Before anything, I want to emphasize that everything I'll say
here is pretty much common knowledge. It's been discussed before. I'm not
professing knowledge of future, have no silver bullet... just telling my story.
I'm writing this primarily because I saw lots of people lately
here, being so focused on the wrong things. Like BTC goes over $1000, there are
tons of posts HOW DO I BUY NOW; BTC drops bellow $1000 then it's COINBASE WON'T
LET ME SELL, crash is coming, etc etc.
If you are considering investing in Bitcoin you should ask
yourself just two fundamental questions:
1. Do you
believe that in 5 years BTC/USD will be at higher level than it is today?
2. How
much money per month can you invest without being upset if you completely lost
all of it?
I personally believe that BTC will be more valuable in 5 years.
Not because of cryptocurrency buzz and all technical mumbo-jumbo, but simple
because of quality people who are affiliated with BTC. When you look at the
industry that's being built around BTC it pretty much resembles early days of
Internet. Everyone back then was talking THIS WILL BE HUGE and all you had were
these silly text only HTML pages. It's kinda like when you do BTC transaction
now and end up with 20 minute wait because of Blockchain confirmations.
So, there are tons of problems and many more problems await us.
Who knows, maybe price crashes back to double digits. But while I don't share
view of BTC/USD at $20,000 in 5 years that many hold, I do believe it'll be
above today's levels. Again - there are too many smart people who invested
billions in all this for BTC to fail.
Now second thing - how much you can invest without breaking
bank. This is REALLY important. Invest too much and you'll spend your day
unproductively. You will look at BTC/USD price. You will think about future.
You will start trying to read news and guess what will happen next. Will price
rise or tank? Will China do X? Will India do Y? And so on...
If you are not professional investor or trader, investing or
trading should be your lowest priority. Understand that you will not make tons
of money - you are simply looking for good long term storage for money you are
earning through other means. So, do not look for terribly complicated
solutions. You are looking for set & forget. Because if you are looking for
manual stuff - you WILL go crazy... especially with how terrible customer
support of major exchanges like Coinbase is. You'll create some nasty workflow
and then if it falls through you will suffer. Kinda like lots of people did when
Mt.Gox happened. Or Bitfinex.
...
So, let's say you said yes to 1. and $300 per month on 2. What
should you do? Well, it's easy:
1. Register
on exchange of your choice. Coinbase sucks. Circle sucks. Uphold sucks.
Gemini... some will say it's good. But many will say it sucks. You get the
idea... search this subreddit you'll see people complaining about every
exchange. Worst part is that most complaints are completely valid.
2. Identity
verification = pants off. BTC won't go mainstream without regulation and
luckily that process is progressing. Unfortunately for "set and
forget" that means you are looking at verifying identity. Think about it
as opening IRA... easier to swallow it that way.
3. Set
your daily buying. The most important part. You said $300 so set $10 daily buy.
No, do not succumb to temptation of "value is too high now - let me wait a
month and I'll buy in bulk then". Also don't do "value is too low now
- let me buy more right now". We are going with "set and
forget". You are earning money from your day job. This is investment, not
magical stash that will allow you to retire in a year. In 15 years, maybe...
but again - set & forget. We are not thinking about manual buys.
4. Once
you have more than $1000 in your exchange account set up monthly transfers to
Trezor hardware wallet.
5. Focus
on your full-time job and forget about BTC. That's it. If you did this - you
are set to ride investment wave of BTC with no stress. I feel that I should've
somehow made this part more climactic... but... guess "no-stress"
part is getting to me. After last 2 years and seeing how daily buying was the
best decision I made after getting so upset with $1000 to $200 crash... I
dunno. Maybe I value "no-stress" too much.
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