How to buy, store, and use bitcoin

Summary:
  1. Get into the right mindset
  2. Lump sum or set up recurring bitcoin purchases
  3. Buy bitcoin through River or Cash App (links below)
  4. Store your bitcoin on a Ledger hardware wallet

1. Mindset

Rule No.1: Never lose bitcoin.
Rule No.2: Never forget rule No.1.

Bitcoin is a scarce asset that is designed to increase in value over time. The goal is to accumulate bitcoin and hold it for as long as possible to preserve and increase your wealth. Remember this when the price fluctuates violently. Treat your bitcoin as if it’s worth $100,000 to $1 million per bitcoin. Trading is dangerous and you will likely lose lots and lots of your money. I used to trade bitcoin and regret it a lot. I do not recommend selling bitcoin for a long long time—maybe ever.

2. How to buy bitcoin

If you have a large lump sum then I recommend purchasing it now and holding on for dear life for at least 8 years. The volatility will be intense, but strong hands will prevail.

In the meantime set up a recurring purchase to accumulate more bitcoin over time. This will decrease the impact of volatility and help you avoid trying to time the wild market highs and lows. Do it weekly on Thursday mornings to avoid the weekend volatility.

3. Where to buy bitcoin

Buy your bitcoin on River Financial, a bitcoin-only exchange. They have a great team, simple design,  incredible customer service, and some cool features. Unlike most exchanges who sell myriads of scammy tokens and coins, River creates a great experience for buying the best asset of them all. Sign up with my link and we'll both get our fees waived for the first week. Sign up for River

Another place to purchase bitcoin is on the Cash App. If you don’t have it, sign up with my link and we’ll both get $10. Get Cash App

4. Store your bitcoin on a hardware wallet

Transferring your bitcoin to a hardware wallet where you hold the private keys secured by a pin is a best practice. Keeping it on the exchanges (aka hot wallets) is risky because only the exchanges hold the private keys. Your bitcoin on exchanges is only an "IOU" until you transfer it to your own wallet.


The hardware wallet situation is a bit difficult to navigate right now. Here are the most popular:
Ledger - easy to use, secure device, but their website marketing info was hacked. Hackers phished the customer information (name, phone number, email, and home address) and then released it on the dark web.
Trezor - easy to use, insecure device security https://blog.kraken.com/post/3662/kraken-identifies-critical-flaw-in-trezor-hardware-wallets/,  website deletes customer info.
ColdCard - not easy to use, secure device, website deletes customer info.


For beginners, the Ledger is really easy to use. I highly recommend getting a PO Box and having Ledger ship it there—it'd also be a good idea to use a psuedonymous email address and name. When you get it, you’ll download an app on your computer, set a pin for your wallet, and write down a 24 word phrase. This phrase is an encoded version of your private keys which allows you to have access to your bitcoin even if you lose your wallet. Don’t lose your hardware wallet or the 24 word phrase.

By the way, it's okay to purchase bitcoin before you have a hardware wallet. However, the sooner you transfer your bitcoin to your hardware wallet, the better.


P.S.
Do not use Robinhood or Paypal to buy bitcoin. Why? You cannot withdraw your bitcoin from those services.
Do not buy any other coins other than bitcoin. They are scams.


Extras

Fold App

Another fun way to accumulate bitcoin is using the Fold App to buy gift cards and get bitcoin rewards back. It’s super fun. I use Fold App gift-cards for all my Amazon purchases. They have a partnership with Visa to give you bitcoin rewards back on your purchases as well. Get Fold App

Strike Payment

Strike is like a cooler version of Venmo that settles payments using the bitcoin lightning network. You can also send dollars straight into a bitcoin wallet within the app. It’s awesome. Check it out here: beta.strike.me


Welcome to the club. Send me an email if you have any questions.