Where do I keep crypto after buying it?

[Arbuxy]

If I want to buy crypto, then I believe I have to go to a broker or an exchange (assuming I don't know someone who wants to sell me some). So I've got to pay them. Are they regulated enough that I can be confident that they won't just run off with my money once I've paid them? Can I pay be credit card? Then, once I have bought from the broker or exchange, do they transfer the crypto to a wallet that I control? Or do they keep the crypto in their own wallet as a custodian? If so, again, how can I trust them?

Also, is there an advantage to buying from a broker over buying on an exchange?

Thanks

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[Little Mouse]

Almost all the exchanges will allow you to buy and withdraw to your own custody. You can use Hardware wallet or if you can't afford one (that's cheap), you can use non custodial wallet to save your crypto.
I don't know if any exchange doesn't allow you to withdraw to your own wallet (all to my known allow), only Paypal doesn't allow if I'm correct.
Depending on where you live, you can use trusted exchanges like Kucoin, Coinbase, Binance and many more. Check out in coinmarketcap for the top cryptocurency exchanges.

[Zaguru12]

If I want to buy crypto, then I believe I have to go to a broker or an exchange (assuming I don't know someone who wants to sell me some). So I've got to pay them. Are they regulated enough that I can be confident that they won't just run off with my money once I've paid them?

The exchanges are not regulated but they are centralized which makes it similar to been regulated since it is controlled by a body. You can buy from them but do not leave it on there because they could encounter any problem like hack or something similar which will affect your funds saved there.

Can I pay be credit card? Then, once I have bought from the broker or exchange, do they transfer the crypto to a wallet that I control? Or do they keep the crypto in their own wallet as a custodian? If so, again, how can I trust them?

Yes some Exchanges support the use of credit card but it depends on your country’s restrictions on cryptocurrency, if you can’t use the credit card then you have to use the P2P method. They do not transfer to your own wallet but rather they keep it in a custodian wallet they created for you on the exchange. So you can withdraw to your preferred cold wallet which is the best to do.

Also, is there an advantage to buying from a broker over buying on an exchange?

It is almost same if it is not a P2P transaction on a centralized exchange. It is more secure to buy it physically from someone known but this could also be risky in a country where cryptocurrency is banned.

[BIT-BENDER]

In terms of saving crypto-currency you have bought i would recommend you make safety your priority and one of the best and safest ways to do that is having a cold storage wallet. There are dangers using an online wallets like you can get attacks from ads, sites, malware and so much.

To understand more about cold storage check this out.

https://electrum.readthedocs.io/en/latest/coldstorage.html

You can buy your crypto-currency from wide range of sources you can get it on an exchange or you can get it also from peer2peer but you should be aware that buying from an exchange is more protected especially when you get them from a solid exchange than getting it from peer2peer but still nothing is completely safe.

Read this to better have more understanding.

For decentralized exchange: https://bisq.network
For a centralized exchange: Kucoin.
Read more here: https://kycnot.me/
Current list of exchanges without KYC

Know that centralized exchanges can demand for KYC at anytime, it is not your private key, it is theirs and they have control over your coins because the coins are theirs on blockchain, not yours on the blockchain.

Bybits will soon make KYC mandatory.

[coolcoinz]

I've bought bitcoin from a broker at their office, used an ATM and of course an online exchange. If a broker has an office, just go there. Payments depend on where you're located. I don't know if they accept credit cards in Africa, for instance, but in the EU card payments are more common than cash. You can call them beforehand and ask what payment methods they accept.
My local broker accepts cash, cards, paypal, even traditional bank transfers, although in such case you need to pay more for instant transfer, or wire money a day before you come to the office.

If you're afraid something can go wrong, take a friend or a family member with you, so that you have a witness. I've never heard of a broker running away after being paid, but better be safe than sorry.

Check if there are ATMs somewhere near you. It works pretty much like a broker. You can install a phone wallet, scan the qr code in the ATH so you don't have to worry about making a mistake in the address and then you choose how much you want to buy, pay with your credit card and the coins are automatically sent to your address.

When you buy from a physical exchange, DEX, or an ATM they always send it to your own address. Only online exchanges like Coinbase, or Binance assign a custodial address to your account, but you can move your coins to your own wallet right after buying.

The exchanges are not regulated but they have a centralized which is similar to regulations. You can’t buy from them but do not leave it on them because they could encounter any problem like hack which will affect your funds.

This isn't English! After reading this shit 3 times I still don't understand what it means.

