There is a saying that half education is a disease and lack of education is death. Now the most common feature of diseases is that, you lose money to them. When you have a disease, you spend a lot of money trying to get well and you keep spending money, losing money until you get well. This is the case of amateur bitcoin sellers. Every other day, you see one or more of these “windowlickers” as they are called posting on forums about how they were scammed, lost money trying to sell bitcoins. They gather funds, try to sell coins, and then they lose their money again. And again. And over again. And then you start to wonder. What are they doing wrong which makes them amateurs and unable to make money? Its this. There are some mistakes which they make and which they keep on making as amateurs. They consider this mistakes as inconsequential. However, these mistakes are quite important as they are difference between a good sale and a bad sale. And until these amateurs learn to consider these mistakes important, they’ll remain amateurs. Here are some of the common mistakes made by amateur bitcoin sellers.
- They Charge Too Little:
Maybe in an attempt to inspire trust or to keep a customer or to undercut the competition, amateur bitcoin sellers often charge too little for their coins. Know this however, it is a suicidal move. One of the worst you could make. The profit on your trades is what keeps your sales alive. If you should lose the profit in an attempt to undercut competition, then you’ve rung the death knell on your bitcoin trade.
- Placing Implicit Belief in Websites or Forums to Protect Them
Websites and platforms like localbitcoins, paxful and others can only do so much to protect their sellers. They are understaffed and they are more concerned with making money than settling disputes, so they can only offer a seller minimal protection. Expecting the websites to help you whenever you have a problem or to even offer helpful advice is creating deep problems for your trading career.
- Releasing Bitcoins Without Fully Having Your Payment in Hand
This should go without saying, because almost all conser based payment methods are reversible and releasing your bitcoin without making sure that the payment is fully yours is setting yourself up for disaster. Avoid it.
- Giving Out Your Personal Information Like Bank Account Number
This is quite dangerous. There are several scams involving the use of information like this nowadays. You should try as much as possible to avoid giving out your personal information.
- Selling Bitcoins Without Escrow
If I have to explain to you why this is stupid idea, then you shouldnt be selling Bitcoins in the first place.
- Selling Bitcoins You Cannot Afford to Lose
As a bitcoin seller, it is impossible not to lose money. This is a situation you must prepare for and calculate as part of your costs. So if you come into bitcoin selling with your last bit of savings, and you get scammed and now you are in a tight place, you’ll get no sympathy from me. You should have more sense than to place your last card on a venture riddled with scammers as this.
- Accepting Paypal as a Payment Method
If you are an amateur, you need to run, I repeat, run from PayPal. Do Not accept it as a payment method. Even professional sellers try as much as possible to avoid it. It is chock full of scammers and if you use it, you will get scammed. And then PayPal itself will come after you. As they can take money out of your account and ruin your credit, you should know that this is something to be feared. Even the family and friends package on PayPal is not safe as it is reversible. Every form of PayPal payments are reversible. So if you use this as a form of payment, you are basically inviting people to scam you. Avoid it.
All in all, bitcoin is a quite devious profession. It is full of subtleties and feelings. Instincts and experience. Each and every buyer is suspect, each and every payment form is faulty. Even cash deposits are not safe. You can be scammed even with cash deposits. No platform really cares about you. They just need you to make money. So if you become a bitcoin seller, you have to be prepared to lose money. And most of all, you have to be smart. Real smart and that is the only way you can make money.