How to Buy Bitcoin Safely and Not Lose Your Money?
Table of Contents
How to buy Bitcoin safely and not lose your money?
Even a small mistake when buying a cryptocurrency can lead to a loss of capital. Simple instructions will help you avoid this. Compliance with them will protect against fraudsters and other possible problems.
A novice user can make many mistakes when buying bitcoin, each of which can lead to a loss of capital. There is a risk of transferring funds to an exchange created by fraudsters, overpaying for coins due to an overvalued rate or commissions, entrusting assets to an unreliable platform.
All of this can be avoided by following simple rules. A Bitxmi analyst has prepared a list of recommendations for users who are buying Bitcoin for the first time.
Crypto Exchange selection
When buying bitcoins, do not use dubious services.
Scammers create exchanges to buy and sell cryptocurrencies to steal user funds. If you transfer money to them, most likely you will have to say goodbye to them.
To reduce this risk, it is better to look for a suitable exchanger through special data aggregators. For example, on coinmarketcap.com and coingecko.com, you can sort exchanges by trading volume. Generally, the higher the number, the more reliable the platform. You can sort the exchangers at the best rate through monitoring services.
Check the addresses of the site of the exchanges through which you are going to purchase cryptocurrency.
Scammers create clones of sites of popular exchanges and crypto wallets to obtain user data such as login and password. If you go to a site like this and enter your personal information there, criminals can gain access to your account on a real exchange.
When buying cryptocurrency, it is always important to carefully check the website address bar. The title may be practically identical to the title of this site.
It is even safer to write the name of the site manually, rather than follow the link from the search engines. Scammers buy ads for their fake websites. Because of this, there is a risk that a user who searches for an exchange, for example using Google, stumbles upon a fake exchange office.
There are many exchanges, and among them, you can easily fall into a scam service. Before buying a cryptocurrency through an unfamiliar platform, it is better to check reviews about it on the Internet. Perhaps, it was previously seen manipulating the exchange rate or already embezzling client funds.
Choosing a storage method
Before purchasing cryptocurrency, select a storage location.
BitXmi analysts recommend the most important thing when buying bitcoin is to think over its safe and convenient storage in advance, to decide which wallet to use.
It could be a custodian service like an exchange or an online wallet. By using them, you formally entrust them with managing your coins. Therefore, it is important to choose a reputable platform such as BitXmi that can be trusted with financial transactions on your behalf.
Another option is non-custodial services. These include private wallets such as Metamask, Tronlink, and others. Access to them is possible only if there is a seed phrase. Only their owners have access to such wallets, so they are not afraid of technical work, political risks, and asset freezes.
Keep your device secure
Viruses and extensions in browsers from scammers can replace the addresses of cryptocurrency wallets on the pages of any site.
When working with digital assets, you should abandon the TOR browser. Some exit nodes of this browser belong to cybercriminals, and they can spoof the addresses of wallets on the sites of exchangers and exchanges.
Choosing an asset for investment
Decide what to buy
BitXmi analysts recommend deciding how much of your investment to invest in bitcoin and how much in other coins before buying a cryptocurrency. Despite the 4x increase in the price of BTC last year, some altcoins have risen in price significantly more. They are more volatile and promise higher returns than the main cryptocurrency, experts noted.
Among the altcoins, analysts identified Ethereum (ETH), Bitcoin Cash (BCH), and Litecoin (LTC). The payment system PayPal added support for these cryptocurrencies along with bitcoin in November.
Invest only the money that you don’t mind losing
Since the beginning of 2020, the cryptocurrency market has been in a growth phase. During this period, bitcoin has risen in price 4.3 times, ether – more than 8 times. But growth can turn into a long-term decline at any time.
For example, after reaching $20 thousand in December 2017, the bitcoin rate has been declining throughout the year. And BTC was able to rise above the previous record only three years later, in December 2020. Therefore, it is important to invest in cryptocurrency funds that will not be needed shortly.
Read actual crypto news and forecasts every day on https://news.bitxmi.com/
Disclaimer: Bitxmi News is a news portal and does not provide any financial advice. Bitxmi's role is to inform the cryptocurrency and blockchain community about what's going on in this space. Please do your own due diligence before making any investment. Bitxmi News won't be responsible for any loss of funds.