[Charles-Tim]

There are two types of exchanges, they are:

1. Decentralized exchanges
2. Centralized exchanges.

With decentralized exchanges, the coin is sent to your noncustodial wallet.
Decentralized exchanges is where you can have more privacy, a good example is https://bisq.network/. You can read this to know about some decentralized exchanges, and also some no KYC exchanges: https://kycnot.me/

There are two types of centralized exchanges, they are:

1. The common ones like Binance, Bybit, OKX, and the likes. If you buy from these kind of exchanges, the coin will be on etheir exchange wallet, not yours. They have full control over your coins. It is not you coin on blockchain, it is theirs. You will need to send the coin from the exchange to your noncustodial wallet address.

If you need a no KYC centralized exchange, you can read this: Current list of exchanges without KYC

2. The instant exchanges like the one that has a campaign on this forum: https://bettercallraul.it/. Other examples are Changelly and ChangeNow. You will send them fiat or coin and they will send you the coin that you want to buy or exchange to. The coin would be sent to your noncustodial wallet directly, unlike centralised exchange in 1 above like Binance. If the coin sent is seen as tainted coins, they may seize it, the reason instant exchanges are centralized tok, just like Binance, Bybit and the likes.

[ImThour]

If you are literally a beginner, I would suggest keeping it in the platform from where you bought it.

Reasons:

1. Learn more about hardware wallets, metamask and passphrase before being your own bank
2. Exchanges are safe and easy-to-use.
3. There are various scams out there in DeFi and you should be aware of those before jumping on the wagon.

So just keep it in the exchange, most preferably Binance.

[Potato Chips]

Go for an exchange! it'll be easier to background check on them since more people are using such platforms. I suggest looking up your chosen exchange's threads in bitcointalk by appending "site:bitcointalk.org" in your search engine.

For centralized and custodial exchanges, you can use these tools:

• https://buybitcoinworldwide.com/
• https://cryptoradar.com/

How to use: select your country and your preferred payment method.
Note: you will have to KYC in order to buy.

No kyc p2p platforms can be found in: https://kycnot.me/?cash=on but you'll have to opt out on credit cards.

[NeuroticFish]

I am truly impressed when people come asking the right questions. Very nice!

If I want to buy crypto, then I believe I have to go to a broker or an exchange (assuming I don't know someone who wants to sell me some). So I've got to pay them. Are they regulated enough that I can be confident that they won't just run off with my money once I've paid them? Can I pay be credit card? Then, once I have bought from the broker or exchange, do they transfer the crypto to a wallet that I control? Or do they keep the crypto in their own wallet as a custodian? If so, again, how can I trust them?

You have to keep your eyes open, since the space is full of scammers, some even claiming to be good businesses (or even impersonating such businesses).
So you have to do a proper research on where you buy your coins from and pick a business/method that has already passed the test of time.

And indeed, you have to make sure you withdraw the coins to your own custody, just this means yet another learning curve, since it has plenty of security implications.
If you don't have computer management/install skills or the amount of cash you want to spend on buying coins is 4 digits or more I recommend you just do a quick research and buy a hardware wallet, they're the easiest path for "safe enough" self-custody.

It worth mentioning here that some exchanges may offer you (cheaper) bitcoin withdrawals on other chains (usually BSC or ETH). Beware, those are not bitcoins, those are altcoins ("wrapped" bitcoins) and I would stay away of those.

Also, is there an advantage to buying from a broker over buying on an exchange?

Some ask for KYC and not everybody wants to give that out.
Then the known exchanges have quite some not-so-small withdrawal fees (they falsely call them transaction or network fees, but it's more than that), hence if somebody buys small amounts sometimes the brokers come out cheaper (although the price is bad/expensive, if we consider/add the withdrawal fee too then it may come out cheaper).

[Rikafip]

If I want to buy crypto, then I believe I have to go to a broker or an exchange (assuming I don't know someone who wants to sell me some). So I've got to pay them. Are they regulated enough that I can be confident that they won't just run off with my money once I've paid them?

Even though some exchanges are more regulated than the others, you can't be 100% sure that they won't scam you or that you won;t have issues when you try to withdraw crypto into your own wallet. Having said that, there are a couple of centralized exchanges that are reputable enough that I wouldn't be too afraid to risk my money.

Then, once I have bought from the broker or exchange, do they transfer the crypto to a wallet that I control? Or do they keep the crypto in their own wallet as a custodian? If so, again, how can I trust them?

Nope, they don't transfer it to your own wallet and that's something that you have to do it by yourself. My suggestion is to do it as soon as you bought the crypto because as long its on the exchange or platform where you bought it from you won't have a real control over it.

[michellee]

Government regulations regulate exchanges so you can entrust everything to yourself if you choose a trusted and popular exchange. Exchanges are not going to run away because they have to be accountable to the government and solve every problem.

Once you buy crypto coins from an exchange, you have to transfer them to a wallet you control. The exchange is only a temporary storage place or place for you to trade so you have to send it to a wallet you control.

