Learning About Bitcoin and Cryptocurrency
As the word spreads the number of people getting involved in cryptocurrency is increasing exponentially. With numbers growing more and more people are going to have to educate themselves on how to use Bitcoin and other cryptocurrencies.
The reality is that it’s a perilous world for people just getting in. There are so many dangers when you don’t understand exactly what you are doing and how to protect yourself against the many crypto scams that are all over the Internet. The cypto world needs a lot more information on Bitcoin for Beginners. Because when people are newbies, there is a massive chance that they will lose their money or their crypto.
The nature of blockchain based cryptocurrencies like Bitcoin mean that even though they are incredibly safe, total beginners can make costly mistakes.
One of the first things that new users need to understand is that there is no support line, no help number, nobody to call when something goes wrong. Most beginners don’t realize this as they are coming from a world of regular banking where you can always phone a support team if you lose your bank card!
There is no Bitcoin support team to call! New users need to understand that essentially they are the bank and they have to be responsible for their own crypto. It’s a lot to comprehend for new users and undoubtedly it will put some people off.
The truth is a lot of people don’t want to have the responsibility for looking after their own Bitcoin. The more you have the more stressful it can be and the more security precautions need to be taken.
This is why a lot of beginners will buy Bitcoin and then leave it sitting on the exchange. For veteran Bitcoin users this a definite no no! But for new Bitcoin users it seems like a good idea. Anyone who has been in crypto for a while will know the mantra “not your keys, not your Bitcoin”..
But for a new user, leaving their Bitcoin sitting on the exchange is probably one of the safest options. We all know about Mt Gox and the risks involved in leaving your crypto on the exchange but think about it from a new users perspective. They have to transfer their crypto from the exchange to their own wallet. That could be a hardware wallet or hot wallet on a mobile phone. Either way it is a very risky process for someone who is not used that technically gifted.
The chances are them sending the money to a wrong address, losing their private key or even getting hacked are far higher than the exchange getting hacked. For the average person leaving their Bitcoin on the exchange should probably be mandatory.
Unfortunately lots of Bitcoin beginners will end up losing their crypto. On the upside though, making mistakes is the best way of learning something. The only hope is that their mistakes won’t be too costly. Perhaps exchanges should limit the amount of crypto that can withdrawn to a very small amount for the first few withdrawals.