Sunday, November 22, 2020

Ready to jump in (Where I hope to discuss getting started)

Good morning everyone.

I've read the FAQ on this site and r/Bitcoin. I was all ready to get started. I started setting up an account on Coinbase, but then I got to the bank information page. Because it asked for my bank username and password, I stopped. I read some of the other comments on the FAQ and found out that the majority of people dislike and distrust Coinbase.

The purpose of this post, then, is to figure out what I need to do to get started. I want to talk through my plans, so that if I have a bad idea (like I did with Coinbase) someone can redirect me.

First, I want to download a wallet app. I have heard of Etherium; should I do anything differently?

Second, I want to get a hardware wallet. I only want bitcoin. I think Coldwallet is going to be my choice.

Third, I want to Dollar Cost Average. I don't have much to invest at the moment, but I know that DCA is a good long-term strategy (particularly with volatile investments). Related to this, I read an article (I believe it was Nerdwallet) that said that every bitcoin buy is a taxable event. That is, I need to pay taxes every single time I buy bitcoin. If so, that would change my strategy of DCA.

Finally, what are the taxes when bitcoin is sold? I'm in this for the long haul, I think, and I may never sell my bitcoin for USD, simply because I lack faith in the monetary and banking system long term. However, I do want to be armed with knowledge in case this does become a wise choice.

I appreciate your time. Please let me know if you have any further advice. Thank you!


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