I remember the first time I sent a transaction in the crypto universe. I was sitting on coinbase.com with my transaction ready to go. The number I wanted to transfer was in place. The address was in the correct text box. My mouse was hovering over the send button for at least a good 30 seconds. I read each number and letter of my address at least 7 times, even clicking between tabs to make sure I had everything correct. Then finally, closing my eyes I hit send. A whole $3 of bitcoin onto the mythical blockchain train.
I clicked over to the exchange I sent it to. Nothing. I check again. Panic. I check again. Repeat.
It is very common to feel uncomfortable when making your first transaction. And to be honest, it’s a warranted feeling. Crypto currency has a lot of areas you can mess up with a very small error. While I have been lucky enough to avoid most of these, here is a list of the top seven mistakes new traders make. I hope it helps.
Sending to the wrong coin wallet
If you have bitcoin, you cannot send this coin to an ethreum wallet. If you have litecoin, you cannot send this coin to a Ripple wallet. Coins, for the most part (which we will go into in later courses) do not communicate with each other. Make sure that you are sending and received in a wallet made for the specific coin.
Messing up a letter on the coin wallet
Similar to sending an incorrect wallet, it is also possible to incorrectly type your wallet address. These wallets have very long and hard to read public keys. Accidentally chopping one of these characters off is extremely easy to do so I suggest, before you make a transaction, always make sure to read the first and last letter of the key you entered. This will cut down on 99% of any possible errors.
Sending to a private key, not a public key
As we mentioned previously, when you first purchase your coins or download a wallet, you will be given a public and private key to access that wallet. It is critical that when you sending money to this wallet, you send the money to the public key, not the private. Or, your money will be lost forever.
Not all coins have one price
When I first started trading I always thought there was one price to a coin. This is not true. Similar to buying apples at a grocery store, you can purchase apples from many different stores at different rates. Exchanges are the same way, each with their own price for each coin. When you see one price of a coin online, this is usually the average (per volume) of all their current rates in their respective exchanges.
Buying and Selling Order Line
When buying on an exchange, it is not the same as buying on coinbase. You don’t just click a button and the transaction occurs. When you purchase on an exchange (or sell), you are putting out an OFFER to the others in the exchange. It is not until someone takes you up on your offer does your purchase get processed. There are usually pretty good indicators of this on the website, but just keep a lookout to see if it was process or not.
Not Backing Up Your Wallet
Backup up your wallet or keys is a fancy term for making a copy. While I don’t suggest doing this, it would as simple as uploading your wallet information to dropbox, or emailing yourself the credentials. Again, I don’t suggest doing this, but its an example of how you could backup your wallet.
Not understanding transaction fees
We talked about this in earlier sections, but you truly need to understand that sending and exchanging coins does have a cost. Bitcoin is becoming less and less popular for transactions simply because of much it costs to send a small amount of money. Keep an eye on this.