While the rewards of trading bitcoin can be great, it is not worth the risk of losing your hard-earned financial resources, or your identity.
One of the ways in which you may be scammed when trying to buy bitcoin is by purchasing with cash from a bitcoin seller. This method is not safe and should be avoided at all costs. In most cases, bitcoin is traded for cash directly with a bitcoin seller, or the transaction is conducted using a paper wallet.
Many persons have been robbed or otherwise harmed by engaging in this method of buying bitcoin and it therefore not advisable that you use this method. In any case, if you insist on using this method, ensure that the trade occurs in a crowded location where you are less likely to be robbed or swindled.
Another way that you should avoid buying bitcoin is indirectly through your Paypal account. Since you cannot buy bitcoin directly through Paypal, some persons use the money in their Paypal account, convert it to a form of virtual currency, and then use that virtual currency to purchase the bitcoin.
One of the most prominent virtual currency exchanges currently available is VirWox. However, users have complained of poor customer support as well as high costs to use this service. If you want to get the most out of your bitcoin purchasing, you should avoid using this method.
Buy Bitcoin Safely Through a Bitcoin Wallet Service
If you want to safely buy bitcoin, it is highly recommended that you do so using a bitcoin wallet. There are several bitcoin wallet providers available, including the popular Coinbase, Xapo, and Blockchain.info. The process is fairly simple and involves you setting up an account using your email address and a password. Then you will need to connect your bank account or your credit or debit card.
Two-step authentication is recommended to further secure your information. These bitcoin wallet websites are safe and secure, fully encrypted to reduce the possibility of compromising your sensitive account details. Avoid using your phone number of SMS for two step authentication, however, because thieves only need your phone number and your name to access your bitcoin wallet.
Even if you use one of the popular bitcoin wallets such as Coinbase, be careful to also protect your account offsite. Avoid clicking on links in email messages purportedly from legitimate websites. If it looks suspicious, or asks for personal details, simply avoid it altogether. Be wary of get-rich-quick promises and emails that offer tips for making faster, bigger bitcoin trading profits. Since bitcoin transactions are irreversible, trade safely and cautiously at all times.
Related education and FX know-how:
Trusted FX brokers
Haven't found what you're looking for? Contact us!
Forex Education - Basics:
Free Forex eBooks:
Forex Education - FX Brokers:
Forex Education - Technical Analysis:
Forex Education - Money Management: