Do you have a dumb question that you're kind of embarrassed to ask in the main thread? Is there something you're just not sure about?
This is your opportunity to ask questions. No question too simple or too silly.
Culture war topics are accepted, and proposals for a better intro post are appreciated.
Jump in the discussion.
No email address required.
Notes -
With all of the enthusiam of Ben Affleck, I figure that I should put some of my investment portfolio into Bitcoin. I expect that it'll move independently of or in opposition to the dollar. What is the boring approach do that, adjusting a boring set of current allocations across the usual boring large investment companies?
Do you have any desire to have access to/use the BTC, as in gain custody of them on a private key you control?
If not, an ETF is the straightforward choice.
If so, a coinbase account is easy, but there are numerous options.
Coinbase accounts are custodial accounts, which means they hold they keys and you just see the numbers on the website. You don't actually own any crypto, you just trust them to own it for you. Which may be ok for many people, but if that bothers you then you should get a real crypto wallet and hold your own keys. The danger here is that if you mess it up you could either lose the coins completely or get them stolen from you. Coinbase Wallet is one example of non-custodial wallet, though I am not sure how good it is (I personally prefer offline hardware wallets).
As far as I know, Coinbase still allows you to withdraw your coins to your own wallet whenever you want.
So you can, for most pursuits and purposes, think of those coins as 'yours' if you wanted to take them.
Unless your suggestion is that he find some dude to sell him BTC for cash, I dunno how else he would come to acquire the coins in his wallet.
Yes, of course. But: this is only while everything is well. At any moment if something goes wrong Coinbase could stop withdrawals, and you can do absolutely nothing about it - short of suing them of course. Just as with the bank: normally, you just transfer money with a couple of clicks, but if the bank has problems, you have problems. Except there's no FDIC for bitcoin, so you're not protected by anything.
No, acquiring coins through Coinbase is just fine. But then get a self-custodial wallet (I prefer offline hardware ones, but you don't have to go as far if you don't want to, any computing platform can hold a wallet - though do back up it and/or the keys if you use software) and move the funds there. That's what I do when I DCA - it's very convenient to set it up on the exchange, but once it gets to something sizeable that I'd hate to lose, I move it to my custody.
More options
Context Copy link
More options
Context Copy link
More options
Context Copy link
More options
Context Copy link
More options
Context Copy link