Bitcoin is one of the most popular cryptocurrencies in the world today, offering tech enthusiasts an interesting avenue of increasing their profits manifold with market trends. Part of the now huge cryptocurrency family associated with tracking and verifying asset ownership, Bitcoins are purchased and held by many as a form of investment, besides just another mode of payment. With the increasing interest and curiosity around this popular form of crypto, it becomes extremely important to analyze what is the safest way to invest in bitcoin?
Going by convention, it wouldn’t be wrong to say that Bitcoin investments come with a lot of risk if not taken proper care of. Sure, this digital currency is making all the headlines now, but interested investors must be extremely wary of the best alternatives when it comes to safe and secure Bitcoin investments. There are two popular options available before them to explore – cryptocurrency exchanges and OTC crypto desks – with the latter being the safest option.
Why not Invest through Cryptocurrency Exchanges?
Crypto exchanges have gradually risen in terms of popularity and numbers, with the result that it has become too difficult to track the exact number of exchanges operating at any moment. A cryptocurrency exchange, or a digital currency exchange (DCE) is a business that allows customers to trade or “exchange” cryptocurrencies for other assets, including fiat money or other cryptocurrencies. Payment modes ranging from credit cards to wire transfers and even other forms of digital payments are usually accepted on these exchanges, and everything seems so far so good.
However, there are a few major concerns with crypto exchanges. Firstly, even the biggest exchanges like Coinbase, Kraken or Binance allow only a limited transaction volume on their platform. Secondly, these transactions are highly prone to attacks, as is evident from the poor history of cyber safety on these exchanges so far. Crypto exchanges only mask sensitive personal data to a limited extent, but do not conceal transactional data from purview, which leaves them open and vulnerable to frequent cyber attacks.
The Safest Way to Invest in Bitcoin: OTC Desks
While crypto exchanges act as intermediaries in transactions between buyers and sellers, over-the-counter or OTC companies do just the opposite. OTC desks enable direct trading between the two involved parties, without the presence of any intermediaries. The trade values at stake are also impressively high, often starting from $25,000, yet with complete assurance of safety and security.
The high safety standards of OTC desks are due to their impressive underlying framework of privacy, where all sensitive data – both personal and financial – remains masked. There are fewer risks involved due to direct trader-to-trader transactions, which may come at a higher fee but ensure unparalleled safety and privacy nevertheless.
In addition to the above, investing with the help of a Bitcoin OTC broker still ensures superior control over your own assets, unlike in crypto exchanges, where you lose custody over your cryptos immediately after putting them on the exchange. This distinguishes the two in terms of safety against online attacks as well. Investors alone are responsible for their assets, and unless there is a deviation in the intention of participating individuals and/or businesses, you can rest assured there is nothing to worry about.
Things to Keep in Mind When Investing in Bitcoin
Often, Bitcoin enthusiasts have several queries in mind revolving around the nitty-gritty of such an investment, some of the common questions being – do you need a wallet to buy bitcoin, does Bitcoin gain interest, are OTC markets safe, and so on.
If you have similar burning questions that you are seeking an answer to, you have come to the perfect place. At Secure Digital Markets, we not only help investors get the best out of their hard-earned money, but also assist enthusiasts in getting the answers they are looking for when it comes to crypto investments and OTC markets. Suffice it to say that with a smart, strategic trading plan, well-designed risk management, and a reliable OTC desk, you have all the ingredients you need for successfully investing in Bitcoin.