! Never keep large amounts of crypto coins which are worth a lot of money on the exchange!
Hi Blogs,
Well this maybe completely obvious to some of you here who have been involved in the cryptocurrencies business for a long time so this short blog is aimed at the new people coming on to the scene and want to get involved.
So for all you new people I hope that you have all been to a trusted exchange and you have deposited your hard earned money into the exchange and then used that money to now buy your new crypto coins (hopefully at a bargain price), whether those coins be Bitcoin, Ethereum, Bitcoin Cash, Ripple or whatever those coins are that you brought you are now the proud owner of your new coins, great and welcome to the cryptocurrencies world!
And to buy these new coins you would have had to spent a large amount of your local fait currency say to the value of around $1,000 US dollars or more?? Now you can just sit back and leave these coins on the exchange from which you brought them from and watch them all grow in value !WRONG!
$1,000 USD maybe a lot of money to you or it could be nothing at all. Get your new coins off of the exchange and send them all over to a digital wallet straight away! There are so many digital wallets out there to hold your coins on so it’s up to you to do your own research as to which one you think is the best. But don’t leave a large amount of coins which are worth a lot of money still on the exchange.
If you don’t know why you should NOT be doing this then you all need to read or watch on YouTube about “Mt Gox” which was the largest exchange to buy Bitcoins based in Japan. In 2014 the Mt Gox exchange got hacked and all of the people who left their Bitcoins on there lost the lot! (or all of their money).
Exchanges appear to be a weak point where hackers can take your coins so my advice would be keep no more than $500 USD or less on the exchange and keep the vast majority of your coins on your chosen wallet where the hackers cant get to it.
When you open up a new wallet you will be asked to input a password. Then you will be given 12 phrase words, these 12 phrases words will be random words such as “1 Car”, “2 House”, “3 tree” “4 frog” "5 cat"……. Etc. What are these 12 phrase words and what are they used for?? They are recovery words used to recover your digital wallet should something ever go wrong you will need these 12 phrase words to gain access to your coins again. So you must write these 12 words down on a bit of paper and keep it in a safe place, always keep your 12 phrase words off of the internet.
Now repeat this statement after me, “Never ever give these 12 phrase words out to anyone”! Even if the person asking for your 12 phrase words claims to be from a bank or the exchange, or any other department “Never ever give out your 12 phrase words to anyone”! They are for your eyes only. If you give out these 12 phrase words you are effectively giving out your bank account details and that person who now has your 12 phrase words will now have full access to your digital wallet and your coins (your money).
As the price of crypto coins and especially Bitcoin continue to rise in value every week there is also the continued threat of hacks and scammers. They are going to offer you all sorts of amazing way on how to make "free" bitcoin. Remember if it sounds too good to be true then it probably is.
Facebook is where most of the scamming is going to take place. These people are just scum of the earth and all they want is your money, they can have fake Facebook accounts or pretend to be representing the exchange (thats where you brought your coins from). Be very very careful when talking to people on Facebook that you dont know about your cryptocurrencies, never let on that you have brought your own cryptocurrencies or how many you have brought. Never post on your Facebook wall "I just brought $20,000 USD of Bitcoin" because you will be making yourself a target for hackers and scammers. And just like before "never ever give out your 12 phrase words to anyone"!
Wellcome to the cryptocurreny world have fun but be careful.
Cheers
Rob :)