The exchange stores your coins safely but that does not guarantee that the exchange cannot be hacked because hackers will always try to find loopholes to get into the exchange.

You can trust exchanges but don't trust them 100% so once you have those coins, you better keep them in your own wallet.

[SatoPrincess]

You can buy bitcoins from a centralized exchange like Binance or a decentralized exchange like Bisq.com (protects your privacy), I wouldn’t recommend centralized exchanges to a person that values privacy because you will have to verify kyc on the exchange before you can buy bitcoins. It’s not advisable to leave your bitcoins on a centralized exchanges, a thousand things may go wrong and you can lose your bitcoins. As we say not your keys not your bitcoins

Reminder: do not keep your money in online accounts

Recent events should make everyone withdraw all their coins to their own wallet


Recent events should make you withdraw all your coins to your own wallet: Part 2

Decentralized exchanges on the other hand do not require kyc, and protect the identity of their users. Always store your bitcoins in a non custodial wallet like Electrum where you have full control of your coins, you can also choose to buy a hardware wallet for storing large amounts

[Adbitco]

You don't need to worry about withdrawal, for me I would have love you to buy from exchange directly and if buy from exchange before you uses your card to purchase cryptocurrency in any exchange endeavor to read their ToS and also make sure to complete kyc to avoid long stories of not being able to withdraw it from that platform. I will also recommend you to use a cryptocurrency exchange that is more friendly to your country, every country have an exchange they loved using this will reduce more stress during your kyc and again if you're that security conscious then using p2p to trade will be ideal for you. Maybe if you don't trust any dealer you may locates your local board and deal with those people that renders p2p services that are trust and reliable over here.

Also make sure to download a reliable wallet like Electrum on your system to store in your funds, that will be more better than storing your funds on a centralized exchange you don't have control over and anything may happen to your funds.

[Arbuxy]

There are two types of exchanges, they are:

1. Decentralized exchanges
2. Centralized exchanges.

With decentralized exchanges, the coin is sent to your noncustodial wallet.
Decentralized exchanges is where you can have more privacy, a good example is https://bisq.network/. You can read this to know about some decentralized exchanges, and also some no KYC exchanges: https://kycnot.me/

There are two types of centralized exchanges, they are:

1. The common ones like Binance, Bybit, OKX, and the likes. If you buy from these kind of exchanges, the coin will be on etheir exchange wallet, not yours. They have full control over your coins. It is not you coin on blockchain, it is theirs. You will need to send the coin from the exchange to your noncustodial wallet address.

If you need a no KYC centralized exchange, you can read this: Current list of exchanges without KYC

2. The instant exchanges like the one that has a campaign on this forum: https://bettercallraul.it/. Other examples are Changelly and ChangeNow. You will send them fiat or coin and they will send you the coin that you want to buy or exchange to. The coin would be sent to your noncustodial wallet directly, unlike centralised exchange in 1 above like Binance. If the coin sent is seen as tainted coins, they may seize it, the reason instant exchanges are centralized tok, just like Binance, Bybit and the likes.

You say that decentralized and instant centralized exchanges both send coins to your non custodial wallet. So they are the same thing?

Why would anyone hold money in an exchange that holds the coins in its wallets, especially after what happened at FTX? There is no regulation, surely? If you want to keep it there because you are trading crypto and it's too cumbersome to keep transferring it between the exchange and you, wouldn't you do better to trade at a spreadbetting firm, where your money is actually protected?

[Charles-Tim]

You say that decentralized and instant centralized exchanges both send coins to your non custodial wallet. So they are the same thing?

Yes, but instant exchanges are centralized. Let me explain better.

If you use decentralized exchange, the money and coins would be sent to a multisig wallet which is usually 2-of-3 multisig in a way that the buyer, seller and the decentralized exchange do not have complete control. You can read more about multisig wallet if you have not known what it is.

But instant exchanges are centralized. Assuming you have ether and you want to exchange it to receive bitcoin, you will send ether to an instant exchange address while you will provide the exchange the address you want to receive the bitcoin. The exchange will send the bitcoin to the address that you provided. When you send money to the instant exchange, they may decide to seize it or not is why they are centralized, unlike decentralized exchanges like Bisq which uses no centralized means.

Centralized exchanges seize coins that are seen as tainted coins.

Why would anyone hold money in an exchange that holds the coins in its wallets, especially after what happened at FTX? There is no regulation, surely? If you want to keep it there because you are trading crypto and it's too cumbersome to keep transferring it between the exchange and you, wouldn't you do better to trade at a spreadbetting firm, where your money is actually protected?

They are centralized exchanges and best to move your coin out of the exchange. Yes, not worth holding on an exchange.

