Three Major Mistakes That Cause People Buying Bitcoin and Cryptocurrencies to Lose a Lot of Money

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Many people come into the world of Bitcoin and Altcoins without really understanding how this world is different from the current system.

You should not buy Bitcoin or Altcoins without learning more about how they work.

People who buy Bitcoin and Altcoins too quickly will make the mistake of leaving their tokens on the trading platforms.

Many see these cryptocurrency trading platforms as banks in the traditional system.

They, therefore, think that they can leave their Bitcoins on these platforms without fear.

This is a fundamental mistake for two reasons.

First of all, until you have the keys to your Bitcoins or Altcoins, you don’t really own them.

Your Bitcoins or Altcoins stored on Coinbase, Binance or Kraken are not really yours because its platforms have the associated keys.

For your cryptocurrencies to be really yours, you must repatriate them on a hardware wallet.

If you want to invest seriously in Bitcoin and cryptocurrencies, you must engrave this sentence in your head:

“Not Your Keys, Not Your Bitcoins (or Altcoins).”

In the world of Bitcoin and cryptocurrency, attacks by malicious people naturally focus on the weakest links.

The two weakest links being individuals and trading platforms.

I will then come back to the weakness that individuals represent in the cryptocurrency industry.

As far as the trading platforms are concerned, you have to keep in mind that the hacks who see hackers stealing millions of dollars in cryptocurrencies year after year essentially affect these platforms.

Bitcoin Blockchain has never been hacked in the 11 years of its existence.

Every minute that your Bitcoins and Altcoins are spent on trading platforms increases the risk that hackers will come in and hijack those platforms and steal what you own.

The solution is the same here: you have to take care of what you have in Bitcoin or Altcoins by keeping them all safe on your hardware wallet.

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