How i lost my university tuition in crypto

As a trader, I've seen the tremendous amount of money that can be made in cryptotrading, but I've also learned that it's really tough to make money. In my pursuit of profitability, I delved deeper into what I now see as the wild west of blockchain technology. The potential of this new ecosystem is incredible. In this article, I'll explain how I lost money that was supposed to go toward my tuition, in the hopes that it would help someone else.

My first blunder was keeping all of my money in one wallet. I was a victim of phishing scams.

I had some funds in the aave protocol when this happened.

Aave functions like a bank where you can deposit your coins and borrow money against them.

The important thing is to keep an eye on your risk because if it falls below your collateral, you will be liquidated. In my situation, I had a good risk of 2 when I woke up the next day, but I was at a risk of 1.06 and was on the verge of being liquidated. So I panic and begin checking through my transactions, which is when I discovered that someone had gained access to my wallet and had transferred some of my ethereum assets.As I attempted to withdraw my remaining funds, I realized that I needed to first pay back the loan I had obtained. Repaying the debt at that time would have left me with much less money than I already had. As a result, there was no way to back out.

I join aave's telegram and discord channels and explain my situation. Three people send me dms really quickly. Because he wanted me to provide my private keys, I was able to identify the first was a con. The second individual appears to be well-informed. He has the ability to switch from my eth to usdc. It's worth noting that he did this without knowing the password to my wallet. At the very least, I'll have more time to find out a solution using stablecoin. I begin to notice that my balance is declining over the next few days. When I return to my transactions, I see that my funds have been transferred to a new wallet. I am concerned once more and notify the developer who assisted me. After that, he falls silent. Imagine watching your money being stolen while you are powerless to stop it. Mark You aave is a decentralized organization with no physical location. It was a difficult pill to swallow.

So, how did the thief get his hands on my money? airdrops . Protocols employ these to entice users to sign up. Let's imagine a protocol wants to expand its market share, therefore it distributes tokens to random wallets. After that, you can earn by selling these airdropped  tokens. What they don't tell you is that as soon as you authorize a token swap for a stable coin, they gain administrative access to your wallet.

My solution is to keep a master wallet as well as many backup wallets. The money in your wallet should only be used for gas. The majority of your funds should be held in protocols to which the wallet has administrative access. So if it's targeted, you'll merely lose your gas . Because most of these protocols allow numerous wallets to manage, transfer, and deposit funds. As soon as you become aware that your wallet has been compromised, you can withdraw revoke admin access to the protocol where your funds are kept.

The second blunder.   It's commonly referred to as degen farming. These are protocols that are still in their early phases of development and can only be accessible through dexes. A daily apr of 10-15% is promised to you. This causes the protocol to pump after it has been launched. I've doubled my money in a day, then it crumbles the next week, and you hear that the developers have stolen funds from the protocol. You discover a similar project with the same coders a few weeks later, and the cycle repeats.

This is only a small portion of what goes on in the market. Scammers stole $14 billion worth of cryptocurrency in 2021 alone, nearly double the amount taken in 2020. So be cautious when investing.