Trading Bitcoins is a delicate issue which must be undertaken with utmost care and forethought. This is because of the overwhelming number of scammers present in the bitcoin community. Every other day, you hear people complaining of being scammed, losing money and so on. The truth of the matter is that either as a bitcoin seller or buyer, it is impossible for you not to get scammed. The most professional sellers and the most experienced buyers do get scammed occasionally. However, there are ways to protect yourself and reduce your loss as much as possible. If you are a bitcoin buyer, regular buyer or new to the market, using Paxful as a platform, here are a few tips for you on buying Bitcoins.
- The first and foremost and most important rule is this, Do Not choose a seller by price. Do not lose all your money in an attempt to save a few bucks by buying from a buyer with a slightly lower price than that of others. Such sellers are most likely scammers and even if he is not a scammer, he is definitely a windowlicker who will provide inferior service and you might end up losing money with such a seller.
- Always start your trades from the “Buy Bitcoins” button on your account. Do not start trades by advertising in forums and such. The responses there are most likely from scammers.
- Do not trade with a seller whose account is less than six months old. Scammers are usually reported and they have their accounts blocked and then they have to open new accounts. So they perpetually have relatively new accounts. Even if the seller isn’t a scammer, a seller with less than six months worth of trading is not reliable. They have not had time to build up a good reputation.
- Make sure you choose sellers with a lot of positive feedback, as much as 200 positive feedbacks and sellers who have completed a lot of trades. This helps to show a good and experienced seller. Also make sure that the seller you choose has all necessary verifications on their account done. This shows that the seller is serious.
- Make sure you have 2 Factor Authentication(2FA) on your account before making any trades or buying any coin.
- Never trade off the website or cancel escrow. These are the most important safeguards you have. Do not allow any seller to convince you to do away with them.
- Always end your payment information through the message box of the trade. Do not send it through any other means.
- Make sure you only mark the payment as made when you have sent the payment information. Doing it before you send the information might make the seller report you and get your account blocked. Once you have sent the information, make sure you don’t cancel the trade, either intentionally or otherwise.
- Always receive Bitcoins in the personal wallet that you own and do not give anyone your wallet address. Its a scam method.
If you should follow these tips in your trading, you will significantly reduce the level of scams you fall into even if you are not able to avoid them completely.