Redbeard's BTC For Beginners Datasheet

redbeard

Hummingbird
Gold Member
Hey Redbeard - the idea was to just cash it out gradually. Just trying to magnify the cash from my side gig over the course of the year - not looking to purchase things in BTC itself. Looking to actually transfer it from PayPal as foreign currency, once it’s up high enough to have crypto gains so that the forex fee is negligible. Everything else goes into stocks & trading.

The downside to the PayPal situation is the transaction fee, so the goal is to see what happens in the 40-50k range again, and start scaling out. Then buy tangible assets like backup batteries, vehicle supplies, tools, lots of storable food etc.
If you want, that sounds like a decent plan. The only thing to keep in mind is that PayPal could shut down your account and lock your funds at any time. This happens with USD so it will happen with BTC as well. That's why it's best to put it on a self-custody wallet like Samourai so that you can actually own the coins, instead of an IOU from PayPal.
 

IM3000

Pelican
Redbeard, thanks for the write-up!

I understand why you say that everyone should buy cryptos anonymously. I'd like to use Bisq but I don't have the required 0.01 BTC. Is it possible to buy this amount at a centralized exchange like Kraken and then send it to the Bisq wallet or does this permanently stain any BTC purchase I'd do on there?
 

redbeard

Hummingbird
Gold Member
Redbeard, thanks for the write-up!

I understand why you say that everyone should buy cryptos anonymously. I'd like to use Bisq but I don't have the required 0.01 BTC. Is it possible to buy this amount at a centralized exchange like Kraken and then send it to the Bisq wallet or does this permanently stain any BTC purchase I'd do on there?
I would recommend against it. A clean slate is worth its weight in gold.
 

IM3000

Pelican
I have another noob question: You say that it's best to use the Samurai Wallet on a de-googled phone, correct? I understand why leading a google-free life is beneficial. However, wouldn't it just be possible to use any old android phone? I mean one without a SIM card and simply turn it on for a few minutes to transfer the BTC and then turn it off right afterwards. What do you think are the potential risks?
 

redbeard

Hummingbird
Gold Member
I have another noob question: You say that it's best to use the Samurai Wallet on a de-googled phone, correct? I understand why leading a google-free life is beneficial. However, wouldn't it just be possible to use any old android phone? I mean one without a SIM card and simply turn it on for a few minutes to transfer the BTC and then turn it off right afterwards. What do you think are the potential risks?
Great question. Yes, you can use Samourai on any Android phone. The application will run just as planned.

The only privacy concern is that Google could flag you as a Samourai user. I'm pretty sure they take a TON of data on all of their Android users, tied back to your Google account. This might not be the worst thing in the world, but imagine if Google starts working with the NSA to find Bitcoin users. They would immediately find anyone who downloaded a Bitcoin wallet and go find them. And if they know you used Samourai, they'll flag you as someone who uses CoinJoins, making it even easier to find you.

It's always worthwhile to think about the threat vectors involved. So in this scenario, the threat vector of blockchain analytics catching you is moot because you're using CoinJoin. However the risk of tying your identity to Samourai is real.

When you factor in that you can run a de-Googled pixel for a few hundred bucks, it makes sense to just bite the bullet and do it.
 

IM3000

Pelican
Yeah, makes sense. Thanks for taking your time here, really appreciated.

I'm currently reading "Permanent Record" from Ed Snowdon. As a result, I'm rethinking my entire approach to using the internet, mobile devices, etc. Looks like now I need to buy 2 Pixel phones.
 

Robert High Hawk

Kingfisher
Great question. Yes, you can use Samourai on any Android phone. The application will run just as planned.

The only privacy concern is that Google could flag you as a Samourai user. I'm pretty sure they take a TON of data on all of their Android users, tied back to your Google account. This might not be the worst thing in the world, but imagine if Google starts working with the NSA to find Bitcoin users. They would immediately find anyone who downloaded a Bitcoin wallet and go find them. And if they know you used Samourai, they'll flag you as someone who uses CoinJoins, making it even easier to find you.

It's always worthwhile to think about the threat vectors involved. So in this scenario, the threat vector of blockchain analytics catching you is moot because you're using CoinJoin. However the risk of tying your identity to Samourai is real.

When you factor in that you can run a de-Googled pixel for a few hundred bucks, it makes sense to just bite the bullet and do it.


Agree on all points here, but the issue is where to get one? Not everyone has access to Craigslist.
 

Cervantes

Woodpecker
Woman
It seems "a little extreme" because us Americans are so cucked that we're conditioned to give up our privacy every step of the way. Boarding an airplane, buying a gun, getting a hotel room, all of these require ID's. So, bending over to KYC seems normal. However, when you realize what's at stake with Bitcoin, I think you'll realize it's not extreme in the slightest.
There are only two things in America that don't require id: crossing the southern border and voting.
 

IM3000

Pelican
Redbeard, I watched some tutorials about Samourai Wallet and it was recommended to set up a node for it, as well. It seemed fairly easy and cheap. They mentioned a Rasberry Pie 4 and 1 TB SSD.

What's your view on this? Is it really necessary?

Thanks again!
 

redbeard

Hummingbird
Gold Member
Redbeard, I watched some tutorials about Samourai Wallet and it was recommended to set up a node for it, as well. It seemed fairly easy and cheap. They mentioned a Rasberry Pie 4 and 1 TB SSD.

What's your view on this? Is it really necessary?

Thanks again!
Not necessary but recommended if you have the time & resources. The short of it is that if you use your own node, you don't need to trust Samourai's servers to query balances for you. It's useful but if I recall correctly, Samourai doesn't store IPs or any PII, so it's not that big of a deal. Here's the long answer:
 

Mikeyd03

Robin
Another loophole with the identity issue....

Convert all your bitcoin to XMR...and then back again. “Lost all of my crypto in a boating accident.”

The beauty of privacy.

I use the bitfi Fort Knox hardware wallet, has been great thus far.
 

kel

Ostrich
Another loophole with the identity issue....

Convert all your bitcoin to XMR...and then back again. “Lost all of my crypto in a boating accident.”

The beauty of privacy.

I use the bitfi Fort Knox hardware wallet, has been great thus far.

I've thought about this. Where do you exchange?
 

redbeard

Hummingbird
Gold Member
Another loophole with the identity issue....

Convert all your bitcoin to XMR...and then back again. “Lost all of my crypto in a boating accident.”

The beauty of privacy.

I use the bitfi Fort Knox hardware wallet, has been great thus far.
When were you on a boat? Who were you with? Where did you go? Why were you there?

These are the questions the IRS will be asking you, possibly at gunpoint depending how things go. I hope you have your answers ready!
 
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