Foreword

Last but not least—how to buy Bitcoin safely? I’m going to leave you with these five golden rules to follow in ANY Bitcoin purchasing process. I hope you enjoyed this guide—feel free to ask any questions by contacting us and subscribing to our blog.

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Good luck!

How to Buy Bitcoin Safely: Golden Rules to Follow

Rule #1

Check the credibility of your Bitcoin seller

When buying Bitcoin from an individual, validate their reputation by reviewing their trader profile if one is available. Ask for a Facebook, LinkedIn, or any other social network profile to ascertain there’s an actual person behind the screen. As a rule of thumb, never buy Bitcoins from someone who you cannot account for their credibility.

In case you didn’t know, transactions are traceable, and users can check a seller’s address history on various blockchain explorers before proceeding.

If you’re buying at an exchange, check for the exchange name and the word “reviews”. Looking for reviews about exchanges and even individuals in the Bitcointalk forum can also provide valuable insights.

Many exchanges now require identity verification. Please note that it is important to choose regulated platforms to ensure better security.

Rule #2

Document EVERYTHING

Since Bitcoin is somewhat untraceable like cash, in case of fraud, it will be hard to prove specific allegations. Make sure you document your communication with the seller in a way that will be easy to present if needed later on.

Rule #3

Wait for confirmation before paying

When dealing with individuals, for small to medium transactions, it’s recommended to wait for at least one confirmation before submitting your payment. For larger transactions, wait for at least six confirmations.

Rule #4

Use escrow when needed

When conducting large transactions with individuals, use a Bitcoin escrow service to hold onto your funds until you receive the required amount of confirmations. This way, your money will be in the custody of a trusted third party until you receive the Bitcoins.

Rule #5

NEVER leave your money at an exchange

To buy Bitcoins safely at an exchange, make sure to move your Bitcoins to your own private Bitcoin wallet the moment you get them. NEVER leave Bitcoins inside an exchange as this can result in the loss of your Bitcoins due to theft or fraud.

For better long-term security, I most definitely recommend using cold wallets (hardware wallets).

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Having delved into futures trading in the past, my intrigue in financial, economic, and political affairs eventually led me to a striking realization: the current debt-based fiat system is fundamentally flawed. This revelation prompted me to explore alternative avenues, including... Read More

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