How can I safely buy bitcoins? 5 tips to help you. - 3 minutes read

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How can I safely buy bitcoins? This a question that many ask themselves. Although it was quite a challenge to get hold of bitcoins a few years ago, you will notice that this has become a lot easier now.

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However, as with any investment you make, it is important to know what you are investing in. Having a basic knowledge of Bitcoin is certainly not an unnecessary luxury. Below we discuss five tips so that you can trade cryptocurrencies such as Bitcoin in a safe and reliable way.

5 tips to buy bitcoins safely

Below we discuss five tips to keep in mind when you are going to buy bitcoins. If the subject is still completely new to you, we recommend that you first gain some knowledge through a bitcoin education or a good book such as Bitcoin for beginners.

Go for a reliable exchange

How are you going to buy bitcoins safely?

Do not buy bitcoins or cryptocurrencies on exchanges that look suspicious. It may sound banal, but many startup investors are still victims of scammers.

Watch the transaction costs

There is a lot of difference in transaction costs that you pay when trading crypto coins. And not all platforms are equally transparent about this. The most expensive option is to buy them through an ATM. On average you pay 7% to sometimes 15% here.

Think about how you will store them

For larger amounts, it is better to store bitcoins in a wallet.

Bitcoins can be stored on an exchange, where you can then register, or you can keep them in your own safekeeping by means of a bitcoin wallet. You can read here how to create a hot wallet.

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If you leave them on an exchange, you run the risk that, if the exchange is hacked, you will also lose your bitcoins. If you buy for larger amounts (> € 1,000), we recommend not to leave it on an exchange. A cold wallet is the best option for this.

What is your purchasing strategy?

If you are planning to invest a large amount, be sure to think about how you are going to do this. For example, do you step in at one time, or do you spread your purchase moment over a longer period in order to spread your risk?

A well-known method is a Dollar-Cost-Average strategy in which you invest a fixed amount weekly or monthly.

Which Cryptocurrency Should You Buy Now?

There are many types of bitcoins

There are many types of crypto coins available in the market. According to Coinmarketcap's latest count, there are already more than 5,000. It is impossible to analyze them all.

And while 99% of these coins are worthless, there are still some interesting projects worth considering.

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