Getting started with Bitcoin can feel overwhelming, especially with so much information out there. Over the years, we’ve made our fair share of mistakes, and we want to help you avoid doing the same. Let’s walk through some of the most common beginner pitfalls and how you can steer clear of them.
Bitcoin vs. Crypto: Understanding the Difference
One of the first mistakes many new investors make is confusing Bitcoin with the broader crypto market. While Bitcoin is its own thing, everything else—like Ethereum, Cardano, Solana, and other altcoins—falls under the term “crypto.” These are often referred to as “sh*tcoins” because they don’t have the same proven track record as Bitcoin which includes a true decentralized character.
It’s easy to get caught up in the excitement of these other coins because they seem like they could offer higher returns. The people behind these projects often have slick marketing pitches and promises of huge profits. But it’s important to remember that most of these coins don’t hold up over time. Many developers get rich, while investors are left holding the bag.
Resist the Temptation of Altcoins
Another common beginner mistake is thinking you’ve missed out on Bitcoin, so you look to other coins that seem cheaper and more promising. It’s tempting to think that if these coins reach Bitcoin’s market cap, you’ll see huge gains. But from our experience, that rarely happens. The reality is that picking the right altcoin at the right time is extremely difficult, and most people don’t succeed.
Even with all the hype, Bitcoin stands apart. It’s seen as a commodity, whereas most other coins are classified as securities, similar to stocks. This distinction matters, especially with tightening regulations in the U.S. Understanding this early on can save you a lot of headaches down the road.
Bitcoin Isn’t Scary—You Just Need to Learn the Basics
Many people think Bitcoin is too complicated or risky. But Bitcoin isn’t something to be afraid of; it just takes a bit of learning. The key is to do your own research—read books, listen to podcasts, and always verify the information you come across. “Don’t Trust, Verify” is a great principle to live by in the world of Bitcoin.
Some people are too scared to get started which is also caused by a large number of myths about Bitcoin that are going around. Others jump in without fully understanding what they’re doing. Take your time, educate yourself, and don’t feel pressured to rush in.
Start Small and Learn by Doing
If you’re ready to invest, start small. Think of it like paying for a lesson—invest a small amount, like $10, and use it to learn the basics. You’ll get hands-on experience with how Bitcoin works, how to move it from an exchange to your wallet, and what it means to actually own Bitcoin. You will notice that once you have bought your first Bitcoin, you will immediately want to start learning more about it. In short, buy your first Bitcoin and your education starts on the go, as you follow the ups and downs of Bitcoin and its price chart.
Don’t Let Emotions Drive Your Decisions
Fear of Missing Out (FOMO) is a huge mistake that many beginners make. Bitcoin’s price can be extremely volatile, with big swings up and down. It’s easy to buy high out of excitement and then sell low out of fear. A smart way to avoid this is by automating your investments, like setting up a small, regular purchase each month, so you’re not constantly reacting to price changes.
Not Your Keys, Not Your Coins
One of the most common mistakes is leaving your Bitcoin on an exchange, thinking it’s safe there. But if you don’t control your private keys, you don’t really own your Bitcoin. Always move your Bitcoin to a personal wallet where you hold the keys—this way, you’re in control, not the exchange.
Be Wary of Scams
Finally, watch out for people who offer to manage your Bitcoin for you. You might hear of someone who says, “I’ll handle it all,” but this is usually a red flag. If it sounds too good to be true, it usually is. Always handle your own investments and never hand over control to a third party.
Learn from Mistakes and Make Informed Decisions
We’ve all made mistakes along the way, but the good news is that you don’t have to. By understanding these common pitfalls, you can avoid the headaches that many new investors face. Take your time, learn as you go, and make sure you’re making decisions that keep you in control. Bitcoin isn’t about taking shortcuts—it’s about understanding what you’re investing in and doing it right.