Before you buy Bitcoin it’s a good idea to know what you’re getting into and what you’re going to do with your Bitcoin once you’ve paid for it. In this guide to buying Bitcoin I’ll go over some of the things you should think about before you make your first purchase.
Before You Buy – Where Are You Going to Keep Your Bitcoin?
The most important thing to think about is how you are going to keep it safe. You basically have 3 options.
- Leave Your Bitcoin on The Exchange
- Transfer it to a hot wallet
- Transfer it to a cold wallet
So the first option is to simply leave your Bitcoin on the exchange. Now, if you’re new to the world of cryptos then it may seem like a good idea. And in fact, if you’re brand new then it could be the safest place for the time being.
The thing is, the whole point of Bitcoin is that you take ownership of it and cut out the middle man. When you feel like you know what you’re doing, take ownership of your Bitcoin!
If you leave your Bitcoin on the exchange then you don’t have control of the private keys. If the exchange got hacked, if the exchange decided to freeze your account or the government decided to close the exchange down you could end up losing your Bitcoin. These things aren’t likely BUT THEY DO HAPPEN!
>>> Not Your Keys Not Your Bitcoin <<<
Better To Use Your Own Wallet
This brings us on to option 2 and 3. Using your own wallet means that you control the private keys. You are in full control of your Bitcoin. This is by far the best scenario for you once you know what you are doing and have practiced making a few transactions.
Having this responsibility isn’t for everyone though. I can fully understand that some people may be more comfortable letting the exchange look after their coins.
If you don’t know what the difference between a hot and cold wallet is then continue your Bitcoin buying guide by reading the difference between hot wallets and cold wallets. < This is crucial information. If you’re serious about crypto then you need a cold wallet!
The is Guide Is Just The Tip of The Iceberg
The guide to buying Bitcoin is just the beginning. But it covers the most important aspect of crypto which is keeping your Bitcoin safe.
If you feel comfortable in purchasing some Bitcoin check out my two recommended places for buying Bitcoin. Start with small amounts until you are comfortable with the process of transferring Bitcoin to your wallet.