User Error
Mistakes can lead to lost funds.
What is this risk?
Cryptocurrency transactions are irreversible. Sending Bitcoin to the wrong address, approving a malicious transaction, or misunderstanding your loan terms can result in permanent loss of funds. Unlike traditional banking, there's no customer service to reverse a mistake. Phishing attacks, fake websites, and social engineering are common in crypto, targeting users who may let their guard down.
Think of it this way...
“It's like signing the wrong line on a loan document, except there's no way to cross it out and initial the correction. Once done, it's done.”
How to Protect Yourself
Practical steps you can take to reduce or manage this risk
Double-check every address before sending — compare multiple characters, not just the first and last few.
Use address whitelisting features when available to prevent sending to unknown addresses.
Start with a small test transaction when using a new platform or address.
Bookmark official platform URLs and never click links from emails or messages.
Take your time — there's rarely a reason to rush a transaction, no matter how urgent it seems.
Learn the platform thoroughly with small amounts before committing significant funds.
See This Risk in Action
Explore real-world scenarios where this risk plays a role
Other Risks to Consider
Explore other risks to get a complete picture
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