Safest Way to Buy Bitcoin

10 min read by Hugh
published 3 weeks ago

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There’s a stigma around Bitcoin. That suggests that Bitcoin is a scam, a ponzi or a joke. Typically, this stems from individuals who have failed to spend the time to understand what they are talking about.

Bitcoin is new money. A better form of money than we currently have – fiat. Bitcoin is also better than the old form of money – gold due to its portability, divisibility & scarcity aspects.

Table of Contents

Bitcoin attracted mainstream media, back in 2013, due to its appearance on Silk Road. An infamous online website where Bitcoin featured heavily as the currency of choice. And this is where many people first came across Bitcoin. Not a good first impression.

A dodgy ‘cryptocurrency’ used on a dodgy website.

Bitcoin hasn’t changed since 2013, but people’s understanding of it has. People took the time to understand that criminals use fiat currency more than Bitcoin when dealing in dirty money. More people noticed how broken the current monetary system and how Bitcoin makes the rules fair. Bitcoin may seem complex at first, although, many people should take a step back and understand what money is first. Then tackle the magical internet money that is Bitcoin.

It’s always worrisome buying something you don’t understand. That’s why at Amber, we concur that education is vital. Buying Bitcoin is good. Although, understanding why you are buying Bitcoin is twice as important as the purchase.

Buying your first Bitcoin might be scary because you don’t know where to buy it from. Luckily, today there are many different ways to buy Bitcoin and many that are safe.

Bitcoin – itself – is safe. The area that people get scammed in, is the way in which they buy BTC. Scam-front (fake) exchanges are a very easy method that someone can get caught out when buying Bitcoin.

The safest way to buy Bitcoin doesn’t just include not getting your money taken from you but also, investing with proper caution. Being aware that Bitcoin is highly volatile. Being aware that buying crypto is not the same as buying Bitcoin. And being aware that some exchanges are gambling your Bitcoin. 

Therefore, you need a safe way to buy Bitcoin. Amber is a place in which you can buy BTC knowing that the Bitcoin is yours. And yours to keep. Read on below to see our overview on how to buy Bitcoin safely. 

Cryptocurrency Exchanges

Cryptocurrency exchanges, for the most part, are a safe option to buy Bitcoin. However, you must ensure you are buying from a highly reputable exchange such as Coinbase or Binance. Yet, even then your Bitcoin is not safe.

The difference between cryptocurrency exchanges and Bitcoin exchanges is what you can purchase. Bitcoin exchanges hold solely Bitcoin (like Amber!), while crypto exchanges shill 100s of crypto. 

Pros

Cryptocurrency exchanges are plentiful on the internet, which makes them very accessible. The majority of exchanges are simple to use and offer a number of advanced features when trading. On crypto exchanges you can withdraw your BTC into your own wallet, when you please and some exchanges even offer this process over lightning which is extremely cheap. 

Cons

Crypto exchanges are not perfect and unfortunately, many people have learnt this the hardway. Losing money through hacks, bankruptcy or straight up scams. 

Scam-front (fake) exchanges are not uncommon in the crypto space, especially with cryptocurrency booming in popularity in 2021. These exchanges can either mimic popular exchanges or look like a completely new exchange that has just entered the crypto scene. This is why you must do your research before depositing any personal details or money onto an exchange. It is hard to tell what is real and what isn’t, so if it sounds too good to be true – it probably isn’t.

Your Bitcoin is not what gets hacked. The exchange does. BTC maximalists, termed the phrase, “not your keys, not your coins”, which essentially means, if you don’t have the private keys to the Bitcoin in a wallet; someone else owns the Bitcoin. Unfortunately, any exchange can get hacked. So, if your Bitcoin is on the exchange, it is at risk from attackers. It has happened before and is likely to happen again. Nearly $2.6 Billion USD has been stolen from exchanges since 2012. Taking your Bitcoin off crypto exchanges (when you are comfortable with wallets), is an important step in securing your Bitcoin.

Crypto exchanges are a business. A business that looks to make money, however, sometimes they do the opposite. This is when your Bitcoin stops being your Bitcoin and the exchange halts all withdrawals. Which happened recently in 2022 with prominent exchange – Celsius. What is painstakingly obvious for people now, maybe wasn’t prior to the bankruptcy when yield was offered on a various number of crypto – including Bitcoin. Bitcoin doesn’t generate any yield by itself, therefore, the company that holds your BTC must be putting (gambling) your money elsewhere to produce that yield. A risk they were willing to take which unfortunately left a $1.2 Billion dollar hole in their balance sheet.

Verdict

In most cases, once you have done your research, cryptocurrency exchanges are a safe place to buy Bitcoin. Although, you do not want to be storing your Bitcoin on crypto exchanges for too long especially if they offer a yield on your crypto. Practice healthy measures and ensure that you always use 2 factor authentication on whatever exchange you use, to make it harder for hackers to get access to your funds. And never share your password (or private keys) with anyone.

Other safe ways to buy Bitcoin

Buying Bitcoin off an exchange isn’t the only way to buy BTC. There are several other methods such as a Bitcoin ATM or making a person-to-person (P2P) exchange. These two methods require you to physically be in a place to make an exchange. Therefore, the safety of these is dependant on your personal knowledge of the area, the other person etc.

Firstly, a BTC ATM is generally considered a safe way to buy Bitcoin (non-KYC in some cases too). Although, you’ll need to attend a physical location with a payment method in order to make the purchase. Furthermore, you’ll need to already have a BTC wallet so you can send the BTC you have bought to that wallet address. The safety of this method, requires every individual to do research into the ATM that they are going to use. A major positive of this method is that the Bitcoin you buy goes straight into your wallet, there is no need to risk storing it on an exchange.

