If it sounds too good to be true, it probably is. Especially in crypto.
At I Bet On Crypto, we write a lot about how to earn with cryptocurrency, from stablecoin savings to trusted crypto tools and everyday necessities like crypto cards. But we also take crypto risks seriously. That’s why we regularly publish tips on how to avoid scams and protect your funds.
Recently, we received a story from one of our readers, a seasoned freelancer, who fell victim to a scam. His loss? 0.5 ETH, worth about $900 at the time.
Here’s his crypto mistake story. And more importantly, what you can learn from it.
Meet Dominic: A Smart Freelancer Doing All the Right Things
Dominic isn’t new to tech. He’s a certified Google Ads professional, works with e-commerce businesses to sync online and offline ad sales, and recently began accepting crypto payments from international clients.
“It’s just easier,” he says. “Banks often gave me trouble with international payments, especially when offshore companies were involved. With crypto, I skip all the bureaucracy and just get paid.”
Dominic invoices in USDC, a popular stablecoin, and even deposits a portion of his funds into Earn programs to generate passive income. He’s not a trader, not into speculative coins, just using crypto as a practical tool.
So how did someone this careful get scammed?
The Trap: A “Crypto Bot” That Looked Legit
One day, while watching YouTube videos related to ad tech, Dominic came across a short video that seemed clever, not outrageous. A tech-savvy presenter explained how to set up a simple crypto trading bot.
“The concept made sense,” Dominic said. “The bot would do small trades, earn small profits, and over time, those would add up. Nothing too crazy, just 30–40% returns after a few hours.”
The video included instructions to compile a script, connect it to your wallet (like MetaMask), and fund it with a small deposit. There was a button to “withdraw” later. On the surface, it looked like a basic automated trading system for small-scale arbitrage.
Feeling intrigued but still cautious, Dominic decided to give it a shot.
What Happened Next
Dominic followed the instructions, deposited 0.5 ETH, and let the bot run for a few hours. No errors popped up. The interface looked clean. But when he tried to withdraw his funds, that’s when it hit him.
“Instead of returning the funds to my wallet, it sent them straight to someone else’s address. It was a complete setup. The entire script existed only to drain wallets.”
No flashy promises. No fake dashboards. Just a well-coded script that siphoned his deposit, clean and quiet. Call it a crypto mistake or a crypto scam, doesn’t matter, the money are gone forever.
The Psychological Hook: Why Smart People Still Fall for It
This wasn’t a classic “get rich quick” scam. It mimicked legitimate behaviour, just enough tech, just enough plausibility.
“I didn’t expect miracles. I wasn’t being greedy. But they exploited a weakness: the illusion of technical credibility and passive income,” Dominic admits.
He thought it was AI doing smart trading in the background. But in reality, the only automation happening was theft.
What You Can Learn From Dominic’s Crypto Mistake
Dominic took the hit so others could learn. Here’s his advice to fellow freelancers, crypto-curious users, and digital nomads:
🔹 1. If You Can’t Read the Code, Don’t Trust the Script
Unless you’re a developer and can audit the script line by line, don’t run random code from the internet, especially not with your own funds.
🔹 2. Ignore “Bots” Promising High Short-Term Returns
Legitimate automated trading bots, like those offered by big exchanges, usually offer 1–3% returns per month, not per hour. Anything offering 30–40% in hours is a red flag.
🔹 3. Stick With Proven Platforms
If you want to earn with crypto, there are safe ways:
- Use centralised Earn programs on platforms like Nexo or Binance.
- Explore DeFi protocols with audited smart contracts.
- Consider staking from your wallet via trusted validators.
🔹 4. Don’t Let “Passive Income” Hype Cloud Your Judgment
Crypto can empower freelancers and nomads, but it’s also full of opportunists looking to exploit your optimism. Do your homework. Be sceptical. Avoid such opportunistic crypto mistakes.
Final Thoughts: The Cost of Curiosity
Dominic lost 0.5 ETH, but he kept his lesson in perspective:
“I’m just glad I didn’t send more. But I shouldn’t have done it at all. I’m not a coder. I didn’t fully understand what I was doing. And in crypto, ignorance costs money.”
We’re grateful he shared his crypto mistake story. Hopefully, it saves you, or someone you know, from a similar loss.
What You Should Do Now
✅ Bookmark trusted crypto tools
✅ Stick to platforms with security audits
✅ Don’t run third-party code unless you fully understand it
✅ Educate yourself before chasing returns
Want to Learn How to Use Crypto Safely as a Freelancer or Nomad?
Check out our free guides:
Guide to Crypto Wallets with Interest on Stablecoins
