Post
Topic
Board Beginners & Help
Re: Learn how to invest BTC
by
MyIota
on 17/03/2018, 04:50:13 UTC
There are many aspects of investing in bitcoin that you should teach yourself.

I think this covers a fair bit:

1. Storing bitcoin.

Learn the difference between public addresses and private addresses. Each private address can create any number of public addresses. The public addresses are where people send your bitcoin so you can receive it. Public addresses are safe to share around the internet.

Private addresses are your password to your bitcoin. Never share them. If public addresses are the email, then private addresses are the passwords.

You can store bitcoin in paper wallets. You can create your own paper wallet. A paper wallet is created by downloading and installing the Bitcoin Core. Scan your computer for viruses before creating a paper wallet in case hackers are looking at your computer. Create your private address, generate your public addresses.

Write down your public and private addresses BY HAND. You can also opt to export the public and private addresses into a notepad document and save it on a USB drive for safe keeping.

After doing so, you can simply use the public address safely around the internet, but always scan your computer before inputting your private key to access your bitcoins (to send bitcoins).

There are also Hardware and Web Wallets. Hardware Wallets can be safe, like Trezor, where the private key is not known by anyone but the Trezor device. I don't like this idea very much, because I'd like access to my private key. They give you a seed key, which u can use to access your wallet. It's still not the same. If Trezor goes bankrupt, your seed key is useless and you'll never know your private key.

But Hardware Wallets have awesome safeguards, like PINs and 2FA at the hardware level. Even if a hacker has access to your computer, or your outside having fun and plug your hardware wallet into a terminal. It doesn't matter! You have a PIN and password and whatever 2FA that lets you use it safely in public without anyone being able to hack your wallet unless you physically lose the Trezor device!

Web Wallets are even less safe. But they are convenient. Blockchain.Info is a trusted web wallet where you create an acount and they give you a public address. I'm not sure, but I dont think they let you access your private key anymore... Why are web wallets not safe? Most are scams, and your private keys IS STORED by them. And you just have to trust they won't do an exit scam where they just take everyone's private keys and leave.

2. Buying Bitcoin

Lookup how to buy bitcoin. Some methods, like PayPal, require 30% fees and identification with governmental IDs. You can only buy with PayPal on few sites, like Bitcointalk and Localbitcoins, and Virox. But due to the conflicts and possible scamming, there's a high markup.

You can buy bitcoin by cash by meeting strangers in real life. Like buying an item on Craigslist. There's a bit of a risk here where you hand someone money and htey just walk away laughing.

The easiest and safest and lowest fee way of buying bitcoin is buy linking your bank account with an exchange and depositing fiat. Then you would need to buy bitcoin with your fiat credits. Typical exchanges only charge less htan 1% fees which are typical of trading fees.

Once you've bought bitcoin, you can either keep it on an exchange, or send it to your private wallet (via public address). That all depends on whether you're into long-term hodling or short-term investing.

3. Being aware of bitcoin's price

Assuming you didn't transfer your btc to a private wallet, now that you have bitcoin at an exchange you can trade it everyday.

It's not hard to do, you'll notice there are clear signs that bitcoin price will pump or dump. But read news, lookup how to figure out and predict when the price will rise and fall. Then trade accordingly.

It's best, as everyone suggested, to leave bitcoin in your wallet without trading it and just wait until it's at the desired price you'd like to sell it at.