5 Ways You Will Lose Your Bitcoin Cash
If You Are Not a Professional Trader, Then Avoid Trading
One of the most frequent mistakes new users make is to start intraday trading with their BCHs: don't make this mistake. If you want to deal with Bitcoin Cash as an investment and you are not a trader, it is very likely that you should adopt a holding strategy: save them, spend them and study the underlying technology.
Many people have lost their Bitcoin Cash in an attempt to find the famous ATH (all time high), that is the maximum price peaks. How not to make this mistake? Avoid all tools that track the price:
Exchange apps
Widget with BCH charts
App with daily price notifications
Another fundamental advice: do not follow youtubers. These people don't know you as a person, your financial situation and your goals. In their videos they talk about the price of Bitcoin Cash and can influence your investment choices incorrectly.
ICO, IEO, IDO: What Do These Acronyms Mean?
If you know Bitcoin Cash, you will surely know that there are also thousands of cryptocurrencies: alternative coins to Bitcoin Cash. The phenomenon of altcoins was born shortly after the birth of Bitcoin: with a few changes to its code, people were able to distribute versions of Bitcoin with different names and parameters, this is the case of Dogecoin born in 2013.
Dogecoin was born from the Bitcoin code, however the limit of 21 million, has been removed, leading it to be infinite and the blocks of the blockchain are mined at a rate of 1 block per minute instead of every 10 minutes. Investing in alternative coins is pure speculation. There are literally infinite of them, they are infinitely inflationable and most of the projects are managed by companies or foundations and this makes them extremely vulnerable.
The same level of risk, if not greater, also applies to ICOs, IEOs and IDOs, newly born projects that organize sales of their tokens. What is the difference?
ICO: Initial Coin Offering, sale of shares by a company in the form of a token
IEO: Initial Exchange Offering, the sale takes place through a centralized exchange
IDO: Initial Dex Offering, the sale takes place through a decentralized exchange
If you are not an expert in the sector, we personally recommend that you study Bitcoin Cash thoroughly before diving into new and risky sectors.
Trading Companies and Online Scams
Using social media you could be contacted by the worst scammers on the Internet who will promise you the multiplication of your BCH through investments, algorithms, trading bots, etc. Ignore them, they are scams!
Another category are creative scammers: strangers will contact you (especially on Telegram or by email) who will ask you for help to withdraw their Bitcoin Cash from some Chinese exchange or will ask you to pay the ransom for some famous friend stuck abroad, promising to repay you for the annoyance. Obviously this is all false and you will lose your coins.
Your Bitcoin Cash Wallet Has Been Hacked?
Unfortunately we still hear many people losing their Bitcoin Cash. One day you open your wallet and find all the coins transferred to an unknown address. Now what? Unfortunately you will not be able to do anything about it, once a Bitcoin Cash transaction is confirmed it cannot be canceled.
How are wallets hacked? Most people use unsafe wallets, if you don't know which wallet to use for your Bitcoin Cash, we recommend to choose Melis Wallet:
Moreover, Melis is a software wallet which is superior than hardware wallets because very often these devices get infected with viruses, trojans and keyloggers which manage to manipulate your device and withdraw the coins without your permission.
Don't Keep your Bitcoin Cash on Exchanges
There are certainly hundreds of thousands of Bitcoin Cash stolen from exchanges in the last 10 years. Some cases have become famous in the industry: from MTGox to Bitgrail to QuadrigaCX.
Leaving your BCHs on exchanges is worse than keeping your money in a bank, as the refund procedures follow years of legal proceedings and international regulations often make everything slower and more complex.
An exchange can be hacked or it can fail as in some of the aforementioned cases and you will certainly lose some of your funds: your online account can be hacked more easily than your encrypted Melis wallet inside a dedicated smartphone and therefore not used on a daily basis.
Conclusions
If you have read this article carefully you will surely have understood the 5 big mistakes with which you risk losing your Bitcoin Cash, but above all you will have understood how to avoid them. If you have any doubts about the correct procedures, do not hesitate to comment below.
