Five commandments for those new to Bitcoin

Five commandments for those new to Bitcoin

Given the year Bitcoin has had, it’s no surprise there’s been a whole lot more interest since it first started. Eight years ago, no one even really knew what cryptocurrency was. You can’t avoid someone mentioning Bitcoin at the pub or dare we say it, your family’s annual Christmas BBQ.

So, if you’ve just decided to jump on the bitcoin bandwagon, welcome – it’s great you’ve finally seen the light. Now sit tight and pay attention before you pay to play.

Thou shalt set up two factor authentication.

It’s one of those things that’s too much of a hassle, until it’s too late.

Having a second factor of authentication is a greatly way to ensure the only person logging into your account is you.

Two Factor Authentication (2FA) or Multi-Factor Authentication – alongside your strong password, is the best way to keep your CoinJar (and everything of yours online, really) secure.

Once 2FA is set up, if someone were to gain access to your sign-in details, they would be unable to access your CoinJar without first authenticating using your selected security device.

If you haven’t already, we really do recommend setting MFA up.

Thou shalt use a password manager.

We think this goes without saying but using the same password from for your email, Facebook, banking and bitcoin wallet is a bad idea. Do not ever write passwords down, not on paper, and especially not in a text file on your computer or phone.

Save yourself the hassle of coming up with complex passwords and remembering them with an encrypted password manager.

The most popular choices are LastPass or 1Password – all you’ll need to remember is one master password. Thank us later.

Thou shalt be wary of companies offering ‘guaranteed returns’.

We’ve seen a few companies offering bitcoin ‘packages’ which guarantee high interest payments in return for an initial investment or further purchase of ‘packages’.

This is a huge red flag of unsustainable business practices.

Known as ‘high-yield investment programs’, they have become increasingly common in digital currency communities.

You risk losing all funds, including any initial investment, when participating in these schemes.

Companies which exhibit these characteristics include:

Thou shalt not use wallets without a solid track record.

When you hold bitcoin, you can choose to hold your private keys yourself on a desktop or mobile client, a web wallet like CoinJar, or a hardware wallet.

These options differ in usability and security but before storing your digital currency consider the following:

  • How long has the service provider been around?
  • Who makes the software?
  • Is the software still supported?
  • How transparent are they about the company?
  • What do the reviews say?

Depending on your use-case and amount held, you should carefully consider your options before storing your cryptocurrency.

Thou shalt trade responsibly.

Yes, we are a bitcoin exchange asking you to trade responsibly. Digital currencies bring exciting opportunities, but not at the cost of your home or health. The trading markets for digital currencies are only just maturing. And in like all markets, they can remain irrational longer than you can remain solvent.

Making informed investment decisions includes doing your own research before you start trading. You should aim to have a strong understanding of what digital currencies are and what they can do before you try and beat the market.

Pay close attention, lock it up, do your research and trade responsibly. Enjoy.

Don’t invest unless you’re prepared to lose all the money you invest. This is a high‑risk investment and you should not expect to be protected if something goes wrong. Take 2 minutes to learn more:

Cryptoassets traded on CoinJar UK Limited are largely unregulated in the UK, and you are unable to access the Financial Service Compensation Scheme or the Financial Ombudsman Service. We use third party banking, safekeeping and payment providers, and the failure of any of these providers could also lead to a loss of your assets. We recommend you obtain financial advice before making a decision to use your credit card to purchase cryptoassets or to invest in cryptoassets. Capital Gains Tax may be payable on profits.​​

CoinJar’s digital currency exchange services are operated in Australia by CoinJar Australia Pty Ltd ACN 648 570 807, a registered digital currency exchange provider with AUSTRAC; and in the United Kingdom by CoinJar UK Limited (company number 8905988), registered by the Financial Conduct Authority as a Cryptoasset Exchange Provider and Custodian Wallet Provider in the United Kingdom under the Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017, as amended (Firm Reference No. 928767).