With today’s post – er, “lesson,” if you are okay with summer school being in session – we’ve decided to look at three phases you could potentially be in with your Bitcoin (and cryptocurrency) journey, especially if you’re interested in using your Bitcoin but not necessarily getting into the mode of a day trader or “coin flipper.”
Maybe you don’t have any and want to get some (Phase 1: Get Started), or you do have some and you want to safely store it (Phase 2: Store It), or you have some that, instead of storing you’d rather lend out (Phase 3: Lend It Out). We’ve got you covered here and we’ll stay away from all the trading lingo like “FUD” and “FOMO” and stop losses and the like.
This post will contain AFFILIATE LINKS, so if you sign up, we may potentially get compensation of some sort – a commission, which, in all of these cases, is paid in some sort of digital currency.
And, of course, go ahead and skip around: if you’ve already started and want to just store Bitcoin, fine: scroll down to Phase 2. Or Phase 3 if you prefer. We don’t mind.
Phase 1: Get Started
What we love about this phase – actually, we love every phase of this, plus everything about digital and cryptocurrencies – is the fact that you can get started inexpensively, and, once you get started, you don’t have to do anything but sit tight.
And, as we mentioned, our focus is on those who aren’t trading on a site like Poloniex, Bittrex, or Cryptopia. We could have called that Phase 1a: Invest – but there are a bunch of other resources on the site for you if that’s your poison.
The best, easiest, and most effective way to get “in the mix” is with Coinbase. (THAT’S AN AFFILIATE LINK.)
You can follow pretty easy steps:
- Link a bank account or a credit card. (Bank accounts = less of a transaction fee; credit card = coins get there quickly.)
- Decide how much you want from one of three coins: Bitcoin, Ethereum, or Litecoin.
- Wait for your coins to appear and then
- Sit back and decide on your next steps.
If you use our Coinbase AFFILIATE LINK, you’ll get a bonus of $10 worth of Bitcoin with a qualifying purchase of $100 worth of any coins. (And, though you only get that bonus once, you don’t have to buy it all at once. We got started with a tiny sum a while back, then added to it, then got over the $100 hump later. Still got a bonus.)
We’ll admit that part of the joy for us was buying Ethereum and…letting it sit. It’s up more than 4,000% this year. Your experience may vary.
Phase 2: Store It
We know of no better solution for securely storing your Bitcoin – or other cryptocurrencies – than this device, called a Trezor.
The main thing here is that your PRIVATE KEYS are the most important things in cryptocurrency. Like insanely vital.
While we do believe strongly in the security protocols at Coinbase, and the ones at the trading platforms like Poloniex, you must avoid a single point of failure with your currencies, coins, and tokens. And, once you get to the point where you have more than a little money in any one place, you’re going to start to ask yourself where to put this stuff.
Consider this analogy: you’ve got cash maybe in your wallet. You might have a home safe or a safety deposit box that has valuables that aren’t cash. And you have your money in retirement accounts and investment accounts spread out, likely. There’s no single point of failure.
Avoid the single point of failure at all costs. Use a Trezor. (AFFILIATE LINK over there. And up there.)
Phase 3: Lend It
We’ll admit that this concept scared us quite a bit when we started: do you really want to tie up some of your hard-earned Bitcoin in a platform that locks it up for as much as a year?
But then we thought logically – treat this part of your stash like a certificate of deposit, or have some that you don’t plan on using working for you.
That’s where Bitconnect comes in (AIRHORN: AFFILIATE LINK).
Start with as little as $100 worth of Bitcoin and lend it out.
What the Bitconnect bot thingamajig does for you is use volatility to your advantage – and theirs – and give you a cut of the action. It’s pretty cool, potentially lucrative, and a quick and easy way to park some of your coins for slow and steady gains.
Get Started, Store It, Lend It…
Our three phases above are meant to help you wherever you might be in your journey. Let us know if you have questions…
See you next time.