The post 5 Basic Bitcoin Mistakes appeared first on iceCUBED Bitcoin and Litecoin Exchange - South Africa.

Here we detail some Common Bitcoin Mistakes, and how to avoid them.

Common Bitcoin Mistakes

1. Bad security.
Invested a lot in Bitcoin? Make sure they are secure!

Best practice says keep them offline, in paper wallets. A good site on how to setup a paper wallet is here.

Exchanges like iceCUBEDX can store your bitcoins. We are secure. But we recommend you keep your bitcoins yourself.

If you aren’t going to setup a paper wallet, at least store them in a HD wallet on a secure computer. HD wallets like Electrum, allow you to keep your bitcoins as a 12-word passphrase.

Remember 12 words, exactly, in order, and you can restore your bitcoin balance anywhere, at any time.

If you have a lot of money in bitcoins it may also be a good idea to spread them across multiple addresses.

2. Panic Buying and Selling.
Whether trading, or holding, the price is important. But it’s a new technology. So the price is very volatile.

Unless you get used to the volatility, you will buy when it is high and going up. Or sell when it is low and going down. This is the opposite of what you should do.

Educate yourself on Bitcoin. Know why you are investing in the 1st place. If you understand the ‘why’, you can endure the ‘how’.

3. Not doing proper due diligence.
If you are going to put your bitcoins with any 3rd party, or any investment, you should do proper research and due diligence.

This is true for any investment or any business dealings. It doesn’t change for Bitcoin. Meet the people and talk to them. Ask questions, check records, and talk to authorities. Do everything you need to feel comfortable you are dealing with good people.

4. Worrying about the mechanics of Bitcoin too much.
People send money all the time through their bank. Yet, most people have no idea how SWIFT or correspondent banking works.

The same is true of Bitcoin. You can use and get benefit from bitcoin without understanding how it technically works. It is interesting. But it’s not essential.

5. Not being careful sending bitcoins.
Bitcoin transactions are irreversible by design. So you need to be very careful to check the sending address and details, before you hit the send button. Once they are gone, they can’t come back, unless the receiver sends them back to you.

We hope this helps you avoid some common Bitcoin Mistakes.

The post 5 Basic Bitcoin Mistakes appeared first on iceCUBED Bitcoin and Litecoin Exchange - South Africa.