How people actually lose everything
It's rarely the trading
Most catastrophic crypto losses aren't bad trades. They're scams, collapsed platforms, and lost keys. FTX wasn't a bad chart — it was an exchange that couldn't return the money.
Guaranteed returns are the tell
No legitimate operation guarantees a return on a volatile asset. 'Guaranteed 2% a day' is not a good deal, it's a countdown.
Not your keys, not your coins
Crypto held on an exchange is a promise from that exchange. Usually fine. Occasionally not, as several hundred thousand FTX customers found out.
Rug pulls
A new token launches, the price rockets, influencers pile in, and the creators sell everything at once. The chart goes vertical and then to zero. If you can't name who profits and how, assume it's not you.
Check yourself
Which of these is the strongest warning sign?
- The price is very volatile
- A guaranteed fixed daily return
- The project is only a year old
Show the answer
A guaranteed fixed daily return — Volatility and youth are normal. A guaranteed return on a volatile asset is mathematically impossible without someone else's money paying it.