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Investing $2 every week or month seems like a child's play to me I mean how do you intend to increase your portfolio even though Bitcoin investment is a gradual process I don't think I can invest with $2 every week or month because $2 seems like nothing, because of the value of Bitcoin. Investment is not a must, the moment you start it without preparation ( having a stable source of income that will aid your investment well) you might be stranded along the line and we should not force ourselves to invest in Bitcoin simply because our friends are investing when you know within yourself that you don't have the capacity to..., what I am saying in essence is that investing with $2 doesn't make any sense to me.Even though folks can invest whatever they are able to invest, yet I also agree that there should be efforts to bring the amounts and the frequencies of buying up, and I tend to never refer to ideas of investing less than $10 per week, even though surely some guys might be in a position in which they are not able to invest more than $10 per week into bitcoin.
It is hard to understand you correctly but If I get you right, you are advising me to keep accumulating Bitcoin in exchange UpTo $500 before I can send to my private wallet? If that is what you mean, then it will be good. It will save me the cost of transaction fee because I learnt that if I continue buying and sending to my private wallet it will cost me a huge transaction fee. But accumulating $500 in my exchange wallet before sending to my private wallet will be a nice idea. But to achieve that, it will take a little time maybe 12 months. And the private wallet I used the last time was electrum wallet. Maybe I will stick to it.
It is not wise to keep your Bitcoin in an exchange, because it involves a third party, and if we can remember Bitcoin was not created to have a third party system, therefore it is risky keeping your coins in an exchange, and even if it's necessary it's should be a very small quantity that if denied access will not affect you. It is better to keep your Bitcoin in your private wallet than in an exchange, where you can have access and control of it whenever you want it.
It is not wise to keep your Bitcoin in an exchange, because it involves a third party, and if we can remember Bitcoin was not created to have a third party system, therefore it is risky keeping your coins in an exchange, and even if it's necessary it's should be a very small quantity that if denied access will not affect you.
It is better to keep your Bitcoin in your private wallet than in an exchange, where you can have access and control of it whenever you want it.
Keeping your Bitcoin in an exchange is really an unwise thing to do because if anything happens to that exchange in question, like hacking or internal theft, or like in the case of FTX, just know that you asset is gone, that's why it's advice to store your Bitcoin in a self custodian wallet like electrum where only you have access to, and one funny thing is that, most investors have heard of this statement before which is not your key, Not your coin, but they really don't understand what that statement mean, but in essence of all am trying to say is that keeping our Bitcoin in an exchange is a terrible mistake we should avoid by all means because once that exchange goes down, at that moment, your asset are gone. It is better to keep your Bitcoin in your private wallet than in an exchange, where you can have access and control of it whenever you want it.
For example this are two different exchanges kucoin and binance. From the image you can see that the minimum deposit and withdrawal of each of them is 0.0002BTC which is equal to $21 in current rate except for the lightening network which the minimum is 0.00002BTC but apart from that it is obvious that you can't even send less than $10 or deposit less than $10 meaning thesame thing is applicable in the private wallet. The transaction fee is $4 which implies that if you even manage to be sending $30 every week, you will be losing $4 to transaction fee multiply by how many weeks you have sent to your private wallet then you are on a losing streak. So it's Best you allow your Bitcoin to stack up in your exchange despite the risk you may have atleast 6 months intervals each in a Year to send to your private wallet if you are Afraid of exchange hack.
When I am talking about UTXO management, I am not just referring to sending from the exchange, even though you are correct to point out that some exchanges have minimum withdrawal fees that make it seem imprudent to be sending small amounts.
Another reason that I frequently mention $500 is out of concern for long term storage, so even if a guy has several UTXOs that range between $10 and $100, there sometimes could be fees that add up towards making some of the balances uneconomical to spend at various times in the future, and accordingly I talk about UTXO management since many times we are going to have separate UTXOs for each of the amounts that we send, even if we try to reuse addresses, and it is not even advisable to reuse addresses.
Earlier, I mentioned an example that a guy who has 50 UTXOs that are round $10 each, may end up without an ability to spend them because fees might be high, so if fees are $10 for each UTXO, then each of his UTXOs is uneconomical to spend, as compared with the guy with only 1 UTXO of $500, and he might have $490 remaining if the fee were to be $10. Many guys seem to not know about UTXO management and how it works, and surely I am not even explaining it, so that means that guys have to learn about UTXO management, instead of continuing to believe that the ONLY transaction fees that matter are the fees from the exchanges, and even though exchanges are sometimes outrageous in their fees, there are other ways that we should be trying to better understand how fees work and how UTXO management works, especially when we are taking coins into self custody.
Several wallets allow coin control, which allows folks to see the UTXO sizes and to choose which UTXOs to send from, but like I mentioned if guys have 50 or more UTXOs in their wallet that were a result of various $10 transactions, when fees go high the guys might be believe that they have $500 to $1,500 in bitcoin, yet the fees might end up adding up to several hundred dollars, yet if he had kept the UTXOs larger by sending larger transactions to himself when he was sending from exchanges, such as $200 to $500 or more as minimum amounts, then he will likely have more options with his future transactions, even if feels might be high in the future.
I can tell from some of the responses of guys or the lack of response or the continuing to think that $20 or $100 is o.k. that they do not understand the issue. Sure once in a while sending transactions or receiving transactions of $20 to $100 might be o.k... yet it is going to become quite problematic if a guy might end up having hundreds or even thousands of transactions that had started out in those amounts. There are 52 weeks in a year and 520 weeks in 10 years, and 1,040 weeks in 20 years... sure maybe somewhere along the line guys will learn about UTXO management and perhaps consolidate some of their UTXOs or even other guys might choose to break their larger UTXOs into smaller parts, breaking larger UTXOs into smaller parts seems to be a better problem to have.. even though sure the $10 to $100 transactions from today may well end up being worth $100s to $1,000s or even $10s of thousands in 4-10 years or longer from now. I had some transactions from 2015 that were buying bitcoin for $100 or even a few hundred dollars, and some of those were 0.25 BTC to 1.5 BTC, and it was just a $100 to to $400.