Crypto market is expanding daily, thanks to new miners, traders and investors. Notably, being involved in the cryptocurrency market can be a risky and volatile endeavour, however, best believe that it can also be rewarding.
Every day in the crypto sphere, there will be news of hacking and scams, as well as crypto technical mistakes beginners will do that might cost them everything they have worked for. Thus, below are 5 costly mistakes done by crypto newbies that should have not happened in the first place.
Not Being in Control of Private Keys
A private key is a sophisticated form of cryptography that allows users to access their cryptocurrency. As an integral aspect of cryptocurrencies, private key security helps to protect users from theft and unauthorized access to funds.
Many crypto newbies make the mistake of storing their keys online on exchange platforms, instead of investing in secure offline wallets. This will eventually put users at risk of having the keys fall into someone else’s hands. Thus, ensure to store your private keys securely on offline wallet options like Ledger and Trezor.
Wrong Cryptocurrency Wallet
Crypto newbies or beginners who are eager to trade in cryptocurrency can be a little impatient following the pressure. This will lead to our number two serious technical mistake which is sending cryptocurrency to a wrong wallet or address.
This is usually disastrous because it’s definitely impossible to get your currency back. Hence, users are advised to slow things down and take your time. Be sure to copy and paste the right address to prevent from making an error.
Relying on Online Storage Only
Keeping all your cryptocurrency information like address, password and keys in electronic devices and online storage is undeniably handy. One simple click and users can access to every single piece of information needed.
However, users are advised to consider making hard copies of that information besides having an online digital record such as writing them all down on paper and keep them somewhere safe.
Forgetting the Needs of Two Factor Authentication
Notably, the cryptocurrency sphere is filled with cyber criminals trying to get access to a million dollar worth of users’ data. Thus, it is important for the crypto community in general to ensure the safety of their data and assets.
Unfortunately, not many crypto newbies realize the importance of having two-factor authentication on all their exchange services accounts. Doing a much better job at securing your credentials and assets than using only a password, two-factor authentication makes it harder for cybercriminals to gain access or control over your data.
Thinking Cryptocurrency Makes Fast Money
Last but not least, many newbies getting into the cryptocurrency market thinks that this endeavour will make them rich in an easier way and quicker time. Truth is, cryptocurrency is not a get rich quick scheme, although it will help users in achieving financial freedom if done correctly.
Trading cryptocurrency, if done with the right approaches and within the right amount of time will help users in earning digital money, however that does not guarantee users to become rich.
Our Two ‘Sats”
It honestly has been a shocker for some realizing that cryptocurrency has lasted this long in the market. Notably, there is a lot of money to be made in cryptocurrency, but it belongs to those who can avoid making ruinous mistakes. Thus, whether you are in the market for trading or mining, it is important to treat your endeavour with the utmost care and diligence.
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Nurul is an English Language graduate who is highly passionate on writing, she literally breathes on it. An avid reader and a critical thinker, she covers on blockchain news during day and weeps at sad novels at night.