A P2P exchange was a lot more popular before crypto exchanges started to take over the internet. Bitcoiners would have to go out and find people who were willing to exchange their Bitcoin for fiat money. People may see this as quite risky, however, if another person doesn’t have access to your private keys they cannot touch your Bitcoin. Some website have become available that remove the need to exchange P2P in person, and instead conduct the exchange over the internet. Every P2P website has different rules regarding the buyer and seller, although, most have solid reviews ensuring the safety of the exchange. The annoying part of P2P exchanging is that you must find someone who is willing to either sell or buy BTC at the price you want. An exchange is much easier because you can always buy & sell BTC.

Amber

Amber was born for those who want to buy Bitcoin. The simple way and the safe way. 

Strictly a Bitcoin exchange, that offers no options to buy any crypto. Here at Amber, we are serious about Bitcoin. What we offer is a Bitcoin experience that outperforms those seen elsewhere in the market. 

Buy the Schiff. Stack like Saylor. 

There are a multitude of different ways one can use to buy Bitcoin. Amber opens the doors that invite every user to create a custom plan that works for them. 

  • Want to buy $100 worth of BTC when the price dips 5% in 24hrs? We automate that for you. 
  • Want to buy $50 worth of BTC when the Fear & Greed Index hits 15? We automate that for you. 
  • Want to buy $5 worth of BTC when Peter Schiff tweets about Bitcoin? We automate that for you.

These automations set Amber apart from other crypto and Bitcoin exchanges. The ability to stack sats through Amber will help you realise that Bitcoin is all about accumulation. Due to BTC being highly volatile, we recommend healthy investing habitats that slowly increase your exposure to Bitcoin as you learn more about it. A great way to go about that is through Dollar Cost Averaging (DCA).

Dollar Cost Averaging is when you make purchases at a set time (every day, week or month) no matter what the price of Bitcoin is. This removes some of the emotions that are involved in buying Bitcoin and allows a safer exposure to Bitcoin. More gentle and gradual than putting all your money into a volatile commodity like Bitcoin.

Amber takes Bitcoin custody seriously. Part of being a Bitcoin exchange is our users putting trust in us, to hold and store their Bitcoin. Which is exactly what we do 1-for-1. Amber does not rehypothecate any of its funds to attempt to bet on upcoming crypto or generate a yield for your Bitcoin. 

Your Bitcoin is stored in a multi-signature cold wallet. Anytime that you want to take your BTC off Amber, you are welcome to. We encourage all our Bitcoiners to take that next step when they are ready to handle their own Bitcoin hot or cold wallet. This is an important step forward on someone’s Bitcoin journey, however, it is extremely important to have a solid understanding of what it takes to store your own Bitcoin.

Another way you can ensure Amber is a safe way to buy Bitcoin is the regulatory standards that Amber must uphold. Be confident that Amber takes all the necessary steps to ensure that the rules and standards are met and you are in safe hands with Amber.

Not only is Amber safe but also simple. We don’t offer crypto, that may put you at risk of being rug-pulled. We have seen too many people go down that route initially, then decide that Bitcoin (too late) is fundamentally different to crypto. Our simplicity stems from our connection with new Bitcoiners. We’ve made it simple enough to open an account in less than 60 seconds. And make your first purchase in under 90 seconds.

Amber also has a premium exchange, Amber Black which is the best Amber has to offer. Amber black removes fees and offers premium automations not seen on any other exchange. Once, again with the high-level of security to ensure that your Bitcoin remains safe.

Wrap-Up

Bitcoin is the escape raft from the current monetary system. Bitcoin is the safety net from the collapse of the current monetary system.

Bitcoin is different. Yet, Bitcoin is safe.

Although, when buying Bitcoin there are some approaches that are not safe. That is because Bitcoin is precious and there will only ever be 21 million of them. So people want as much as they can get.

You must take the necessary steps to ensure that your Bitcoin remains your Bitcoin. Whether that means buying Bitcoin on a well-regarded cryptocurrency exchange initially but realising that this isn’t the best place to HODL your Bitcoin. Or buying Bitcoin in person at an ATM after researching the brand of ATM and its history. Whatever, your approach might be, remember that holding your own keys to your Bitcoin is the safest way you can store it.

The safest way to buy Bitcoin, well that’s on an exchange that doesn’t rehypothecate your funds. An exchange like Amber.

Amber is simple, fast & secure.

References

  • https://vijayboyapati.medium.com/the-bullish-case-for-bitcoin-6ecc8bdecc1
  • https://archives.fbi.gov/archives/newyork/press-releases/2013/manhattan-u.s.-attorney-announces-seizure-of-additional-28-million-worth-of-bitcoins-belonging-to-ross-william-ulbricht-alleged-owner-and-operator-of-silk-road-website
  • https://dailycoin.com/fiat-vs-crypto-which-is-more-popular-for-criminal-activities/
  • https://amber.app/au/blog/
  • https://amber.app/au/blog/is-bitcoin-superior-to-fiat/
  • https://amber.app/au/blog/storing-and-taking-ownership-of-bitcoin-with-amber/

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Disclaimer: Amber is not a financial adviser. You should consider seeking independent legal, financial, taxation or other advice to check how information on our website, in emails we send or in our app, relates to your unique circumstances. Amber is not liable for any loss caused, whether due to negligence or otherwise arising from the use of, or reliance on, the information provided directly or indirectly, by use of our website, our emails or our app.

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