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How to Buy Cryptocurrency Safely: 8 Steps to Protect Yourself

Understand the risk involved

Cryptocurrency is still a relatively new and growing industry. To date, it has yet to be fully regulated. therefore, possible that criminals may be buying and selling cryptocurrency in order to launder money or to pay for illegal activities such as drug sales or human trafficking.

To avoid being scammed, it’s important to educate yourself about cryptocurrency before you buy. Here are eight steps to follow to make sure you don’t lose your money to scammers

Use cash to purchase cryptocurrencies

Cash is the safest form of payment to purchase cryptocurrency because there is no record of the transaction. In the event of fraud, it’s hard to trace the cryptocurrency back to its original source.

Know your wallet type

Do not use your main e-wallet to buy cryptocurrency. Since it’s built around e-commerce, your cryptocurrency funds are at risk if your e-wallet is hacked. (Yes, even e-wallets based on Google’s HTTPS secure connection, such as Google Wallet and Samsung Pay, are vulnerable.)

While you are most susceptible to crypto theft if you are using a software- or hardware-based wallet, even physical hardware-based hardware wallets like Trezor and Ledger Nano are vulnerable if a bad actor gains physical access to your wallet.

Instead, buy your cryptocurrency using a hardware- or software-based hardware wallet such as a Trezor, a Ledger Nano, or a Yubico YubiKey. These are physical devices that don’t even require your data to be connected to the internet.

Choose a reputable exchange

Coinbase is an obvious choice, as it’s the most popular (and has the largest crypto market share at 29 percent). Still, a survey conducted by Cryptocompare in late 2018 revealed that 8 out of 10 exchanges were hacked at one point, and nearly half of those hacked exchanges were subsequently taken offline.

If you’re new to the market, you might also want to consult an exchange that has a larger userbase. Popular exchanges like chanelly, Coinbase, Bittrex, Binance and Kraken boast thousands of traders, and that’s a lot more safety in numbers.

When you first sign up for an exchange, you’ll probably have to create an account or sign up for an account. The exact steps vary by platform, so you’ll need to contact your exchange directly for assistance.

Do research before you buy

When you’re buying cryptocurrency for the first time, it’s easy to make a mistake that can be extremely costly. Think about whether your portfolio contains the financial instruments you want. Consider the risks you’ll be taking. Some virtual coins are high-risk and volatile. Consider the potential rewards for holding onto the coins for the long term, but also the potential costs if you lose the coins.

Don’t use exchanges that are easy to manipulate

Even if you only use one exchange, you should at least be able to read reviews of it. Most exchanges have user forums on social media where users can share experiences. You can ask questions and find answers to your questions.

If you are trading on an exchange that is easy to manipulate, you will lose money.

Choose the right cryptocurrency

The most valuable and desirable cryptocurrency is Bitcoin. Bitcoin is made up of one of the many different types of cryptocurrencies and is not native to the platform.

Bitcoins exist in a digital ledger that records transactions in a secure and immutable. There are two parts to Bitcoin, the coin and the blockchain. The coin is a digital representation of a secure public ledger that records all transactions. In the case of Bitcoin, it is a decentralized currency that exists outside of the control of governments and financial institutions.

The blockchain records and secures all transactions in an immutable fashion, meaning that no one is allowed to change the information without taking down the entire ledger.

The future of cryptocurrency

“You might want to use a passphrase to keep your private key safe, for instance,” he said. “But only use one that you have secret access to, like a password.”

Tripp’s comments echo the warnings of others who say that the cryptocurrency world is full of risks.

“It’s very tempting to think that you can pull a fast one on these currencies,” said Ari Juels, co-director of the Initiative for Cryptocurrencies and Contracts, at Cornell University.

“You’ll spend $15,000 in a weekend, you buy something, the person who gives you the money gets your credit card info, now they have it and know that you spent it,” he said. “And then, they can go and shut down the debit card.


EOS is a Chinese blockchain built on top of Ethereum. EOS focuses on small projects, so that they can be built quickly and efficiently, lowering the barrier to entry for them.

Due to its focus on small projects and ease of use, EOS is being viewed by many as a relatively safe option for crypto investors.

A common misconception is that EOS is similar to its predecessor Ethereum, which it isn’t. The similarities between the two are merely superficial, as EOS is built to be much more efficient.

EOS has roughly the same number of tokens as Ethereum (60.74 billion) and has roughly the same market cap as Ethereum (about $1 billion). But EOS has a fast and reliable smart contract system.

EOS uses a token called XOS as a means of getting into various partnerships and projects.

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Keep track of your transactions

Verify and confirm your transaction

Buy digital currency from a known and trusted source

Never buy cryptocurrency with your debit or credit card

Avoid scams and phishing attempts

Before you buy cryptocurrency you need to find out how to buy cryptocurrency safely. There are many tools online you can use to help you with this, one of them is Coindesk’s guide, it’s a good place to start. When you find a wallet you like you can use the suggested wallet or you can open an account with a specific wallet. You’ll find out which one is best for you by using their handy chart to compare the wallets.

Set Your Budget

How much you want to invest in cryptocurrency is important but equally important is the amount you want to buy. Each wallet will provide you with some information on how much your initial investment is and how much you can withdraw or exchange for fiat currencies.

Buy and Exchange Crypto Securely

Ankush Gaikwad

Ankush Gaikwad  is the founder and CEO of  CYBRAIN INFOSEC, a Award winning cyber security and IT services company. Ankush is a Software engineer, Certified Ethical Hacker, Blogger, Author, Host , Web scam analyst, Gadget and Product Reviewer, Cyber Security Influencer and Security Researcher.

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