CRYPTO CORNERPadraig Conlon 20 Oct 2022
It’s great to be back, I had a busy few weeks speaking at Biz Expo and DefiConf last week.
For anyone new to crypto corner my story in one line is when I was thirty I was living in a caravan with a broken back and empty bank account, when I was forty, I had retired.
Learning to invest made that possible and I now teach others how to do the same and we specialize in Bitcoin and crypto.
They say a good way to understand Bitcoin is to own it, so in today’s article I’ll explain two places where you can buy Bitcoin.
Firstly one bitcoin today is priced at about €19,500! But luckily, we do not have to buy a full bitcoin.
Each bitcoin can be broken down into fractions called Satoshi’s or Sats (named after Bitcoins creator Satoshi Nakamoto)
There are one hundred million Sats (100,000,000) in each Bitcoin.
This means if I buy €20 worth of bitcoin I will receive approximately 100,000 Sats.
Ok so where to buy? Revolut can be a nice & easy gateway into owning Bitcoin. Just open the app, click Crypto, select Bitcoin and purchase your required amount.
However, Revolut would not be my choice to buy Bitcoin or any Crypto on.
This is because the invention of Bitcoin created three never seen before properties and I will need to take you on a tangent for a moment to explain them.
1 A digital money with a fixed supply – only 21,000,000 – unlike Euros which are continually printed / created and reduces the value over time.
2 A digital money that can be spent without the need for a third party to oversee the transaction – basically a digital cash, if you hand someone a tenner in the real world there was only you and them involved in that transaction but before Bitcoin if you wanted to send someone a tenner online it had to be intermediated by a bank, Paypal, Stripe, Amazon, Ebay etc
3 A digital money that you can own meaning you have zero counterparty risk – Bitcoin allows you to take custody of your ‘coins’ unlike holding money in the bank where you need to trust the bank, ask people from Greece, Turkey, Lebanon, China if they trust their banks.
Ok so back to buying your first piece of Bitcoin and why I would not choose Revolut but you might to get started.
So Revolut is very simple and convenient but by purchasing on Revolut I only get access to the first unique part, the fixed supply.
This is because if I buy Bitcoin on Revolut I can not withdraw my Bitcoin from the platform.
So, I can’t spend the Bitcoin and I can’t take custody of the Bitcoin.
This does not necessarily mean Revolut is bad and the ease of onboarding will suit some people.
The next way to buy Bitcoin is through what we call an Exchange. The two most popular would be Crypto.com and Coinbase.
An Exchange will exchange Euros for Bitcoin when you want to buy and also exchange Bitcoin for Euros when you want to sell.
When I buy Bitcoin from an exchange I can choose to leave my Bitcoin on the platform or I also have the choice to withdraw my coins and take custody of them personally.
We have a saying in crypto which is “not your keys, not your coins’ this means if you do not take custody of your coins yourself then you don’t really own them.
This becomes a problem for you if Revolut or the Exchange you are holding your Bitcoin on becomes hacked or insolvent.
There are instances of this happening every year in our space and people losing their coins.
So learning to self custody is a skill every Bitcoiner will need to learn, I guess that will be my next article…
I know this may sound difficult or scary however when most people start to drive a car it is difficult and scary but it soon becomes second nature.
Remember the golden rule of investing is never to invest more than you can afford to lose but I would caution you to be much more conservative and spend time understanding the technology with a micro investment or a much better investment would be into your education.
You can check out how we help by visiting www.cryptowithdinny.com
Business guru Tony Robbins taught me there are two ways to learn something.
The first is to spend time doing it and make all the mistakes and in a decade you will be an expert.
The second is to pay someone who has already done all that and let them teach you so you do not need to waste a decade and instead have a decade to profit from their knowledge.
This is the shortcut I have used all my life once I learned to shift my focus from ‘what is the price?’ to ‘what return can I get on this investment?’
When it comes to success in Bitcoin education is what decides if you make money and retire early or if you don’t.
To learn more search Bitcoin With Dinny on YouTube or Spotify and subscribe to our podcast.
I am off to Bitcoin Amsterdam for a four day conference this week and looking forward to teaching you about how to store your Bitcoin securely in a wallet on my return.
Bitcoin With Dinny helps people to build Bitcoin and Crypto investment portfolios or plan B pensions through one to one consultations at our office in Swords and our Retire Early Club online course.
Please be aware that nothing written in Crypto Corner should be taken as financial advice and please get help from a professional before making any investment decisions.