When you very first buy Bitcoin, or any other cryptocurrency, it can be a very confusing process. There are dozens of available exchanges and wallets, each with different pros/cons & security risks.
This guide is an introduction for beginners on how to embark this process ter a safe & secure way.
Depending on the country you live ter, the ideal exchange will vary. Do some research ter this area, Reddit is a good place to embark for skeptical reviews of exchanges.
That said, if you want to help support us, here are some affiliate linksaf to exchanges wij use:
- CEX.IO Wij were very first introduced to the kraken exchange, but recently their webstek has become exceptionally slow, so wij’ve moved overheen to CEX.IO – which has similar features, supporting lots of countries & permitting FIAT deposits.
- HitBTC and Binance are both useful exchanges for buying altcoins not available on CEX.IO or kraken.
- LocalBitcoins is a popular peer-to-peer Bitcoin exchange. This reduces the risk of the exchange running off with your money, but makes it possible for you to be scammed, so be very careful using peer-to-peer exchanges.
How to keep money safe on exchanges
Our suggestions on how to keep your money safe on cryptocurrency exchanges:
- Stick to larger exchanges. Countries like the US/UK have very stringent financial regulation. Exchanges based ter thesis countries will often be strenuously audited and monitored, ter particular ter areas like how customer funds are stored. Exchanges like kraken (based te the US) publically state that they have utter reserves of customer money (so if they shut down, they have the funds to terugwedstrijd money).
- Use two-factor app-based authentication. Almost all exchanges will offerande some form of two-factor authentication, where spil well spil your password a 2nd code would be needed for things like logging te & withdrawing money. Wij strongly encourage you to enable this, and to use app-based authentication where possible rather than SMS-based (spil if an attacker got your phone number, there are ways of bypassing the SMS-based method). The Google Authenticator mobile app is a good option, available for iOS and Android. Make sure you store your backup codes somewhere safe if you use this, spil if you lose your phone there’s often no other way to recover your account!
- Don’t store money on exchanges. When trading on exchanges, you should aim to only have active trades on half of your money maximum, ideally much less to reduce risk, but avoid going above half, so if there’s a big price druppel you can take advantage of it. This means half of your money doesn’t truly need to be on the exchange, so you can budge it to a wallet (see our guide on Bitcoin wallets). If an exchange were to shut down or your account get hacked, te many cases there’s no law forcing them to come back your money (unlike banks, which are normally backed by governments ter this screenplay).
- Don’t give individual information unless you have to. It’s a good idea to assume that any exchange you use will eventually get hacked, and so any information you give them will be made public. On most exchanges you’ll have to give your name and address, but some will ask for passport/proof of address scans for more enhanced verification. Avoid doing this unless you indeed have to. If someone got their mitts on something like your driver’s license they could very lightly register for other services and commit fraud under your name, and be able to use this to be very persuading.
- Use a VPN. When connecting to exchanges, they’ll generally force you to use HTTPS, which encrypts things like your password when connecting. But if you’re on for example a public Wifi network, there are ways to bypass this and see things like your password. Using a VPN will provide more protection for scripts like this, so wij encourage you to use one when doing anything cryptocurrency related. For a cheap VPN, Private Internet Access is a good option, or alternatively IPVanish is near the top of most 2018 VPN comparisons (thesis are affiliate linksaf, so wij’ll earn some money if you sign up using thesis).
- Create a fresh email account. Most people will use a single email account for most things they do. If someone were to hack say your Facebook account and knew that you possessed a lotsbestemming of Bitcoin, they might attempt guessing the password for this email on popular exchanges. If you use random passwords this is generally fine, they’ll fight to brute force it. But if you use a similar password for both thesis things, they’ll then have effortless access to your exchange account. By creating a fresh email account just for Bitcoin-related websites, this can’t toebijten, so wij suggest you create a fresh email address, never tell anyone about it, and use it when registering on exchanges. Using a random username is also a good idea, spil most exchanges let you loom ter using your email.
- Careful what you postbode online. Millions of people now, motivated by catchy headlines on news websites, have accounts on exchanges and own a few hundred dollars worth of cryptocurrencies. With puny amounts, this means you’re unlikely to be targeted by hackers. But if you embark to accumulate more money te cryptocurrency, say a few thousand dollars or above, you need to be more careful. Posting on sites like Reddit and Twitter that you just earnt thousands of dollars on a latest bull run will motivate malicious people to attempt and steal this money. Using a different seudónimo, or just avoiding mentioning it altogether is good practice here.
DISCLAIMER: This webpagina cannot substitute for professional investment or financial advice, or independent factual verification. This guide is provided for universal informational purposes only. Anything Crypto is UK-based and not regulated by the FCA (Financial Conduct Authority). The group of individuals writing thesis guides are cryptocurrency enthusiasts and investors, not financial advisors. The ideas introduced are our analysis, learning & opinions on a range of cryptocurrency topics. Trading or mining any form of cryptocurrency is very high risk, so never invest money you can’t afford to lose – you should be ready to sustain a total loss of all invested money.
Related movie: kraken Exchange Says No To Fresh York | Four Minute Crypto | Four/25/2018
This webstek is monetised through affiliate linksaf. Where used, wij will disclose this and make no attempt to hide it. Wij don’t endorse any affiliate services wij use – and will not be liable for any harm, expense or other loss you may suffer from using any of thesis. Don’t rush into anything, do your own research. Spil wij write fresh content, wij will update this disclaimer to encompass it.