Banks may provide fraud investigation, reversal or reimbursement depending on the payment method, jurisdiction and circumstances. Recovery is not guaranteed.
Confirmed blockchain transfers generally cannot be reversed by the sender. A recipient or custodian may return funds, but there is no general chargeback mechanism or guaranteed recovery.
This makes security the single most critical skill for any crypto user.
This is the most important rule in crypto.
Your seed phrase gives complete access to all your funds. Anyone who has it can drain your wallet instantly.
Never disclose a recovery phrase to support staff, another person or a website asking you to verify your account.
Legitimate wallet recovery can require entering the phrase locally using the wallet manufacturer’s verified recovery procedure. Verify that procedure independently; unsolicited messages asking for the phrase are a scam warning.
2FA adds a second layer of security beyond your password.
2FA reduces password-only account takeovers, but phishing, stolen sessions, compromised devices and weak recovery methods can still defeat protection. FIDO2/WebAuthn security keys offer phishing-resistant sign-in where supported.
Use authenticator apps:
Avoid SMS 2FA — phone numbers can be hijacked through SIM swapping attacks.
Enable strong authentication on every exchange and custodial account that supports it. Self-custody wallets have different security models; account 2FA does not protect an exposed recovery phrase.
Phishing is when scammers create fake websites or emails that look identical to real ones — tricking you into entering your credentials.
How to spot phishing:
One wrong click can drain your entire wallet.
Never reuse passwords across different platforms.
If one exchange gets hacked and your password is exposed — attackers try that same password on every other exchange. This is called credential stuffing.
Use a password manager:
Generate unique complex passwords for every platform automatically.
Outdated software contains known security vulnerabilities that hackers actively exploit.
Serious crypto holders use a dedicated device — a phone or computer used only for crypto. No social media, no random downloads, no browsing.
This dramatically reduces attack surface.
Crypto transactions are irreversible. Always:
Verify the full recipient address and network, preferably on the hardware wallet’s trusted display. Checking only the first and last characters can miss address-poisoning attacks.
Common scams to avoid:
If it sounds too good to be true — it is. Always.
In the next topic we will move to Subject 2 — Reading Charts. Get ready — this is where trading truly begins!