A lot of times, bitcoin transactions go smoothly. But at one point or another, most people – even those who feel experienced – would make a mistake when buying Bitcoin. The good thing is that we can learn from other people’s mistakes so that we can enjoy better Bitcoin purchases. Here are 5 common mistakes you should beware of when buying Bitcoin.
- Do not insert a wrong address
Most people do not cross-check their addresses when making purchases online. Perhaps, it’s the excitement of getting your Bitcoin in your pocket that you totally forget to write the correct address. Unfortunately, Bitcoin transactions cannot be reversed, so always double-check to avoid losing your Bitcoin forever.
- Always wait for sufficient confirmation
You can purchase Bitcoin in numerous ways and one way is to buy it in person. If you are more comfortable with this method, make sure you take the right precautions. Never hand over money until you have confirmed that the transaction has been completed. In fact, it is more advisable to have at least 3 confirmations especially when you the transaction involves a huge amount of Bitcoin.
- Always buy from services that have an exchange
Coinbase is one of the most popular places to buy Bitcoin because it is a user-friendly digital currency service. There is a catch, however; buying Bitcoin on Coinbase attracts more charges that would be required if you trade on Bitcoin exchange. Good news is that Coinbase has its own exchange known as GDAX. Other cryptocurrency exchange services include CEX.io and Bitstamp.
- Consider paying via cheaper means like Bank transfer
Obviously, buying Bitcoin with your credit card or PayPal is so much easier and faster. Such ease also comes with a price – higher fees may occur. Try using a payment method that would cost you less, like a bank transfer.
- Buy when FUD sets in
FUD (fear, uncertainty, and doubt) are better emotions to motivate you when buying Bitcoin, rather than FOMO (fear of missing out). Many people make the mistake of buying bitcoin when there is a lot of positive news surrounding it, but often times, they buy too late. Try to have a clear mind and do not be quick to react to news surrounding Bitcoin. Besides, if you believe in Bitcoin, you would do just fine eventually.