In my prior post labeled Bitcoin Starter Guide, I suggested you set up a Bitcoin wallet and join three sites which were Updated (02/26/2017): InfinityTrafficBoost and MoonBitcoin which are Bitcoin collections sites that pay you in Bitcoin for specific website activity. Many of you did and by now you have experienced what it’s like to receive Bitcoins in your wallet. If you have the means, I also suggest you join HitsMonkey as a viral way to accrue Bitcoin.
Faucets and Advertising sites that reward Bitcoin for viewing ads are the two most common systems on the market that will provide you free Bitcoins. I’m giving you an example of each with these the sites above to get you comfortable with using Bitcoin with no financial risk. If you have the means and have a basic understanding, by all means join HitsMonkey and ICoinPro to get going now.
By now, you probably have Bitcoins in your wallet but haven’t used any to buy services such as advertising. Many sites are trying to encourage members to use Bitcoin and will provide additional discounts to help get you comfortable with this type of payment method. Given that reality, it can be a very cost-effective way to advertise while this new form of payment is still in the infancy stage of acceptance. Try to fight the “hording” tendency that happens when you accrue Bitcoins. I give you my Bitcoin strategy below that will help you with that so keep reading.
Even if you are in multiple Bitcoin collecting webistes, you probably don’t have enough Bitcoin in your wallet to use them to purchase advertising so the obvious question you might be asking is, “how can I get more Bitcoins?” Keep reading to see how….
There Are Multiple Ways To Buy Bitcoin:
An Exchange is a place where you can buy and sell Bitcoins and there are several large Exchanges on the market. By definition, Coinbase is not an Exchange but for my purposes, which was to buy reasonable amounts of Bitcoin at a favorable locked-in price, I liked their system and found it worked very well with my buying and selling strategy. I use a method called “dollar cost averaging” and have for years in the stock market. I tend to be financially conservative and this method takes the emotion out of buying and selling so you can make better financial decisions. Update (02/26/2017): When I wrote this article 3 years ago, the price of Bitcoin was around $837. The price plummeted to a range of about $250 for the entire year of 2015. If you used the “dollar cost averaging” strategy I spoke of 3 years ago, you have done very well because as of this update, the price is $1175.
I’m not the day trading type but I know there are those in the market that are. Since Coinbase connects to your bank through ACH transfer, I wouldn’t recommend using it if you intend to engage in that type of activity. Multiple ACH transfers in the same day could alarm your bank and your account might be flagged as suspicious. There are other services available that will allow for such type of trading but that doesn’t interest me so I won’t cover that here.
My Bitcoin purchase strategy is this…. I plan on buying Bitcoin in increments when the price dips and hold 50% of them over time and use the remaining 50% to purchase advertising.
You should know that Exchanges aren’t the only way to buy Bitcoin. Services are popping up all over the net trying to capitalize on new ways for you to buy Bitcoin. To be perfectly honest, I only tried a couple of these services and found them to be rather costly. Remember, you are paying for convenience using such services and the fees reflect that… or at least they did in my two cases.
One of those services didn’t even lock-in a conversion rate for me when I bought so when my transaction finally cleared, I bought the Bitcoin at the rate they said it was at. I’m not comfortable with that and I feel it leaves the door open for a conversion rate to be manipulated to their advantage. I’m not suggesting it was but I want to be in the “know” and I couldn’t be with that system. Coinbase allowed me to lock-in a particular conversion rate at the time of purchase so I know how much I’m buying even though it may take a few days to clear.
Verification And Security Instructions In Your Coinbase Account:
If Coinbase sounds like a fit for you then I’m going to make a couple of suggestions for you to follow once you sign-up.
1) Bank Verification Process – You are going to need to connect to your bank account to buy Bitcoins. When you do, you will be asked to verify your bank account using 1 of 2 different options. The first method is “instant verification” which includes your bank password where the system can instantly verify it is yours. I WOULD NOT recommend doing that even though Coinbase is established and trusted.
The second option includes two small withdraw amounts that will be taken out of your bank account. Don’t worry, they are just a few cents and when you confirm the exact amounts, you become verified. This is a better choice and they reimburse those amounts once you are verified so there is no cost involved. Your purchase limits are increased once you are verified.
2) Security Process – As you have probably read by now, security is very important when it comes to Bitcoin. While no site can claim a 100% security guarantee, many have implemented a “two-factor authentication” process into their systems. Coinbase has such a process which includes linking your phone to their system. When you login or send Bitcoins, it will send an SMS or phone call asking you to enter a 7 digit number before you can proceed. I HIGHLY RECOMMEND you implement this immediately.
The site I’m recommending for purchasing Bitcoin is right for my type of purchase activity but certainly isn’t the only option available. If you have another service in mind to purchase Bitcoin, just make sure there is some type of verification process involved with their service.
Be cautious of joining services that don’t have a verification process and/or doesn’t have limits on transactions. They could become a potential target from regulatory compliance agencies later on because such programs have attracted illegal activity due to the anonymity associated with such a model.
The strategy I use to buy and sell Bitcoin works for me and I only invest what I can afford to lose. As with any type of investment, the possibility that you could lose 100% of your investment is a real risk and should not be taken lightly. Bitcoin is a crypto-currency experiment with some wild price fluctuations at this point and there are no guarantees.
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Disclaimer: The content provided on this website is solely for informational purposes and should not be interpreted as an offer to buy or sell. I am merely sharing strategies I have used in the past, that were not developed by me but taught by others, when it comes to investing. As with any investment, you should consult a licensed financial advisor prior to implementing any investment strategy. I am not a investment advisor, broker, or dealer and not liable for errors, omissions, or losses as a result of the use of this content.
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