My Bitcoin journey

[MR2O4]

I’m no expert in Bitcoin, or any crypto currency, just a regular guy, with a bit of background knowledge, mostly from reading this forum over the last few days. I’m starting to experiment with Bitcoin partly to diversify my investments, but mostly out of curiosity! I thought I’d start a thread about my Bitcoin journey to help anyone else in a similar position, but also as a sounding board to make sure I'm on the right track.

Bitcoin has been in my peripheral vision for years - I’m not going to think about how lucrative it could have been to have bought some Bitcoin when I first heard about it! The value has already doubled since I put “Research Bitcoin” into my todo list a few months ago! I am not interested in learning about the mining side of things, I understand I have already missed the boat on that!

From my current investments I have come to the  conclusion that I prefer to take a hands off approach to investing and that fees can eat into your profits, so need to be minimised. I’m going to take a similar approach to Bitcoin, finding a balance between returns, effort and fees and to start with - not investing more than I can afford to lose, until I know what I am doing a bit more.

It seems like my first step is to set up a wallet - there seem to be a lot of options for this. I think to start with I'll go for a web based one to start with, blockchain.info and coinbase are looking most likely at the moment - any preferences on the two? Or is it worth setting up both and seeing which I prefer?

Security wise, I have set up a new email address, with 2FA activated, to keep my Bitcoin stuff separate/private.

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[GorillaDental]

Many people start with Coinbase, as it's easy and they can buy with a credit card. But, as you watch videos/tutorials, you'll realize that Coinbase has high fees, that leaving your coins on an exchange is risky, etc. GDAX, Gemini are much better deals. Ledger Nano S is a safe way to store your coins off of the exchanges.

[bunch]

I am pretty new too. I have used wire transfer to Coinbase. Funds have been available a few hours after registration of transfer on my online bank (on week days). I have like you been following bitcoin from a distance for far too long. I find myself checking values far too often, but I expect the frequency will drop I’m not too long. Good luck with your investment.

[jekjekman]

It seems that you are a very skeptical kind of a person because all you do before are to watched the scene of Bitcoin instead of trying to start investing with it I can't blame you though as many people are like you and I once like that when I am starting my early stage with it.

Blockchain.info and Coinbase is an exchange for Bitcoin that can considered also an online wallet so you will not be holding your private keys there and you are entrusting your Bitcoins to them if you start investing, if you want you can install a desktop/software wallet to your computer like Bitcoin Core, Electrum, etc. as you will hold your very own private keys, I am using Electrum wallet since I started using Bitcoin though and I recommend it also because it is convenient to use for me.

[Marahunter]

am still trying to wrap around my head around this forum yet i have already taken my first hit in investing in cryptocurrency. i am unsure whether this is the right place to seek advice/support anyway you can forgive me for beign a first timer.

I am currently emotionally broken down but putting on a brave face after having my account hacked. am young so of course this is very depressing, not the entry i was expecting. my situation is getting worse with each day, especially as I lack more money to invest. i already invested in waves, and looking at the outlook of the coin in the near future I feel even worse for missing out on a huge breakout. i mean the small money i invested could be huge in 2018 .

i just wanted to speak to anyone who could understand, i would highly appreciate any supportive advice. it is affecting other facets of my life, especially socially and i feel it has to stop. i just discovered bounties and i have been rebuilding my portfolio with those slowly by slowly.

any supportive words i will highly appreciate.

[mk4]

When choosing a bitcoin wallet, it's very important that the wallet you choose gives you access to your private keys. Coinbase doesn't, so pretty much when Coinbase gets hacked then chances are, your bitcoins are gone. Only use Coinbase as a way of purchasing bitcoin, not as a wallet. Blockchain.info's wallet is fine, but I'd prefer Electrum for Windows, Copay for Android, and Breadwallet for iOS.

[MR2O4]

Many people start with Coinbase, as it's easy and they can buy with a credit card. But, as you watch videos/tutorials, you'll realize that Coinbase has high fees, that leaving your coins on an exchange is risky, etc. GDAX, Gemini are much better deals. Ledger Nano S is a safe way to store your coins off of the exchanges.

