Worries: can anyone advise?

[Trickyt57]

I am interested in buying around $100k of Bitcoin.

Is the best way to buy in small quantities on an exchange?

I read that some banks won't let you transfer money to a BTC exchange, and worse, may close your account.

I worry that the exchange may fail and I would lose all my Bitcoin

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.

I worry that if I manage to get money into Bitcoin, I may have trouble getting it back due to financial regulations.

I worry that I will lose my Bitcoin wallet due to an Internet problem.

I worry that my Bitcoin will be lost if I die.

By the way I have no worries about price changes.  I can take the financial loss if there is one.

Please tell me if there are solutions to these problems.

[ransomer]

Many of those are valid concerns.

Which is why blockchain technology still has quite a long way to go before ordinary people can just move money into bitcoin worryfree.

For example, some people argue that btc can help the unbanked in the third world. The ones at the bottom of the pyramid. The ones with 10 people living in a hut made from coca cola cans. So how will they keep their paper wallets safe? Frankly btc is pretty far from having reasonable security measures in place - but once that gets solves... yes, then it will be a great leap in terms of the history of money. But we are far from there yet and security issues is currently the main issue.

However, some of your concerns however are unlikely to happen or can be remedied if you are careful. But - it is not like putting money in a Citibank account in terms of security. Yet.

[jeffthebaker]

Don't invest 100k all at once. It's best to spend a portion of your investment funds once a week, and with that large of an amount, you will have trouble investing all at once anyways. Instead, purchase 10k worth of BTC once a week for the next 10 weeks, or 1-2k worth of BTC daily. It will be cheaper and safer this way.

[RussianRaibow]

I am interested in buying around $100k of Bitcoin.

Is the best way to buy in small quantities on an exchange?

I read that some banks won't let you transfer money to a BTC exchange, and worse, may close your account.

I worry that the exchange may fail and I would lose all my Bitcoin

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.

I worry that if I manage to get money into Bitcoin, I may have trouble getting it back due to financial regulations.

I worry that I will lose my Bitcoin wallet due to an Internet problem.

I worry that my Bitcoin will be lost if I die.

By the way I have no worries about price changes.  I can take the financial loss if there is one.

Please tell me if there are solutions to these problems.

You are just building a new account which will be sold at Digital Goods section @ $1-$2.

Please keep your $100k stories elsewhere. We have enough of this.

If you make one more post like this, I'll report you to BadBear.

[MicroGuy]

If you want to worry about something, worry about the fact that bitcoin core can't send an alert without the consent of a third party.

Your remaining worries are tiny in comparison.

[albert11]

You can use localbitcoins, make sure to chose a reputable trader. Also i 'd advise not buying $100k in one shot, you can buy $10k - wait for bitcoin to be released, then $10k again and repeat the same process until you reach $100k. On localbitcoins if you stay in escrow and make sure that you have proof of payment then you can't get scammed.

Then send your bitcoin from localbitcoins to paper wallets ( bitaddress.org), i would recommand creating at least 10 wallets and send 10k on each wallet, keep multiple copy of private keys in a safe place, you can give copy to someone you trust in case you die.


You will not have trouble getting your bitcoin back if you hold the private keys regardless of regulation.

[lahm-44]

well if u dont trust banks then go for local traders..ofcourse one trader will not pay u btc for 100k so u have to exchange it part by part and store it in a paper wallet..and whenever u want to earn just take ur coin from the paper wallet and after some profit send them back to ur paper wallet

[scarsbergholden]

With that amount of cash im sure you could get a bitcoin broker to setup a private deal for you, have a look at this http://www.coindesk.com/bitcoin-brokers-trade-millions-without-exchange/, you will pay a % of course base on the buy is how they make their money.

[lihuajkl]

Don't invest 100k all at once. It's best to spend a portion of your investment funds once a week, and with that large of an amount, you will have trouble investing all at once anyways. Instead, purchase 10k worth of BTC once a week for the next 10 weeks, or 1-2k worth of BTC daily. It will be cheaper and safer this way.

This is a good strategy for you! If you go to exchange, you buying pressure will push up the price a lot. You buy a bit from time to time when the price is staying at the lower range.
Check this one as well. http://www.reddit.com/r/Bitcoin/comments/2q6hm0/where_to_buy_bitcoin_in_large_amounts/

[Hazir]

I worry that if I manage to get money into Bitcoin, I may have trouble getting it back due to financial regulations.

Future Bitcoin regulations are always a problem. But I don't think that government would go as far as to block bitcoin of ensue some regulations so severe that you lost access to your coins.

I worry that I will lose my Bitcoin wallet due to an Internet problem.

Imagine this - if internet fails - I mean, totally fail - whole internet will die. Then yes, you probably lose your coins. But I doubt that will happen, unless there will be some crisis like nuclear war or something.
But again I don't think you would care about your coins anymore if that happen. So don't worry, it is not possible for internet to fail.

I worry that my Bitcoin will be lost if I die.

And you are perfectly fine with money you lose after you die? It is the same thing. Just give access to your private key/wallet to someone you trust. Thats it.

[coinableS]

I'd suggest that you buy $20 or $100 or whatever you are comfortable losing and start to play around with it and learn how it works. Try out some different wallets, try making transactions, creating new keys, etc. Once you understand everything better and you have a solid grasp on proper key management then you can go big and keep all the coins yourself so you won't have to worry about any exchange failing.

