How to safely purchase cryptocurrencies?

Beginner
March 29, 2023
Read time:
5m

If you are new to cryptocurrencies and want to start investing, you may be wondering how to safely buy them.


With hundreds of companies on the market, it can be hard to tell which ones are reliable and which ones are scams promising quick returns.


The importance of security for traders

Security should be your top priority when it comes to cryptocurrencies. As explained in the DeFi section, users do not have to share personal information to buy and trade cryptocurrencies.


However, attackers can lock you out of your wallet and take over your investments if they gain access to your private account keys. Therefore, choosing a reputable crypto exchange that prioritizes security is crucial to keeping your investments safe.


How to choose a proper crypto exchange?

When you choose your crypto exchange, always remember that crypto investments do not offer similar security levels to banks if you fall for a scam.

To choose a proper crypto exchange, it is best to:

  • Research crypto exchanges thoroughly and check their reputation on social media, forums, and websites.
  • Consult with more experienced traders and crypto consultants who know the industry inside out.
  • Check if your chosen crypto exchanges comply with Know-your-customer (KYC) and Anti-money laundering (AML) requirements - they are likely safer as they mitigate the risk of fraud as much as possible.
  • Carefully go through their websites and clear your doubts about customer service.


What are the crypto red flags?

If a crypto exchange has many negative reviews, it is the most obvious red flag. Other things to beware of are lack of transparency, clickbait promises not supported by any evidence or research, scarce information on their technology and security measures, promotion of get-rich-quick schemes or providing users with incomplete information on risks involved with trading. A secure, reliable exchange will be transparent about all trading processes and endorsed by the crypto community.


How to maximize the security of your crypto investments?  

Secure devices make secure transactions. Without secure devices, buying and trading with cryptocurrencies is a high-risk sport. If someone gets hold of your password and gains access to your digital wallet, there is nothing you can do, so maximizing security is crucial.

What can you do to buy cryptocurrencies safely?

  • Never use public Wi-Fi when you trade; use your private network instead.
  • Use only trustworthy apps, wallets, and exchanges.
  • Ensure your devices are secure - do not install insecure apps or programs.
  • Use reliable VPNs to boost your network’s security if it is weak.
  • Enable 2-stage verification to improve the safety of transactions.
  • Make your password as unique and robust as possible.
  • Never, ever share your password with anyone.

The first rule of investment: never invest more than you can afford to lose

Risks have always accompanied investing. One investment may give you a fortune, while another may cost you a fortune. You can mitigate risks, lower them, and carefully choose your assets, but ever-changing markets can surprise the most seasoned investors. The golden rule is always the same: invest only what you can afford to lose. Cryptocurrencies are often volatile, so you must be prepared for fluctuating prices and consider long-term benefits rather than momentary gains.

Summary

Crypto security should be your top priority if you are a crypto trader. You may lose your investment if someone gains access to your digital wallet. Lack of transparency and scarce information on technology and security measures are red flags if you are looking for a reliable crypto exchange.


To maximize the security of your assets, use secure devices, avoid public Wi-Fi, enable two-stage verification, and make your password insanely strong. Lastly, it is essential never to invest more than you are prepared to lose.

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