Cryptocurrencies such as Bitcoin are slowly but steadily finding their way into our lives. Since the mad rush of 2020, even the most casual investors have been hungry for cryptocurrencies.
Given how crypto prices have consistently broken new records throughout 2020 and 2021, this is perfectly understandable.
However, getting your hands on Bitcoins and other cryptocurrencies can sometimes be a bit tricky.
Being a decentralized asset, Bitcoin is not controlled by a central authority… Instead, it is created through mining i.e. solving equations on the blockchain.
But that’s not the only way to get your hands on some of that sweet, sweet Bitcoin. Besides mining, you can always exchange Bitcoin for fiat currency on a crypto exchange.
Or you can also sell products or services in exchange for Bitcoin over the internet. Sites that facilitate these transactions are known as Bitcoin auction sites.
Are Bitcoin Auction Sites Trustworthy?
Due to the unregulated nature of cryptocurrencies, Bitcoin auction sites can be hit or miss sometimes. Given the sometimes unsavoury reputation surrounding Bitcoin transactions i.e. Silk Road, you’ll need to be extra careful when perusing Bitcoin auction sites.
But this doesn’t mean that you should be put off by all this – far from it actually.
There is in fact a growing demand for sites that auction Bitcoins and with even governments getting in on the action, there’s no better time than now to get aboard the crypto bandwagon.
So the short-answer is yes; Bitcoin auction sites are trustworthy… To an extent.
Given the fluid nature of the crypto market, it can be difficult to determine if a site is safe or genuine.
Staying Safe With Bitcoin Auction Sites
That’s why it’s always better to be safe than sorry. In this article. We’ll take a look at how you can keep yourself safe when using Bitcoin auction sites.
- Only work with trusted sites
All too often, overeager crypto enthusiasts have fallen prey to scammers and thieves. With cybercriminals becoming increasingly sophisticated, it can be difficult to differentiate a trusted site from a fraudulent one.
This is why you should only ever work with trusted sites that have a proven track record. As the market for cryptocurrency is so volatile, it can be extremely easy to become the victim of a fraud that may steal your data or cryptocurrencies.
Even if a site is valid, a relatively unknown site may have poor security measures in place that can be detrimental to you. For example, the site may be infested with bots or scammers looking to score a quick buck of you.
- Do your homework
Always remember: research is key.
Before you choose to transact with a Bitcoin auction site, you should always do your homework first.
Trawl the forums and ask other crypto enthusiasts if they’ve heard about the site that you’re working with. Look out for reviews or ratings that may give you some insight.
You can check this article by Tezro on the best sites for auctions right now: blog.tezro.com/best-bitcoin-auction-sites/
Keep in mind that some sites have a habit of posting false reviews in order to boost their ratings. Signs of these include:
- Overly positive reviews that overpraise the site
- A lack of negative reviews
- Formulaic or canned style of writing for said reviews
For additional security, check with your local authorities if a site is licensed to carry out their activities. This will give you at least some peace of mind before you start transacting with the site.
- Practice good security habits
The high-value of cryptocurrencies means that they are a popular target for scammers and hackers. Hence this is why it’s critical that you practice good security hygiene.
Make sure that you’re doing the following:
- Regularly changing your passwords
- Not using the same password for multiple accounts
- Avoiding predictable passwords such as birthdays or names of loved ones/pets
While Bitcoin auction sites are a great way to obtain cryptos, care needs to be taken when using them. By keeping to these tips, you’ll be able to significantly reduce your risk exposure.