Digital money is a rising trend and with over 5000 cryptocurrencies listed on coinmarketcap, investors have a wide variety of crypto-assets to choose from. As explained in our buy bitcoin UK 2020 guide, there are some important steps to take in order to safely buy bitcoin online.
Before we summarize those crucial steps, here are the likely methods by which you can purchase some bitcoins:
- Bitcoin Exchanges - P2P Exchanges
- Bitcoin ATMs UK Network
Of course each of these platforms also comes with a certain advantages and disadvantages.
Here are 5 steps on how to buy Bitcoin Safely on any of these platforms
So How Can I Buy Bitcoin Safely? Do You Research
The first thing to do before investing in bitcoin is to do your research.
This is important because most people still think Bitcoin is a get-rich-quick scheme but sorry to burst the bubble, it isn’t!
If you are serious about investing in bitcoin and want to do it safely, you should know about blockchain technology & the security of the platform you’re purchasing your Bitcoin from. Not all the headache-causing technical details but at least know that the website is secure and reliable.
One simple security check is to inspect if the URL of the website has the “https” as opposed to HTTP (which would mean it’s not secure) and if the URL is spelled correctly.
Now, let’s look at how safely you can buy bitcoin on these platforms;
Bitcoin Exchanges
To protect yourself while buying from Bitcoin exchanges make sure the exchange, you’re signing up with is a reputable one.
Here are a few things to check to see if the website is secure and safe
Make sure it passes the phishing test i.e the inspection of the https and correctness of the URL. Check reviews from users and communities who use the exchange. Downtime of an exchange website or presence of bugs is a red flag and could mean that the security of the exchange is porous and not adequately protected.
Only use reputable cryptocurrency exchanges such as Coinbase Pro, Bittrex, EtoroX and Binance. Lastly, never leave your Bitcoin or money on any Bitcoin exchange.
Keep your bitcoin and all your cryptocurrencies on your own private wallet.
De-centralized Bitcoin Exchanges
Also known as peer to peer exchanges.
These exchanges do not store bitcoins or money, rather they just help provide the platform where sellers and buyers can interact directly. For safety reasons and to prevent scams, they offer escrow service in which the Bitcoins are held.
If you’re buying make sure the Bitcoins are in escrow before paying the seller (this is because payment of fiat currency is usually handled directly by the two traders).
Bitcoin ATMs
The same rule that applies to safety while using the conventional ATM applies to Bitcoin ATMs-make sure no one is observing you too closely during the transaction.
Apart from all the afore-mentioned ways to buy Bitcoin safely, there are other things to watch before proceeding to purchase bitcoin on any of the platforms mentioned above.
Use a secure Wi-Fi-connection to access your Bitcoin fund: A guy once lost $117,000 worth of Bitcoin after he logged into his account on an open Wi-fi.
Invest In An offline Bitcoin Wallet: Offline wallets are gadgets to store bitcoins and cannot be hacked except the hacker lays hand on them. So, you can easily transfer your bitcoin to your offline wallet after purchase. Enable two-factor authentication: Most exchanges have this option and it saves your account from being hacked. Just like you many UK investors have been wondering how can I buy bitcoin safely and how can I secure them. Bitcoin is a real monetary revolution and we have created the How To Buy Bitcoin UK Guide to help people just like you. Although we do not provide any financial advise, our guide and our bitcoin video tutorial will provide you with all the fundamentals needed to start buying and selling bitcoin online.