Hello, newcomer!
The benefits of digitally scarce hard money are unquestionable.
But starting out in the crypto space is a daunting task.
With all the FUD (fear, uncertainty, and doubt) and horror stories reported in the media, it’s enough to keep a beginner up at night.
To help ease your transition from petrified newbie to savvy investor, we’ve created this list of beginner mistakes to help you minimize the risks and keep you safe so you can boldly step into this new frontier.
To ensure your success in this space, avoid these beginner mistakes:
Gambling on inferior assets
Fiat is broken due to uncontrolled money printing.
Other cryptocurrencies are just more money printing.
Stick to bitcoin and you cannot fail.
Trying to passively increase your stack
Passive income through trading, yield farming, or mining is enticing, but the risks outweigh the rewards.
Don’t gamble and you can’t lose.
Not taking self-custody
The only way to ensure nobody can take your bitcoin is by keeping it in your own wallet.
Non-standard OpSec practices
Storing your seed online or writing it in cipher will introduce risk, not security. If you want to step up security, use a complex passphrase-protected wallet or multisig.
Poor wallet choices
Store bitcoin in bitcoin-only phone and hardware wallets.
They have better features and security than closed-source, desktop, and multi-asset wallets.
Poor UTXO (Unspent Transaction Output) management
On-chain fees are going to increase with demand.
One withdrawal = one UTXO.
Each one costs money to spend.
10 small UTXOs are more expensive than 1 large one for the same amount, so try to withdraw bitcoin in amounts of 0.01 BTC or more.
Fiat mindset
If you’re speculating for fiat gains, you may make a few dollars but you’re missing the big picture. Bitcoin is not a tool to gain fiat. Bitcoin is the goal.
And that’s it for now.
If you have any questions, or ideas of things we’ve missed, please let us know!
We hope you’re as excited about this space as we are, and we wish you nothing but success in your bitcoin journey!
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This reply has been handcrafted by BitcoinVN Security Consultant BTCMachineElf.
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