Bitcoin is no longer the niche digital experiment that everyone was skeptical of in the initial days. It has evolved into a global force of transformation in the world of finance by establishing the foundations of the cryptocurrency space. The growth of cryptocurrencies has not only brought new opportunities but also unexpected challenges, especially in terms of security. Technological advancements have ensured that anyone can buy Bitcoin or other cryptocurrencies within few minutes.

At the same time, you must also have what it takes to safeguard your Bitcoin tokens from emerging threats. Let us learn how you can purchase Bitcoin and store them safely.

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Things to Keep in Mind for Buying Bitcoin

The maturity of the cryptocurrency landscape has been synonymous with the growth of Bitcoin since its arrival. You must know that the success of Bitcoin provided the foundation for arrival of altcoins which built the crypto industry. Amidst the noise of technological advancements and exponential price elevations, the foremost priorities of Bitcoin owners rest in safe purchase and storage. 

Why is buying and storing Bitcoin securely is a priority for the crypto space? The growing levels of regulatory scrutiny accompanied with the increasing pressure of cyber threats call for attention to best practices for buying and storing Bitcoin. It is important to remember that the experience of one Bitcoin user plays a major role in determining adoption rates. 

If one user experiences difficulties in buying and storing Bitcoin, then their example will discourage other users from buying cryptocurrencies. Therefore, you should keep an eye on the following pointers while buying Bitcoin. 

1. Selecting the Right Exchange

The first step for a secure Bitcoin buying experience involves choosing the right exchange. In 2025, you must search for exchanges that focus on regulatory compliance, security and user experience. You should pay attention to the following aspects of an exchange before you pick it for your transactions.

  • Regulatory Compliance 

The easiest way to recognize an ideal crypto exchange involves checking whether they follow the required KYC and AML regulations. Regulatory compliance ensures that a crypto exchange has the fundamental safeguards against fraud and illegal activities. You should always look for licensed exchanges that operate according to the laws of the place you live in. 

  • Security Features

Another crucial trait of an effective crypto exchange is the assurance of security for your assets. Most of the answers to “How do I buy Bitcoin?” will ask you to choose crypto exchanges that offer robust security features, apart from basic password protection. For instance, the crypto exchange must support two-factor authentication and regular third-party security audits. The other important security features that you may notice in a trusted crypto exchange include insurance funds and cold storage reserves.

  • Reputation of the Exchange 

You should always check the history of a crypto exchange to identify any instances of security breaches. Comprehensive assessment of user reviews and independent security audits can help you obtain a clear impression of a crypto exchange’s history. Any crypto exchange that has a history of minimal security incidents and reliable service should be the first choice to buy cryptocurrencies.

  • Liquidity, Fees and User Experience

Liquidity is also one of the crucial factors that you should take into account while choosing crypto exchanges. Higher liquidity ensures that you can buy and sell your Bitcoin on the exchange instantly without incurring additional costs. On top of it, a crypto exchange that offers lower transaction fees is an obvious first pick. Most important of all, you should also check the user interface design and support systems of the exchange to get an idea of the user experience on the exchange. 

2. Adding Money to the Crypto Exchange Account 

After choosing a crypto exchange, you can move to the next step of buying Bitcoin. You must add funds to the crypto exchange account with the help of different methods. Some of the common and trusted approaches for adding funds to your crypto exchange account include wire transfers and debit or credit cards. You can also choose the peer-to-peer platforms for funding your Bitcoin purchase. 

3. Working with Crypto Wallets

The process of buying cryptocurrencies like Bitcoin revolves primarily around choosing the exchange and adding funds to your account for the purchase. You can store Bitcoin safely only by paying attention to your private keys. Some of you might be thinking that you can achieve security for your Bitcoin by choosing a reliable exchange. On the other hand, storing your Bitcoin on a crypto exchange makes you vulnerable to security risks and insolvency concerns. You must know how to work with the two common types of crypto wallets for safety of your Bitcoin.

  • Hot Wallets

Hot wallets are the crypto wallets which require online storage of cryptocurrencies. The primary reason to choose hot wallets is the convenience for frequent transactions. The common variants of hot wallets include the wallets available on crypto exchanges and desktop or mobile wallet apps. While hot wallets offer the advantage of convenience and flexible access to your cryptocurrencies, they have some limitations in security. 

