June 19, 2021

4 Surprising Ways You Can Lose Money Investing in Cryptocurrency | Business

You could also consider storing your cryptocurrency in an offline (or “cold”) wallet, although you open yourself up to the possibility of physical theft if you leave it lying around.

4. Password loss

If you lose the password to your cold wallet, you could lose access to your cryptocurrency permanently, even if you’ve got the wallet right in front of you. If you have a hot wallet — one that’s connected to the internet — then you might have to worry about other people holding on to their passwords.

One particularly devastating case happened in 2019 when Gerald Cotten, founder of Canadian-based cryptocurrency exchange Quadriga, unexpectedly died. He was the only person who knew the exchange’s crucial passwords, and without that information, his clients were unable to access the combined $250 million in their accounts. This understandably led to an uproar, causing some to go as far as to…

Read full article here: nptelegraph.com