Let us start with an easy one…
Riddle #1Tom watches a YouTube video about bitcoin. The video shows interviews with people who have made incredible profits in the last two years alone. After he watches the interview, Tom decides that he will purchase bitcoins.
He registers at a local exchange and buys bitcoin with his credit card. He remembers the YouTube video that he watched where several users recommended using Electrum for storing their coins. He decides that’s going to be his wallet of choice as well.
He opens up his Google Chrome browser and types “
electrum” in the search field without researching further. The first result seems promising and looks like an ad of some sorts. It points him to Electrum’s website, as shown below:
https://i.imgur.com/rYqba0bl.png He downloads Electrum after just a few clicks, installs the software, and is ready to initiate his first bitcoin transaction.
It’s already late, and he has to go to work in the morning. But before he goes to bed, he withdraws his coins from the exchange and sends them to his new Electrum wallet. When he wakes up in the morning and checks his phone for any new messages, he notices an email from his exchange that confirms that his withdrawal was successful.
Excited, he turns on his computer and opens the Electrum client. To his surprise, the wallet balance is 0! His wallet history shows two transactions: one incoming transaction from his exchange half an hour after requesting the withdrawal and one outgoing transaction from Electrum to an unknown address.
Tom knows that bitcoin is irreversible and that he can’t recover his coins. Disappointed with the outcome and for losing $300, Tom heads off to work. He can’t understand what he did wrong, so he decides never to buy bitcoin again.
What happened here, and how did Tom lose his bitcoin?
What did he do wrong, and how should he have acted?
Tom just got so much greedy by hearing about profits from one YouTube video and without researching about what is bitcoin? How to buy? Which are safe places to store it? Etc. He just bought btc. He didn't research about which are are safe ways to store crypto? And by just hearing from an YouTube video he go to download electrum wallet! When he search for electrum wallet. he didn't check the url of that site that is it official or a scam website? and end up with a hacked wallet. It was already late so he was tired up and without checking apps authenticity he sent btc and hacked app automatically sent that funds to hacker!
Tom should not get blind with greed and do some research about btc trading and storing! There are many articles about crypto knowledge and YouTube videos also about it! He should research about at least couple of weeks and then when he become confident he should start investing!