I am the opening poster (OP）from two years ago and would like thank everyone for the brilliant advice on how to address my worries. Below are some replies to your comments. Firstly, in 2017, I see bitcoin as way safer than in 2015. There are far more ways to buy, hold, or trade bitcoins than 2015. It is seen as way more acceptable in 2017 to own bitcoins than 2015.
I am interested in buying around $100k of Bitcoin.
- That's a huge amount of money so I would strongly recommend you to spend at least a week for research before taking any decision.
- answer: Spent two years, not a week.
Is the best way to buy in small quantities on an exchange?
- I am not sure if they allow overseas investors or not but in my country, a Bitcoin exchange named Unocoin allows us to place the systematic purchase orders, it means if we put $100 (INR) in our Unocoin account and place order of SIP $1/day then Bitcoins worth $1 will be automatically purchased and transferred to our Bitcoin wallet every day at the rate of that particular day. I am not sure which international exchange has such feature.
Answer:
I am now buying regularly through multiple exchanges, machines, credit cards, person to person and through regulated and quoted ETFs and tracker funds, and bitcoin notes issued by reputable banks and held in custody by banks.
I read that some banks won't let you transfer money to a BTC exchange, and worse, may close your account.
- Yes, thus check with your bank and follow the regulations. There is no point in arguing on the pre-defined rules and regulatiuons unless you are a politician.
Answer: All my banks now accept that i am investing in bitcoin. My main bankers are great fans and are buy9ng bitcoins themselves.
I worry that the exchange may fail and I would lose all my Bitcoin
- That's why it is recommended to store all of the Bitcoins in cold storage like hardware wallets or securely generated paper wallets.
Answer: I store all bitcoins on paper in cold storage in several locations, underground bank safes.
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.
- Exactly so buy smaller amount with a frequent interval of time instead of buying lump-sum.
- Answer: For larger size i am doing trackerfunds on which my bank charges a custody fee. For exchanges, no more than a few thousand dollars at a time.
I worry that if I manage to get money into Bitcoin, I may have trouble getting it back due to financial regulations.
- It's about legal regulations and everything is in grey area at the moment in most of the countries so yes, there is risk associated with it.
- Answer. There are so many people interested, and so many exchanges, that I reckon there will always be a place i can sell them.
I worry that I will lose my Bitcoin wallet due to an Internet problem.
- That's why you should learn more about security precautions while maintaining cold storage and real time backup of it.
I worry that my Bitcoin will be lost if I die.
- Yes if you keep it a secret from everyone and that's why you should always train your legal heirs to use Bitcoins. Especially how to retrieve Bitcoins from cold storage etc.
By the way I have no worries about price changes. I can take the financial loss if there is one.
- Great, crypto market is wild and it loves investors like you.
Please tell me if there are solutions to these problems.
- Hope it helps
