Mistakes in crypto can be costly to your wallet. As part of the ritual process though, crypto beginners are likely to commit a lot of mistakes along the way like losing private key, getting scammed, and forgetting wallet password. If you don’t want to go through all that, bookmark this page, and learn how to avoid making crypto mistakes especially when it comes to your bags of Stellar lumens.
1. When to use Memo in Sending XLM
When sending to an exchange, you usually need to put a memo. Why? Because the exchange is like a bowl full of different fruits, and the memo will make sure it gets to your fruit.
Your Stellar wallet will also inform you if you need a memo to receive XLM.
If in case you did forget the memo, you need to check your transaction and provide it to the exchange.
2. Don’t Click the Links on Memo and Suspicious Email
Avoid being a target of scam. Do not click the links. Simple. Also, check the sender of the email. An official Stellar email should have @stellar.org domain.
3. No XLM Staking
There is no XLM staking. Nada. Zero. If you want to earn daily compounded interest with your Stellar lumens, use CeFi services such as Anchorusd, Nexo, Abra, and *Celsius.
*If you sign up using my referral code on Celsius, we’ll both get $30 in BTC.
4. Before investing in Stellar-based tokens, read the whitepaper, the website, or if there are any active communities and developments
Avoid investing in coins hoping for that 1000x returns. Always do your own research. Check Github if there are active developments, Telegram group, ask what they are trying to solve, is it decentralized, check the roadmap, check the distribution of the coins, and the team behind it.
5. Send a small amount first
Fortunately, Stellar has federated address, so sending XLM is not scary! Federated address is a human readable address instead of the classic cryptocurrency address which is a combination of alphanumeric characters.
However, for the sake of safety precaution, it is wise to send a small amount of Stellar Lumens first to see if it will go through.
6. Never share your private key to avoid getting rekt
Sharing your private key(starts with S)means giving away your money. Unless, you are a billionaire Philantrophist, do not do this.
As general rules, do not:
- Join a pump n dump groups on Telegram or Discord
- Do not send money to a Telegram bot
- Do not believe anyone who PM you especially when they are asking about yout crypto holdings, private key, or doubling your cryptos
- Do not use public computer or connection to access your funds
- Forget your 2FA code
- Disclose how much you are holding (it is okay to share the percentage tho)
Spread this guide to help a fellow Lumenaut out.