#1: Buy bitcoin
We recommend Binance but watch our recent podcast episode: What is the best bitcoin exchange?
#2: Own your bitcoin
Buying bitcoin is only the first step in your journey because if you leave your bitcoin (private keys) on an exchange you are merely renting them. An exchange might be insolvent, get hacked or freeze your account leaving you without any recourse whatsoever. Own your bitcoin by withdrawing them from the exchange ASAP. If you think we’re paranoid take a look at the major exchange hacks so far (not to mention invaluable identify information):
- Altsbit: 6,929 BTC ($194,012,000 as of Dec 2020) stolen in Feb 2020
- Bitpoint: 1,225 BTC ($34,300,000 as of Dec 2020) stolen in July 2019
- CoinBene: 3,571 BTC ($100,000,000 as of Dec 2020) hacked in March 2019
- QuadrigaCX: 26,350 BTC ($737,800,000 as of Dec 2020) lost in Dec 2018
- MapleChange: 913 BTC ($25,564,000 as of Dec 2020) scammed in Oct 2018
- Zaif: 5,966 BTC ($167,048,000 as of Dec 2020) hacked in Sep 2018
- CoinSecure: 438 BTC ($12,264,000 as of Dec 2020) lost in Apr 2018
- NiceHash: 4,736 BTC ($132,608,000 as of Dec 2020) stolen in Dec 2017
- Youbit: 4,000 BTC ($112,000,000 as of Dec 2020) hacked in Dec 2017
- Bithumb: 700 BTC ($19,600,000 as of Dec 2020) lost in July 2017
- Yapizon: 3,800 BTC ($106,400,000 as of Dec 2020) lost in April 2017
- Bitfinex: 120,000 BTC ($3,360,000,000 as of Dec 2020) stolen in Aug 2016
- BTER: 7,170 BTC ($200,760,000 as of Dec 2020) hacked in Feb 2015
- KipCoin: 3,000 BTC ($84,000,000 as of Dec 2020) stolen in Feb 2015
- Bitstamp: 19,000 BTC ($53,200,000 as of Dec 2020) hacked in Jan 2015
- 796: 1,000 BTC ($28,000,000 as of Dec 2020) hacked in Jan 2015
- MintPal: 3,700 BTC ($103,600,000 as of Dec 2020) lost in Oct 2014
- Cryptsy: 13,000 ($364,000,000 as of Dec 2020) lost in July 2014
- Mt.Gox: 850,000 BTC ($23,800,000,000 as of Dec 2020) stolen in March 2014
- Vicurex: 1,454 BTC ($40,712,000 as of Dec 2020) stolen in May 2013
- BitFloor: 24,000 BTC ($672,000,000 as of Dec 2020) hacked in Sep 2012
- Bitcoinica: 18,457 BTC ($516,796,000 as of Dec 2020) lost in May 2012
- Linode: 46,000 BTC ($1,288,000,000 as of Dec 2020) lost in March 2012
- Mt.Gox: 2,643 BTC ($74,004,000 as of Dec 2020) stolen in June 2011
- Bitcoin7: 11,000 BTC ($308,000,000 as of Dec 2020) stolen in Oct 2011
This is not to scare you because the insecurity lies with the exchanges not with bitcoin. This illustrates the importance of moving your bitcoin from any exchange into cold storage where you have complete control and ownership.
LEARN how to take self‐custody of your bitcoin
#3: Secure your bitcoin
It’s estimated almost 7 million bitcoin (33% of total supply) have been lost, stolen or hacked. Whether it’s a cold storage device (hardware wallet), offline wallet and/or multisignature setup, CoinCompass implements tailor-made Bitcoin custodial solutions for individuals, businesses and wealth managers.
LEARN how to securely manage your private keys.