If you are a newbie in cryptocurrency, you are very anxious do not know how to invest to profitable, avoid losses. So let's take a look at 5 notes when investing in Bitcoin for newbies.
1/ Do not store large amounts of Bitcoin in just one online wallet
When you first join, you should not just learn what Bitcoin is, but also learn about the risks that may occur during the investment process. As there have been many cases, the third party lost or stolen the Bitcoin of clients. The reasons usually are hacker attacks, theft by service operators, or loss due to technical errors. Therefore, your online wallet should only store a small amount of Bitcoin is the best.
2/ Just start with a small amounts at the first join
If you are wondering whether to invest in Bitcoin, just in my opinion, you should start entering this market with a small trading volume with only a few pieces of Bitcoin.
Because in the buying/selling process, tranfer and storing Bitcoin are not the same as other traditional forms of investment or online banking. For example, if you send Bitcoin to the wrong "address", you can not simply call the bank and cancel the transaction. Therefore, it is important to first familiarize yourself with Bitcoin trading with a relatively small amount of money, before moving on to larger trading volumes.
3/ Bitcoin payments can not be reversed
Any transaction with Bitcoin can not be reversed, they can only be returned by the payee. That means you need to make transactions or do business with reputable organizations. The responsibility of these organizations and businesses to control the payment requirements of their customers.
In addition, the Bitcoin network can also detect spelling errors and often does not allow you to send an invalid address by mistake. Utilities can be added in the future to have better consumer protection options.
4/ Keep your Bitcoin wallet and identity safe and secure
Bitcoin not only makes it easy to trade anywhere but also makes it easy to control your money. So you always need to secure your wallet in the best way to avoid unnecessary loss.
Also, keep an eye on your identity security. Because, all Bitcoin transactions are stored publicly on the Blockchain network, meaning that anyone can see the transaction of any Bitcoin address. However, the identity of the user behind an address remains undisclosed until the end of the purchase process or in other cases. Here are some reasons why you should keep your Bitcoin wallet and identity safe and secure.
5/ Do not store Bitcoin in the trading platform
To convert cash into Bitcoin or opposite, you need to open an account with a Bitcoin trading platform. This process usually takes several days because the trading platform needs to verify customer identity to see who they are and ensure they are not the wanted criminals. Once opened, you will be able to transfer money by wire transfer (or by credit in some cases) before buying Bitcoin.
If the trading platform you choose to buy Bitcoin (and possibly Bitcoin store here) is hacked, you may lose money and Bitcoin. So, the best place to store your Bitcoin is a wallet, especially a hardware wallet.
Finally, I hope this post helpful and I would like to see what other Steemians think about this.
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