Bitcoin is a decentralised digital currency which works without a central bank or single administration. It was started by Satoshi Nakamoto. Bitcoin is now world’s first in the list of cryptocurrency.
Now, with increase in technology, fast racing world there are a wide range people competing for bitcoins too. As the people are increasing their investments without even checking what they have done because of seeing people becoming a crypto millionaire.
But luck not always with you so, every individual need to know few basic things to not become a victim of fraud or because of being naïve. Here, are few things that one needs to understand and be aware off.
- Firstly, never believe everything directly which is available on internet. Always you will have to check with trustworthy sources like news from official sites, or channels. Verify the information from other people.
- Second most important thing is that you will never invest more than the amount you can afford to lose. This is always precautious if you can invest the money that you are 100% won’t bother about losing. Just because you are a beginner luck person. Generally, in over excitement you may investment more and there is a possibility of losing everything.
- Always make the investing of the money you can’t afford to lose only in the 100% success rate or a situation where you have to invest but be careful of losing the money you invested which you cannot afford to lose.
- Always have your own research or information about things related to the bitcoin crypto currency. If you are a beginner then there are a wide range of people who have shared their knowledge on online platforms like Youtube, etc. Now, don’t just rely on only one video or person, what is advisable is check many people. In this way you will get a lot of information and from there you can make your own information which matches your requirements.
- Remember no matter which person of high importance has suggested you for investment, the final call should be of yours. One should never trust someone else when it is about investing your money.
- There are many scammers who can use your information and sell it to others making you a prey for others which you might not realise.
- Even experienced people might have loosed so, beware of people who say 100x gains will be there but delivering mind-boggling returns. Use your common sense, you might not be wiser, but you can be better than those who listen to others by thinking on your own.
- Generally, crypto currencies come into the market with a huge marketing and create a hype in people which might attract new people blindly into this without thinking and they fall prey to the FOMO which is fear of missing out. If you are one of them then go back, research carefully and double confirm yourself if you really want to invest in bitcoins.
- Flatters of cryptocurrencies may attract you and you should remember that you being a new person get attracted to FOMO and you will get bitten by these hastily taken decisions may affect your entire life.
- This is one of most important reminders for people dealing with bitcoin, keep your private key phrase safely as it is the only way to access your cryptocurrency. If you lose your keys, then there is no way to access it. This means if you leak your private key phrase or forgot the private key phrase then it’s the same. With your private key phrase anyone can access your cryptocurrency.
- For safeguarding the private key phrase, one should never store it in the computer. One should never leave it open.
- One should always memorize it, or the best way is to write it on a paper and keep the paper in a safe locker.
- Bitcoin mining uses a lot of power and you need to be careful while operating the system, this is high end risk from the beginning to ending. Remember it is play of money, money which you can afford to lose.
- You always need a technical skill for using the bitcoin software or related. Ensure you are aware of what to do, and the person who’s help you want to take is 100 % trustworthy.
- You need to know that the person who created the Bitcoin has disappeared and is anonymous person.
These are the safeguard tips that one needs to know before you actually invest in Bitcoin.