The 4 Biggest Mistakes You Can Make When Buying Bitcoin – The Motley Fool

The 4 Biggest Mistakes You Can Make When Buying Bitcoin – The Motley Fool

Don’t make these mistakes when you buy cryptocurrency.

People have made a lot of money from Bitcoin. If you’d invested $100 when the coin first launched in 2009, your Bitcoin could be worth millions of dollars today. But let’s not forget — many people have also lost millions of dollars on Bitcoin.

Whether it’s from buying high and selling low, getting hacked, falling victim to scams, or losing your keys, this high-risk investment can lose you money. Here are four big mistakes to avoid when buying Bitcoin.

1. Not prioritizing security

There are a few reasons good security is crucial when you’re buying Bitcoin. Fundamentally, if you lose your Bitcoin, you’re unlikely to get it back.

Bitcoin cuts out the middleman in financial transactions using something called blockchain technology. The details are complicated, but in essence, that technology lets you buy things without going through a bank or other financial institution.

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You access your Bitcoin through public and private keys, and one way you can lose money is
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