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- Bitcoin is one of the most popular cryptocurrencies which stands as an alternative to fiat currencies.
- The careless errors on the part of the investors can eventually lead to loss of assets owing to common Bitcoin storage mistakes.
- Here are some of the common Bitcoin storage mistakes to avoid being Scammed.
Bitcoin is one of the most popular cryptocurrencies which stands as an alternative to fiat currencies. Investing in cryptocurrency seems a bit risky but if executed properly can lead to the potential rate of return.
However, those who are beginners in this Bitcoin transaction are more vulnerable to commit errors. Most prominently the bitcoin scams occur in exchanges. This doesn’t mean that Bitcoin storage is not safe.
However, the careless errors on the part of the investors can eventually lead to loss of assets owing to common Bitcoin storage mistakes. Below mentioned are some of the common Bitcoin storage mistakes to avoid.
Storage of Cryptocurrency in An Exchange Wallet
The most crucial mistakes in Bitcoin storage is storing Bitcoin on any unreputed exchange wallet. There have been many incidents where users lost their funds due to exchange hack or sometimes fraud exchange. In the case of an exchange wallet, you don’t have access to a private key which leaves chances for hackers to do the job.
Not Making Sse of 2FA on Crypto Exchanges
Most of the people find two-factor authentication time-consuming. However, in the case of cryptocurrency, you cannot give it a miss. Given the testimonials of hackers invading Bitcoin, two-way authentication is a safe process to keep your account secure.
Non-Verification of Exchange Identify
Know your customer verification is the safest option of verifying an exchange identity. According to the regulations of different countries, it has made a legal requirement for all the exchanges to do KYC of exchange users. This also complies with the exchanges in Bitcoin. Most of the exchanges will not allow you to withdraw money until you have a verified account.
These are some of the common mistakes one should avoid when it comes to Bitcoin Storage. This will help you take proper care of your hard-earned assets and utilize it judiciously.
