Is Cryptocurrency Safe?

Cryptocurrency has become a popular means of making a profit. It has a decentralized nature which facilitates fast and cheaper transactions. However, many fear that digital currency isn’t safe. Some people believe it’s a currency used by criminals to fund terrorism, for money laundering, etc. Others fear that it’s too easy to hack blockchain and steal funds.

The truth is that all these fears are valid, but only if a user is investing in the scam cryptocurrency or uses unsafe exchanges to buy virtual currency. Typically, experts recommend crypto enthusiasts check out the project before buying cryptocurrency. Moreover, they recommend using exchanges that have an AML checker procedure.

An AML procedure stands for anti-money laundering checker. It’s a process that most businesses, including crypto exchanges, have to enforce to ensure their clients aren’t using the platform for money laundering. The procedure is a combination of two, AML and KYC, where the latter stands for knowing your customer. The idea is to ensure that clients undergo a verification process, which requires sending a scan of a government-issued ID.

If someone wants to buy crypto, they must first create and verify their accounts. Once they pass this procedure, they can trade cryptocurrency. As for another major risk, potential investors should understand that cryptocurrency is volatile and not all cryptos have value. That’s why users should do their research before purchasing any cryptocurrency.

Where To Buy Crypto Safely?

Once you do your research and find the safest cryptocurrencies to invest in, you should find reliable platforms to make an investment. Here’s the list of the best and safest solutions:

  • Crypto exchanges (centralized or decentralized). For instance, use WhiteBIT, Binance, or Coinbase.
  • Peer-to-peer marketplaces (p2p). Consider LocalBitcoins, Paxful, and Bisq.

These two solutions are not the only ones you can use, but they are the safest types of platforms. However, ensure to read reviews and check ratings before using the platform.

Moreover, use safe crypto wallets to ensure your funds are protected. Experts recommend using cold (hardware) wallets to store large amounts of crypto coins since these wallets are much safer. However, if you don’t plan to make a big investment, consider using hot (software) wallets. They are cheaper than cold wallets and are more user-friendly. This is a perfect solution if you often use crypto to make purchases online.

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