Is 2018 too late to get into Bitcoin?
I bet a number of people are asking this question. 2017 was certainly the year in which Bitcoin hit the mainstream and many people spent from May onwards thinking they’d perhaps missed the boat if they hadn’t invested already, when in fact astronomical rises continued into December.
In this article, as well as saying that I don’t think it’s too late to invest, I’ll also offer a few tips of where to get started if you decide to go ahead, based on what’s worked best for me as a UK resident.
My viewpoint is solely based on the fact that I always think it’s better to learn about something by getting immersed than it is to sit on the sidelines. I’m not taking this position because I think there are obvious gains to be had. I’m no clearer on that than I was when I started my own journey.
However, if the following words mean nothing to you, I’d suggest that you’ve not read enough around the subject and need to do some more research: Blockchain, Coinbase, ICO, Ethereum, fiat, wallet, mining, Litecoin, Ripple and Bitcoin Cash. The only importance I’m going to place on the fore mentioned is to say that these are the sort of things you would have come across if you’ve done sufficient legwork to make an educated decision.
If you are wondering if it’s too late because you want to make free, easy money, then I also think you need to think twice. There is perhaps still free and easy money to be made, but you shouldn’t be trying to make anything at all if the following words and phrases mean nothing to you also. And again, I’m not going to attach any importance to the upcoming, but you need to know what I mean by listing them and where I’m coming from: Diversify. Protect your capital. Only invest what you can afford to lose. Take profits regularly. Know when to take a loss. Set a goal as to what you want to achieve from your investment. Understand your attitude to risk.
When you’ve done all of this, I actually think you’ll be rephrasing the question, because part of getting this investment decision right is to realise that other currencies are available too. It’s not just all about Bitcoin!
What’s the quickest and easiest way to get started?
I would start by opening both a Coinbase and a Blockchain account. Both will allow you to hold Bitcoin, Bitcoin Cash and Ethereum. Coinbase also supports Litecoin.
You can fund both accounts initially via a credit/debit card, or, after additional verification, via a bank transfer on which the fees will work out lower for higher amounts (as well as allowing for higher amounts). However with Blockchain you can only fund your account by buying Bitcoin (and only withdraw money back to your bank account by selling Bitcoin). Whereas with Coinbase you can by or sell between British Sterling (GBP) and any of the cryptocurrencies.
While this is great, Coinbase does have two downsides. One, is that if you want to start and end the journey with GBP, in the background real money (called fiat) to cryptocurrency conversions are done from Euros, meaning that you’ll get hit on exchange rate fees when the conversion to GBP actually happens. The other downside is that Coinbase doesn’t give you access to your wallet’s private keys, meaning they are forever your middle man (a key function cryptocurrencies tries to eradicate) and thus if Coinbase goes down it will take you with it.
However, to start out, an account with both gives you enough flexibility to get started. Once you’re comfortable with that then opening an account on an exchange will give you access to more currencies still. Bittrex is worth looking at there.
It goes without saying of course that you shouldn’t be sending money to any online site without being sure you’re happy they are as legitimate as they can be in what is largely an unregulated market. There are many factors to consider here, and for now I won’t be getting into too much detail as to what I look for, other than that I try to keep a set of rolling notes here which may be of use.
