First of all, I want to congratulate you on committing to taking the first steps in getting involved with cryptocurrencies. With the help of our how-to guides, we hope that you are able to have a seamless transition to using and investing your cryptocurrencies. Before anyone ever starts using or investing in cryptocurrencies, I highly recommend reading the below items and remember them each time you use or invest in any cryptocurrency.
Cryptocurrencies are an unregulated means for transactions as of the time of this writing. Some transactions, depending on the cryptocurrency cannot be tracked once sent. Due to this, there are a lot of “undesirables”. These are people that are trying to scam you for your cryptocurrencies. To prevent falling for this:
- Use a password manager that will direct you to your exchanges or wallets as opposed to typing it in or “googling it”. Scammers will create a replica site of websites that look exactly the same as your desired location with a small change in the URL or by becoming a “sponsored link”.
Insert Photo for Fake Bittrex website.
- Do not click on e-mails from exchanges or wallets that direct you to the site. A lot of scammers are sending out phishing e-mails to get you to go to a fake site and enter your credentials.
Insert Photo of fake e-mail.
- Never, I am never, give a customer support agent, friend, family member your seed code. This happens all of the time and the moment that you provide them with your seed code, your wallet is compromised and everything in the wallet will be stolen.
- Always verify any information that you hear or receive. Be careful if you are on Twitter or chat groups, “investment advice” is usually a pump and dump scheme by the twitter user. I am not saying the all twitter users are pump and dump undesirables, just most.
- “Advisors or Investment Groups”
Just like stocks, bonds and mutual funds, always verify the information that is provided to you from anyone, even this website. Mistakes are common in developing technologies and new markets. There are also a lot of “pump and dump schemes” and fake news where groups of people will market and pump a coin, get people to purchase the coin and then crash the price by selling them. If you are on twitter, slack channels or telegram channels, and following the advice of individuals, you will likely get burned.
As investors and users of cryptocurrencies, remember that this is not a get rich scheme but the beginning of a new world-wide industry and technology that you are fortunately getting into at an early phase. Not all cryptocurrencies will succeed and not all will fail, just like stocks bonds and mutual funds.
Now that you know some of the pitfalls of this new and exciting industry and technology, we will go into the basics of buying and selling.