7 Things you must know before you get started in Bitcoin or any Crypto Currency:
When starting out in Bitcoins or Crypto Currencies Follows these steps for best results…
- If you are going to transfer Bitcoins or Crypto Currency, ALWAYS start off by transferring a small amount, as a test.
You should always send a small amount of Crypto Currency/Bitcoin to test an address, (maybe send just a $1.00 worth before you send $1000.00 or $10,000,000.00 worth; as if you lose 1 dollar’s worth, it will not hurt near as much to find out the Crypto Currency/Bitcoin address was bogus/wrong/mistyped or it was from a scammer who conned you out of your Crypto Currencies. Because with Crypto Currencies once you send them, there is NO getting them back!)
There is no CEO to call; there is no board of directors and etc. Think about what you are doing before you do it and take safety measures to ensure you are doing it right. Always double and triple check the address you are sending it to, ensuring the address is correct and the address you are sending your crypto’s to DIDN’T change after you typed it.
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Unfortunately, there is now malware being placed on computers that changes the address from which you are shipping the crypto’s to, and instead, it sends it to a bad actor that you never authorized to receive your crypto’s. And once their gone there is no getting them back.
- You ALWAYS want to verify the software you will be storing your coins on…
If you are not verifying your wallet software that you store your Crypto Currencies/Bitcoin’s in how do you know it isn’t from some bad actor who wants to steal all of your monies? The crypto currency app’s for phones are my least favorite way to store any crypto’s. Here’s why…
…as seen in the screen shot above, this shows that “Scammers” got one past Apple, as being legitimate “app” for Crypto Currencies. On the Apple “App” store they made it to the #3 most downloaded finance “app”, before the people who got “taken” let Apple know something was wrong. Who knows how much money was LOST because of THAT scam. Of Course Apple isn’t going to help you out because it wasn’t “their” software.
At this point, I think your phone is the last place you want to store ANY significant amount of Crypto Currencies/Bitcoins.
In today’s computer world, we know little or nothing; about storing critical assets such as Bitcoin/Litecoin in one’s own possession.
We have only had personal computers for 35-40 years, and the internet has been around for 25-30 years, plus crypto currencies like Bitcoins have only been around for 10-11 years.
Thus we really do not know much about computer security, especially when it comes to securing your computers and software. Every week we hear about some financial account being “hacked”. Recently, we heard; Target, Home Depot, Equifax, City of Palestine, Texas and most recently Capital One, all being “Hacked”.
Worse somebody gets ransom-ware placed on their computer, and if they don’t pay their ransom (usually in Bitcoins) their computer will no longer be available to them.
So our recommendation is NEVER store a significant amount of Crypto Currencies/Bitcoins on your day to day devices.
As a computer expert told me years ago keep your finances separate from your day to day computer usage (I have now done this for years).
No one really has the answers yet how to secure computers; if we did we would no longer have these issues.
Hmmm, I wonder why these people go after all these accounts…could it be that’s where the money is??
Maybe somebody just clicked on the wrong email that uploaded a “bit” of malware onto these computers that let the bad guys in?
Sometimes you allow the bad guys in because you accidentally click on an email that you should not have. Plus you may not even know that you clicked on a bad link, for a very long time!
According to most computer security experts “Antivirus” software no longer works to stop these kinds of attacks. So it’s up to you to prevent these attacks.
At least, if you are verifying where your software came from (i.e. the software developers), and not a bad person, you have a really good chance of keeping your crypto’s. Of course there are a lot more precautions one should take to prevent theft of your crypto’s. You can learn more about my simple tips on how to prevent all of this HERE.
3.You should Never hold your coins at a Crypto exchange.
If you are leaving your Bitcoins/Crypto’s on an exchange you run another real risk of having your Bitcoins/Crypto’s stolen. As the whole point of Crypto Currencies is for you to take possession of your coins, so they are yours and not somebody else’s. Leaving them on a Crypto Exchange is a recipe for disaster…more details are below.
If these crypto currencies escalate in value, I believe they could become very valuable. As we have seen in the recent past, individuals/companies have a tendency to STEAL/take things that become valuable. Mount Gox was one of the very first Bitcoin exchanges. But it is not without issues as well.
Since 2011, the Mt. Gox exchange, some 850,000 Bitcoins have gone missing, that were left on “their” exchange. Now 9 years later that Bitcoin case is still not resolved where all of those Bitcoins went. Recently, some of those missing Bitcoins, or about 200,000 of them, from the Mt. Gox exchange were found, but as the Mt Gox exchange settlement dictated, these Bitcoins were sold for CASH and CASH was given to the participants, not the more valuable Bitcoins.
The participants (exchange holders of their Bitcoins) were not given a choice on getting Bitcoins or Cash, mostly because they let the exchange “hold” the Bitcoins, therefore the exchange gets to make those decisions; as it was in the agreement they signed up for when they opened their account.
Just like a brokerage account, you no longer get the stock certificates of the stocks you own, and if you want a stock certificate (and your broker allows such) you can buy your own stock certificate for as little as $500! Seems crazy doesn’t it?
Thus by the agreement you signed with your brokerage account, when you signed up, you agreed to hold your stocks/securities in a “STREET” name. This allows you easy trading of your securities, but you really don’t own them. Plus as shown in a recent Dole foods litigation case more shares were sold into the public than were technically offered.
Most brokerage statements are now electronic–and if you do not religiously print these statements out you may not have any real proof you owned anything, if and when the next issue takes place in the financial system. Would you rather own something that has a blockchain backing it or a brokerage statement from a company with too many shares of a stock that the company may claim they never offered for sale?
