Never invest more than you are willing to lose.
The price can plummet at any time. Invest - if at all - at most the financial means in Bitcoin, the total loss of which you can easily cope with. Those who invest too much often make short-term and ill-considered decisions and are dependent on the Bitcoin price, which fluctuates daily.
Do not store Bitcoins on exchanges
Exchanges are not suitable as a safe and long-term storage option for cryptocurrencies. In the past, exchange platforms have been hacked and it may be a matter of time before it happens again. Only if you alone know the private key or passphrase to the respective Bitcoin address, the units are completely under your control.
Check recipient address before sending transactions
Bitcoin transactions are not reversible. Therefore, once you execute a Bitcoin transaction, you cannot cancel or reverse it unless the recipient voluntarily sends the amount back. Therefore, it is important to carefully check the address and trustworthiness of the recipient before making a transaction. If an unknown person promises you a suspiciously good deal for a Bitcoin deposit, it is usually a scam.
High volatility
Even though volatility is significantly lower than it was a few years ago, the daily price fluctuations often take some getting used to, even for experienced stock market players.
Create multiple wallets
Bitcoin and other cryptocurrencies can be used to create digital wallets free of charge. If you back up all units on one wallet, there is a risk that your entire holdings are no longer accessible, for example, if the private key is lost. Therefore, create several wallets and distribute your cryptocurrencies among them.
Keep passphrase secure
When you set up a wallet, you receive a passphrase. Write the passphrase on a piece of paper, for example, and make sure that no one can write it down (webcam, cell phone camera, other people in the vicinity, etc.). It is also recommended to write down the passphrase twice and to store it fire- and waterproof at different places.
Disclaimer
BitBeginner is not a financial services institution in the sense of the German Banking Act (KWG). Therefore, the contractor will not broker any transactions to the client about the acquisition and sale of Bitcoin or other cryptocurrencies (no investment brokerage) or Bitcoin or other cryptocurrencies neither in the name of the client or a third party for the account of the client or a third party to acquire or sell (no acquisition brokerage) or to the client or his representative no personal recommendation in the sense of investment advice within the meaning of § 1 para. 1a Satz 2 Nr. 1a KWG, which relate to transactions with certain cryptocurrencies (no investment advice).
