Losing £25000… The Importance of Knowing How Tech Works.

Part of the deal when you enter the crypto world for riches is that you are 100% responsible for your wealth. There is no take-backs once you lose your crypto wealth.

It sucks ass for the entire crypto community when shit like this happens.

You have to get real smart before handling cryptocurrencies, watching out for both low-tech scams and high-tech crimes.

The story? What happened was a Redditor purchased a Ledger hardware wallet device from eBay. Hardware wallets offer much significantly better security compared to common practices such as keeping your cryptocurrencies on centralized exchanges. The environment which your private keys are accessed is isolated, thus, is never shared with devices that you connect to.

The problem? He used an existing recovery seed.

The recovery seed is a set of words that let you recover access to your wallets in the event your device gets destroyed. It’s one of the first things you set up when you generate your hardware wallet. The thing is: your device is suppose to generate a seed for you..

Picture of a fake “scratch off” recovery sheet. More photos here: https://imgur.com/a/pw9L0

It sucks, but this is one of the many dark sides of the crypto world. People lose their cryptowealth every damn day. There are so many ways things can go wrong because, as you learn more about cryptocurrencies, you find that the tech we use, the way we use them for convenience, and the processes we have in place to give us “protection” can be flawed.

See this article by Forbes on how your phone number and telecom companies can mess you up. You really can’t trust anyone other than yourself.

So what now? Look to learn from the mistakes of others, then take action to secure yourself. You are your own teacher and responsible for your own security/wellbeing/safety. It’s not only your cryptocurrencies that is at stake.

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