[Trickyt57]

Thanks to nearly everyone (I exclude Senior Member Russianraibow - who was too quick off the mark to make a judgement without any cause).

Thanks coinableS to recommend I start small.

Hazir thanks for the reassurance on the Internet not failing.

Jeffthebaker and lihuajkl, I noted that such an amount could change the price - I'll buy slowly.

microguy, I don't understand your worry that I can't send Bitcoin without confirmation from someone else.  Can you expand on this?

Thanks to others for the links and advice.

I get the picture, buy slowly, test the reputation of my counterparty, use multiple wallets (good tip from albert11), don't worry about technology failure, back up my user info in several safe places and make sure the info is available to my heirs.

The main worry which is not answered is: do I risk my bank blocking my transactions or closing my account if I buy Bitcoins?  Is there a way to by-pass my bank so they don't know what I am doing?  Could I for example open a special purpose account like a PayPal or Netteller just for Bitcoin transactions?

[DannyHamilton]

The main worry which is not answered is: do I risk my bank blocking my transactions or closing my account if I buy Bitcoins?  Is there a way to by-pass my bank so they don't know what I am doing?  Could I for example open a special purpose account like a PayPal or Netteller just for Bitcoin transactions?

Use cash and your bank won't know what you are using it for.

[pooya87]

all your concerns are valid but solvable

I am interested in buying around $100k of Bitcoin.
if you really want to invest that much, do it little by little not all at once

Is the best way to buy in small quantities on an exchange?
yes.

I read that some banks won't let you transfer money to a BTC exchange, and worse, may close your account.
i read that news too. it is European banks and they will report transfer above €1,000

I worry that the exchange may fail and I would lose all my Bitcoin
as i said do it little by little so that you are safe.

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.
you can buy from someone face to face with cash with considering security issues. and use a mixer to achieve the anonymity you want. (localbitcoin.com)

I worry that if I manage to get money into Bitcoin, I may have trouble getting it back due to financial regulations.
you cal always sell to a person for cash just like you can buy.

I worry that I will lose my Bitcoin wallet due to an Internet problem.
read about how to make a secure wallet, offline (cold) wallet,... and consider hardware wallets like trezor.

I worry that my Bitcoin will be lost if I die.
hmm. you can put your private keys, passwords in your will !

[mezmerizer9]

If you want to worry about something, worry about the fact that bitcoin core can't send an alert without the consent of a third party.

Your remaining worries are tiny in comparison.

microguy, I don't understand your worry that I can't send Bitcoin without confirmation from someone else.  Can you expand on this?

I think he is talking about this.

Bitcoin’s core development team noticed the situation early and was able to track down a living alert key holder. An alert key is a secret key that allows its owner to broadcast security alerts and update notices to every bitcoin client.

https://bitcointalk.org/index.php?topic=1109141.msg11792222#msg11792222

[WaterSupply]

The main worry which is not answered is: do I risk my bank blocking my transactions or closing my account if I buy Bitcoins?  Is there a way to by-pass my bank so they don't know what I am doing?  Could I for example open a special purpose account like a PayPal or Netteller just for Bitcoin transactions?

Use cash and your bank won't know what you are using it for.

We can say that use bitcoin, your bank won't know what you are using it for. You are not understanding OP's concern. Op is trying to buy a large amount of bitcoin and looking for best anonymous ways of buying it.

[DannyHamilton]

The main worry which is not answered is: do I risk my bank blocking my transactions or closing my account if I buy Bitcoins?  Is there a way to by-pass my bank so they don't know what I am doing?  Could I for example open a special purpose account like a PayPal or Netteller just for Bitcoin transactions?

Use cash and your bank won't know what you are using it for.

We can say that use bitcoin, your bank won't know what you are using it for. You are not understanding OP's concern. Op is trying to buy a large amount of bitcoin and looking for best anonymous ways of buying it.

I understand exactly what OP's concern is.

You are not understanding my answer.

OP is concerned that the bank might close his account or block his transactions if the bank finds out that he is buying bitcoins.

My answer is to buy the bitcoins with cash.  Withdraw cash from the bank.  Then use the cash to buy the bitcoins.

The bank won't know that you are using the cash for buying bitcoins, so your account won't be closed, and they won't be able to block your transactions.

[Chef Ramsay]

Depending where you're located and whether you're legit or not, I would advise you to buy your full load piecemeal like others have advocated. Coinbase is my favorite/easy run on the front end and then the next move is up to you.

[Amph]

firstly you can't pretend to buy with fully anonimity when you are using your bank account to recieve/send your funds, if you want tuflly anon you need to do small transaction with a stranger in your local area, you can contact someone via localbitcoin or maybe here on bitcointalk

some of your concerns can be fixed easily, for example the exchange concern can be avoided by not letting your bitcoin sit there

internet problem can't make you lose your bitcoin at all...at best you cannot use bitcoin if you have not internet

the last concern can be solved, with a new fuction that could freeze your bitcoin for a certain amount of time, called BIP something, i don't remember now, then the person that you trust the most, can take control over your coins

[ransomer]

Let's be honest.. anonymity is a none issue for most people. I am not buying on silk road nor do I have any ideological reasons to stay anonymous (over and above what I already am in the FIAT system).

So while anonymity might have helped bitcoin in the beginning spread to anonymity concerned individuals - as we get out into the general population it becomes more and more a none-issue (with exception of course).