Users must follow important best practices to safeguard their Bitcoin in hot wallets. For instance, Bitcoin owners must update their wallet software regularly to get the benefits of new security patches. In addition, users must have strong passwords, two-factor authentication and robust firewall or antivirus software. Another important security consideration for hot wallet users is the seed phrase backup, which should be stored in a secure, offline location. 

  • Cold Wallets 

Cold wallets are the most secure options to store Bitcoin as they work with offline storage of private keys. You can use a cold Bitcoin wallet for storing large amounts of Bitcoin over a longer period of time. The interesting thing about cold wallets is the fact that they are similar to a USB stick that you can connect to the internet when you want to access your Bitcoin. Cold wallets need physical interaction such as pushing buttons or plugging the wallet to a computer for signing transactions, thereby adding one more layer of security.

The most popular cold wallet brands in the market include Trezor and Ledger. Cold wallets are the ideal options for secure storage of large Bitcoin deposits as they ensure that the private key never leaves the hardware device. While hardware wallets provide the assurance of better security, users must follow some precautions to protect their assets. For instance, you should always purchase hardware wallets directly from the official website of manufacturers and follow their instructions during the initial setup. Users must also download firmware updates for cold wallets directly from the manufacturer’s website. 

4. Innovative Storage Techniques

Most of you might be wondering about the effectiveness of hot and cold crypto wallets for secure storage of Bitcoin. The security considerations that you have to follow to secure Bitcoin tokens in hot and cold wallets will make anyone doubt their effectiveness. Interestingly, you can capitalize on the benefits of advanced storage techniques to protect your Bitcoin. The two most innovative storage techniques that you can pick for storing Bitcoin safely include multi-signature wallets and Shamir’s secret sharing.

  • Multi-Sig Wallets 

Multi-signature or multi-sig wallets, as the name implies, need multiple signatures for authorizing Bitcoin transactions. Let us imagine that you use a 3-of-4 multi-sig wallet. In this case, the wallet will need three out of the four designated keys to sign a transaction for validating transactions. The primary advantage of multi-sig wallets is the freedom from a single point of failure. However, you must also acknowledge the limitations of multi-signature wallets, such as the complexity of setting them up and the concerns of higher fees. 

  • Shamir’s Secret Sharing

Shamir’s secret sharing is another innovative approach that can help you store Bitcoin safely with any type of crypto wallet. It serves as a useful method for breaking down the seed phrase into multiple ‘shares’. The method involves using a specific number of the shares to reconstruct the original seed phrase. The unique design of Shamir’s secret sharing technique ensures safeguards against losses due to compromised single share. On top of it, the technique also allows recovery for some lost shares.

5. Best Practices for Secure Storage of Bitcoin in 2025

Apart from the important considerations for buying and storing Bitcoin, you should also focus on ongoing security practices that users follow in 2025. You should always stay updated with latest news on emerging scam techniques and security vulnerabilities. The other crucial practices that you must follow for securing your valuable Bitcoin deposits include awareness of phishing and social engineering tactics. Furthermore, you should also practice downloading updates and software from official websites. 

Final Thoughts 

The ideal approach to buy Bitcoin and store it safely may differ according to your needs. You can discover the best way to purchase Bitcoin on cryptocurrency exchanges, given that you find the right one. Once you identify the crypto exchange that offers security, regulatory compliance and a seamless user experience, you can add funds to your account and purchase Bitcoin. After buying Bitcoin, you can store it in hot wallets or cold wallets, depending on your requirements. It is important to remember that each type of crypto wallet has some security considerations. Learn more about Bitcoin security and the best practices to protect your Bitcoin now.

Disclaimer

The article should not be taken as, and is not intended to provide any investment advice. Claims made in this article do not constitute investment advice and should not be taken as such. 101 Crypto shall not be responsible for any loss sustained by any person who relies on this article. Do your own research!

About Author

Georgia Weston is one of the most prolific thinkers in the blockchain and crypto space. In the past years, she came up with many clever ideas that brought scalability, anonymity and more features to the open blockchains. She has a keen interest in topics like Blockchain, Bitcoin, Crypto, NFTs, Defis, etc., and is currently working with 101 Blockchains as a content writer.