Whether you see Bitcoin as an investment, a way to send money abroad or a tool for financial freedom, it’s important to learn How to buy Bitcoin safely. That means deciding how much you can afford to invest, understanding your risk tolerance and storing your cryptocurrency securely.

Regulated exchanges like Coinbase and Binance handle most of the large-scale Bitcoin purchases today, connecting to your bank account, verifying your identity and allowing you to purchase using fiat currency. This means entrusting an exchange with your money and personal information, which can be a big deal if a hack happens (Mt. Gox lost 850,000 bitcoins in 2014).

How to Buy Bitcoin Safely: A Beginner’s Guide

You can also buy Bitcoin directly from individuals on peer-to-peer marketplaces like LocalBitcoins, Paxful, or Bisq. In these cases, you’ll meet the seller in person to complete a cash transaction. This method is less secure, but it can be fast and can reduce fees. If you have significant amounts of Bitcoin, consider a hardware wallet that keeps your private keys offline and out of reach from hackers and malware.

Whatever option you choose, always remember that the price of Bitcoin can dramatically rise or fall in short periods of time. Be prepared to sell if the market takes a turn for the worse, and don’t invest more than you can afford to lose. Also, never make any financial transactions over a public WiFi connection. Using a VPN or paying for a private Internet connection helps ensure your data is protected against public Wi-Fi attacks and other online threats.