Thanks, too late though, I signed up with Coinbase and bought my first BTC. With fees, they seemed to be about even to other exchanges, but I still have more research to do - this was just an initial small purchase. As the amounts get bigger, I will be looking to store my coins off the exchanges.

[MR2O4]

I am pretty new too. I have used wire transfer to Coinbase. Funds have been available a few hours after registration of transfer on my online bank (on week days). I have like you been following bitcoin from a distance for far too long. I find myself checking values far too often, but I expect the frequency will drop I’m not too long. Good luck with your investment.

Good luck to you too! I was pretty impressed with how quickly I was able to buy coins from Coinbase using my credit card.

[MR2O4]

It seems that you are a very skeptical kind of a person because all you do before are to watched the scene of Bitcoin instead of trying to start investing with it I can't blame you though as many people are like you and I once like that when I am starting my early stage with it.

Blockchain.info and Coinbase is an exchange for Bitcoin that can considered also an online wallet so you will not be holding your private keys there and you are entrusting your Bitcoins to them if you start investing, if you want you can install a desktop/software wallet to your computer like Bitcoin Core, Electrum, etc. as you will hold your very own private keys, I am using Electrum wallet since I started using Bitcoin though and I recommend it also because it is convenient to use for me.

It was more in the back of my mind before, I just didn't want to get too involved until I'd done some research (and avoid a situation like Marahunter in the post below yours). I've recently injured my leg, so been unable to do my usual training, giving me plenty of time to sit at my computer.

My plan is to install a desktop wallet when I have some more Bitcoin, although I think Bitcoin Core may cripple my computer. Electrum does look good though.

[MR2O4]

am still trying to wrap around my head around this forum yet i have already taken my first hit in investing in cryptocurrency. i am unsure whether this is the right place to seek advice/support anyway you can forgive me for beign a first timer.

I am currently emotionally broken down but putting on a brave face after having my account hacked. am young so of course this is very depressing, not the entry i was expecting. my situation is getting worse with each day, especially as I lack more money to invest. i already invested in waves, and looking at the outlook of the coin in the near future I feel even worse for missing out on a huge breakout. i mean the small money i invested could be huge in 2018 .

i just wanted to speak to anyone who could understand, i would highly appreciate any supportive advice. it is affecting other facets of my life, especially socially and i feel it has to stop. i just discovered bounties and i have been rebuilding my portfolio with those slowly by slowly.

any supportive words i will highly appreciate.

I'm sorry to hear that. It is probably too late to say it for you, but I'll add my advice in case anyone else is reading who may benefit. Like jekjekman said, I'm naturally cautious with things like this, so tried to minimise my risk by sticking to Bitcoin and well regarded exchanges with 2FA. Setting up a separate email address with 2FA, may have been overkill, but I'd rather be safe than sorry. The main thing though, is that whilst I'm learning about Bitcoin and crypto currency in general is that I'm not investing more than I can afford to lose. Yes, I may be missing out on potential gains, but I don't want to end up in a worse place than I started.

[LoyceV]

You're new to Bitcointalk, and don't seem like the typical spammer. That's much appreciated, so welcome

Some advice:
If you're the last to post on Bitcointalk, don't add another post, just edit the first one and add whatever you wanted to add. It reduces spam on the forum, and complies with forum rules.

Now, back to Bitcoin:
Be paranoid! Many people want to get your Bitcoins, many people have had their Bitcoins stolen, and many more will fall victim to theft. There are a few people I trust, but in general it's best to assume people would steal your coins if they get the chance. Don't give anybody that chance.

