9 Common mistakes made when buying, sending, and storing, Cryptocurrency

 

Inputting the wrong address.

  • Typing the wrong address.   There are many people who hand write there addresses and then either misread or mistype them when inputting the address into the specified fields.  This could ultimately lead to a loss of coins.  To avoid this write the address several times or stop writing addresses!  Copy and paste or take a picture if you have to.

Sending to the wrong address.

  • Sending to a different cryptocurrency address. This is a pretty common mistake, where people send  crypto to a different address,  For instance people send Bitcoin to a Bitcoin Cash wallet.

Losing a password.

  • Losing a wallet password. It pains me to write this because I lost the first bit of Bitcoin I bought due to loss of passwords.   I kept it on my phone and my phone was severely damaged with no backup and no recovery.  Now I have my passwords written on paper and also have them on an external storage device.

Sending the wrong amount of crypto.

  • Sending the wrong amount of crypto. Cryptocurrency transactions for the most part are irreversible.   If your sending to someone you know or a reputable vendor they may send the crypto back.   On the other hand the receiver may never send any extra crypto back to the original owner.

Do not give away private keys.

  • Giving away private keys. Do not show or give away your private keys to anyone.  There are sites and people that ask for your private keys, a lot of the time this leads to theft of your crypto.

Losing a wallet.

  • Loss of wallet. This can happen to anyone.  Losing a mobile device, laptop, or paper wallet can happen.   Make sure to keep backups.  Especially with a paper wallet because a piece of paper is easily damaged.  Having your paper wallet in your pocket when it rains could lead to a loss of your wallet.  Make a copy of the wallet and keep them in a safe place.

Ico sending instructions.

  • Many ICO’s(initial coin offerings) specify to not send from an exchange which makes sense.   There token may not be listed on the exchange that you send from so they can’t send your tokens back to you.  Read the instructions carefully.

Using an exchange as a wallet.

  • Keeping all your tokens on an exchange. Leaving crypto on an exchange isn’t a mistake.  There are many individuals who have their entire portfolios on exchanges.   However if the exchange gets hacked the coins maybe lost.   I would suggest leaving the amount that you plan on trading on an exchange but again be cautious.

Rinse and Repeat.

  • DOUBLE CHECK EVERYTHING! There is a lot of human error when it comes to using and holding your crypto.   In time the processes should get simpler but for now read instructions carefully, and double check everything especially anything done by hand.
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