How to buy and safely secure your crypto

Byline | Morgan Reeves

When you buy Bitcoin, there are two components: Firstly, the purchasing of the crypto and then there’s the storing of the crypto once you have bought it. The journey to buying cryptocurrency for the first time doesn’t need to be overwhelming, Choosing the right platform and storage method before making the purchase can save you stress and money later down the line.

Buying Bitcoin

There are a few ways to buy Bitcoin. The most common is through a cryptocurrency exchange, where buyers and sellers come together to trade fiat for crypto or to trade cryptocurrencies with one another. There are many different exchanges available, but first time traders are advised to choose one that finds the balance between usability, minimal costs, and excellent security.

Bitsoft 360 is a great platform to start your crypto journey because it offers algorithmic trading. This means that specialised software on the platform can make trades on your behalf so that you don’t have to watch the market 24/7.

Other ways to buy Bitcoin include:

• Crypto ATMs, where you use your fiat cash to buy Bitcoin which is then sent to your crypto account.
• Through a peer-to-peer platform, where you trade directly with another crypto user.
• Directly through PayPal. However, this is only available in certain regions and you cannot transfer it to your cryptocurrency wallet.

Storing Bitcoin

When you’ve bought cryptocurrency, you store the keys that grant access to those keys in a cryptocurrency wallet. There are a number of different types of crypto wallets available for storing your Bitcoin. 

The two different ways of storing your cryptocurrency keys are in a hot wallet and a cold wallet.

Hot storage: An online wallet

A hot wallet is connected to the internet, which makes it convenient because it makes transacting a seamless approach. To send, trade, and buy Bitcoin and other cryptocurrencies, you require an internet connection. Keeping your keys online means you can immediately transact. 

Then most common types of hot wallets are exchange wallets. If you buy on an exchange, your crypto will automatically go to the exchange wallet. The drawback of hot wallets is that because they are always connected to the internet, they are more susceptible to hackers than cold wallets.

Cold storage: Offline wallets

On the other side, a cold wallet is one that is never linked to the internet, making it extremely difficult to hack. Because your keys in a cold wallet never touch the internet or online space, it’s almost impossible for an online scammer to gain access to your keys. Cold wallets are usually a specialised device that connects to your computer’s USB connection or can be accessed by bluetooth. A cold wallet might not have the convenience of automatic trading, but it does mean your cryptocurrency is the most secure.

The best practice for safe crypto trading

Whichever type of cryptocurrency wallets you choose to use, it is highly recommended that you make sure you have passwords for both the wallets themselves and the devices they are stored on. Having a recovery phrase for an offline device you use means that if you lose the original device, you can upload the keys onto a new one. Keep this phrase in a secure – offline – location for maximum security for your tokens.

It’s also advised to use a virtual private network (VPN) in case you use any public networks. Making sure your antivirus is updated and secure is also key to avoid the risk of downloading any malware. It is advised that you adhere to the exchange’s security requirements for an exchange wallet, which typically include two-factor authentication (2FA), such as Google Authenticator or an SMS password.

There is no perfect solution when deciding which wallets to use or which cryptocurrencies to purchase. Many cryptocurrency users will prefer a mix of wallets, including hardware, smartphone, and exchange wallets. This grants the convenience of trading with the security of offline storage. The best recommended practice here is to keep most of your crypto funds in your hardware wallet, while a smaller portion is kept in your online wallet to use when making crypto purchases or on-the-fly trades.