Pay attention, because I’m about to lay out the facts. I’ve watched too many of my friends and colleagues in Southeast Asia, from Jakarta to Manila, lose their shirts pursuing crypto fantasy. They fall for the shill, the hype, the glamorization, the promise of quick millions and find themselves rekt. Well, I’m here to ensure that doesn’t happen to you. That’s not financial advice, but it’s a wake-up call.
Ignoring the 'Too Good'
Forget the lambo dreams for a minute. If someone’s assuring you that you’ll see guaranteed returns of 20% per month on some esoteric altcoin, run away. Run far, run fast. It's a scam. Period. More controversially, I’d argue in Southeast Asia we’re especially vulnerable, because we’re that much more prone to believing the ‘lucky break’. Yet contrary to popular belief, crypto isn’t a lottery ticket — it’s an innovative technology and a speculative investment class.
I’ve watched people mortgage their homes, take out personal loans off of rumors in Telegram groups. It's heartbreaking. Recall that even Tether, a stablecoin allegedly backed one-to-one by the dollar, has had past questions raised about its reserves. If the “stable” coins are as stable as you think they are—what do you figure that meme coin is really valued at? Likely much less than the energy it took to mine it in the first place.
Chasing Hype, Not Understanding Tech
Bitcoin, Ethereum, Solana, BNB… these are names you’ve heard of not by accident. They are different technologies, with different use cases, different risk profiles, and… Just imagine if you went to buy a car and didn’t know if it ran on gasoline or electricity. Why are you going heavy on crypto if you don’t understand the underlying technology of the blockchain? Picture this, you have a very basic understanding of consensus mechanisms and tokenomics.
Think of it this way. Now imagine trying to invest in a tech company without ever seeing their product. That’s exactly what you’re doing when you purchase crypto simply because your neighbor’s cousin just made a fortune on Dogecoin. Sure, you might get lucky. But hoping for luck to save the day is no plan, particularly when you’re spending your hard-earned money.
Treating Exchanges Like Savings Accounts
Your crypto exchange isn't a bank. It's a marketplace. And leaving your coins just sitting there – vulnerable to hacks – is no safer than leaving your wallet on a park bench. Remember Mt. Gox? Remember all the exchange hacks since then? These are not one-off events, but rather an everyday occurrence that you must be aware of as the custody of your assets lies in your hands.
Get a hardware wallet. We know it can be intimidating to take that first step, but the process is well worth it. Think of it like this: storing your crypto on an exchange is like keeping all your cash under your mattress. Think of a hardware wallet as a safe deposit box at your local bank. It’s an insignificant price to pay for so much safety. Don't be penny-wise and pound-foolish.
Ignoring Transaction Fees – Death by a Thousand Cuts
Those small transaction fees? They add up. Particularly if you’re doing a lot of trading, shifting your crypto between exchanges and wallets to chase the next pump. It’s the equivalent of paying ATM fees all the time – you’re just bleeding dollars over time.
Know the fees before you exchange Read more about transaction fees. Are you using the Ethereum network? Brace yourself to cover gas fees, which can occasionally exceed the value you’re transferring. If transaction costs would be an issue for you, then deploy on blockchains that have minimal transaction fees such as Solana or BNB Chain. Remember, every satoshi counts.
No Exit Strategy? Prepare to Be Trapped
"HODL to the moon!" Sounds inspiring, right? Contrary to the saying, this time the moon is indeed a mirage. What do you do when the market crashes and you are withdrawing that money to pay your rent, to pay your food, to provide for your family?
Have an exit strategy. Know when you're going to take profits. Set realistic goals. Don't get greedy. For the love of all that is holy, never invest more than you can afford to lose. Crypto is volatile. Unchecked, it climbs, and if doing that doesn’t work, it eventually falls. Be prepared.
Blind Faith in Influencers & Telegram Groups
I experience this phenomenon constantly when traveling to Southeast Asia. Individuals take the voice of unqualified experts with zero accountability on social media. They jump into Telegram groups filled with rampant speculative hype and misinformation. Consequently, all too often, they make reluctant investment decisions biased by the environmental information they discover—and don’t discover—there.
Do your own research! Stop listening to randos on the internet telling you how to invest your hard-earned cash. Verify everything. Question everything. And of course, if it sounds too good to be true… Influencers are paid to shill coins. They don't care about your financial well-being.
Lack of Basic Security Hygiene
Using the same password for everything? Clicking on suspicious links? Sharing your private keys? These are absolute rookie mistakes that can sink your entire endeavor. Crypto is the digital Wild West, and there are enough bandits out there who want to make off with your hard-earned coins.
Create a unique password, including special characters and a mix of upper and lowercase letters, for each account. Enable two-factor authentication (2FA). Be wary of phishing scams. Please do not share your private keys with anybody. Consider your private keys like your social security number – don’t share them, don’t expose them!
On balance, crypto is a thrilling environment ripe with opportunity that poses significant danger. By steering clear of these all-too-common pitfalls, you’ll set yourself up for success and save yourself from financial disaster. Don't be a statistic. Be smart. Be informed. Don’t forget, safety first—always!
Now, I want to hear from you. What’s the dumbest thing you’ve ever done with crypto. Let us know what you’ve done or have seen done in the comments below, so we can all learn from each other. Together, let’s make Southeast Asia home to a knowledgeable, prudent class of cryptocurrency investors.
