10 Beginner mistakes in the crypto world
10 Beginner mistakes in the crypto world > Cryptocurrencies give users many new benefits, especially in terms of freedom from third-party support when conducting cross-border transactions.Deleting a third-party dependency means the user must be fully responsible for protecting oneself from fraud and errors.In most cases, insecurity arises from mistakes made by users or failures in the decision to manage funds well.Here are 10 mistakes of beginners in the crypto world, to present a variety of valuable lessons on storage strategies or crypto investments.
1. Easily trust the wallet service in the crypto Exchange
Over the years, the hundreds of millions of dollars worth of crypto money have been lost because many users trust the unsafe crypto exchanges.Never look at Exchange services as a provider of trusted crypto wallets, unless said so.Exchanges essentially facilitate the sale and purchase of cryptocurrencies.Otherwise, the cryptocurrency exchanges will easily misuse the controls for funds deposited in the wallet.Also, be sure to enable and back up two-factor authentication restoration codes somewhere offline, because most of them have no support that can be used for recovery.
2. Unaware or unable to identify Phishing offenders
Phishing or criminal activities by stealing user data in a hidden, generally utilize human fear and greed.They give them the lure of money, access, or important data (such as high-value Airdrop), to attract the victims.Usually, phishing is done through clicks on emails or fake websites.To overcome this, do not be easy to trust with links sent via referrals, emails, or other messages, even if the sender says it comes from a trusted site such as MyEtherWallet, Coinbase, Kraken, or any other Blockchain site.
When you search for a crypto site or click a link, make sure all certificates are OK.Please note the top of the Browser in the Address Bar URL. The “key” sign in front of the URL should display a green color to indicate that the site is secure.You can also use Cold Wallet for extra security, as this feature
can protect your crypto even when your computer has Malware.If not sure, check on social media and the Internet to see if the page you are visiting is potentially a Scam.Also, with so many scams and Ponzi schemes of crypto-currencies in circulation, you should thoroughly examine all the subtleties behind a
scheme that draws your attention, before actually depositing the investment funds.
3. Sending funds to the wrong address
Many beginners make this mistake when they first transact on the crypto exchange.In fact, sending money to the wrong address is a big mistake, because the funds are not refundable.It is actually understandable, considering the address of the crypto wallet has many digits.Therefore, it is very important to check & recheck before you finalize the crypto transactions.
4. Sending Bitcoin to an Ethereum account (or vice versa)
If you want to redeem Bitcoin with Ether, do not send it directly to your Ethereum account.You must use Coinbase, Bittrex, Gemini, or any other Exchange to redeem Bitcoin first to Ethereum.For example, you can redeem Bitcoin to Ether using Changelly, and then send it to your ETH And wallet account
5. Send the same transaction twice, because the first takes a long time
In this case, you may make a payment twice as yet to know that the transaction confirmation time of each cryptocurrency is very different.Nervousness and fear wrong can cause this disaster to occur. So make sure you patiently wait for the confirmed transaction first, by looking at the Hash Log given after the transaction has been made.Do not hurry to make a second transaction before confirming, because if both succeed, then the funds in your wallet will certainly also be doubled.
6. Not resetting the wallet password
Most users think that the best get-go option is to not have or enable passwords for their wallets.The assumption is wrong, because without password, it is easier for hackers to hack the crypto wallet.In most cases, you can recover forgotten passwords or passphrases for wallets, although private keys are
unlikely to be recovered.So, make sure to have both passphrases, and it is advisable to back them up to Hard Copy.The most common practice to resolve forgotten passwords is to log or store them in offline devices
7. Copy Paste Wrong wallet address due to Malware
The Malware network exists that attempts to replace the actual address with a different address when copied paste.That means, you will eventually send money to the wrong address and lose the funds unconsciously.The malicious software has a list of thousands of addresses and will select the one closest to the address you should copy.So, it may be difficult to detect changes when you see the address without any thoroughness.
In order to avoid this risk, you must verify it directly with the person who made the transaction with you.In addition, you can also manually check (digits per digit), to make sure there is no error pasting the copy of the address because of Malware.Another option is to use cryptocurrency wallets that have added
special features to confirm the truth of the address data with the recipient photos.
8. Not creating a backup wallet
Private key is the key to access to your funds, so money will surely disappear if you forget or lose the key.Backing up is highly recommended, especially Offline backups. Most cryptocurrency wallets have features that allow for a very easy backup.You can create a backup wallet to Offline devices that you won’t use.In fact, the best way to do this is to have copies completely. Be sure to write down all your passwords, private keys, etc.Print it out, and keep it in a safe place. This way, you can restore all of your crypto to another device if your computer is compromised, stuck, or even stolen.
9. Controlled by emotions when Trading cryptocurrencies
Greed, fear, boredom, or unrealistic expectations can be so influential in the trading action you take.Fear can make you fail to get into the next trading opportunity, especially if you have just suffered a major loss in previous trades.However, Fear of Missing Out (FOMO) is also very common among beginners who want to get into every trading opportunity without long thinking.This is because it is often ambitious to generate many gains in a short period of time.In this case, you may need to practice holding a position, especially if the goal is for crypto investing.Even if you have a target for short-term trading, also set your long-term investment target, to have more options in trading.
Meanwhile, boredom can affect your judgment easily, due to lack of interest in analyzing or determining the position.Therefore, never force yourself to continue trading when your mood is not in good condition.The worst thing about cryptocurrency trading with emotion is that most of the prices of
cryptocurrencies are likely driven by speculation, making it very easy for new traders to enter traps and suffer huge losses.In general, patience is indispensable in crypto trading.
10. Not joining the Crypto community
Joining a crypto-currency community like Bitcointalk will help you get free support from experienced traders and investors.In addition, you will usually get warnings about fraud and Pump & Dump scenarios for free.Those who are not tahu-menahu about the warmest information in the crypto world, will make a decision without any measurable consideration.Here’s the most important beginner mistake to avoid. In addition to learning from the above 10 mistakes, you also need to understand how to avoid crypto scams, so as not to get stuck in the fraudulent schemes of exchanges or certain parties.