Bitcoin is the oldest of all the currencies in the crypto market. Being the oldest, it holds prime importance and value, and you see many people lurking their tongues around it. Whereas, it has the potential to make you a millionaire or even a billionaire in no time, as there are living examples for this. However, a single stroke of bad luck can turn all the fortune to ash. That is the basis of various Bitcoin horror stories.
Something like this happened to James in 2009. The poor soul was trying his luck in mining and actually made 7500 Bitcoin. Those were the old golden days as not much effort was required, and you could mine on your personal computers and laptops with a standard internet connection. A single block could give you 50 BTC back then, but when you estimate the net worth of 7500 Bitcoin today, that is nearly $100 million dollars. The story took a horrifying turn in 2013 when the hard disk he used for mining was thrown away while cleaning the apartment. How would that feel being so close to becoming a millionaire and miss it by a hair? Terrifying.
2. Forgot the Password to my Bitcoin wallet!
Who carries thousands of dollars in an actual wallet? Nobody because that is impossible. But for an e-wallet, that is a normal amount. The crypto market deals in such amounts, and it is one of the principles here that if you win, you win big, and if you lose, you will have a nightmare for the rest of your life.
You can face the whole situation in the entirety if you imagine losing your crypto wallet's password. As cryptocurrency is all about relying on technology that can ditch you where you least expect it to do so. Many have been found crying over locking themselves out of their crypto accounts only to find that they have lost thousands of dollars to the non-existing world of blockchain technology. The same happened with a German programmer, named Stefan Thomas. He only has two more attempts left to figure out his password, which will lead him to an asset of 7002 Bitcoin. Thomas lost the paper he wrote the password on, and since then, he has tried his luck eight different times and has been unlucky in all of them.
3. Mugged for Bitcoin!
Crypto traders and Bitcoin holders are usually warned to protect their wallets and digital assets from scammers over the online medium. However, it was observed that old-school crimes can still take over the crypto market. A real-life mugging incident took place in Brooklyn a few years ago, when a man wanted to sell his bitcoin over the Craigslist listing. The deal was supposed to be finalized in a car meeting. However, the two robbers inside the car made him transfer $1100 of Bitcoin to them, and then took his phone with them too.
This story explains the importance of a centralized exchange or a peer-to-peer exchange with escrow protection for Bitcoin buying and selling. This will at least ensure your safety from traditional crimes.
4. Two-factor Authentication or not?
Almost everyone now has direct access to mobile phones which acts as a medium for them to manage their assets as well. However, using mobile phones and SMS services as an authentication factor is probably not a very good idea in the crypto industry. It has proven to be a vague security layer for many Bitcoin holders over the years.
One such incident took place when hackers faked the identity of Jared Kenna, and transferred his phone number to get their hands on his Bitcoin services, bank and PayPal accounts, as well as emails and Window accounts. Another such incident took place with Cody Brown, who lost $8000 worth of Bitcoin in a similar fashion.
5. Suddenly sent 1 million dollars to an unknown user
Bitcoin transactions these days can be reversible on account of providing certain verifications and fulfilling essential requirements. But it was not like this in the past. A Reddit user shared his horrifying experience of when he accidentally transferred 1 million dollars to a Defi contact address.
To make matters even worse, the receiver's account was not meant to hold payments. Thus, the funds were unable to recover, and the sender had to pay a lot for a single wrong click which shows the complications of the online world.
There is no doubt that cryptocurrency is all about risks and dangers. It is always recommended to be careful with every move you make. Whereas you may not be able to get hold of a stroke of bad luck, you can certainly avoid getting into trouble due to your own mistakes.
Some of the preventive measures you can take include researching before selecting and using a crypto trading platform or a particular currency. Educate yourself with the market trends and have patience while attempting a trade. You may also not want to continue with a trade if you feel your trading interface shows a bug because many had claimed to be suspicious of a bug before their Bitcoin disappeared from their wallet.
If you lose or forget your passwords, there is no way of turning back. Therefore, get hold of them. You can note them down if you like or save them in any manner suitable to you. Cryptocurrency can turn you rich in no time if you take calculated risks.