There’s been an influx of beginners into The Bitcoin Thread, so I wanted to put together answers to beginner questions all in one place. The main thread is a useful tool for discussion and current events, but at this point, it’s too much for beginners to parse through. Hopefully this thread will stay on topic and help some of you out!
I’ll structure this in simple Q&A form, keeping the answers as succinct as possible. If you’d like me to elaborate, please don’t hesitate to quote & reply.
I want to learn about Bitcoin. Where should I start?
Read The Bitcoin Standard by Saifedean Ammous.
What about altcoins?
No. Read The Bitcoin Standard and you’ll soon understand why.
Put simply, Bitcoin is king because:
1. "Immaculate Conception" i.e. Satoshi Nakamoto
2. Highest, widespread liquidity
3. Simplest, oldest code
4. Most hashrate
5. Best branding
6. First mover advantage
These facts are baked into the brand, all irrespective of price. No altcoin will ever reach BTC's dominance due to the reasons above.
Should I buy Bitcoin?
I confidently believe that everyone should own some Bitcoin. Even if it’s just 5% of your net worth, this will help provide a fantastic hedge against government inflation.
Is now a good time to buy Bitcoin?
It’s always a good time to buy Bitcoin. I am not a trader and I do not know when is a good time to buy. If you currently own zero Bitcoin, just get started so you can get familiar with the technology. The best & easiest long-term strategy is to Dollar Cost Average. If you’d like to see how DCA into BTC has performed over the years, this site is a fantastic tool.
How much should I invest?
I can’t tell you. A conservative approach is 5% of your net worth, sort of like gold. If you’re young, hungry, and aggressive, you can probably get up to 25% of your net worth. I am not a financial advisor, but make sure you're properly diversified with equities, cash, etc.
What if I’m broke?
If you’re broke, unemployed, or drowning in debt, you shouldn’t invest in BTC. Start fixing up your finances by reading “I Will Teach You To Be Rich” by Ramit Sethi and using “You Need A Budget." Then, once you’re on your feet, start investing into Bitcoin & other assets for diversification.
OK I’m ready to get started. Where should I buy BTC?
Anywhere that doesn’t take your identity. This usually falls into one of three categories.
DO NOT GIVE THEM YOUR IDENTITY.
Why shouldn’t I give up my identity?
If the government were to ban Bitcoin, they would track down every single person who bought BTC on Coinbase and make them sell. If this sounds ludicrous to you, I implore you to look up Executive Order 6102. Dr. Howard had a solid post on what could happen. Also, here’s an in depth analysis of the situation I think everyone should read and reflect on.
If you've never given up your identity before, great news, you have a clean slate in the eyes of the government. The ease of Coinbase is not worth the mark on your permanent record.
What wallet should I use?
Samourai Wallet. I wrote extensively about that here. I recommend you buy a separate phone that is ONLY used for your Bitcoin wallet.
What’s the best setup for a wallet?
Hardware: Google Pixel 3a
Operating System: GrapheneOS
Software: Samourai Wallet
Google Pixels can be bought on Craigslist with cash for $100-$300. GrapheneOS can be flashed for free. Look up YouTube there’s tons of step by step instructions.
How do I protect my recovery seed?
The best protection is to use a metal seed storage tool. There’s dozens of options these days with all types of features, too many to count. Thankfully, Jameson Lopp has done hands-on research and identified the best seed storage tools to buy.
Should I spend my BTC?
The only reasons to spend BTC are:
Where do I learn to trade BTC?
You don’t. 95%+ of traders lose money. Gambling is a sin. Just buy and never sell and you’ll outperform 99.9% of traders.
Why is this post so short?
I’ve been in crypto since 2016. I can confidently say that 99.9% of what you read out there is trash. YouTubers, news publications, even the altcoins themselves? 99.9% trash.
What’s really important here is Bitcoin. The fastest way to understand Bitcoin is to read The Bitcoin Standard. And the best way to make money off Bitcoin is to DCA.
Is it that simple?
Yes.
I’ll structure this in simple Q&A form, keeping the answers as succinct as possible. If you’d like me to elaborate, please don’t hesitate to quote & reply.
