Investing in Bitcoin via Bitcoin ETP

[Bergkampsballs]

Hi,

I have recently invested in Bitcoin and have been looking at ways to securely spread the risk across 2 or 3 different platforms.

At the moment I have the majority stored in a hard wallet which I appreciate is very safe, however for one reason or another related to my inexperience, I do feel a little bit uneasy at having most of my funds in once place so I am temporarily keeping a smaller portion of my Bitcoin in my Coinbase and Coinbase Pro accounts even if it may be a little less secure.

I have used the Trading 212 app for previous investments and noticed that I can invest in Bitcoin via Bitcoin ETP which is a Swiss product provider called Deutsche Boerse.

https://www.coindesk.com/bitcoin-etp-listed-europe-third-largest-exchange

One disadvantage is that the exchange trades from 8am to 16.30pm GMT Monday to Friday and withdrawing funds takes 3 working days so the investment is less fluid. Does anybody else invest in this company or would you consider doing so?

[joniboini]

I would rather buy Bitcoin directly instead of buying an ETP. It's not convenient when you need to wait for days for withdrawal and make your trade, on top of that you probably don't own the 'real' BTC. I suggest you increase your crypto trading experience so you can be more at ease instead.

[Upgrade00]

At the moment I have the majority stored in a hard wallet which I appreciate is very safe, however for one reason or another related to my inexperience, I do feel a little bit uneasy at having most of my funds in once place so I am temporarily keeping a smaller portion of my Bitcoin in my Coinbase and Coinbase Pro accounts even if it may be a little less secure.

It is rational to want to spread out your funds, but storing bitcoins on a centralized platform, may not be the best option. You can try downloading a non custodial wallet and keeping a portion of your assets there, preferably on an airgapped device.

Also, on your hardware wallet you can explore with addresses available by adding passphrases to your original seed phrase, thereby creating a new address where you can store a portion of your funds. Your added passphrase can be made as strong as possible with the use of alphabets, numbers and special characters. You then create a backup for the different addresses and store them in different locations.
Although, if your hardware device is compromised, it could potentially affect all your addresses (some other member can confirm this, as I'm not certain)

Does anybody else invest in this company or would you consider doing so?

I do not, and also do not intend to. Imo, If one has access to buy Bitcoin directly without regulatory hassles then that would be the best option.

[Bergkampsballs]

Also, on your hardware wallet you can explore with addresses available by adding passphrases to your original seed phrase, thereby creating a new address where you can store a portion of your funds. Your added passphrase can be made as strong as possible with the use of alphabets, numbers and special characters. You then create a backup for the different addresses and store them in different locations.

Thanks, this is an interesting option for me but it looks like you need to use the current seed phrase to do this and I would be somewhat concerned about somehow losing all my coins in the process. I'm sure that it would be fine but I think the chances of me messing something up along the way are probably many times higher than the chances of somebody hacking into my wallet and stealing the coin.
I may upgrade from a Ledger Nano S to a Ledger Nano X at some point so could look at switching the funds across and then testing this on an empty wallet. I'm just dubious about making too many transfers for now.

[Lucius]

I may upgrade from a Ledger Nano S to a Ledger Nano X at some point so could look at switching the funds across and then testing this on an empty wallet. I'm just dubious about making too many transfers for now.

If you have your seed checked and stored in a safe place then you don't have to worry that something will go wrong in case you add a passphrase to an existing seed. This only means that you will create another extra account that will be protected with an extra password (passphrase), and that in the case of Ledger you will be able to choose the option to access that account with a new PIN.

Simply put, you will have 2 PINs, the other of which will be for your hidden account, which will be additionally protected - and it is up to you to keep the passphrase in a safe place because only in the combination of seed + passphrase will you be able to recover if necessary. To use this option safely you don't need 2 HW, you just need to be careful in every step and of course do a test with the first transaction (smaller amount) to see if everything works.

[DdmrDdmr]

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One thing to consider is that, if you eventually do use passphrases to hide accounts on the Ledger Device, you’ll need to be cautious of how you manage them on the supporting Ledger Live software. Say you have multiple account sets on your Ledger device. Having all the accounts displayed on Ledger Live may defeat the purpose from a security point of view. You can delete accounts on Ledger Live so it does not display those that are, let’s say, passphrase protected.