So you managed to get yourself some Bitcoin! With all the hype surrounding the popular cryptocurrency I don’t blame you – in fact, I salute you! You are still early in the growth curve, and many people will only later realize how choosing to buy Bitcoin is probably the best form of insurance they can have against a failing economy and a non-rewarding savings account.
But what now? How do you proceed from being a buyer to being actively involved in the community? Do you even have to? And what if you want to change your money back to dollars? In this article, we talk about all these points and more!
Being a HODLER matters!
You didn’t clarify – did you buy Bitcoin or did you simply discover it in a long-lost wallet? If it’s the latest then you are probably quite rich now, since Bitcoin has grown from mere cents to more than $40.000. This is why so many people choose to HODL it. In short, HODL stands for holding onto your coins (a.k.a. not selling) but the acronym is a story for another time.
You see, many people chase fast money – uncertain money – profits from trading. Don’t be like them. The Bitcoin price will most likely grow faster by doing absolutely nothing than by trying to catch the next 10% price growth of a smaller coin on your exchange.
So start by sitting down in a comfortable position, straight back, closed eyes, and repeat inside your mind – I will NOT let my emotions affect my trading decisions. Say it enough times to penetrate it through your existence! Bitcoin is a game where the buyer is always smarter than the seller in the long term. So yeah, NO TRADING, unless you want to risk losing everything in your account.
Safety is the number one priority
No shit Sherlock! But hey, this is very important so don’t take it lightly. There are many types of wallets to store your Bitcoin in, but not all offer the same protection. For example, when storing your coins on an exchange, you are not the only person in control of your account, and thus your money.
We recommend downloading a self-custodial mobile wallet app like Blockchain Wallet or Trust Wallet. Both are great options and in your full control. But they are still not the best option – a culprit would only need to crack your pin code to empty your accounts, and you don’t want that!
Instead, use a hardware wallet, like a Trezor One, or a Ledger Nano S. These small USB-like devices offer a higher level of security and multiple additional layers of protection for your funds.
Not only that but users need to manually authorize every transaction on the physical device, which makes it literally impossible to hack! There’s a catch though – they are (somewhat) pricey. Hardware wallets are usually priced between $50-$200 dollars depending on their model, features, and brand. A small amount if you ask me, but hey, your money your choice!
Selling is also something we need to talk about
So Bitcoin has shot up to a million and you now have a full account of virtual money. How do you swap them to actual usable money? Well, in this case, you either sell your coins or use them to buy fancy things online. Many people accept Bitcoin in their store nowadays, but there is still some hassle (and fees) involved in the process.
So let’s assume you cash out – like for good. How do you do that?
There are several options but here is a dropdown with the most common ways:
- Sell them on cryptocurrency exchanges and send the money to your bank account
- Exchange them for stablecoins on a trading platform to re-enter the market later
- Swap your coins for money in different payment systems using escrow platforms, like LocalBitcoins.
- Walk to your closest Bitcoin atm, sell your coins, and withdraw that stack of cash (after paying the large fees).
- You can always donate your BTC as well, and there are several platforms to help you do so.
As soon as the money is obtained, you still have several responsibilities. The most important one is the taxman, who will pay you a visit. As soon as you need to pay taxes, make sure you abide by the laws and regulations of your country, or you could be in trouble.
Bitcoin may be a new form of money, but it is still money, and everyone wants a piece of the pie. After taxes and fees have been paid, you will now have enough money to do all the things you want. But remember, the buyer is always smarter than the seller, so make sure you spend your money on something worthwhile.