What misconceptions did you have when you started playing?

I thought Demon Altars slowly killed you overtime if you got near them. (Didn't realize that trying to hit and break the Altar would cause damage)

Probably also before I started playing, that there would be things like hunger and durability similar to Minecraft. And to my pleasant surprise, those things were not in the game. Not that I thought at the time that Terraria was "2D Minecraft" but knew since it was partially inspired by Minecraft that there would be similar elements.

That I shouldn't dig vertically down and instead go underground slowly by digging out my own "staircase". Didn't even think to search for naturally generated entrances to the underground caverns.

Also if this counts in my early days of playing, that Angel/Demon Wings were the best accessories in the game. It was during the time when it was thought there would be no 1.2 which is the update that brought dozens of more wings.
 
I thought the WoF would be easy enough with three people. We tried >15 times to no success. Later, I beat it by myself on myself third attempt.
 
That background walls were completely pointless.

That all items would have durability, just like Minecraft. Thank goodness that was not the case. I wouldn't want my precious Meowmere breaking on me, now would I?

That Shadow Armor was pretty much the best you could get your hands on, and that those really sparse bits of ore scattered about the world was the only way to get it. Imagine my surprise when I found out you needed shadow scales. ("Now where the heck do I get shadow scales???)

That the Destroyer was an easy boss... with no splash weapons. Many nights of pain were had, to say the least.

That equipping that shiny piece of Hallowed Armor while still wearing parts of Adamantite Armor is surely an upgrade. And I wondered why defeating the Twins a second time was harder than the first.

Thankfully, all of this derpage has been contained to my first character and world way back in the 1.0.6 - 1.1 days.
 
I thought that the old man was lying when he said I cannot enter the dungeon unless i kill his master..
The guardians proved me wrong.

I also thought that spending too much time in the corruption would spawn the EoW.
 
My brother started a world on console Terraria before me named 'World 1', so when I started playing, not knowing how it got there, I thought "oh, I just beat the boss to get to world 2!"

I also didn't know that health regenerated naturally, so I thought that campfires were super important for a time.
 
Oh, one other thing: I thought that natural background walls blocked enemy spawns and were valid for housing. I couldn't figure out why my NPCs wouldn't move in, and then the blood moon hit and my supposedly secure base was swamped. I figured out that the weren't valid for housing before EoC, but it probably wasn't until after Skeletron that I realized they permitted enemy spawns.
 
Oh, one other thing: I thought that natural background walls blocked enemy spawns and were valid for housing. I couldn't figure out why my NPCs wouldn't move in, and then the blood moon hit and my supposedly secure base was swamped. I figured out that the weren't valid for housing before EoC, but it probably wasn't until after Skeletron that I realized they permitted enemy spawns.

Oh is that why my demo man won't move into my under ground base!
 
I uh...

Thought that hallow = crimson.

I don't know how I mixed them up, but for a while I believed that the crimson had rainbows and unicorns, but when you went in the chasm you'd break hearts and spawn BoC. This was back when I played on pre-1.2 mobile.
 
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