When you’re dealing in digital assets like Bitcoin and Ethereum, there are a few habits worth adopting. These will help to ensure that you enjoy a healthy and profitable relationship with the crypto space, and that you’re reasonably protected against scammers and other malicious actors.
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Confirming the Transaction Was Received
Suppose that you’re sending coins from your temporary wallet on one exchange to their more permanent home: the wallet over which you have control. It would be a mistake to simply assume that the funds have arrived simply because the platform says that they have. Check that the new balance accurately reflects the amount that was sent. If there are any surprises, knowing about it early on will help you avoid pain later. It takes seconds, and it can provide valuable peace of mind.
Verifying Wallet Details and Balances
One of the defining features of crypto is that there’s no central authority with the power to reverse or void transactions. When you send money in this space, it’s for keeps. As such, accuracy is critical. Triple-check that you’ve typed the address in correctly, and send small amounts before you send big ones.
It’s good practice to check that your transaction records reflect the details shown at the time of purchase. Suppose that you’ve purchased Bitcoin and had it sent to your wallet via a Bitcoin ATM. Checking the amount received against the transaction details can help you keep accurate records and understand the purchase clearly.
The cash amount inserted and the value of Bitcoin delivered may differ because the transaction reflects the displayed exchange rate and applicable charges. Reviewing any trading or transaction fees before confirming the purchase helps you know what to expect and make informed decisions in future.
For example, when you insert $500 into a Bitcoin ATM, the amount of Bitcoin sent to your wallet is calculated using the rate and applicable fees displayed before confirmation. The same principle applies to a $100 purchase. Reviewing these details in advance makes it easier to confirm the amount received and maintain accurate transaction records.
Reviewing Security Settings
Once you’ve received an asset, it’s worth thinking about how it’ll be protected. This means having two-factor authentication in place, and making sure that you aren’t being taken in by suspicious messages. If there’s an unsolicited request, even if it appears to come from a legitimate place, then it’s time to be suspicious.
Recording Key Transaction Details
Keeping a basic log of all of your crypto transactions (and indeed, all of your spending more broadly) can be an invaluable exercise. It will allow you to remain conscious of your finances, and to keep yourself on the right side of the rules around taxation.
Preparing for Future Transactions
The security-focused steps that you take should be habitual. Once you’ve forged the right habits, you’ll be in a much better position to protect yourself and your wealth – and the same goes for breaking the bad ones.
