Perhaps the one true flaw of any cryptocurrency, like Bitcoin, is that there’s no tangible paper or coin you can hold, making offline purchases impossible. This naturally begs the question about the most secure way to purchase Bitcoin. While that online cryptocurrency exchange may offer the convenience of at-home purchasing, that convenience is often its fatal flaw whenever hackers strike.
Coupled with the fact that exchanges provide more potential points of entry for hackers than Bitcoin ATMs do, we believe the choice for those who value their security and privacy is clear.
How Often are Exchanges Hacked?
Sadly for cryptocurrency enthusiasts the world over, 2019 was not a good year for cryptocurrency exchanges. In just the 12 hacks discussed in an article by CoinTelegraph, nearly $300 million dollars was stolen from around half a million different users. Since customer data was the sole target of one of these hacks, site users may not feel the full effects of potential fraudulent account activity for years to come.
And 2020 hasn’t gotten off to a much better start. Cybersecurity firm ClearSky confirmed in late June that a cybercriminal organization known as CryptoCore was able to walk away with $200 million.
Most recently, Tripwire reported on September 10 that the exchange Eterbase out of Europe lost $5.4 million in a hack.
Hacked Exchanges Cost Users More than Just Money
While the loss of over half a billion dollars in just a few short years in and of itself is a reason for extra caution when making Bitcoin purchases, impacted users may end up missing more than the stolen funds from their digital wallets. Remember, the trade-off for the convenience of online cryptocurrency purchases is linking a bank account or credit card.
To hackers, user credentials can be just as valuable as the Bitcoin they’re able to steal. Depending on how quickly your bank or credit card company’s fraud department catches on, cryptocurrency exchange hackers may be able to drain your bank accounts and run up credit card charges.
It also bears mention that the amount of time you spend logged into the exchange won’t always be under your control, especially if your area is known for slow internet speeds. And the longer you spend logged in, the longer a neighborhood hacker has to steal your exchange credentials while you’re still waiting for a confirmation screen to load.
How are Bitcoin ATMs Safer?
We can’t speak for every Bitcoin ATM company out there, but we here at ATM Coiners take the security of our users’ transactions with the utmost seriousness. That’s one of the reasons we work with the owners of the locations where our ATMs will be placed to ensure they have adequate internet to comply with our rigorous security and privacy compliance standards. Your transaction’s security will always remain a top priority for us.
Another benefit of our Bitcoin ATMs is that they accept cash. No need to supply a credit card or bank account number to purchase Bitcoin. No need to wonder how secure your home’s WIFI is. You deposit the cash and all of your personal, non-Bitcoin-related financial information remains private.
If you’re ready to get started with a more secure way to purchase your Bitcoin, take a look at which of our Bitcoin ATMs is closest to you.