When something happens to your brokerage account/exchange you really have no proof you owned the securities you claimed you owned. But at least with Crypto Currencies and a blockchain you have the opportunity to own them and if you take the time to get them out of the exchange and get them in your own possession, you stand to be the winner.
Two other crypto exchanges Binance, and Crytopia were recently hacked and a bunch of their owners Crypto’s/Bitcoins were taken as well. Recently some other Crypto exchanges mysteriously, shut down, claiming they were “hacked.”
These mysterious “hacks” happened, after a “proof of keys event” was launched, where clients who have Crypto Currencies/Bitcoins on a crypto exchange are encouraged to pull these same Crypto Currencies/Bitcoins off and place them in their own private wallets.
When these same clients tried to take their Crypto Currencies/Bitcoins off of these crypto exchanges, those exchanges claimed they got hacked and these exchanges shut their doors telling their client’s they had been “hacked” and they no longer had any Crypto Currencies/Bitcoins to give out.
It is entirely possible those exchanges did not have enough crypto’s to send to their clients who were trying to redeem their Crypto Currencies/Bitcoins, as suggested by the proof of keys event. In any event it became very difficult for clients to get their Crypto Currencies/Bitcoins.
Another exchange, QuadrigaCX, had their head CEO, Gerry Cotton, passed away, and he took the firms “private keys” to all $137 million of the exchanges “crypto funds” with him to his grave. Now clients have been unable to redeem their funds, because of this persons passing. Now the QuadrigaCX is seeking legal protections from creditors who are demanding their monies.
Needless to say hold your Crypto’s in your own possession to prevent all of these headaches.
So to restate, the rule is, once you purchase your Crypto Currencies/Bitcoins and take them OFF of All exchanges. You will thank us later.
4. Only keep a small amount of Crypto Currencies on your mobile device.
As discussed above, you should never keep any significant amounts of your Crypto Currencies on a mobile/tablet or even a computer (in a warm wallet).
You don’t walk around with large amounts of cash in your pockets, do you? Same theory applies here. Plus if you lose your mobile device somebody else could easily gain access to your Crypto Currencies/Bitcoins.
If you want to buy a few things, using crypto’s, like at “purse.com”, “overstock.com” or Starbuck’s, keep a small amount on your mobile device. But any significant amounts of Crypto Currencies/Bitcoins store them “off line” or better yet in “cold storage”, in your own possession (NOT the exchange).
It only takes one incident to ruin a cell phone and if all your crypto’s are stored on that device, you may not ever get them back.
5. Do your own research-on all of your Crypto Currencies before you buy.
Not all Crypto Currencies are created equal.
We here at easycryptocurrency.com do not make any recommendations on which Crypto Currencies/Bitcoins to purchase. We suggest you do your own research to determine which Crypto Currencies/Bitcoins are best suited for you.
Whatever you do, DON’T follow some random person on the Internet, who claims they know the Crypto Currencies/Bitcoins market and this xyz coin will go to the moon! Some coins in our opinion are good and others are not so good. We will not make any claims for Crypto Currency/Bitcoins being better than others. This industry is just in its infancy and while we believe it is the future, NOBODY knows.
The only other comment we will make is make sure any Crypto Currency you purchase is truly decentralized, such as Bitcoin. If they are not decentralized, you really do not have a true crypto currency, so what is the point, in buying them?
There can be reasons for owning centralized crypto currencies, but it’s up to you to understand why you are buying that Crypto Currency. In our opinion all newbie’s should own decentralized Crypto Currencies like Bitcoin and Litecoin.
6. It is Best to Ignore 90% of the so called “experts” about Crypto Currencies
Most “experts” do not know what they are talking about. In our estimation only about 10% of the people out in the Crypto Currency world know what they are talking about, when it comes to educating you about crypto currencies. Many experts are Shilling coins (self promoting, for their benefit)
We research this stuff daily and spend anywhere from 5-8 hours a DAY researching this Crypto Currency world. We also listen/read a lot of “hype”. The amount of material we go through on a daily basis that is complete trash is unbelievable!
Most know little or nothing about crypto currencies. Watch out, many promoting crypto’s currencies can and will be promoting scams. We follow less than 5 people on the internet talking about Crypto Currencies. We follow even less from the Investing world or Wall Street types. At this time Bitcoin is one of the most misunderstood investments of all time. While the Wall Street types are warming up to Bitcoin and Crypto’s most of these individuals still consider Bitcoin to be “Magic Internet money”, and say it has NO USE or value for us in the future.
Our recommendations, you should find a few people who give relevant information and follow them.
Ignore the rest.
7. Take special care of your private keys.
They are called private keys for a reason so you MUST treat them with respect. I would get a special notebook and write them in that notebook and place it in a special place, where it can’t get wet, and it cannot catch on fire and etc. You may also want to keep your private keys away from your house as I do.
Write all of these private keys down in these special notebooks, and take extra special care to do it correctly as if you do not do this correctly, there is no CEO to call, there is no reset my password request, or reset my private keys request. You’re just out of luck.
A few years back, a Bitcoin Miner, James Howells, inadvertently threw away 7500 Bitcoins he had mined on his computer. Today he is wishing he could get those back because they would be worth approximately $60 million.
So you just never know, take care of your Bitcoins, one Bitcoin in the very near future could be worth a LOT of money! If you would like to learn more, about these simple steps to take, sign up for our Free Bitcoin Course