If you’re that smart investor in need of ways to buy cryptocurrencies in a safe and secure way, you just found the right place. Considering how the unforeseen pandemic has caused an economic slowdown for the majority, it would be wise not to take a gamble with your hard-earned penny. This comes in handy if you’re attempting a new venture in the cryptocurrency world.
On the positive side, Bitcoin’s third halving has recently gone down on the 11th of May 2020 and according to Digital Asset Research, the inflation rate of the Bitcoin will skyrocket to $60,000 per coin value. That said, it’s apparently evident that the stakes of success are sufficiently high for any new investor in the long run.
In this article, we will take you down the road of completing your first Bitcoin purchase step by step while giving you in-depth directives to ensure you don’t fall trapped in scams and fraudulent schemes.
In case you’re wholly new to the entire concept of cryptocurrencies, here’s a link that will direct you to a basic guide to understanding cryptocurrencies.
How to Buy Bitcoins
Considering most assets with a high value for money requires extra levels of security, the first crucial step would be ensuring the use of a secure connection.
Let’s be honest, these hooded keyboard warriors operating in some creepy basement are everywhere. The use of public wifi has also been repeatedly discredited by online security experts and there’s a good reason for that.
To assure you’re on the lookout, ensure you use a secure connection, or invest in a reputable VPN.
The second step, find a verified exchange platform that brokers Bitcoin. A great example is the kriptomat.io which facilitates transactions in Euros and Coinbase, currently the world’s leading bitcoin broker.
In the third step, you will download a digital wallet where you will reserve your bitcoin for future use. Most exchanges offer clear instructions to this step.
The final step is availing your payment method which will vary from wire transfer, debit, and credit cards, PayPal, or Western Union. Once a connection is established, you can use your fiat currency, which is the centralized currency from the bank to pay for the Bitcoins.
So now having got a guide on the process of getting your hands on some bitcoins, which are the safest procedures and platforms you could use? Apart from the exchange brokers mentioned, here are the other ways to ensure safe transactions while trading with Bitcoin. At the end of the article, we’ll also give you some useful bonus tips which you will find worthwhile.
1. Cryptocurrency Exchange
Also known as Digital Currency Exchange, an exchange is a brokerage entity such as an electronic stock trading platform that enables users to trade for cryptocurrencies using fiat currencies.
Exchange platforms are often preferred as they offer convenient and fast transactions depending on the exchange policy. On that note, it would be significant to also understand that the digital currency providers deal mostly with these exchange forums and not directly with the users.
However, Bitcoin Digital Currency Providers do have their own subsidiaries such as Binance that trade directly with the customers.
So how are exchanges a safer option? With the recent years having caught a glimpse of some of the most advanced exchanges hacked, is it still a reasonable idea to transact with an exchange?
To be on the safer side, consider an exchange with high-security protocols. Check out websites that review cryptocurrency exchanges to arrive at the best conclusion. Exchanges such as Bitcoin.Org are verified and have proved to be resilient to crashes.
For due diligence, it’s as well emphasized that users should store Bitcoins in digital wallets encrypted with multiple signatures.
2. Bitcoin Teller Machines(BTM)
Just like the conventional Fiat ATMs, Bitcoin teller machines will provide you with the most secure and standard mode of transaction.
Put into context, the process is really simple. At the bitcoin ATM, you first select the option of either buying or selling. Key in the amount you’d like to purchase in fiat currency, that is the centralized currency from the bank or, sell as bitcoin to other altcoins.
Depending on the ATM, verification of your personal details is often omitted on the lowest amount. Nonetheless, larger transactions might require you to substantiate your details.
The third step, key in your Bitcoin wallet address where the Bitcoins will be sent. These ATMs have QR code scanners so ensure you always carry the phone with the digital wallet with you.
To finalize the transaction, you will have to settle the payment through bank transfer, credit or debit cards, or cash insertion.
On the downside, Bitcoin ATM distribution is low in number limiting access to most people. However, CoinAtmRadar will help you track the closest ATMs accurately.
3. Mobile Wallet Transfer
It would be an undisputed fact that a face to face transaction would be preferred by most people, right?
With the whole concept about coins and wallets being a little prettified, the entire theme goes down to simplify the complexities of codes and hash algorithms to the standard user.
Through the digital wallet transaction, you simply add the amount you wish to transfer, scan the public address of your buyer or seller, verify the transaction, and depending on the timelines of the exchanges, the transaction is often complete within ten minutes.
This way, you get to deal with your customer up close. In case they don’t give you a knockout punch before disappearing through the crowd with your unpaid balance, you get to close a successful transaction.
As convenient as it sounds, it would be worth noting that these types of transactions are only limited to persons in close proximity and those that can be entirely trusted.
4. Peer to Peer Exchange(P2P)
A great example to put this platform into a clear spotlight is Local Bitcoins.
Before taking off even further, these platforms are essential to the type of client who isn’t too immersed in being anonymous. These exchange platforms insure the verification of personal data during the registration stage.
In the US for instance, social security numbers and driver’s licenses are expected as part of Anti Money Laundering policies.
But on the silver lining, the security of your coins is always guaranteed. As mentioned earlier, hackers are always on the radar for unsuspecting users to unknowingly transact through bank accounts and even secure cryptocurrency exchanges. This way, they can get access to crucial personal information including passwords in turn siphoning all your digital assets.
On the other hand, you can always skim for the trader with the fairest price as well as that with a high reputation. This will ensure you don’t land on some notorious professional con artist who could swindle you through some nice language.
Another peer to peer exchange is Bisq.
5. Bitcoin Debit Stores
As great as it sounds, you can now purchase your bitcoins in retail stores such as Walmart or other verified outlets.
As you snack some chicken and fries in some McDonald’s on a hot summer day, probably a bitcoin vendor outside could be the one to bail you out in case you ran out of cash. You could either trade your bitcoins for cash or cash for bitcoins. This particular scenario would see the former much applicable.
For a caveat, this service is only limited to the US with a company called Liberty X running the operation.
As we wind up, trading bitcoins using these verified crypto markets will grant you some peace of mind. However, security issues don’t just end there.
As bitcoin and altcoin exchanges don’t mainly concentrate on the security of your coins once purchased, the responsibility is drawn back entirely to you.
The first bonus tip to help you tighten your digital wallet’s zip would be the use of Bitcoin Mixers. Mixers integrate your coins with other addresses making it completely hard to trace transactions back to you.
Another important tip would be keeping your mnemonic password solely to yourself. This includes all your other passwords, for that matter.
To suffice it all, it’s best to be safe than sorry. It’s all about the 5 simple cues we’ve analyzed and you won’t have to sweat about the loss of a lifetime investment.
At the end of this trail, we hope you can now map out a safe route to kick off your cryptocurrency investment journey by purchasing your first Bitcoin.
In case you get stuck somewhere along the way, you can always get to us with your queries or feedback and we’ll be more than glad to reach out to you. We’ve always got your back.
Dinesh Kumar VM, SEO & Digital PR Manager at ClickDo Ltd. Has Expertise in Google Ads, Facebook Ads & Remarketing. Wrote & Published many books related to SEO & Digital Marketing.