How to buy Cryptocurrency Safely?

There are alternative methods to buying cryptocurrency, each with its own peculiarities. For you not to lose money on transaction costs and fraudulent exchange platforms, we have analyzed the best ways of acquiring bitcoin, ethereum and other altcoins. Make sure to carefully analyse each method before you invest your money in digital assets.

You can either use a crypto exchange, a broker or a cryptocurrency ATM.

What do you need to know before buying cryptocurrencies?

Cryptos have immensely high volatility

There are sudden spikes in the price of all cryptocurrencies, except stablecoins, whose value is pegged to fiat money. Price is a speculative and changing factor, which means that there is a lot of volatility present, and your investment isn’t set in stone.

Try to notice price patterns and invest in a dip to have higher future gains. Shorting crypto can help you a good profit margin later if you invest in the dip.The bold text need to be added with the link

Once you buy cryptocurrency, you can’t refund it like with a traditional bank

Once a smart contract has been established, or when the transfer of cryptocurrency has been made to your digital wallet, there is no going back. The transaction is confirmed by the network, or the operational nodes, to be precise, and is stored on a public blockchain ledger.

Each transaction is unique, and this is what makes them secure. You can’t reverse a transaction — only the recipient can send the funds back to you by making a new transaction.

You need to choose a reliable crypto wallet and remember your personal code

There have been wallets that hackers hijacked and stole money from. Try to use a reliable one like Exodus, Ledger or Mycelium. If you want something even more secure, opt for a cold wallet — the Ledger Nano S or Trezor. You can use a smartphone app to buy and exchange crypto and store it offline. No more cyberattacks, and you have full control of your investment.

There are no guaranteed profits, just like with other investments

Only invest what you are prepared to lose. Cryptocurrencies are still new. People try to predict where the price will go, but there are no safe bets. New blockchain tech, news and whales’ actions all influence a crypto’s price.

For example, new technology or a large buy-in will shoot the price upwards, while a country’s decision to ban crypto may drive the price down.

Crypto exchanges

In order to buy crypto at online exchanges, you usually need to open a trading account, pay a transaction fee and, most importantly, pass their KYC procedure. You will also be required to submit some personal information. The verification may take up to a few days.

On Currency.com, you won’t have to wait long — they need just 24 hours to process your application. This regulated exchange with over 2000+ tokens follows KYC and AML guidelines and boasts a 1:500 leverage.

For example, Binance features a fee of 0.1% per transaction but has a lengthy verification process. Some online exchanges may be unavailable in all countries, while others offer full anonymity and fixed transaction fees. Make sure you have read the terms and conditions and understand how the service works before you create an account.

A crypto exchange is usually slower than a broker in terms of verification and technical support. Broker fees are lower, and you have more deposit and withdrawal options, including debit/credit cards and eWallets. However, an exchange offers more cryptocurrencies and more attractive rates.

Cryptocurrency brokers

If you are a beginner in crypto investments, are looking for short-term investments or simply prefer well-regulated trading, a broker is a great choice. Although you will need to provide your ID and some address verification, you get more security and faster transactions.

Some examples include Bitpanda and TradeStation which work with well-known crypto brokers. There are many bots and fake profiles on the Internet offering to earn you thousands of dollars. There are, of course, scams.

A good broker must publicly state which financing method they are using, have technical support, be credible and presentable. Researching brokers on blogs and online discussion forums before you invest money is a must.

Pay attention to the platform, customer support service, the tools offered, commissions, fees and more. If you find an option of demo trading, this is a good sign. You can test the service and see how it works before making serious moves.

Cryptomat

A Bitcoin ATM can be used to transfer or receive bitcoins without entering any sensitive personal information. However, these ATMs are not available in every country – they are only available to residents of 72 countries, encompassing the majority of Europe and America.

The only thing you need is your digital wallet’s QR code, the address to send the money to, your phone number and a valid ID. First, you scan your wallet’s QR code, enter your phone number (not all ATMs may require it) and show an ID document (if needed).

Indicate the amount you would like to send, and you get a paper receipt. The crypto money should be in your wallet. The same process is for withdrawing money — you input the address to withdraw money from and confirm the transaction.

Conclusion

The safest ways to trade and keep cryptocurrency is with cold wallets and cryptocurrency ATMs. They aren’t as traceable and prone to attacks as online payments, even though cyberattacks are rare.

If you cannot find a crypto ATM near you and can’t buy a cold storage, use well-known platforms and read user reviews to see the quality of the service.

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