[touseefahmad1999]

When buying cryptocurrencies, it is important to ensure that you use a reputable broker or exchange. There are many established and regulated exchanges, such as Binance, Coinbase, and Kraken, which have a solid reputation and have been operating for many years. These exchanges are regulated by various authorities, such as the Financial Conduct Authority in the UK or the Securities and Exchange Commission in the US, which helps to provide a level of trust and protection for investors.

When it comes to payment methods, most exchanges will accept payments via bank transfer or credit/debit card. However, it is important to note that some payment methods may be subject to additional fees. Credit card payments may also be subject to a credit limit, so it is important to check the terms and conditions before making a payment.

Once you have purchased your cryptocurrencies, you can transfer them to a wallet that you control. This provides you with greater control and security over your cryptocurrencies. However, some exchanges also offer custodial wallets, which means that they hold the cryptocurrencies on your behalf. While this can be convenient, it is important to remember that the exchange is responsible for the security of your cryptocurrencies.

When it comes to buying from a broker versus buying on an exchange, there are a few differences. Brokers typically offer a simpler buying process and may accept a wider range of payment methods. However, they may also charge higher fees than exchanges. Exchanges, on the other hand, typically offer a wider range of cryptocurrencies to buy and sell, and may offer more advanced trading features. It ultimately depends on your individual needs and preferences

[Asuspawer09]

If I want to buy crypto, then I believe I have to go to a broker or an exchange (assuming I don't know someone who wants to sell me some). So I've got to pay them. Are they regulated enough that I can be confident that they won't just run off with my money once I've paid them? Can I pay be credit card? Then, once I have bought from the broker or exchange, do they transfer the crypto to a wallet that I control? Or do they keep the crypto in their own wallet as a custodian? If so, again, how can I trust them?

Also, is there an advantage to buying from a broker over buying on an exchange?

Thanks

Just buy on Binance you could easily buy using a Card or fiat money with the exchange and it's probably the biggest exchange so you somehow have confidence that your funds are on safety. Surely centralized exchanges like Binance have its risk but they are still legitimate businesses, so you could exchange on the platform easily. There wasn't really any difference but buying on exchange is a lot more convenient.

But your gonna need a separate decentralized wallet where you could put your funds or Bitcoin as your main wallet since the centralized exchange is very risky if your gonna put your money there for the long term or make it your main wallet.

I can easily recommend Standard Electrum wallet, [GUIDE] How to Safely Download and Verify Electrum [Guide] .

[Arbuxy]

These exchanges are regulated by various authorities, such as the Financial Conduct Authority in the UK ..... which helps to provide a level of trust and protection for investors.

This seems to be nonsense. From https://www.gov.uk/government/publications/economic-crime-and-corporate-transparency-bill-2022-factsheets/fact-sheet-cryptoassets-technical#:~:text=The%20FCA%20currently%20has%20oversight,cryptoassets%20themselves%20are%20not%20regulated.

"The FCA currently has oversight to check that cryptoasset firms have effective anti-money laundering (AML) and terrorist financing procedures in place, but generally cryptoassets themselves are not regulated."

[Frankolala]

As a newbie, I will advise that you buy it from a centralized exchange like Binance or Kucoin. You can buy your bitcoin with whatever payment method that is cool with you based on your country's law on bitcoin adoption.

If you are literally a beginner, I would suggest keeping it in the platform from where you bought it.

So just keep it in the exchange, most preferably Binance.

No it is not advisable to leave your coins in an exchange because it will no longer be your coins,since the control you seed phrase for you and these exchanges are vulnerable to attack. As a newbie after buying from an exchange, you should get an online wallet like electrum. Electrum is very easy to understand and to use for the first time,transfer all your coins into your electrum wallet for your own safety because it is a noncustodial wallet, which only you will have access to your coins. If you have learnt very well in the forum and have understand how to created a hardware wallet,you can get one for yourself because it is more safe to store huge amount of funds in a hardware wallet.

[Little Mouse]

2. Exchanges are safe and easy-to-use.

So just keep it in the exchange, most preferably Binance.

Really? Come on. I never expected this from a Legendary. I know what you have meant and I'm sure you know what you are talking about. Regardless of whether OP is a newbie or not, it's never recommended to use centralized exchanges to store your coins. Have you seen what happened with FTX? Someone was definitely a newbie for FTX at that time and they didn't expect it.
Recommending Binance? You never know when they will freeze your account, the chance is low but there's still a chance. You possibly know that Binance has detected a mixer transaction from a user and freeze their account first though later, Binance refunded them? Because the amount was somewhat big and at that time, almost all the media covered the news so Binance had no other choice but refunding. When it comes to a small amount, no media will know, nor they will cover the news. So, your account will be frozen forever lol. In no way, CEX should be used to store coins for more than a few hours or days at max.