I’m not questioning the value of Coinbase, Kraken and the like. However, online wallets and online exchanges have an unpleasant side effect: they must manage your coins in your behalf, that means that they manage the private keys. Remember, in blockchain land no paypal bitcoin news today means no money. Moreover, such online services must comply with a lot of regulations anti money laundering, know your customer and in principle they always must obey to authority warrants and if required by police or tribunals they can lock your funds against your will.
Keep in mind that Bitcoin was born to keep the banks out of the equation and make digital payments and money management possible without the middleman. Bitcoin is the only cash you can use for remote payments, would you give your cash to someone else? Kraken, Coinbase and the others have their business case, let’s use them to buy and sell Bitcoins and to store small amounts and only for a short time. For serious long term storage of our coin let’s use other means: Electrum and Bitcore are standalone wallet that you can install in your laptop keeping you private keys safe and encrypted in your disk. Another option is a paper wallet: a private key printed on paper and stored in your safe or under the mattress. Bitcoin is breaking records over time.
In some cases volatility is especially high, price soars, and main press starts talking of Bitcoin. Unfortunately, when news break it is too late, or at least it is the sign that some artificial rise in prices is going on. Bitcoin has in general a positive, but pretty steady and calm trend. So any moment seems good to buy and hold. On the other hand, buying when everyone talk about Bitcoin is probably not that wise. When price soars many newbies join discussion forums to ask for help, informations and instructions.
If you believe Bitcoin is good for you, then plan a long term strategy. Buy periodically, don’t focus on the daily price, look at the big picture. This mistake is somehow related to the previous one. Is comes with panic selling for security breaches or simply because new promising alt coins are launched in the market.
I’m not against alternative coins, I believe cryptoeconomics is vast and larger than the mere Bitcoin community. However, Bitcoin is the king of crypto, like gold for the non digital wealth. It has the longest history, the larger community and the greatest market capital. Getting rid of Bitcoin to embrace something else, well, it is risky. You must know what you are doing. I’ve been in the same situation for a couple of times, seeking for a fast buy via credit card or Paypal.
SWIFT and trying to get coins smoothly. With Paypal is even worse, if I am not wrong the only way to buy with Paypal is to transact with Linden dollars and this double transactions charges a lot of fees. Hi folks, I want to mine Bitcoins. This is likely the most popular and exciting aspect of Bitcoin. How can I mine Bitcoins?
The long answer is: Bitcoin mining is an industrial activity that requires investments at scale and a lot of energy. China or other countries with low cost energy. Keep in mind that mining is a very competitive game and you must figure out how you position in this game. As example, if you run you Mac Book Pro on mining, with the current mining difficulty, you might be able to generate a new block after 10 millions years. However, in the meanwhile the difficulty will change of course, and not in your favor. Solo mining is out of question. You could mine inside a mining pool, but in this case instead of getting 12.
5 BTC in 10 millions years, you’ll get some satoshi every 24h. Another option is to buy some ad-hoc hardware, the so called ASICS, but still it might result in a loss of money. The reason is that the cost of the electricity is pretty high and the hardware is expensive as well and reaching the breakeven might reveal to be impossible. Ok understood, what if I have access to free energy?
I’m afraid also in this case you can generate more profit selling your energy rather than using it to mine. Learning is indeed a great value. Support, resistance, Bollinger bands, Fibonacci and the like. You have no idea where to start and your experience is equal to zero, but suddenly you feel you can sort it out and you have a strategy to be the market winner.