Common Mistakes (and How to Avoid Them)
These are the most frequent mistakes made by both beginners and experienced users. Learn from other people's mistakes.
❌ Losing your seed phrase
The mistake:
- Not storing the seed phrase correctly
- Keeping it only in digital form
- Not making a backup
- Forgetting where you stored it
Consequence: If you lose access to your device and don't have the seed phrase, you lost everything forever. There's no technical support, no recovery.
How to avoid it:
✅ Write it on paper/metal immediately when you create the wallet
✅ Verify you wrote it correctly
✅ Store it in a safe place
✅ Keep at least one backup in a different location
✅ Never keep it only in digital formatThe full detail — paper, metal, safe, inheritance — is in Storing your seed phrase. If the amount is large, a multisig eliminates the single point of failure: it takes several keys to move the money, so losing one doesn't lock you out.
❌ Sharing your seed phrase with anyone
The mistake:
- Giving it to "technical support" that contacts you
- Entering it on a website to "verify"
- Sending it to someone who "will help you"
- Sharing it with family/friends without understanding the implications
Consequence: Whoever has your seed phrase has total, immediate control of your funds. They drain them in minutes.
How to avoid it:
✅ NEVER share your seed phrase - no exceptions
✅ No legitimate service will ever ask for it
✅ "Support" that contacts you first is ALWAYS a scam
✅ If someone asks for it, it's a scam - no matter who they claim to beRemember
Your seed phrase is like the key to a safe with no backup lock. If someone has a copy of the key, they can empty it whenever they want.
❌ Sending the wrong token to an address
The mistake:
- Sending USDC (Ethereum) to a USDC (Solana) address
- Sending an ERC-20 token to an exchange that doesn't support it
- Confusing versions of the same token (USDC vs USDbC)
Consequence: The tokens can be lost forever or end up stuck.
How to avoid it:
✅ Verify the recipient accepts that specific token
✅ Verify the network (Ethereum, Arbitrum, Solana, etc.)
✅ Do a small test transaction first
✅ Read the exchange/service instructions❌ Signing a fraudulent contract
The mistake:
- Connecting your wallet to a phishing site
- Approving unlimited tokens to a malicious contract
- Signing a message that authorizes transfers
- Not reading what you're signing
Consequence: The contract can drain your wallet of specific tokens or everything you approved.
How to avoid it:
✅ Verify the URL before connecting (use bookmarks)
✅ Read what you're signing
✅ Use a wallet with simulation (Rabby)
✅ Approve only the amounts you need, never unlimited
✅ Revoke approvals regularly at revoke.cash❌ Sending to the wrong network
The mistake:
- Sending ETH over the Arbitrum network to an exchange that only accepts Ethereum mainnet
- Sending tokens to the right address but the wrong network
- Confusing Layer 2 with Layer 1
Consequence: The funds can end up stuck or require a complex recovery process (if one is even possible).
Your address: 0x834fC75B…bB10
How to avoid it:
✅ Verify the network before sending
✅ Confirm with the recipient which network they accept
✅ On exchanges, read the deposit instructions carefully
✅ Start with a small test amount❌ Not verifying addresses before sending
The mistake:
- Copying the address from the wrong place
- Not verifying that the copied address is correct
- Having malware that swaps addresses on the clipboard
Consequence: You send to the wrong address. On the blockchain, transactions are irreversible.
How to avoid it:
✅ Always verify the first and last characters
✅ Use saved addresses/whitelists when possible
✅ Copy directly from the source (not from messages)
✅ Send a small amount first
✅ Keep your computer free of malwareRecommended verification:
Address: 0x71C7656EC7ab88b098defB751B7401B5f6d8976F
^^^^ ^^^^
Verify Verify
first last❌ Leaving everything on an exchange
The mistake:
- Keeping large amounts on exchanges for convenience
- Thinking "it's safe, it's a big exchange"
- Not taking the time to set up your own wallet
Consequence: If the exchange gets hacked, goes bankrupt, or freezes your account, you lose access. It has happened multiple times (Mt. Gox, FTX, etc.). → Who can stop your money
How to avoid it:
✅ "Not your keys, not your coins"
✅ Use the exchange only to buy/sell
✅ Withdraw to your own wallet
✅ Only leave on the exchange what you're actively trading❌ Not using 2FA (or using SMS)
The mistake:
- Not enabling 2FA on exchanges
- Using SMS as 2FA
- Not saving backup codes
Consequence: Your account can be hacked with just your password. SMS is vulnerable to SIM swapping.
How to avoid it:
✅ Enable 2FA immediately when you create an account
✅ Use an authenticator app (Ente Auth, Aegis), not SMS
✅ Save backup codes securely
✅ Consider hardware keys (YubiKey) for extra security❌ FOMO (Fear Of Missing Out)
The mistake:
- Buying because "it's going up"
- Investing more than you can afford to lose
- Not researching before buying
- Following "influencer" advice
Consequence: You buy at the top, sell at the bottom, lose money.
How to avoid it:
✅ Invest only what you can afford to lose completely
✅ Research before buying (DYOR)
✅ Have a defined strategy
✅ Don't follow advice from strangers on the internet
✅ When everyone is talking about it, it is probably too late❌ Running out of native currency for gas
The mistake:
- Withdrawing only USDC to a new network, with none of the native currency
- Spending down to the last cent of ETH, POL, or SOL
Consequence: You have 500 USDC on Polygon and can't move it, because you have no POL to pay the fee. The money is right there, visible, and you can't touch it.
How to avoid it:
✅ Withdrawing to a new network? Pull out some of its native coin
✅ Always keep a gas cushion on every network you use
✅ Already stuck: send yourself a few cents of the native coin→ Gas: why every move costs something
❌ Trusting a token that just appeared in your wallet
The mistake:
- Seeing an unknown token with a high value and getting excited
- Trying to sell it or claim it on the site its name points to
Consequence: Anyone can send tokens to any address: you don't need to accept them. Attackers send fake tokens with appealing names so you go looking for how to sell them and end up on a site that makes you sign something that drains your wallet.
It's also used to track addresses (dusting) and for history poisoning: they send from an address almost identical to one you've already used, hoping you'll copy the wrong one next time.
How to avoid it:
✅ A token you didn't buy is worth nothing until proven otherwise
✅ Don't touch it, don't sell it, don't look up "how to claim it"
✅ Just hide it
✅ Copy addresses from the source, never from transaction historyQuick summary
| Mistake | Prevention |
|---|---|
| Losing your seed phrase | Write it on paper, multiple backups |
| Sharing your seed phrase | NEVER share it, no legitimate party asks for it |
| Wrong token | Verify token and network before sending |
| Fraudulent contract | Verify the URL, use simulation |
| Wrong network | Confirm the network with the recipient |
| Not verifying the address | Compare first/last characters |
| Everything on an exchange | Withdraw to your own wallet |
| Not using 2FA | Enable it with an authenticator app |
| FOMO | Invest only what you can afford to lose |
| No gas to move funds | Always keep native currency on every network |
| A token that appeared out of nowhere | Don't touch it, hide it |
If you came looking for something else:I'm about to receive crypto · I want to cash out to local currency · Start from the beginning