How To Avoid Scams And Bad Exchanges When Buying Bitcoin

Bitcoin is a decentralised digital money that can be used to buy and sell items and services. Some traders see bitcoin as a long-term investment, while others trade it as a commodity. Bitcoin has grown in popularity as a result of its relative anonymity when compared to other currencies, however trading it comes with dangers. This post will show you how to avoid scams and terrible exchanges while purchasing bitcoin, so you don’t waste your money or time.

1. Never Hand Out Personal Information To Strangers

It’s all too tempting to be fooled into giving up bank account details or passport scans. Never give out your personal information to someone you don’t know well enough; otherwise, you risk being a victim of identity theft. It’s also not worth disclosing any further personal information unless you’re confident that you’re engaging with the correct client.

1. Don’t Buy Bitcoin From Marketplaces Like eBbay

These services may have some good discounts, but they aren’t trustworthy and may be frauds themselves. Buying bitcoin by this method takes longer than buying it through a reputable exchange with a credit card or bank account. This is due to the lack of buyer protection when purchasing from an individual.

1. Bitcoin Bought Through An Exchange

There are several exchanges where you may buy bitcoin and other cryptocurrencies. The finest cryptocurrency exchanges provide a diverse selection of wallets, security features, and liquidity. Fortunately, government authorities such as the Financial Conduct Authority (FCA) in the United Kingdom supervise the most trustworthy ones. Such exchanges provide wallets with app-like capabilities that allow users to switch currencies in real time without having to wait for transactions to complete on the blockchain. This is especially beneficial if you need your money back or need another currency rapidly. Choosing reputable exchanges with strong security is the best way to avoid being scammed. Additionally, this site may be handy if you want to deal with the greatest and most trustworthy exchange.

1. Never Use Direct Wire Transfer To Purchase Bitcoin

Wire transfers should only be used for major transactions involving thousands of pounds/dollars/euros, as the money might be difficult to track once it has left your account. Fraudsters are aware of this and will attempt to exploit it by providing a high value of bitcoin in return for your money. Nevertheless, after they get your payments by wire transfer or other payment methods such as PayPal, they will either vanish or convert this website to a phishing site.

1. Don’t Trust Any One Company With All Your Funds

Get out of there quickly if they’re asking for more than is required! There’s no reason you should have to put up with bad service from a single bitcoin exchange when there are so many to choose from. Before subscribing to anybody, browse around and discover what various platforms have to offer. Check reviews as well – many novice traders learn their lesson by falling prey to offline scams, after which they turn to the internet to learn how to prevent it.

1. Consider Using An Escrow Service

Using an escrow service to guarantee that both parties are secure while trading is a terrific idea. The bitcoin seller will transmit their currency to a third party, who will keep it until you certify that you have received your share of the bargain in whole. The only drawback is that these sorts of agreements take longer to complete because they involve other people – but better late than never, right? It’s also a good idea to double-check that the escrow service you’re using is reputable and has received positive feedback from previous customers.

1. Don’t Leave Any Money In Your Wallet

If you buy bitcoins from an agent or distributor online, don’t leave any of your own money in their digital wallet – or they’ll grab it all! Some individuals believe that if you use an exchange website that is reputable, this rule doesn’t apply, but we still wouldn’t advocate keeping bitcoin for too long. If something goes wrong with the transaction (and even if it doesn’t), it’s always advisable to get your coins out as soon as possible after purchasing them so that they can’t be stolen later.

1. Use Two-Factor Authentication

Turn on two-factor authentication if you’re using an exchange website that supports it. This is a security feature that forces anyone attempting to log in from a different device (including your smartphone) to input a code issued to them through text message or email. If someone obtains your login information and tries to enter into your account, they won’t be able to have full control unless they also have physical access to your phone.

1. Don’t Use Direct Buy

Although many consumers prefer ‘direct buy’ features because they enable speedy transactions, there will be no way to get their money back if something goes horribly wrong with the transaction (and even if it doesn’t), unless they contact customer service directly, which may not be accessible until after office hours. 

Conclusion

To sum up, it is critical to take the time to research what exchanges are available in your nation. You should also conduct research on firms before giving over any money or personal information to ensure that they are reputable and not attempting to defraud you. Moreover, the methods for avoiding frauds when trading bitcoins outlined above might be really useful.