Not everyone is paranoid but there are certain occassions that experience trader got a fud news which can make the market collapsed and although this feelings might not affect the as a whole but for sure.
Also its really good to have safety nets towards this.
But also experience to know these things will result us a positive output since whatever market moves we will not get panic or do some negative decisions.
Why would anyone panic on hearing or seeing fud enough to throw away access to their private wallets? I don't really see why though. Whenever one creates a wallet, there's usually a note to safeguard those access methods. This goes to show how important these things are. It's also what pointing out that crypto isn't really for the weak. You have to be able to take on risks and also not come for shitcoin and memecoin pumps otherwise you will be disappointed.