I am interested in buying around $100k of Bitcoin.
- That's a huge amount of money so I would strongly recommend you to spend at least a week for research before taking any decision.
Is the best way to buy in small quantities on an exchange?
- I am not sure if they allow overseas investors or not but in my country, a Bitcoin exchange named Unocoin allows us to place the systematic purchase orders, it means if we put $100 (INR) in our Unocoin account and place order of SIP $1/day then Bitcoins worth $1 will be automatically purchased and transferred to our Bitcoin wallet every day at the rate of that particular day. I am not sure which international exchange has such feature.
I read that some banks won't let you transfer money to a BTC exchange, and worse, may close your account.
- Yes, thus check with your bank and follow the regulations. There is no point in arguing on the pre-defined rules and regulatiuons unless you are a politician.
I worry that the exchange may fail and I would lose all my Bitcoin
- That's why it is recommended to store all of the Bitcoins in cold storage like hardware wallets or securely generated paper wallets.
I worry that Bitcoins anonymity is not going to work, after all, my bank will know that I transferred funds to a particular BTC exchange, or to a block chain account.
- Exactly so buy smaller amount with a frequent interval of time instead of buying lump-sum.
I worry that if I manage to get money into Bitcoin, I may have trouble getting it back due to financial regulations.
- It's about legal regulations and everything is in grey area at the moment in most of the countries so yes, there is risk associated with it.
I worry that I will lose my Bitcoin wallet due to an Internet problem.
- That's why you should learn more about security precautions while maintaining cold storage and real time backup of it.
I worry that my Bitcoin will be lost if I die.
- Yes if you keep it a secret from everyone and that's why you should always train your legal heirs to use Bitcoins. Especially how to retrieve Bitcoins from cold storage etc.
By the way I have no worries about price changes. I can take the financial loss if there is one.
- Great, crypto market is wild and it loves investors like you.
Please tell me if there are solutions to these problems.
- Hope it helps