From my current investments I have come to the  conclusion that I prefer to take a hands off approach to investing and that fees can eat into your profits, so need to be minimised. I’m going to take a similar approach to Bitcoin, finding a balance between returns, effort and fees and to start with - not investing more than I can afford to lose

This seems like a good approach to me. Stock market manipulation and inside trading is illegal. In Bitcoin, it just happens in plain sight! Bitcoin can easily go up and down 20% on a day. It took me a while to get used to it, now I just look at big drops as the rich (called whales) trying to get you to panic and sell cheaper. Many people who bought at the top sold $2000 lower last weekend. In case you didn't read that news: there was huge manipulation going on from the Bitcoin Cash guys, attacking Bitcoin by overloading the network with transactions, and in the end the manipulating party gets out much richer.
Trading is a high risk game, where the average inexperienced newbie loses his money.
My current strategy: every time Bitcoin goes up by a certain percentage, I sell a certain percentage of my holdings. I made a spreadsheet that tells me exactly when to sell. This way it doesn't hurt so much when it drops hard, and if it doubles again I still have enough left so I don't miss out on a big increase.

It seems like my first step is to set up a wallet - there seem to be a lot of options for this. I think to start with I'll go for a web based one to start with, blockchain.info and coinbase are looking most likely at the moment - any preferences on the two? Or is it worth setting up both and seeing which I prefer?

I would suggest to try out different services, see what's available, and see what works for you. Everybody has their own preferences, so you'll get different suggestions every time you ask.
In general, online services shouldn't be trusted long term.

Thanks, too late though, I signed up with Coinbase and bought my first BTC. With fees, they seemed to be about even to other exchanges, but I still have more research to do - this was just an initial small purchase. As the amounts get bigger, I will be looking to store my coins off the exchanges.

I've never used Coinbase myself. A typical exchange charges about 0.25% fee on every transaction.

My plan is to install a desktop wallet when I have some more Bitcoin, although I think Bitcoin Core may cripple my computer. Electrum does look good though.

Electrum is easy and popular. Remember to be paranoid: Use the real Electrum website, there are also fake sites that try to make you install a compromised wallet. This will steal your coins!
Also remember to not trust just any link you find on the internet (including the link I just gave you: search for yourself, and verify for yourself it's the real site).
Also remember: if your computer gets compromised (which happens a lot to Windows users), your wallet is compromised too. There are computer viruses out there that replace an address between your CTRL-C and CTRL-V, if you don't check carefully, you'll send your coins to someone else.

I'm naturally cautious with things like this, so tried to minimise my risk by sticking to Bitcoin and well regarded exchanges with 2FA.

Several exchanges have lost large amounts of Bitcoins in the past. 2FA isn't going to safe you when they lose your money. Also, many people lost access to their own 2FA, which is another problem.

To read more about wallets, go here: [General] Bitcoin Wallets - Which, what, why?
In general, the safest wallets are paper wallets (for offline long-term storage) and hardware wallets (for easy access). Each wallet has it's own specific pros and cons.

Bitcoin fees can get quite high nowadays. Think of Bitcoin as electronic cash: try not to collect many small coins, it will require a large fee to send them.

Don't let my warnings discourage you, learn the tricks and risks, and have fun!

[MR2O4]

When choosing a bitcoin wallet, it's very important that the wallet you choose gives you access to your private keys. Coinbase doesn't, so pretty much when Coinbase gets hacked then chances are, your bitcoins are gone. Only use Coinbase as a way of purchasing bitcoin, not as a wallet. Blockchain.info's wallet is fine, but I'd prefer Electrum for Windows, Copay for Android, and Breadwallet for iOS.

Thanks, that is the impression I got. My next step is to set up a Blockchain.info wallet and transfer some of my coins into it.

Loads of useful stuff.

Thanks for the really useful reply. I didn't realise I was breaking forum rules, I had looked for a multi-quote option.

I need to get my head around trading, although to start with I will be trying to buy in the dips and hold.

As I've mentioned, my next step is to try out some other wallets, and maybe sources for coins, but thanks for the warnings. I consider myself web savvy, but do realise that Bitcoins are a bit like the wild west, so I need to be extra careful.

[Moesee]

I use Coinbase to trade but keep my keys offline,
For me it works well but there are many ways
And what's suits you.

[LoyceV]

I had looked for a multi-quote option.

I manually copy/paste several quotes into one post

although to start with I will be trying to buy in the dips and hold.

