Sending crypto to the wrong address: how to avoid doing this
Putting salt in your coffee instead of sugar, washing colored socks with white towels, or adding pineapple chunks to a pizza: yes, we all make stupid mistakes. After all, we’re not perfect. The problem begins when a mistake costs us dearly. And this is the case when we send crypto funds to the wrong address.
It’s annoying, it can put us at a loss, and it can happen to anyone. Sending crypto to the wrong address is, unfortunately, a common occurrence. And it’s not the only way people lose funds.
First, people lose their crypto because they fall prey to groups of miserable swindlers whose craft is to hack accounts and take funds from them.
It also happens when users lose their private keys, which unlock the door to the storage with crypto valuables. Once the keys are in the wrong hands, your crypto can disappear quickly from your account.
According to one study, up to 20% of all bitcoins ever minted are lost and can’t be recovered.
Another reason is human error. No one knows for sure how many coins did not reach their intended destination. All we know is that this problem occurs regularly.
Even experts make mistakes
Sometimes, people who want to send funds make a typo while adding a cryptocurrency address. It’s a long and complex chain of numbers and characters, so the likelihood of error is high.
As a result, assets go to the wrong address.
Decentralization cuts both ways
“Bye, bye forever” is the right thing to say. Yes, you read it right – forever! One can blame the irreversible nature of cryptocurrency protocols. It means that if you send your funds, you cannot get them back later.
This is how it works:
In cryptocurrency, everything works on a distributed, digital ledger and on a decentralized network. It means that here, you are your bank and the sole custodian of your assets.
One can guess that all the people behind Bitcoin and blockchain technology assumed that users would be self-reliant, responsible, and resourceful. Unfortunately, not everyone can handle their funds. Yet again, modern technology underestimated man’s imperfect nature.
Also, people in charge of crypto platforms and exchanges tend not to have policies relating to the sending of funds to the wrong address. They only advise contacting the receiving party and asking for their cooperation in returning the funds. But the recovery can cost the user an extra and hefty fee.
What can you do about it?
Oddly enough, some people are eager to do bizarre things to restore their funds, like hacking one’s vault with cryptocurrencies. It’s not always possible to hack and, obviously, it’s something you shouldn’t do.
But there are some handy tips to avoid making wrong decisions. First of all, be careful and double or even triple-check the address before transferring funds. It’s better to be safe than sorry.
You can always carry out a Satoshi Test. It’s a practice named after the creator of Bitcoin. Here, the user sends the minimum transferrable amount of crypto as a test transaction to ensure the address is correct. Once the transaction is confirmed, the user can send the rest.
The BTCV solution
The problem shared by many cryptocurrencies is that no actions can help restore the wrongly sent funds. But there is one exception: Bitcoin Vault (BTCV) has a unique 3-Key Security Solution, giving users the opportunity to get out of a bad situation:
- The first key initiates the transaction (Standard Transaction Key),
- The second key (Cancel Transaction Key) cancels the transfer,
- The third key (Fast Transaction Key) is the heart of Secure Fast transactions.
Users are given a 24-hour window for regular transactions to react if there is any wrongful action. The third key helps to transfer BTCV in a matter of minutes, overriding the standard delay.
The cryptocurrency sector acts as a magnet. More and more people are coming here attracted by tons of opportunities.
In crypto, you can send funds directly to another person. The transaction cost can be low or close to nothing. Limits on purchases and withdrawals don’t exist. These are a few of the many advantages.
Unfortunately, newcomers don’t have much experience with crypto usage. A simple mistake can cost them dearly and discourage them from giving this market a try. Therefore, it is worth keeping your mind focused and following the protocol when sending funds.