Safety Precautions When Purchasing Bitcoin: The Ultimate Guide

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WESTCHESTER COUNTY, N — February 26, 2021 — Bitcoin is once again one of the hottest topics in the investment world. Cryptocurrency caught the world’s imagination in 2017. Unfortunately, the next two years were full of disappointment and stagnation.

Towards the end of 2020, Bitcoin started to rally again. At press time, prices are more than double the highest point of the 2017 rally. As part of a marketing campaign, writing the ultimate guide for investing in Bitcoin goes a long since the public is largely unaware of how cryptocurrency works.

Cryptocurrency has the power to revolutionize the global economy. The industry is still maturing and has immense promise. Nonetheless, long-term trends are emerging. Bitcoin, and related cryptocurrencies, have become store-of-value assets.

Ethereum is the leader among platform cryptocurrencies that foster innovation. The dream of a cryptocurrency that totally replaces money is still elusive. It will be fascinating to see developments on that front.

The Importance of Privacy and Security

Cryptocurrency is a virtual asset. This fact means that the loss of private keys to your cryptocurrency is equivalent to losing that coin. Hackers and thieves target vulnerabilities in Bitcoin storage to steal funds. Always take all the relevant security precautions when handling Bitcoin.

The decentralization that Bitcoin enthusiasts prize comes with responsibility. Users have to keep guard against nefarious entities intent on stealing their Bitcoin. Additionally, the crypto industry is awash with outright scammers. Ensure that any entity you are dealing with has legitimacy.

Finding an Exchange

Cryptocurrency exchanges are marketplaces to obtain crypto. Leading derivatives exchanges, like PrimeXBT, list all significant cryptocurrencies.

Bitcoin is an investor favorite because of its value. It is important to find a safe and credible exchange. A modern exchange allows both the purchase of crypto and trading in derivatives like Contracts for Difference (CFDs).

There are documented exchange scams in the crypto sector. A fraudulent entity will convince traders to deposit their cryptocurrency then take off with the deposits.

Accordingly, it is vital to deal with reputable exchanges. Such exchanges comply with licensing requirements and operate above board.

One needs to sign up with the exchange and connect payment options such as a bank account or debit card to fund the account. These are usually straightforward and an exchange like Prime XBT goes to great lengths to simplify the process.

An exchange like PrimeXBT checks these boxes. Fraudulent exchanges will promise to multiply crypto and similar absurd claims. Purchasing crypto from an exchange should be fast and efficient. You can either store crypto on the exchange wallet or a personal wallet. For large crypto purchases, it is better to use personal offline hardware wallets.

Major exchanges usually have basic Know your Customer (KYC) and anti-money laundering measures to prevent illegal activity.  These are regulatory requirements for exchanges to operate legally.

At all times, ensure your password is safe. Don’t enter your sensitive information on any public areas of an exchange website. Use measures like a strong password and two-factor authentication to improve security.

Purchasing Bitcoin

Bitcoin is a divisible asset. A person doesn’t have to purchase an entire Bitcoin. Instead, a Bitcoin is divisible into decimal units called Satoshis. Nonetheless, major exchanges have liquidity for all kinds of purchases.

There are a variety of order types available. It is advisable to learn about each in detail before making an investment decision. For long-term Bitcoin purchases, they have little to learn apart from asset fundamentals and trends.

Once a person purchases Bitcoin, the next logistical challenge is storing crypto securely. This aspect of coin handling is indispensable.

Using an offline wallet (cold wallet) is the best practice. To effect this, a person has to transfer their crypto by entering their wallet address on the exchange wallet and executing a transfer.

An exchange wallet should only contain Bitcoin for trading in the immediate future. Even the most secure exchanges are still vulnerable to hacks. Therefore, exchange wallets are not ideal for long-term storage. It has to be a balance of convenience and security.

There are alternative ways of purchasing crypto. These include Bitcoin ATMs and peer to peer exchanges. For the latter, users transact directly and choose trade partners.

This process can be inefficient because it follows the rules of barter trading. Additionally, there are decentralized exchanges that provide traders a sense of anonymity.

A Maturing Asset Class

Since its inception, Bitcoin has always had doubters.

It has broken all myths and lasted without government support. Bitcoin is now getting institutional legitimacy that puts it on another level. This asset has yet to reach its full potential.

For people looking to purchase Bitcoin, security has to be the first priority. Bitcoin is valuable, and this means that it attracts significant interest from both sides.

Always prioritize safety to ensure that you don’t lose your hard-earned Bitcoin.


eHeziSafety Precautions When Purchasing Bitcoin: The Ultimate Guide

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