Unfortunately you can find on the Internet, Crypto-currency exchanges that are either fraudulent, or badly operated, which risks your money and personal information. Different crypto-currency exchanges provide varying degrees of safety, security, privacy, and control over your funds and your personal information. It is your responsibility to work within the law in your own country, and to perform your own due diligence when selecting and using an Exchange. You must also select a wallet before you select an exchange. If you have not yet installed a Bitcoin Wallet, and taken the time to understand how your Wallet operates, then you are not ready to use a Bitcoin Exchange. Remember, there is no controlling authority for Bitcoin or other Crypto-currencies. Also local laws could suddenly change that affect Bitcoin Users or Exchanges. Many people have lost Bitcoin or cash money to Fraudulent Exchanges, which operate for a short period of time, then disappear with their customer’s funds, while others have lost money to Exchanges that were poorly operated and were hacked.
- These are just some of the reasons why doing your own due diligence is essential.
- When using Bitcoin, it is your responsibility to ensure your own safety.
To find an exchange, we recommend that you visit Bitcoin.org or another recognized Bitcoin Community in your own country. Before even using an exchange that is listed here, you must still carry out your own due diligence, especially as circumstances and laws around Bitcoin can change at any time. Many Exchanges are well operated and trustworthy, but some might not be. We cannot advise you on what you need to do to fully protect yourself, as due diligence is your own responsibility. Generally, when you sign up with an exchange you will need to supply identifying personal information before you can open an account. Your Personal Information will then fall under the laws of the country where the Exchange operates. This could also mean that the Government or Revenue Service in that country might obtain records of your personal details.
Never Leave Bitcoin in the Online Exchange
Once you have created and funded your Exchange account, the exchange will allow you to buy Bitcoin and usually other crypto-currencies. When you have Bitcoin in your exchange account, to transfer this to your own Wallet is a simple process of creating and saving a Receiving Transaction record inside your own Bitcoin Wallet. This will create a unique Bitcoin Address for your Wallet and this transaction. You can then send Bitcoin from your Exchange Account to the Bitcoin address that your Wallet provides. It is often a good idea to send only a small amount of Bitcoin first, until you are familiar with the Sending and Receiving process, as mistakes often cannot be reversed. Remember also that if you do this, when you create a new Bitcoin Receiving Transaction in your own Wallet to receive Bitcoin, this usually generates a new Bitcoin Address that must be given to the sender.
Your Personal Security is Your Responsibility
Maintaining your financial and personal information security when using Bitcoin is always your responsibility. Some people see this as the biggest drawback of Crypto-currencies. Even Steve Wozniak, who co-founded Apple with Steve Jobs has said he fell victim to a bitcoin scam. Loss of Bitcoin is something that can happen to anyone, even the man who co-founded the world’s most valuable computer company. Also remember that just as there are benefits in selecting more than one Bitcoin Wallet, there could also be benefits in selecting more than one Bitcoin Exchange.
So take your time, do your own due diligence and stay safe.