Buying bitcoins without risk

[PodSpot]

Where can I purchase bitcoin with zero risk of fraud?

 

[nightdreamer]

Where can I purchase bitcoin with zero risk of fraud?

I switched to Bithumb after seeing them on the #1 rank for quite a while in Coinmarketcap. Checked out their site and they have very low transaction fees which explains their rank.

 

[PodSpot]

I switched to Bithumb after seeing them on the #1 rank for quite a while in Coinmarketcap. Checked out their site and they have very low transaction fees which explains their rank.

How about the risks of using?

 

[nightdreamer]

How about the risks of using?

I think you're looking at it the wrong way. There will always be risk when it comes to crytpocurrency whether its buying or selling or seeing the value go down. Bitcoin exchanges are here to prevent fraud, etc. They keep your money in escrow and monitor transactions. Bithumb currently has the most volume in transaction so that means people are using it without worry. Also keep this in mind, the more authentication methods an exchange site has, the better.

 

[odditory]

No such thing as zero risk of fraud. I also wouldn't make any assumptions about BIthumb just because they "have the most volume" - WGAF. Any one of them could be compromised, hacked, whatever at any moment. Even the ones that say they're insured, even the ones that say they're backed by banks. We're still in uncharted, wild west territory with cryptocurrency - and I don't see the U.S. Government or any other government bailing out a failed exchanged the way they would a regular bank.

However there are steps you can take to minimize fraud - 2FA as a bare minimum, and backing up your 2FA recovery to paper rather than screenshots or any other electronic means.

I personally have used Coinbase - funds are insured (FWTFIW), and then I've done trading on GDAX (owned by Coinbase) since there are no fees with Limit-Buys and Limit-Sells.

Remember an Exchange is there to EXCHANGE - meaning you don't dick around keeping Fiat or crytocurrency just parked there for days or months, unless you're doing day trading - which is a whole 'nuther ballgame and requires its own endless research unless you want to flush money down the toilet. So if I wanted to convert some of my BTC to LTC for example, I'd send the BTC to an exchange, convert to LTC, and withdraw the LTC to a paper wallet or secure electronic wallet that I held the private key to. Or you can use a service like Shapeshift.io or Changelly.com.

So, if someone inexperienced just wanted to buy some BTC to hold onto because they believed the value would be going up longterm, then I'd use this approach:

1. Add Fiat currency from Bank Acct/Paypal/Credit Card -> Coinbase or another trusted exchange with 2FA
2. Login to GDAX and deposit fiat from Coinbase account into GDAX account (no fee)
3. Place a limit-buy order on BTC for the desired amount (no fee)
4. Withdraw BTC to a paper wallet, or Ledger Nano or Trezor.

 

[Eickst]

Thanks for your post, I ended up looking at the Ledger Nano S and the Trezor. Ended up with the nano s.

I've been out of the crypto game for a couple years and didn't even know those devices existed. Back in the day I used an ironkey to hold my wallet and this ledger thing looks way easier!