I got into cryptocurrency just over an year or so ago and during that period, I made a few mistakes. As I learnt more about crypo world and talked to other cryptonians (new & old), I found that those mistakes are quite common among newcomers. Therefore this blog post is my take on the most common mistakes newcomers makes when they get into the world of cryptocurrency.
Expecting big profit by mining
Those days are gone when you could mine a coin and make a big profit. Unless you can get ultra cheap electricity (even free), mining is simply not worth it.
Leaving coins on an exchange
Lots of newcomers make a mistake of buying and leaving coins on an exchange. For few years now, a few exchanges have gone busted/crashed or been hacked (i.e. Mt. Gox, Bitfinix). So if you don’t want to loose your crypto then move it somewhere safe (i.e cold storage, paper wallet, hardware wallet). If I plan on trading the coin in short term then I am happy to keep in an exchange else I will move it to a wallet.
Not holding your private keys
Going by point two above, if you are leaving your coin on an exchange then you don’t hold the private keys to your wallet. It is someone else who hold it and you are trusting them with your coin.
Not doing your own research
You are spending your well earned money purchasing crypotcurrency, so make sure you are doing your own research and not relying on someone else. If you do have someone, get their view but still do your own research on cryptocurrency that you would like to buy.
Transferring to wrong crypo-wallet
Make sure you are double checking the wallet address you are sending the fund to and also matches the right crypocurrency. Don’t send TIPS to Doge. Once transaction is made, it is irreversible so SLOW DOWN and make sure it is the right wallet you are sending to.
Use 2 Factor authentication
2FA is an extra layer of security that help reduce digital crime and internet fraud. Therefore there is no excuse to not enable, whenever appropriate. Make sure you take a backup/save the restoration code incase you forget your 2FA.
Keep hardcopy of everything
Make sure you keep a hardcopy of everything which may include your password, restoration code, private key and save them somewhere secure. Should your computer crash or get compromised, you have backup copy to restore it.