A month ago, my friend experienced a costly error, losing $30,000 in USDT due to a simple yet devastating mistake. This incident serves as a vital reminder for all crypto traders to exercise caution. Here’s the story and the lessons learned.
🔗 The Transfer That Went Wrong
The transaction involved transferring $30,000 USDT from my friend's KuCoin account to his business partner's OKX wallet. The wallet address provided was compatible with the ERC20 network, so the process should have been seamless. However, things went wrong:
1. My friend mistakenly selected the Polygon network instead of ERC20.
2. He proceeded with the transaction without noticing the mismatch.
3. Once confirmed, the funds left his KuCoin account but never reached the OKX wallet.
Attempts to recover the funds failed since OKX does not support deposits via the Polygon network for that address.
⚠️ The Lesson: Avoid Costly Crypto Errors
This incident highlights the importance of paying attention to every detail during crypto transactions. Here's what went wrong:
Network Mismatch: The wallet address supported ERC20, but the funds were sent via Polygon.
Irreversible Transactions: Unlike traditional financial systems, crypto transactions cannot be reversed once completed.
🚀 How to Prevent Crypto Losses
To avoid such mistakes, follow these best practices:
1. Double-Check Wallet Details: Always verify the recipient's address and supported network before initiating a transfer.
2. Match the Network: Ensure that the blockchain network you select matches the recipient's requirements.
3. Start Small: For large transfers, send a small test amount first to confirm all details are correct.
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By taking these precautions, you can significantly reduce the risk of losing funds in crypto transactions.