There are five safe ways of buying Bitcoin and you can understand all of them here. Here is what you need – and what you need to do.
Bitcoin is stepping out of the unknown and becoming a well-known and trusted currency around the world. Thanks to global names starting to accept Bitcoin and crypto regulations slowly but surely coming together, more people are interested in owning it.
Such developments have meant new investors and fans want to know how they can buy Bitcoin safely. Here we are going to answer this fundamental question, but before we get into the safe ways of purchasing Bitcoin, let’s learn a little more about it and what you will need to make it happen.
An Introduction to Bitcoin
The concept of Bitcoin was put into action in 2008 by an unknown person or collection of people who go by the name of Satoshi Nakamoto. In 2009 Bitcoin was formally released. Bitcoin operates on an open-source network known as blockchain technology.
This means every purchase with a Bitcoin is stored in the public view and cannot be altered. Unlike fiat currencies, handling Bitcoin is attractive because it does not involve third parties like VISA or Mastercard, and therefore, you do not need to pay a fee to these entities when making transactions.
Bitcoin also overcomes some problems with cross-border payments and has been known to help unbanked populations. Today Bitcoin’s valuation can fluctuate from near $20,000 in December 2017 and $7,000 at its lower points. Nevertheless, it is worth considerably more than when it was first released just over a decade ago.
What You Will Need to Buy Bitcoin
Buying Bitcoin may require you to use an exchange platform where fiat currencies and cryptocurrencies are sold and traded (explained below). Which exchange you choose will depend on your exact affairs with Bitcoin because fees and features can differ significantly. Yet, you should only use exchanges that are recognized, trusted and have a reputation for guarding your security. One that has a back-up supply of Bitcoins in the event of a security breach is desirable.
The other thing you will buy Bitcoin safely is a crypto wallet. These wallets work like a bank account. They are used to store your Bitcoins until you want to spend them or trade them. However, the wallet you use must be completely safe because wallets, unlike bank accounts, do not have reassurances from financial bodies. If someone manages to hack your electronic crypto wallet and steals your Bitcoin, there is no way of getting your Bitcoin back.
An operator that has a reputation for providing one of the best wallets to guard against such instances is Luno. It boasts exceptional safety features and ongoing maintenance to protect users against cybercriminals. So it is good advice to find out more information about the Luno Bitcoin wallet and make a smart decision.
Five Ways of Obtaining Bitcoin Safely
Now you are aware of what is needed to buy and store Bitcoin safely, it is time to uncover the core ways of acquiring Bitcoin. There are five popular methods in total, and we will run through them all.
It is possible to buy Bitcoin from another person directly. This can be a safe procedure, but it also requires you to be aware of your surroundings and conscious of your safety. The biggest safety risk if being mugged for your fiat currency when buying crypto from another person. You can counter this by meeting is environments such as at police stations, post offices or banks.
One other way of ensuring your in-person Bitcoin purchase is safe is by making sure you are not followed after the transaction. This means booking a reliable taxi or getting a friend to accompany you and drive you home.
2. Bitcoin ATMs
Bitcoin ATMs are also a place where you can obtain Bitcoin seamlessly. However, when using a crypto ATM you need to operate with the same level of caution as you would when using a regular ATM. His means be aware of anyone standing close to you at the ATM and do not use the Bitcoin ATM if you notice anything suspicious.
3. Exchange Platforms
As mentioned, Bitcoin exchanges are places where you can buy, sell and swap crypto. These are completely safe when using a popular exchange. To make using them even safer it is strongly recommended to withdraw currency straight to your wallet and never leave it within your exchange account.
This is another reason why a secure crypto wallet is vital for dealing with Bitcoin safely.
4. Decentralised Exchanges
Another type of exchange is a decentralised one. These are like normal exchange platforms but do not use a company bank account. Instead, they use an escrow service where crypto is stored until the two parties agree that payment for them has been received. Although these can be safe, they are generally not as safe as using the methods previously discussed.
5. Accepting Bitcoin as Payments
The final popular method of obtaining Bitcoin safely is by being a business that accepts crypto. Although this is technically not buying Bitcoin safely, it is still worth the column space because it is expanding in different industries.
Many businesses are now accepting Bitcoin in return for goods and services. For example, in Canada, you can buy KFC with Bitcoin and you can pay property tax with it too. Some businesses have even established their success based on cryptocurrency and only accept Bitcoin payments. As regulations develop more businesses are likely to accept Bitcoin which gives you even more reason to buy it (safely).
Keeping Your Bitcoin Safe
Once you have safely bought Bitcoin, you need to keep it safe. As mentioned, the best wallets can help you do that – but you also need to take some responsibility. Do not write down your codes and never access your wallet using a public or unprotected WiFi connection.
Safety is paramount for successful ownership of Bitcoin. The products you choose, the methods you use and how you act online can all make owning Bitcoin pleasant and worry-free.