2020 has not been boring! Especially for Bitcoin and other cryptocurrencies. The market is heating up and people are rushing to buy cryptocurrencies. They want to buy them quickly — but quick doesn’t always mean safe.
Cryptomaniaks has far more in-depth content on how to buy cryptocurrencies both safely and quickly in 2020. So this article will be more of a short but handy guide that you can think of like a diving board into the pool of knowledge.
Tip 1: Buy from a Reputable Exchange
In the early days of cryptocurrencies, people preferred buying bitcoin from other people or miners, not exchanges. This especially increased after the 2014 Mt. Gox scandal.
“The company said it had lost almost 750,000 of its customers’ bitcoins, and around 100,000 of its own bitcoins, totaling around 7% of all bitcoins, and worth around $473 million near the time of the filing. Mt. Gox released a statement saying, “The company believes there is a high possibility that the bitcoins were stolen,” blamed hackers, and began a search for the missing bitcoins. Chief Executive Karpelès said technical issues opened up the way for fraudulent withdrawals.”
As of today when one Bitcoin is worth around $11,000 — the sum that Mt. Gox “lost” would be worth nearly 10 Billion dollars. Almost all of their original users never got their bitcoin back — losing what would currently amount to fortunes.
This painful experience soured many people’s views one exchanges. These days, however, global exchanges such as Coinbase, Binance, and others seem to have learned their lesson and are actively employing security teams to secure customer funds and prevent fraud.
Check Out: How to Buy Bitcoin in Hong Kong
Coinbase, for example, offers insurance on users funds. Binance brags about their cold storage security. And many top tier exchanges try to secure their user data (emails, etc) as much as any traditional bank and credit card company.
Therefore one of the quickest and safest ways to buy cryptocurrencies in 2020 and beyond will be these crypto exchanges that secure and regulate their holdings to the same level as traditional banks and financial institutions.
Whatsmore, if you keep up to date with exchange listings, potential hacks, or scams by using a solid crypto news source, then you’ll be able to remain just a bit safer.
Tip 2: But With Your Credit Card
Buying with your credit card is quick, easy, and safe. You can find plenty of solid sites that will accept credit card payments and deposit your crypto quite quickly after purchase. Plus, since it’s your credit card, if you don’t receive your crypto then you can file a complaint and possibly get your money back.
The big problem though is the fees charged for credit card purchases. The fees go down when you verify your identity and build up your reputation, but if you don’t do these things then the fees can be quite steep.
This is because with a credit card you can get your money back … but the crypto seller cannot get his crypto back. So as you can imagine there are people who pay with their credit card, get the crypto they paid for, and then claim they didn’t get it so that the credit card company will issue a chargeback.
This has caused legitimate credit card users to be faced with steep fees because of the distrust.
Tip 3: Buy Crypto in Person
Buying cryptocurrencies in person has been the oldest method and it’s still a great method. You can buy crypto quickly by setting up a buy on the same day (which is faster than an exchange where you need to wait several days for the bank transfer to go through).
It can be safe as well — as long as you keep your wits about you: meet in a public place, transact small amounts, and verify that you received the amount before parting with your cash.
If you do choose this method than get on Youtube and other education sources to see how to stay safe and transact your funds quickly for BTC when transacting in person.
One method is to join a crypto meetup. When attending their monthly meetups you can talk to people who might be keen on selling crypto for fiat — and then you’ll be in good company.
These are some of the many tips for buying crypto in 2020. As the space grows and more people enter with new business ideas, you’ll find more and more opportunities to purchase the amount you want, when you want it, with the safety net in place that makes you feel more comfortable.