The world of cryptocurrency can seem exciting yet daunting for newcomers.
With stories of massive gains and losses, scams, and complexity, it’s understandable to feel apprehensive about entering this space.
However, with the right precautions, crypto purchase can be conducted safely. This guide will provide tips on how to buy crypto securely as a beginner.
Use Strong Passwords
After opening your account with a trusted crypto exchange platform like Coinme you’ll want to use a strong password as it’s crucial for securing your accounts. Crypto-related phishing scams try to steal passwords and drain wallets. Avoid basic number and letter combinations that are easy to crack.
Instead, use randomly generated 15+ character passwords with a mix of upper and lower case letters, numbers, and symbols. Password managers like LastPass help create and store strong credentials. Just be sure to remember the master password.
Enable Two-Factor Authentication
In addition to using a strong password, make sure to turn on two-factor authentication (2FA). This adds a second layer of security by requiring both your password and a randomly generated code from your phone to log in. 2FA prevents access if your login credentials are compromised.
Most exchanges offer 2FA through Google Authenticator or Authy. Take the extra minute to set this up for each login attempt. It could save you from a devastating hack.
Avoid Public Wi-Fi
When logging into accounts or making purchases, only access crypto exchanges on personal Wi-Fi or cellular data. Public Wi-Fi can easily be monitored, putting your information at risk. Scammers set up fake hotspots specifically to steal data.
If you must use a public connection, enable your wifi’s built-in VPN if available. This encrypts traffic to keep snoopers out of your network activity. A VPN like NordVPN or ExpressVPN provides protection as well. Simply disconnect from public networks when handling financial transactions.
It’s a Good Idea to Start Small
When first purchasing cryptocurrency, only invest an amount you’re comfortable losing entirely. The crypto markets are highly volatile, with coins capable of losing 70% or more of their value during market downturns. By keeping initial investments small, first-time buyers can learn the ropes without taking on excessive risk.
Stick to more established coins like Bitcoin and Ethereum when starting out. Altcoins can see even wilder price swings and many end up failing. As you become more knowledgeable, you can diversify into smaller-cap projects. Going all in on unproven tokens as a beginner is not advisable.
Withdraw to Your Wallet
Once purchased on an exchange, withdraw coins to your own crypto wallet to complete the transaction. Leaving assets on exchanges long-term carries security risks, as exchanges can be hacked.
Non-custodial wallets give you full ownership through private keys or recovery phrases. Make sure to carefully record these and store them somewhere secure like a safe or safety deposit box. Without the keys, your crypto may be lost forever if you forget your password.
Stay Vigilant Against Scam In Your Crypto Purchases
In general, be super vigilant against common crypto scams that try to separate victims from their funds. Giveaways, fake exchanges, malicious links – the list goes on. If something seems too good to be true, treat it with healthy skepticism.
Stick to reputable, well-known platforms like Coinme when trading and buying crypto. Use bookmarks instead of clicking external links. Be suspicious of any unsolicited offers, even if they claim to be from trusted sources. With common sense and caution, crypto purchases can be conducted safely.
