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5 Beginner Mistakes in the Crypto World

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Avatar for Alther
Written by   164
5 months ago (Last updated: 1 month ago)

Insecurity arises from mistakes made by users or failure to make decisions to manage funds properly.

Removing third-party dependency means that users must be fully responsible for protecting themselves from fraud and mistakes.

Most beginners think freedom from third party support when making cross-border transactions. In this case, there are several things that make many beginners make a lot of mistakes, here are 5 beginner's mistakes in the world of crypto, to present a variety of valuable lessons regarding crypto storage or investment strategies.

1. Easily Believe in Wallet Services on the Crypto Exchange

Exchanges basically only facilitate the sale and purchase of cryptocurrencies. If not, then the fake/scam crypto exchange will easily abuse its control over the funds stored in the wallet.

2. Sending Funds to the Wrong Address

Many beginners make this mistake when they first trade on the crypto exchange. In fact, sending money to the wrong address is a big mistake, because the funds cannot be returned.

3. Not Resetting the Wallet Password

You can recover a forgotten password or passphrase for a Wallet, even though the Private Key is not possible to recover. So, make sure to have both passwords, and it is recommended to back them up on Hard Copy.

4. Not Making a Backup Wallet

Backing up is highly recommended, especially Offline backup. Most cryptocurrency wallets have features that allow you to make backups very easily.

5. Not Joining the Crypto Community

Joining the cryptocurrency community such as Bitcointalk, Reddit, Discord, or others will help you get free support from experienced traders and investors. Additionally, you will usually get a warning about fraud and a Pump & Dump scenario for free. Those who do not know anything about the hottest information in the crypto world will make decisions without measurable consideration.

This is the most important beginner error that should be avoided.

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Written by   164
5 months ago (Last updated: 1 month ago)
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Comments

I made the second mistake several times. I would like to share one more mistake that I went through a few times too. I did not check on how much the transaction fee on both side causing me to lose some of my earning. It is not a big amount but still I lose it because of a mistake.

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3 weeks ago

Many new Bitcoin Cash users are not aware that the pass phrase (seed) can be used in different wallets. For example, you can enter the phrase of your read.cash wallet in bitcoin.com and access your funds. I have described it here

https://read.cash/@Telesfor/how-to-integrate-readcash-wallet-into-bitcoincom-wallet-80747c24

(This description is for older version of Bitcoin.com wallet)

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5 months ago

That is a very complete article to explain how to back up a wallet. Nice friend. Thumbs up

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5 months ago

thanks for your good information

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3 weeks ago

Your welcome sis

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3 weeks ago

thanks for sharing dear.

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1 month ago

It is helpful for me thanks men

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1 month ago

Your welcome.

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1 month ago

Good work from @Alther. "Experience is the best teacher". Thank you for sharing part of your experience with us.

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5 months ago

Yes you're right we all learn from experience, and mistakes. Hopefully this is not repeated for others and can help.

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5 months ago

I made the second mistake several times. I would like to share one more mistake that I went through a few times too. I did not check on how much the transaction fee on both side causing me to lose some of my earning. It is not a big amount but still I lose it because of a mistake.

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5 months ago

Nicely put. I have been there initially but don’t do these mistakes anymore. We need to spread more awareness.

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4 months ago

This is a very important article that needs the proper attention of everyone, not only the beginners. Thanks @Alther.

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4 months ago

More people should read this article. It will be helpful for them not to lose their hard-earned satoshis.

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4 months ago