Issue 148

Why Most Crypto Losses Are Preventable

hardware walletself custody

Why Most Crypto Losses Are Preventable

The real problem is not price volatility

It is poor security habits.

Every week, we see new cases of users losing crypto to phishing sites, fake apps, or malicious browser extensions.

What surprises most people is this. The majority of these losses could have been avoided with a better wallet setup.

This week, we break down the most common mistake and how to fix it.

The mistake most users make

Many users store long term crypto on browser wallets.

Browser wallets are convenient.

They are also always online.

That means your funds are exposed to:

  • Fake websites
  • Compromised browsers
  • Malicious extensions
  • Accidental approvals

Once a transaction is approved, there is no undo button.

How hardware wallets change the outcome

A hardware wallet keeps your private keys offline at all times.

Even if your laptop is compromised:

  • Your keys never leave the device
  • Transactions must be physically confirmed
  • Attackers cannot auto drain your wallet

This single change blocks most common attack vectors.

A real world scenario

A user clicks a Google ad that looks identical to a popular DeFi site.

They connect their browser wallet and approve a transaction.

Funds are gone in seconds.

With a hardware wallet, the transaction details must be confirmed on the device.

Most fake approvals fail right there.

3 things to do this week

  1. Stop using browser wallets for long term holdings
  2. Bookmark official websites instead of using search ads
  3. Use a hardware wallet for storage and approvals

Choosing the right wallet

Not all hardware wallets are the same.

Some are better for beginners.

Some for DeFi.

Some for Bitcoin only.

We built a wallet selector to help you choose based on how you actually use crypto.

It takes under a minute and avoids guesswork.

Final thought

Self custody does not need to be complicated.

It just needs to be intentional.

Never miss an issue

Get practical self custody guidance delivered to your inbox every week.

Subscribe to Crypto Compass