You've heard of stablecoins, right? They're pegged to the dollar, so they don't swing wildly like Bitcoin. Great for payments and transfers. But here's the thing—"stable" doesn't mean "safe from mistakes."
Our research found that in 2024 alone, crypto losses hit $2.2 billion. The surprising part? Most weren't sophisticated hacks. They were simple user errors.
Let me walk you through what we found.
1. Mixing Up Networks
USDT isn't just USDT. There's TRC20, ERC20, BEP20—different networks. Think of it like highways. If you send money on Highway A but the recipient is waiting on Highway B, it never arrives.
Why do people get confused? The addresses look almost identical. Both ERC20 and BEP20 start with "0x" and have the same length.
Fees vary wildly too:
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TRC20: Usually under $1
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ERC20: Can hit $50+ when busy
Real case: $50 million vanished (December 2024)Someone sent a 50 USDT test from Binance. Worked fine. Then sent $50 million. Problem? They copied the address from transaction history, where a hacker had planted a fake address with matching first and last characters. Gone in 12 minutes, laundered in 30. The victim offered $1 million reward. Still unrecovered.
What to do:
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Always verify the network matches on both ends
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Never copy from transaction history—use the original address
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Test with small amounts first
2. Not Checking Addresses Properly
Addresses are 34+ characters. Most people glance at the first and last few and hit send. Hackers exploit exactly this.
Clipboard malware is real. You copy an address, but when you paste, it's been swapped to the hacker's. You don't notice.
Real case: CryptoShuffler stole $150,000+ (2017)Kaspersky discovered this malware watching clipboards 24/7. Copy a crypto address? Silently replaced. It used almost no CPU, so antivirus missed it.
Real case: $68 million WBTC theft (May 2024)Victim sent 0.05 ETH test—arrived fine. Then sent 1,155 WBTC ($68 million). The hacker had generated a lookalike address with identical first 6 characters and inserted it into the victim's transaction history. Fortunately, most was negotiated back.
What to do:
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Check first 6 AND last 6 characters
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Always test with small amounts first
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Use QR codes when possible
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Run antivirus regularly
3. Mishandling Seed Phrases
Those 12 (or 24) English words you got when creating your wallet? That's your seed phrase. It's the master key. Anyone with it can clone your entire wallet.
Never do these:
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Screenshot it
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Save in notes apps or chat
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Sync to iCloud or Google Drive
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Share with anyone (real support never asks)
Real case: iCloud backup led to $655,000 loss (April 2022)MetaMask's iOS app was auto-backing up seed phrases to iCloud. A hacker called pretending to be Apple support, got the 2FA code, accessed iCloud, grabbed the seed phrase. $655,000 gone.
Real case: Seed phrase photographed, $1.7 million stolen (2022)In Singapore, someone wrote their Ledger's 24 words on paper, kept it in the bedroom. An acquaintance from a soccer group got the access card, snuck in, photographed the paper. Next day: $1.7 million transferred out.
Safe storage:
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Write on paper, store in a safe
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Consider splitting across locations
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Hardware wallet doesn't mean seed phrase security is automatic
4. Not Understanding Fees
"It's just a dollar fee, right?" Then you see the actual charge and wonder what happened.
There are different fee types:
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Network fee (gas): Blockchain processing cost. Rises when busy.
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Platform fee: Service charges
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Withdrawal fee: Varies by exchange
Small transfers have a trap. Sending $10 with a $3 fee? That's 30% lost to fees.
Real case: $157 million in gas fees (May 2022)Yuga Labs (BAYC creators) sold metaverse land NFTs. 55,000 sold in 3 hours. So many people rushed in that gas fees hit all-time highs. Minting one NFT cost $6,200–7,000 in gas alone. Over 10,000 transactions failed—and failed transactions still consume 100% of gas. $4+ million lost just on failed attempts.
Real case: $9,500 fee for a $120 swap (2020)Someone misconfigured MetaMask and paid 23.5 ETH ($9,500) in fees for a 0.3 ETH ($120) swap. Contacted the mining pool. No response. Unrecovered.
What to do:
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Check estimated gas before sending
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Avoid peak network hours
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Use cheaper networks like TRC20 when possible
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Factor in failure risk during popular events
5. Clicking Approve Without Thinking
When you hit "Approve" on DeFi sites or NFT marketplaces, you're granting permission to access your wallet assets.
Infinite approval is dangerous. Many services request unlimited access for convenience. One approval = they can take any amount. If that site gets hacked? Your funds go too.
Real case: $120 million in 2 hours (December 2021)Hackers injected malicious code into BadgerDAO's website. When users deposited or withdrew, a hidden approval request was added. 500 people clicked without thinking. $120 million drained in 2 hours 20 minutes. One person lost $50 million.
Real case: Only infinite-approval users targeted (July 2024)LI.FI, a cross-chain bridge, was exploited. Only users with infinite approvals were hit. ~$10 million stolen. Worse? The exact same vulnerability caused a $600,000 loss in 2022. Same mistake, twice.
Real case: One email, all NFTs gone (February 2022)Fake emails claimed OpenSea needed a contract upgrade. Those who clicked and signed lost everything—a single malicious signature exploited their existing setApprovalForAll permissions. $1.7–2.9 million in NFTs stolen.
What to do:
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Approve only the amount needed, not unlimited
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Revoke unused approvals (use revoke.cash)
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Review your approval list periodically
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Be cautious with unfamiliar sites
When Should You Use P2P?
P2P lets you trade directly with individuals, no exchange middleman.
Situation | Why P2P works |
Converting local currency USDT | Direct bank transfer |
No exchange in your country | Match with local traders |
Small personal transfers | No intermediary fees |
Need cash fast | No exchange withdrawal wait |
But be careful:
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No escrow = don't trade: If you send first without protection, you might get nothing back
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Check reputation: Transaction count, completion rate, reviews
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Fake payment proof scams exist: Edited screenshots claiming payment was sent
→ More details in [P2P Safe Trading Guide]
The Bottom Line
All 5 mistakes have one thing in common: rushing.
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Check the address one more time
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Check the network one more time
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Check what you're approving one more time
That's it. Crypto has no undo button. 3 seconds of checking protects a lifetime of savings.