5 SIMPLE MISTAKES NEW BITCOIN BUYERS SHOULD AVOID

 When purchasing bitcoin, there are several mistakes that can be done. You must be aware of these errors before they arise, from employing a subpar exchange to lacking the appropriate information. Here are five newbie errors you should steer clear of.

1. ABSENCE OF TWO-FACTOR AUTHENTICATION (2FA)

   One of the easiest methods to safeguard yourself on exchanges like Coinbase or Bittrex against hackers and other con artists is to use two-factor authentication. In order to access your account, you must go through a number of stages, which makes it more difficult for thieves to access your money if they accidentally steal your password or private key.

2. USING AN INCORRECT WALLET

   Although there are many different kinds of wallets available, most newcomers begin with a software wallet or an online wallet. These wallets have a security flaw that makes them susceptible to theft and hacking. Your coins are permanently lost if your computer crashes! Most people purchase bitcoin from exchanges like Coinbase, which has a 1 percent fee and asks users to link their bank accounts, provide government-issued identification to prove their identity, and upload a photo of themselves holding that identification.

3. FAILING TO USE A SAFE WALLET OR EXCHANGE

   You need to keep your cryptocurrency in a secure location where no one else can access it; for this reason, some people store their digital assets in cold storage or on hardware wallets. Exchanges can additionally provide their own wallets and theft protection (like Coinbase). In spite of the fact that these services initially appear convenient, they come with added hazards because they rely on a third-party service provider. So, much like traditional banks, they too might have their systems compromised and your money stolen!

4. LACKING KNOWLEDGE OF THE DISTINCTION BETWEEN FIAT CURRENCY AND CRYPTOCURRENCIES

   Because it has no physical substance, unlike dollars or euros, cryptocurrency differs from fiat money. This implies that monitoring where your money is going is much more crucial.

5. BEING UNCERTAIN OF WHAT YOU WANT IN THE MARKET.

   Before you begin trading, you must be aware of your objectives, just like with any other investment item. Buy and hold if investing for the long term is your objective. Consider a more aggressive strategy if you wish to enter and exit positions fast.