I want to learn about Bitcoin. Where should I start?
Read The Bitcoin Standard by Saifedean Ammous.
What about altcoins?
No. Read The Bitcoin Standard and you’ll soon understand why.
Put simply, Bitcoin is king because:
1. "Immaculate Conception" i.e. Satoshi Nakamoto
2. Highest, widespread liquidity
3. Simplest, oldest code
4. Most hashrate
5. Best branding
6. First mover advantage
These facts are baked into the brand, all irrespective of price. No altcoin will ever reach BTC's dominance due to the reasons above.
Should I buy Bitcoin?
I confidently believe that everyone should own some Bitcoin. Even if it’s just 5% of your net worth, this will help provide a fantastic hedge against government inflation.
Is now a good time to buy Bitcoin?
It’s always a good time to buy Bitcoin. I am not a trader and I do not know when is a good time to buy. If you currently own zero Bitcoin, just get started so you can get familiar with the technology. The best & easiest long-term strategy is to Dollar Cost Average. If you’d like to see how DCA into BTC has performed over the years, this site is a fantastic tool.
How much should I invest?
I can’t tell you. A conservative approach is 5% of your net worth, sort of like gold. If you’re young, hungry, and aggressive, you can probably get up to 25% of your net worth. I am not a financial advisor, but make sure you're properly diversified with equities, cash, etc.
What if I’m broke?
If you’re broke, unemployed, or drowning in debt, you shouldn’t invest in BTC. Start fixing up your finances by reading “I Will Teach You To Be Rich” by Ramit Sethi and using “You Need A Budget." Then, once you’re on your feet, start investing into Bitcoin & other assets for diversification.
OK I’m ready to get started. Where should I buy BTC?
Anywhere that doesn’t take your identity. This usually falls into one of three categories.
- Peer to peer - Buy locally from a trusted friend who will give you BTC in exchange for cash.
- Bitcoin ATMs - ATMs are expensive but usually have no KYC requirements and are super easy to use.
- Decentralized Exchanges - Bisq, HodlHodl, etc. Take a little bit more legwork to get started but allow you to buy without leaving the couch.
DO NOT GIVE THEM YOUR IDENTITY.
Why shouldn’t I give up my identity?
If the government were to ban Bitcoin, they would track down every single person who bought BTC on Coinbase and make them sell. If this sounds ludicrous to you, I implore you to look up Executive Order 6102. Dr. Howard had a solid post on what could happen. Also, here’s an in depth analysis of the situation I think everyone should read and reflect on.
If you've never given up your identity before, great news, you have a clean slate in the eyes of the government. The ease of Coinbase is not worth the mark on your permanent record.
What wallet should I use?
Samourai Wallet. I wrote extensively about that here. I recommend you buy a separate phone that is ONLY used for your Bitcoin wallet.
What’s the best setup for a wallet?
Hardware: Google Pixel 3a
Operating System: GrapheneOS
Software: Samourai Wallet
Google Pixels can be bought on Craigslist with cash for $100-$300. GrapheneOS can be flashed for free. Look up YouTube there’s tons of step by step instructions.
How do I protect my recovery seed?
The best protection is to use a metal seed storage tool. There’s dozens of options these days with all types of features, too many to count. Thankfully, Jameson Lopp has done hands-on research and identified the best seed storage tools to buy.
Should I spend my BTC?
The only reasons to spend BTC are:
- You want to capitalize on gains without using an exchange.
- You want to buy something anonymously.
Where do I learn to trade BTC?
You don’t. 95%+ of traders lose money. Gambling is a sin. Just buy and never sell and you’ll outperform 99.9% of traders.
Why is this post so short?
I’ve been in crypto since 2016. I can confidently say that 99.9% of what you read out there is trash. YouTubers, news publications, even the altcoins themselves? 99.9% trash.
What’s really important here is Bitcoin. The fastest way to understand Bitcoin is to read The Bitcoin Standard. And the best way to make money off Bitcoin is to DCA.
Is it that simple?
Yes.
