When I first entered the world of crypto, it felt so exciting, like discovering a new playground full of possibilities. Everything was fast, shiny, and full of promise. But just like managing money in real life, crypto comes with risks. And if you’re not careful, you could lose what you’ve worked hard for.
So today, let’s talk about the most common risks in crypto, and how you can protect yourself from them.
1. Volatility: The Roller-Coaster Ride
Crypto prices can skyrocket today and crash tomorrow.
When I bought my first tokens, I remember refreshing the price every hour. Some days, I was over the moon. Other days, I wanted to close my laptop and pretend I hadn’t bought anything.
How to stay safe:
- Only invest what you can afford to lose. For example, if you can only spare ₱2,000 from your family budget, use that, never the money meant for bills like Meralco next week.
- Don’t panic-sell when prices dip. Most people I know panic because they only plan for the best-case scenario, never the worst.
- Think long-term. Patience really does pay off.
2. Scams and Fake Promises
I’ve seen countless posts and DMs claiming:
“Guaranteed 10× returns!” or “Double your money in one week!”
If that were true, we’d all be rich by now, right?
How to stay safe:
- If it sounds too good to be true, it probably is.
- Always double-check projects before investing.
- Join trusted crypto communities, people there quickly flag scams. My favorite is https://discord.gg/suB7VsdafR
3. Rug Pulls
Some projects look legit, a nice website, strong hype, and a buzzing community. Then suddenly, the developers vanish… along with everyone’s money.
I know a few people who’ve experienced this first-hand, and it’s heartbreaking.
How to stay safe:
- Research the team, are they public and reputable?
- Check if liquidity is locked (so the devs can’t just run away with funds).
- Avoid hype tokens with no real use case. (Trust me, I’ve been burned by meme coins more times than I’d like to admit.)
4. Losing Your Wallet Keys
Unlike banks, there’s no “forgot password” button in crypto.
If you lose your private key or recovery phrase, that’s it — your crypto is gone forever. (You can check out my earlier blog post about seed phrases if you haven’t yet!)
How to stay safe:
- Write down your recovery phrase and store it offline. In my case, I keep mine at the back of my journal notebook.
- Never share it with anyone — not even your best friend. Think of it like your ATM PIN or Facebook password.
- For larger amounts, use a hardware wallet like Trezor or Ledger.
5. Phishing and Fake Websites
Scammers are getting smarter, they make websites that look identical to real crypto exchanges or wallets. You log in once… and poof, your assets are gone.
How to stay safe:
- Always double-check the website URL.
- Bookmark official wallet or exchange pages.
- Enable 2FA (two-factor authentication) for an extra layer of protection.
Final Thoughts
Crypto is full of risks, but they’re manageable once you understand them.
The best protection is always knowledge and discipline. For me, the rule is simple: educate yourself, protect your assets, and never rush into hype.
Because in the world of crypto, it’s not the loudest or fastest who win, it’s the calm and careful ones who stay for the long run.
P.S. If this helped you, share it with someone new to crypto, it might save them from a costly mistake.
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