Most avoidable losses in this area come from two things: trusting a provider without checking, and losing control of an account to someone who asked nicely. This section deals with both.
Market risk is only part of the picture
Prices falling is the risk people expect. The ones that catch people out are the others — a platform that becomes unreachable, a withdrawal that is delayed, a device that has been compromised, or a message that looks exactly like it came from a company you already deal with.
Older adults are targeted deliberately for impersonation, usually with urgency and a friendly manner rather than anything technical. Recognising the pattern is most of the defence.
Guides in this section
- Cryptocurrency Security Basics — passwords, phishing, device hygiene, wallets, seed phrases and account recovery.
- How to Evaluate a Cryptocurrency Trading Provider — identity, fees, access, support, disclosures and withdrawal terms.
- Questions to Ask Before Depositing Funds — a checklist to use directly with a provider.
Warning signs worth memorising
- Pressure to act now, or an offer described as closing soon.
- Any suggestion that a return is assured, or that losses are unlikely.
- Reluctance to put basic details — entity name, fees, withdrawal terms — in writing.
- A request to install remote-access software so someone can help you.
- A sign-in page reached from a link in an unexpected message.
Related reading
The formal risk disclosure sets out the categories of risk in full. For how automation adds its own failure modes, see risks of automated trading signals. Back to the Learning Centre.