Why Many Beginners Misunderstand How Bitcoin Wallets Works

[BlackBoss_]

Many beginners seeing exchange as wallet it because that where they first bought Bitcoin., so they do have this belief. And again exchange making everything looks simple and easier, they don't really stress their self to think about who controls the private key.

Custodial or self custodial wallet, it's all easy and simple.

It's only different when people want to learn, see importance of private keys, full controls or they don't know about these important things and are ready to depend on centralized exchanges while no control for them.

That why I would advise that beginners should understand self custody first. Once they understand that them holding Bitcoin means them controlling their private keys, from there they know the differences that exchange it for buying and selling not that it keeps your Bitcoin. This will go long way to help beginners avoid some mistakes

When people understood very big and vital differences between custodial wallets and non custodial wallets, they will naturally use non custodial wallets to store their coins. Especially if they don't have any plan of trading with their coins, with the purpose of holding, non custodial wallets will be their only choice.

Write down your seed, why?

This seed is the source of all your keys and addresses. Therefore, it allows you to recover all of your bitcoins if you end up losing your wallet for whatever reason.

But this also means that anyone can steal your bitcoins if they gain access to your seed, so it's vitally important that you keep it secure.

[RockBell]

Therefore, I recommend beginners to learn more about crypto or Bitcoin before starting, and that is the ideal approach rather than jumping straight in. This is to prevent unwanted consequences that might happen to you, especially if you ignore it. The main thing is; Spending a lot of time studying is better than spending a lot of money (due to loss).

This could not be a better example for newbies than this. If new people understand this simple matter, they will never jump in directly again. If they learn properly a little in the beginning then there will not be any problem from the next time, but they are not interested even in this small learning part. That's why we have to hear unnecessary frustration from newcomers.

When you encourage people to learn, especially those who are new, they feel that you are slowing them down. They also forget that no matter what you do, you should take things more seriously because the knowledge you gain will enable you to make decisions about where to keep your wallet and many other things. Many people buy and sell on exchanges, leading to a very disorganized cryptocurrency life. Some of them even lose their coins as a result of their refusal to do the right thing. Which is for them to just learn know what to do after buying and then people we have all this problems with is just the newbies that have refused to learn.