Amid growing hacks and scams, there is a need for an established, safe way to buy Bitcoin. Although there are several known ways, a few of them remain safe from modern threats. Further, safely buying Bitcoin isn’t enough; you need safer ways to keep it as well.
In this short guide, we will explain to you a few timely, trusted (and tested by us) ways that you can buy Bitcoin and also briefly explore the best way to store it for both beginners and advanced users.
Our Tested Ways to Buy Bitcoin Safely
We have only included the best ways to buy Bitcoin, eliminating methods that carry some risk. Although no method is risk-free, these ones have the highest safety among others.
Crypto Exchanges
Centralised Exchanges
These are the most common exchanges where you can simply go with a few dollars (or any fiat currency) and directly buy Bitcoin. Although you might need to go through some KYC, that’s part of the procedure.
These exchanges also give you a free crypto wallet which you can use to keep, send and receive crypto.
Decentralised Exchanges (DEXs)
Decentralised Exchanges are the best choice to buy cryptocurrencies if you already have some other crypto, or stablecoins in your crypto wallet.
If you do, simply go to any cross-chain swap protocol like Thorchain and easily swap any crypto for Bitcoin. Alternatively, you can swap your ERC 20 coin with Wrapped BTC first and then redeem the wrapped Bitcoin.
Bitcoin ETFs
ETFs have emerged as the preferred choice for beginners to buy Bitcoin because they offer unmatched safety and security for your asset. All Bitcoins in ETFs is stored at a crypto custodian such as Coinbase Custody, managed by experts.
Further, Bitcoin ETFs can be easily bought via your stock trading accounts.
Unsafe Ways That Beginners Should Avoid
Besides knowing the proper way of buying Bitcoin safely, users should also know some unsafe ways to avoid them.
P2P Trading
Although popular among crypto enthusiasts, unregulated P2P exchanges have the highest associated risks. These exchanges are often unregulated and do not have any escrow mechanism to save users from fraud or scams.
Although there are a few trusted ones like Binance, which we have used multiple times, it is often difficult for beginners to filter out shady dealers; hence, it is best for them to stay away.
Face-to-Face Crypto Trading
Face-to-Face trading is where two people meet to do crypto transactions. These transactions are often conducted physically and put the trader at physical risk.
Bitcoin Safekeeping
Just buying Bitcoin isn’t enough because with unsafe custody methods, you might lose it sooner or later.
Self-Custody Wallets
Self-custody works best for those who know their way with a hot or cold wallet. These wallets give you full custody of your crypto. They are safe from exchange hacks, scams, regulatory actions, exchange freezes, etc.
However, if you lose the password or key phrases, you might permanently lose your crypto funds.
Bitcoin ETFs
Bitcoin ETFs are the best way to store crypto for beginners and experts alike. You buy shares of a Bitcoin Fund (such as BlackRock’s IBIT), and the share prices increase or decrease depending on Bitcoin’s price.
These are best for beginners because ETFs are deposited in your demat account, and even if you lose your password, you can simply reset it. Even in the worst-case scenario, such as losing all login details (which has happened to us), you can simply approach the ETF issuer for assistance, and they can get it done within the same day.
DISCLAIMER: All information presented on A2Z Cryptocurrencies (https://a2zcryptocurrencies.com) is purely for informational and educational purposes and does not amount to financial advice in any way. Please consult a financial advisor before investing.
