Those who want to enter the world of cryptocurrency or to buy more Bitcoin will have many options at their fingertips, with some safer than others.
Unfortunately, many unscrupulous websites take advantage of the growing interest in cryptocurrency to make a quick buck. Such platforms may let you buy crypto but steal your personal or financial information. To buy Bitcoin safely, stick to websites that have a strong reputation and provide proper security measures.
Buy at Reputable Platforms
There are many ways to buy Bitcoin, including:
- a cryptocurrency exchange;
- a peer-to-peer exchange;
- a Bitcoin ATM;
- Bitcoin CFDs via investment platforms.
Out of these, a cryptocurrency exchange is the safest choice since all reputable exchanges have security measures in place to protect your funds and information. It doesn’t mean you should just buy Bitcoin from any exchange. Instead, do your research to ensure that a particular service has a good reputation, paying attention to:
- whether the company has official registration and complies with legal requirements;
- their security methods, such as data encryption and offline cold storage;
- the exchange’s history, including years in operation;
- any previous hacks, why they occurred, and what changes were made to prevent future occurrences.
You will also want to pay attention to factors other than safety, such as:
- user-friendliness;
- fees;
- whether the exchange offers its own wallet;
- availability of altcoins in addition to Bitcoin;
- payment methods and currencies accepted.
Consider Buying from CEX.IO
Of all the cryptocurrency exchanges where you can purchase Bitcoin, CEX.IO has one of the best reputations out there. This company started its operation in 2013 as the very first cloud mining provider. Soon after, it began serving as a multi-functional crypto exchange. You can buy Bitcoin on CEX.IO via the website or mobile app. It also has an incredible 24/7 support. One of the great things about this platform is the plethora of available payment options. Depending on your account type, you can choose to fund it using fiat or numerous crypto coins. Still, most people who use CEX.IO to buy Bitcoin for the first time will do so with fiat currency. The specific funding methods depend on the currency you choose but can include a credit or debit card as well as a wire transfer.
As for security, the exchange has many points in its favour that allow you to buy with confidence, including:
- Certificate of Incorporation;
- FinCEN Registration;
- PCI DSS Compliance;
- full data encryption;
- protection against DDoS attacks.
Safety Precautions During the Purchase
Some other reputable cryptocurrency exchanges that you should feel comfortable using include Coinbase, Gemini, and Changelly.
Simply choosing to buy Bitcoin from a reputable exchange is not enough to keep your funds safe. You also need to make smart decisions during the process.
Begin by using a secure internet connection. Never connect to the public wireless internet to access an exchange or a crypto wallet. If you must use public Wi-Fi, always use a VPN. If you use your home internet network, ensure it has a strong password and the router has up-to-date security protocols.
Before you actually enter any information into the exchange, confirm that you are on the right website. Check the URL, specifically looking for an https in the address as opposed to an http, and a green lock in the browser. You can avoid problems by bookmarking the real exchange website. Remember, if you use an application on a mobile device, make sure it’s the original one before downloading.
When it comes to creating your account to buy Bitcoin on the exchange, make sure you select a strong password, which is easier when using a password manager. You should also enable two-factor authentication to prevent hacker attacks.
Staying Safe with Other Purchasing Methods
If you ever choose to buy via a peer-to-peer exchange instead of a traditional crypto exchange, make sure the website you select has an escrow service. Also, choose a seller with a good rating. If your peer-to-peer transaction involves meeting someone in person, always go to a well-lit public place. You can also choose to accept Bitcoin as a payment for services or goods instead of buying it directly.
Keep Your Bitcoin Safe After the Purchase
After you buy your Bitcoin, you need to continue making safe decisions to protect your investment. Most exchanges let you keep a balance in your account, which is rather convenient but not very secure. It is much safer to store your Bitcoin in a wallet instead.
You can choose from a range of wallet types, with hardware and other cold storage or offline wallets qualifying as the safest options. If you plan to use Bitcoin for regular transactions in the future or you need ready access, consider a web or mobile wallet. You can also find a desktop wallet or even a paper one for Bitcoin that you will not use anytime soon.
Conclusion
As long as you take the proper precautions, buying Bitcoin is a safe process. You do, however, need to be careful since choosing an insecure exchange or a one run by unscrupulous people could lead to theft, either from hackers or from the exchange itself. The safest way is to purchase Bitcoin from an exchange with a strong reputation, such as CEX.IO described above. Once you buy it, ensure you follow industry advice to secure your coins. That way, you would not lose your newly purchased cryptocurrency.