Okay guys,
I am interested in investing in bitcoin for the long term: I think that it has real potential to rival the likes of paypal, etc.
I am new to bitcoin and have done a lot of reading on it. But I am still slightly confused on the process of buying/selling bitcoins and need to be reassured on a few issues. I want to start off with £500 worth of investment.
I have started off by downloading a bitcoin wallet - "bitcoin Core" and it's in the process of synchronizing . Is this a good wallet? Is it safe from hackers, etc? I also want to be able to store my bitcoins offline on a harddrive - I think it is called 'cold-storage' - This stops malware/viruses taking your bitcoins. How do I do this? Do I need a separate wallet? Can I store my bitcoins both on my laptop and offline hardrive or can I only store it on one?
I am not going to 'mine' so I need to buy some bitcoins from somewhere else: I understand I can do this through an exchange. If I were from the US, I would use "Coinbase" because it looks easy to use and you can transfer money from your bank account. But I am from the UK so that's not possible. I have looked at a couple of exchanges and I like the look of 'Kraken'. Is this a good exchange? Is it safe?
Obviously, I need to deposit money onto 'Kraken' before I can buy bitcoins. The only way to do this is through an International Wire transfer or SEPA. I have never done one of these before. After I have sent the money to 'Kraken' through a wire transfer, how do they know what account to deposit it to? Do I need to include something in the reference/instructions giving my account name/email? How long does this process normally take?
Regarding verification, I have verified myself to tier 2. In order to verify myself to tier 3 I need to provide a scan of my passport and a utility bill. How long does it take them to approve this or is this instant? Do you need tier 3 verification to sell bitcoins? I think you only need tier 2 to buy?
Okay, so say I buy £500 worth or bitcoin on 'kraken'. How do I get these bitcoins to my wallet? Is this even possible? How long does this process take?
Although this is a long time off, if I want to sell my bitcoins, I assume I transfer them back from my wallet to 'kraken'. And then sell them for Euros. How do I then withdraw these from 'Kraken'? Is it difficult? How long does the process take?
Sorry for asking so many questions but I would really appreciate if you guys could reassure me on my worries.