Common Errors for All Crypto Owners
Bitcoin.com introduces the latest “best listings” video series. The video titled 7 7 Deadly Crypto Sin You Will Want to Prevent ”highlights seven of the most common mistakes that crypto owners can face with explanations of what can be avoided. Some target all crypto owners and their uses, while others are more for investors and traders.
One of the most important mistakes in the video is not backing up your wallet. "If you lose access to your private keys due to loss, theft, or damage, you lose access to your money and will be lost forever", the video explained. A device that holds your wallet can be corrupted, lost, stolen, and the only way to get your money back is backup. News.Bitcoin.com has written several guides on the subject. For example, we can explain how to restore a bitcoin cell phone wallet to a fresh device using a reminder seed phrase, a guide to how to restore a hardware wallet using a seed phrase, and a list of ways you can store it. Enter your wallet recovery statement.
The video also explains the disruptions that can arise when shuffling different forks and how to avoid them. For example, when the BCH leaves the BTC, some users claim that they have lost their BCH by sending their money to their BTC address.
Some common mistakes are about how to keep your coins. While it is easy and convenient to store in hot wallets, there are many situations in which security breaches destroy all the money held in it. Similarly, storing your coins in crypto exchanges is risky because they are often the targets of hackers and most of them do not have adequate security measures. When they are attacked, you may not get all your money back. Mt. For example, Gox creditors are still struggling to get their money back to this day.
Other recent swap hack examples include Binance, hacked in May and losing about 7,000 BTC; Bitpoint Japan lost $ 32 million worth of crypto currency when it was attacked in July; When it was attacked in January last year, it lost about $ 534 million worth of XEM; and the South Korean exchange Bithumb, which has been attacked several times over the years.
Some Errors When Trading Crypto
The video also has some common mistakes when investing or trading crypto currencies. The two most common ones are market timing and investing more than you can lose. As the price rises, it is very attractive to do both. Similarly, when the market falls, there is a high tendency among some traders to sell and reduce losses.
Kyle Cox, senior investment analyst at Invictus Capital, said, “Of course, we often hear success stories in the media; however, it has been under the many lost carpets made by participants who want to devote time to the market. ” Here are some examples of how crypto traders take over the bear market and how a Chinese trader lost 9,000 BTC.
The following video examines in detail the above errors, how to avoid them, and the rest of the first seven deadly sins.