Losing BTC: It can happen to anyone

It is crucial knowing how to use your cryptocurrency wallet. For many, this may seem basic knowledge, but the truth is there are many people out there that still have issues with this.

For many, cryptocurrencies are just a digital currency, mainly used as an investment for holders and traders. People are drawn in by the crypto hype, especially when it has peaked. Whether you are someone who invests in traditional markets and wants to add crypto to your portfolio or someone who has never invested and is curious about this digital currency, the truth is there is going to be a lot of learning involved. The crypto ecosystem is so huge that, at times, it seems impossible to be up to date with everything that's going on.

Being a crypto trader not only requires you to learn trading strategies and to know how to interpret the market, but you must also know at least the basics about exchanges, and how to use a wallet. Cryptocurrencies are still in its early stages, but there are many options out there for choosing an exchange or a wallet.

All these options make people hesitate when choosing what wallet or what exchange works best. Recently I was talking to a friend that wants to start investing in cryptocurrencies, and he mentioned he would be using Exodus wallet. I was not very familiar with this wallet, so I suggested to look at the ratings, see if the platform supported the coins he was interested in and overall to make sure about he had his recovery phrases associated with his wallet. I also pointed out he had to have an account in an exchange in order to have fiat cash liquidity when he desired it. He assured me that he did not need an account in an exchange because he was able to buy or sell within the wallet. This Exodus wallet allows you to keep your assets in the wallet without having to move them to an exchange and trading, and this is an excellent feature within the wallet. Although this wallet provides this type of feature, you have to know that this wallet will not provide liquidity in the fiat cash that you need.

People who invest in cryptocurrencies are tied up to exchanges. If you want to buy using your local currency or vise versa, selling BTC, and being able to receive fiat cash, you must have an account on an exchange. Unless you know someone who wants to buy- sell you BTC or depending on the amount you need, you can always use places like Localbitcoins.com, site that allows you to sell-buy directly to whoever is registered on their website.

Exodus:

“If you don't currently hold any crypto, you will need to acquire some before using Exodus. Exodus is a crypto to crypto platform and does not interact with the traditional financial system. You'll have to use another service to buy crypto if you don't already have some. There are many services (local exchanges) that will help you turn your fiat money like USD, EUR, CAD, etc into crypto-currencies. Do not hesitate to research local services running in your country. Coinbase, Gemini and Kraken are among the most popular options for people in the US and in the EU.”

We recently received an email from a DavinciJ15 follower that had lost many bitcoins because he was trying to move BTC from one account to another, and they all got sent to an unknown address. It is always recommended that before doing a significant transaction, send a few times a small amount to the final address before submitting your final amount, especially if it’s the first time you are using a wallet. This way, you can verify the address you are going to be sending to because these losses can be brutal.

It may seem odd to many how someone holding so much BTC can make such a mistake, but it happens. It has even happened to Davincij15, who, for many, is a guru when it comes to crypto. It is probably best when investing in crypto reading about how these things work and what security options you have available, such as double authenticator, 12, or 24-word backup phrases, among others.

I hope you enjoyed it!

By: Carolina Pérez

@carolinaninap