Crypto Coins News - Ratings - Reviews
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:
Do you believe that in 5 years BTC/USD will be at higher level than it is today?
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:
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.
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.
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.
Once you have more than $1000 in your exchange account set up monthly transfers to Trezor hardware wallet.
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.
Guess you guys will tell me in comments. In any case – thanks for reading… and TO THE MOON (without stress)!