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.