How to Stay Safe when buying Bitcoin?
Table of contents
This is a simple beginners guide for people new to buy Bitcoin.
- For your safety, only buy Bitcoin on ASIC regulated and reputable Australian crypto exchanges.
- Do not buy crypto hardware wallets on ebay or third parties (such as Trezor or Nano S on ebay). They may have been tampered with and there have been reports of people losing their crypto after they transferred it to the bought devices.
- Read our guide on Where to Safely Store Your Bitcoins & Alt Coins.
- Bitcoin is NOT untraceable. Smart computers can trace the origin of Bitcoin purchases.
- If you lose your Bitcoin, you lose them forever. You cannot call your bank up and get them to reimburse you. This includes losing your private key, if you lose that you lose your Bitcoin.
- If you buy and hold your Bitcoin on a crypto exchange they control your wallet (and private digital keys to that wallet). This helps you if you are a beginner because it means you cannot lose your Bitcoins (by misplacing your wallet keys). But if the exchange gets hacked, you may lose your Bitcoins.
Before you buy Bitcoin
- Do some research and understand what is Bitcoin, what is cryptocurrency and what is blockchain and read below on how to stay safe when buying Bitcoin.
- Make sure the crypto exchange supports withdrawals to Australian bank accounts. We have had reports that some exchanges such as Coinbase do not allow withdrawals for us Australians.
- Check the exchange accepts the payment method you require, such as bank transfer, credit card, BPAY or Paypal transfers. Some even accept over the counter (OTC) purchases with cash in person.