When it comes to Bitcoin security, there’s a lot to know.
It’s not just about how secure Bitcoin is; it’s also about keeping your coins safe and how to interact with things like a Bitcoin ATM (BTM) to make your initial purchase.
That’s what we’ll be talking about in this article. From staying safe in the crypto world to understanding how BTM operators like Bitcoin Depot keep your information secure, here is what you need to know.
Let’s start with the basics of blockchain security, which means talking about Bitcoin security. So, is Bitcoin actually secure?
The short answer is yes. The Bitcoin (BTC) blockchain is arguably the most secure and decentralized network. Since the first block was created in 2009, the network has never shut down, and no BTC has been stolen from the blockchain itself. That’s not to say that there hasn’t been any incidents in the crypto world, but when it comes to the Bitcoin network itself, there have not been any security breaches.
This is due to a few reasons:
Put it all together, and you can see why so many in the crypto community identify themselves as “Bitcoin maximalists.” That means they consider every other protocol inferior to BTC, especially in terms of security.
As one maximalist put it when asked what the most secure blockchain is, they said, “The Bitcoin blockchain. And it’s not close.”* (learn more at blockworks.co).
Okay, so that’s Bitcoin security in a nutshell. But what else do you need to know?
To start, let’s talk about BTM security. To remain in compliance with industry standards and ensure customers are safe, BTM operators need to abide by several key policies. These can be defined by the operators themselves and, as is often the case, informed by local, state, and federal organizations.
It’s not all about staying lawful, though; it’s about keeping users like you safe.
That’s where Know Your Customer (KYC) and Anti-Money Laundering (AML) laws and regulations come into the picture. We’ll get to what they are in a moment, but let’s first explore why they’re important:
Here at Bitcoin Depot, our mission is simple: bring Bitcoin to the masses. But, to support mainstream adoption, these types of verification and compliance rules are essential.
They establish cryptocurrency as a legitimate financial tool while protecting all participants.
Know Your Customer requirements help prevent financial crimes like money laundering, fraud, and terrorism financing while protecting legitimate customers.
Depending on how much you purchase at a BTM, these verification requirements can vary.
For example, basic transactions under a certain limit may only require a phone number and email address. Larger purchases may require additional verification requirements like a valid ID.
While the benefits of decentralization in blockchain technology help keep intermediaries out of the network, there is a level of anonymity that has the potential for exploitation.
This means malicious actors can use cryptocurrencies like Bitcoin to launder money. Not good.
Luckily, AML compliance is here to help.
These laws and regulations require financial institutions, including BTM operators, to monitor and report suspicious transactions that could indicate money laundering, tax evasion, or other financial crimes. These laws and regulations help maintain the integrity of financial systems while protecting legitimate users from criminal activity.
Last on our list of compliance measures are BTM limits.
BTM limits refer to the amount of Bitcoin you can buy in a single transaction or in a day (daily limit). The BTM operator usually establishes these limits, though state laws may also impose restrictions. The specific amounts can differ based on your location, local regulations, and the individual operator's policies.
To learn more about BTM limits, check out our article on buying Bitcoin at BTMs.
While Bitcoin itself is very secure, and the purchasing process through a BTM is as well, once you have your coins in your wallet, there’s a little more to understand in terms of safety.
Keeping up with Bitcoin security best practices is an ongoing process.
You see, the crypto world is vast and filled with plenty of opportunities. But, with every opportunity comes a new risk. This is the tradeoff between centralization and decentralization. With all that freedom and control comes responsibility.
To help you stay safe, here are some general best practices to follow:
So, there you have it: a crash course on Bitcoin security.
While this isn’t the end all be all of keeping your coins safe, it’s a good starting point. Remember, security should be proactive. So, keep up with trends, watch BTC news, and update security accounts regularly.
When it comes to buying BTC with cash safely, though, Bitcoin Depot has your back.
Not only is our BTM buying process secure, but it’s also convenient. With over 8,400 BTM locations across the U.S., Canada, and Puerto Rico, you’re never too far away from a seamless cash purchase of BTC.
Ready to get started? Find your local BTM location today.
*The information provided above is for informational purposes only. The inclusion of any particular 3rd party site does not imply an endorsement, sponsorship, or partnership between Bitcoin Depot and the 3rd party sites listed above. While Bitcoin Depot endeavors to ensure the accuracy and relevance of the information provided, we do not guarantee the reliability of any 3rd party’s information.