Without any doubt, Europe remains one of the continents with the most supply of Bitcoin. When the whole rave about cryptocurrency began in 2010, it hit harder with the Europeans, and so it didn’t take them too long to embrace it and start making good money from crypto trading.
However, with increased awareness and acceptance also comes more risks for crypto traders on the continent. If you are a trader in Europe and looking to buy Bitcoin, you will want to know the best practices to safely buy. If you are not careful enough, you can lose all your investment to Bitcoin scams and fraudulent exchanges. In this post, we will show you some ways you can buy Bitcoin in Europe and how to safely do it without losing your money.
How to Safely Buy Bitcoin in Europe
There are various options available to you for buying Bitcoin but the most secure of them is buying through a crypto exchange and traditional broker. Let’s take a quick look into what each of them entails.
Buying through cryptocurrency exchanges
This is probably the most secure way of buying Bitcoin around the globe. It is also the easiest. There are several crypto exchanges scattered around the world that offer users the chance to easily buy and sell Bitcoin and other cryptocurrencies on their platform.
With a crypto exchange, you don’t only get to buy your coin but you can also trade on such a platform. For this service, the platform will charge you transaction fees which will usually include a percentage fee and a small fiat fee. Some exchanges you can trust for buying Bitcoin with pounds or euros are Coinbase, Kraken, eToro, Bitpanda, Bitstamp, etc.
Buying through traditional brokers
Buying Bitcoin through traditional brokers also presents a secured way of buying Bitcoin. This usually involves having some crypto brokers buy Bitcoin in large quantities and gradually sub-sell to users on their platform. You can also sell your Bitcoin on such platforms. Traditional brokers tend to offer lower trading costs but they don’t have as many crypto features as exchanges. Examples include Anycoin Direct, eToro, Coinbase, Interactive brokers, etc. However, Anycoin Direct tops the list here!
Buying from Bitcoin ATMs
This is another way you can safely buy Bitcoin in Europe but not as secure as the first two methods we have mentioned above. Buying Bitcoin from Bitcoin ATMs is more like withdrawing or paying money through traditional ATM machines. But in this case, it only deals with Bitcoin.
Countries like the U.K., Czech Republic, Slovenia, Austria, and Spain have a whole lot of Bitcoin ATMs scattered in major cities in the countries. Smaller countries like San Marino, Latvia, and Albania even have many Bitcoin ATMs on their soil. To know if there is any Bitcoin ATM near you, check CoinATM Radar map.
Tips for Safely Buying Bitcoin in Europe
#1: Research exchanges before opting for one
Not all exchanges are made the same. Not all of them can be trusted. There are some crypto exchanges that are on the lookout to steal your money. So before you choose any exchange, make sure you have done your diligence. Read reviews and talk with experienced investors before making a choice.
Compare different platforms, check what cryptocurrencies they offer, their security features, what fees they charge, and what their withdrawal options are like.
#2: Understand crypto wallets and choose a secured one
Buying Bitcoin doesn’t stop at just purchasing; you will also need a wallet to store them. While you can keep your Bitcoin on your exchange platform, it is recommended that you get your own crypto wallet to safely store your coins. There are different types of wallets and each of them has its unique security features.
Hot wallets trends to process transactions faster but they are more vulnerable to theft and hacking because they are often connected to the internet before using. On the other hand, cold wallets, which are physical and portable storage devices provide more security for your coins but can also be expensive.
If you have enough cash to spare for a cold wallet, it is the most secured option here. But if not, research the hot wallet you can find and choose one that offers the most security. Examples of hot wallets with a considerable level of security are Coinbase wallet, Edge, Electrum, Trust, Robinhood, Exodus, and Mycelium.
#3: Prepare for volatility
If there is anything the cryptocurrency market is known for, it is going to be its volatility; it is full of ups and downs. There is always a regular swing in prices. So to safely invest in Bitcoin without losing your money or mental health, you need to prepare yourself for these dramatic price swings. Understand how the crypto market works well before jumping to start investing.
#4: Diversify your investments
This is more like the previous point. The key to any good investment strategy is diversification. So when investing in Bitcoin, make sure you have a solid investment strategy and stay true to it. Don’t spend all your money on Bitcoin just because there is so much buzz around it now. Make your research and know if it’s the right coin for you. If not, you can spread your investment across several crypto assets.
#5: Protect yourself from crypto scams
There are different Bitcoin scams out there. Identifying them and shielding yourself from them will be a wise decision you could ever make. Some of them include identity fraud and reversible payment fraud.
- Identity fraud: Here your trading counterparty uses the account of a third party for transactions. They send you the account of someone else in the chat for you to send money before they can send you your Bitcoin. After sending money, they claim they haven’t seen the money and so, won’t be sending you the crypto.
So, guard yourself, and only transfer money when you are sure the payment account belongs to the seller or buyer.
- Reversible payment scam: This is common when you are selling your Bitcoin. Here, the buyer sends you money first and requests that you send the crypto after receiving the money. But once you confirm payment and send the Bitcoin, after 72 hours, they contact their bank saying they didn’t make the payment and so the bank will cancel the payment. That way, you will be losing your crypto entirely without a trace.
One way to protect yourself from this happening is to ask the buyer to send a photo of the transfer record to prove they actually did the transfer. Make sure you get that before releasing your Bitcoin.
