#RISK warning .
*Cryptocurrency Mistakes That Can Lead to Big Losses (7 Things)**
### 1.
- **Mistake** : Storing Crypto in unsecured stock exchanges or online currency accounts.
- **Danger** : If a stock exchange crashes (e.g. FTX crash 2022), users can lose their investments.
- **Solution** : Use a self-storage method like Hardware Wallet (Ledger, Trezor).
### 2. **Losing Private Key or Password**
- **Mistake** : Forgetting or not storing the Private Key properly.
- **Danger** : About 20% of Bitcoins have been lost for this reason.
- **Solution** : Write down the Seed Phrase on a piece of paper and keep it in a safe place.
### 3. **Believing in Fake Projects**
- **Mistake** : Airdrops that ask for donations, Investing in Memecoins (e.g. Dogecoin) that promise to get rich quick.
- **Danger** : $40 billion lost in the collapse of Terra (LUNA) and UST Stablecoin.
- **Solution** : Check the whitepaper, team, and activities carefully.
### 4. **Ignoring the rules**
- **Mistake** : Not following local laws (e.g. taxation, restrictions).
- **Danger** : Crypto is banned in China and can be a tax crime in the US.
- **Solution** : Study and follow the rules in your region.
### 5. **Smart contracts and technology flaws**
- **Mistake** : Investing in DeFi platforms with smart contract flaws.
- **Danger** : You can lose your entire investment due to code flaws.
- **Solution** : Choose projects that have been audited.
### 6. **Not calculating market volatility**
- **Mistake** : Investing in high-volatility cryptos with the expectation of growth.
- **Risk
#TradeLessons #CryptoRoundTableRemarks #SaylorBTCPurchase #TradeStories
