Issue 151

Blind Approvals Are One of the Fastest Ways to Lose Crypto

Self CustodyCrypto Wallet

Blind Approvals Are One of the Fastest Ways to Lose Crypto

Most users do not read what they approve

Approving a transaction feels routine.

After a while, many users click confirm without checking the details.

This habit is one of the most common reasons wallets get drained.

What blind approvals actually do

When you approve a transaction or a smart contract, you are granting permission.

Depending on the approval, this can allow:

  • One time transfers
  • Unlimited token spending
  • Ongoing access to your wallet

Many malicious contracts are designed to look harmless at first.

Why these attacks are effective

Attackers rely on speed and familiarity.

The interface looks normal.

The transaction looks routine.

By the time something feels wrong, the approval has already been granted.

A real world scenario

A user interacts with a fake DeFi site offering a small reward.

They approve a contract without reviewing it.

Hours later, their wallet balance slowly drops to zero.

The approval allowed unlimited access.

How hardware wallets help

Hardware wallets force you to slow down.

Transaction details must be reviewed and confirmed on the device.

This extra step prevents many accidental approvals.

What you should do regularly

Good habits reduce risk:

  • Review transaction details before confirming
  • Revoke unused approvals periodically
  • Avoid interacting with unfamiliar sites
  • Use a separate wallet for experimentation

Unsure how to set this up properly

Some users actively use DeFi.

Others rarely interact with smart contracts.

Your wallet setup should match your activity level.

You can use our wallet selector to find a suitable hardware wallet based on how you actually use crypto.

Find the right wallet in under a minute

Final thought

Convenience should never override awareness.

Never miss an issue

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

Subscribe to Crypto Compass