Safest way to buy Bitcoin

Education Jun 17, 2020

While the hype over Bitcoin and its recent halving continues, interest to learn how to buy and sell this popular cryptocurrency skyrockets beyond the early adopters and millennials. As reported by this survey, there are more than 100 million Bitcoin owners in the world. At the same time, uncertainty over how and where to buy Bitcoin safely often remains the main concern.

When it comes to Bitcoin, “safety” is a concept that involves a variety of factors from finding a trusted crypto wallet to choosing a reputable cryptocurrency platform. In this article, we will explain how to be on the safe side when buying Bitcoin.

Finding a Bitcoin wallet

In most cases, your crypto journey will start with choosing the most appropriate cryptocurrency wallet to store your digital funds. It's no exaggeration to say that a crypto wallet plays a crucial role in securing your cryptocurrencies. Once lost or stolen, the chances to get your digital coins back are slim to none. In 2020, the market is overwhelmed with various options that range in terms of price and features. Depending on your investment profile and goals, you will be choosing between crypto a hot or cold, software or hardware wallets.

Safello recommends using Bitcoin hardware wallets, such as Ledger, Trezor, KeepKey and BitBox in order to ensure the maximum safety to your cryptocurrencies. One of the biggest benefits of a hardware wallet is that it stays offline until you need to use it and does not expose private keys to your computer. Therefore, an encrypted hardware wallet provides an extra layer of security and protection between your Bitcoin funds and external risks.

In our recent article, we made a comprehensive overview of the best Bitcoin hardware wallets and explained why a good wallet is essential when buying Bitcoin.

Choosing a safe platform to buy Bitcoin

It is important to choose a trustworthy brokerage service or a cryptocurrency exchange that meets essential security, regulatory and transparency criteria. With thousands of different cryptocurrency platforms on the market, most of them are ranked by volume, liquidity, trading pairs, location, trade data, and many others.

Below we will highlight some of the indicators that you should take into account when considering the most reliable platform to buy Bitcoin.

Regulatory compliance

Building of the Swedish Financial Supervisory Authority (Finansinspektionen) where Safello is registered

Online scams and digital fraud are on the rise and cryptocurrency platforms are used by criminals to perform illicit operations. That is why trustworthy platforms are registered with their local Financial Supervisory Authority (FSA). Even though companies can be self-regulated, dealing with a registered financial institution provides better protection to you as a user. It means that the company needs to prevent criminals from succeeding and assist authorities in monitoring and catching them, as well as ensure the security of customer funds. If the exchange performs a Know-Your-Customer (KYC) check as part of their AML efforts, it is a good indication that it takes these requirements seriously. Since 2013 Safello is registered as a financial institution with the Swedish FSA, Finansinspektionen, and complies with the Anti-Money Laundering and Counter Terrorist Financing Directive.

Payment methods

Bitcoin can be purchased with a variety of payment methods. In Sweden, the most popular ones are Swish, SEPA and Bankgirot. Direct payment options also help to buy Bitcoin instantly and avoid exposure to market volatility. Thus, make sure that the platform of your choice offers payment options that you are most comfortable with.

Security

A credible cryptocurrency platform has a variety of tools to secure users' accounts. Make sure that your platform provides Two Factor Authentication, identity checks and/ or sends SMS and warnings to inform you before finalizing your transaction. In line with other security tools, Safello uses Mobile BankID for simple identification.  

“BankID is a citizen identification solution that allows companies, banks and governments agencies to authenticate and conclude agreements with individuals over the Internet. It's the most popular way to identify yourself in Sweden”.

Speed

It is important that your Bitcoin order doesn’t get stuck for days while waiting for the transaction to be confirmed, as the price of Bitcoin can fluctuate. In relation to that, we have recently shared a blog post, which explains how to buy Bitcoin in 60 seconds in Sweden.

Customer support

A good exchange cares about its customers and provides easily accessible customer service in case there are any questions or problems. Response times, supported languages and a comprehensive FAQ are all good to take into account when looking for the safest place to buy BTC.  

Olena Burutina

Writer for Safello

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