From your current investments you should know it's virtually impossible to time the market, right?
You can always try, but after I sold at 498.00 I was waiting to buy back at 357.80. I'm still waiting for that What I learned from this, is that profit from trading isn't for me.

[thedec4]

I use coinbase at the moment but looking elsewhere due to the fees but good luck on your journey!

[yanxiaoyu5008]

I think Japan's influence in bitcoin is also worthy of attention

[Setanta68]

I too am new to the crypto scene and have looked through these forums and am careful. I have also used coinbase to purchase crypto but moved it straight away. Some good sound advice here.

[mrcash02]

I use BlockChain.info wallet since end of 2015 and never had any issues. Now I'm not very active there as I changed my strategy, but the wallet is still there and safe. There are several security mechanisms you can set to make it stronger, but as we are talking about an online wallet the risk always exist and people always fear trusting their money to others.

If you don't have much money I think there isn't problem to use that wallet (or Coinbase if you prefer), but once you start having more Bitcoins you will need to split this amount among several sites or you will need to put the BTCs on a safe desktop wallet. But between the two online wallets I prefer BlockChain.info (more decentralized service).

[Dudeperfect]

I am using Blockchain.info since last 4 years and never faced any issues so far, I am of the opinion that web wallets are easier to use and flexible to send funds. However, I am also aware that keeping our Bitcoins online is a risky decision because you never know that when hackers will target your wallet service provider's database and in that case 2FA won't prevent them. Hence, I concluded that maintaining maximum 10% funds online and rest funds in offline wallets (Paper or Trezor) is a balanced approach as far as factors like security and user-friendliness are concerned.

[MR2O4]

I use Coinbase to trade but keep my keys offline,
For me it works well but there are many ways
And what's suits you.

Thanks, that is similar to my strategy.

although to start with I will be trying to buy in the dips and hold.

From your current investments you should know it's virtually impossible to time the market, right?
You can always try, but after I sold at 498.00 I was waiting to buy back at 357.80. I'm still waiting for that What I learned from this, is that profit from trading isn't for me.

On my other investments I make use of pound cost averaging, by regularly investing, whatever the price, but what I by doesn't tend to be too volatile. I'm not expecting to make a fortune trading, but will see what happens.

I use coinbase at the moment but looking elsewhere due to the fees but good luck on your journey!

I need to get a better understanding of fees? When I bought the other day, it seemed like the fees were offset by a better exchange rate. But I guess I'll get hit with more fees when I move coins away from coinbase.

I think Japan's influence in bitcoin is also worthy of attention

I work for a Japanese company...

I too am new to the crypto scene and have looked through these forums and am careful. I have also used coinbase to purchase crypto but moved it straight away. Some good sound advice here.

Where did you move it to? And yes, I'm finding these forums very helpful.

I use BlockChain.info wallet since end of 2015 and never had any issues. Now I'm not very active there as I changed my strategy, but the wallet is still there and safe. There are several security mechanisms you can set to make it stronger, but as we are talking about an online wallet the risk always exist and people always fear trusting their money to others.

If you don't have much money I think there isn't problem to use that wallet (or Coinbase if you prefer), but once you start having more Bitcoins you will need to split this amount among several sites or you will need to put the BTCs on a safe desktop wallet. But between the two online wallets I prefer BlockChain.info (more decentralized service).

Thanks. I think I'll give BlockChain.info a try, with coins from local coins or bittylicious next time I purchase. With the plan being to move to an offline wallet when I get a decent amount.

dont use 2fa because you cant recover it when you lost your data.

I think it is a risk I am willing to take to make my account more secure.

I am using Blockchain.info since last 4 years and never faced any issues so far, I am of the opinion that web wallets are easier to use and flexible to send funds. However, I am also aware that keeping our Bitcoins online is a risky decision because you never know that when hackers will target your wallet service provider's database and in that case 2FA won't prevent them. Hence, I concluded that maintaining maximum 10% funds online and rest funds in offline wallets (Paper or Trezor) is a balanced approach as far as factors like security and user-friendliness are concerned.

Thanks, I am glad more experienced users share my plan, hopefully it means I am on the right track.