There are many ways you can get scammed in Crypto or Bitcoin if you are not careful, there are many people out there who are waiting to take advantage of many new people coming to Bitcoin or crypto. A lot of us come to this space with the mindset of escaping the Fiat scam but don't think that there can be more scams here sometimes. Plus we tend to ignore the magnitude of mistakes we can make while navigating a new financial space. I take my time to lay a few down below feel free to take notes and let me know what you think.
- Never send your bitcoin to somebody online to get twice back, no you won't get anything back not even what you sent to them. Bitcoin works in such a way that once you send it only the receiver can decide whether they want to send it back to you or not, and no your region police department will not be able to help you get your money back.
- Never take a picture nor send your bitcoin seed phrase to anybody, your bitcoin seed phrase is the 12 to 24 secrete words your wallet generated when you first started it. Those words are like the key to your own car if somebody else find those key words they can take your car(bitcoin) and take it to another wallet that they themselves control. So you should never store your seed phrase online nor on the cloud because anything online or your account can get hack, but instead you should store your seed phrase somewhere secrete offline that nobody else has access to.
- Do not leave your bitcoin on exchanges, in Bitcoin it's very important that you take possession of your own keys otherwise somebody else own it but not you. When your bitcoin is on the exchange anything can happen to it; the exchange can get hack, they can go bankrupt, the bitcoin can be seized by the government in case of emergency or crisis, all those cases can happen to you and some of them already did happen to others in the pass and can happen again in the future. I explore this topic more over here.
- Do Not Give Your Bitcoin away For Yield, there is no risk free yield in the financial world neither in Bitcoin. If a bank want to take my bitcoin for 2-5% yield in return I would be very skeptical of that bank and would rather keep my bitcoin with an average 50% return year over year. 2% yield is not worth the risk losing it all in a bank collapse or a bank run which did happen back in 2022-2023 On: Celsius, Blockfi, Voyager, Silvergate, etc.
- Never Trade Your Bitcoin For More many people think they are too late in Bitcoin therefore expose themself to enormous risk in order to "catch-up" to it. They take 10x to 100x leverage in times of hypes in the market in the hope of making more money, but as history showed most people lose money trading Bitcoin about 99% of the time. Most of the money is made by the exchange you're trading on that's why they are paying a lot of money to Crypto influencers on Youtube to send you to trade.
People also trade their bitcoin for altcoins hoping that their altcoins can go up faster than Bitcoin, this is also a repeating mistake by newcomers to Bitcoin since most altcoins are scams therefore Bitcoin will outperform most alcoins over a long period of time. And no you are not too late in Bitcoin, if you save $100 a week in Bitcoin you might still end up with a $1Million in 10 years. You see, in Bitcoin the name of the game is patient and consistency and you get nothing of value in life without patient and time, Calculate it over here.
- Never Make Financial decision under drug or alcohol influence It's dangerous to make financial decisions when you don't have good sleep or when you're under alcohol or drug influence. Say no to it or leave it for later when you feel better. That simple decision to wait can save you a life worth of savings.
- Never do anything in a rush, never send money to someone you don't know online in a rush unless they provide you a legitimate good or service.
Thank you for reading, I had a lot fun writing it. I hope it was helpful to you, you can also buy me a coffee here to help me write more.