New to Bitcoin - Advice needed

Hi OzBarganers,

recently a friend of mine was talking about the bitcoin and how it is so profitable. He advised me to buy some and see what happens. Apparently, he is new to it, and what he said was from what he heard from his colleagues who are doing it all the times:

1- There has been a huge rise in the value of bitcoin during recent years
2- You can buy a small portion of it even like 500$ so you can test it and see how it goes
3- Selling it is easy

Definitely, I'm not looking to buy 20K+ bitcoins in the first place, what I'm trying to do is to buy 300 a month by saving my coffee money weekly.
What I'm concerned with is that he is still in the hype (first few weeks by observing only successful cases).
Any experience, information, hints you can share with me that I cant see on the offering websites? Is it easy to sell and cash it back? Your help is really appreciated.

Comments

  • +2 votes

    Bitcoin HAS risen in value by like a trillion percent (not even sure if that's hyperbole anymore) since it's launch.

    But like all investments, its returns are commensurate with its risk, so in this case: High returns, but also high risk. There's really not much to say other than that.

    •  

      how was it during last year? is it still growing?

  •  

    Unless you have an appetite for high risk and high stress, I would suggest enjoying your coffee instead.

    • +5 votes

      $300 a month

      that's coffee money anyway, no harm trying.

      it'd just mean stop drinking coffee at work.

      •  

        it'd just mean stop drinking coffee at work.

        If you invest in crypto, I guarantee you'd be drinking more coffee at work, not less…

  •  

    is it easy to sell it and bring the cash back in your account? also do we have tax on it?

  • +14 votes

    LOL, that was fast.

    Disableduser …

  • +1 vote

    If you follow the sheep don't be disappointed when you end up at the slaughter house

    •  

      Are you proposing that he invest in something even more obscure?

      •  

        Yes, pawn stores.

  •  

    Been new to same. just testing myself as well. Started with coinspot and purchased 1 ETH. However realized, they don't have any information on insurance in place and company is Australian registered but new, It allows buy and sale but insurance is a good point especially when there is no private key shared with buyer.

    Researched on Coinbase, that seems to have insurance in place with renown market. i bought couple of litecoin there. The only thing is they don't allow selling in Australia but buying at a movement. I am not in hurry to sell, so going to give them a shot and move to other exchange if needed to sale.

    •  

      Yeah, I don't 100% trust Coinspot. They're okay to buy but transfer off their exchange as soon as you have purchased. BTC Markets is a fairly trusted Aussie exchange with reasonable fees but even then, store offline.

      •  

        What about coinbase??

        • +1 vote

          Coinbase is a good place to start for a newbie. Fees are a little high though and you can't sell in Australia.

    •  

      SO how do I buy and how much does it cost?

      •  

        For an absolute beginner, try coinbase. Cost entirely depends on how much you want to buy. One bitcoin costs ~$9600 aud right now but they are divisible 0.00000001 segments.

        If you've had a bit of experience, I'd recommend btc markets for the big coins (btc, ltc, ETH, xrp).

        •  

          I cant even buy 1 bitcoin then :D

  • +1 vote

    I recently got into cryptocurrency and before you know it I own Bitcoin and about 10 other Altcoins. I did a lot of research before buying and came to the conclusion that I am happy to invest $x and if it's all gone, I won't lose my sleep over it.

    Remember, only invest what you can afford to lose. Don't invest your daily spending money or rent/mortgage money into it. It's too volatile.

    If it's your coffee money anyway, I don't see a reason why you can't invest it. Only other advise I can give is, don't be a day trader until you are experienced enough. Buy and hold. Hold for long like 4-5 years.

  •  

    HODL!

  • -3 votes

    ive recently started with bitconnect, invested 150 aud in total (including transfer and conversion fees). At first I thought it was a scam, but it's not. I really really thought it was a pyramid scheme at first, but what they are actually happening is using your capital money so they can buy bitcoin, hold the bitcoin, earn a massive interest, and give you a small portion of the interest as well. You gain interest, around 1% a day, it looks big, but that is nothing to what Bitconnect made out of you.

  • +2 votes

    All very good advice provided above (in particular, don't use money you can't afford to lose to buy coins and don't become a 'day trader' unless you know exactly what you're doing). I just started myself and FWIW what I did was:

    1. Setup an account on coinbase, using the ozbargain random referral here (https://www.ozbargain.com.au/api/referral/84) to get myself US$10 (AUD$13) when I bought US$100 (AUD$132) of coins - and also give some random ozbargainer US$10 as well.
    2. Once I had validated my account (didn't take long, all online) I then bought some Bitcoin using a credit balance that has been on one of my credit cards for ages.
    3. I could leave the coins (actually, fraction of coins) in the digital wallet there, or send it to my local wallet (Electrum)

    I then went a little further (as I wanted some alt coins), and:
    1. Setup an account on bittrex
    2. Once my account was verified, transferred some bitcoin to my digital wallet there (this took about an hour to complete)
    3. Bought my alt coin (specifically Cardano/ADA, although am also interested in getting some NEO)
    4. Transferred the ADA to my local wallet (Daedelus)

    Basically, if I want to buy bitcoin (or Litecoin or Ethereum) I can use coinbase (or apparently the affiliated GDAX to save some fees). If I want to get altcoin I can now simply transfer enough funds from coinbase/gdax into bittrex to cover whatever I plan to purchase. The only comment I would add is if you aren't planning to trade the coins for a while, it's probably a good idea to move them to a secure local wallet. <cough> MtGox <cough>

    •  

      Sorry for the dumb question… I'm totally new to this. Say I buy some bitcoin at btmarkets, does it cost to move it to a wallet on my iPhone and then cost to move it back to btmarkets to sell?

      • +1 vote

        Yes. Every move has a transaction fee. Depending on who you use, you can optionally increase or decrease the amount - the more you pay, the faster it should be moved. So if you don't plan to hold them for long, best to leave them where they are. Another option is to trade the Bitcoin for something that has a lower transfer fee. Cheers.

        •  

          Thanks heaps for taking the time to reply. Much appreciated!

  •  
    Merged from Any One Mining Bitcoin - Newbie

    Hi Guys,

    any expert in mining bitcoins and any other coins?

    I just read this http://windowsreport.com/cryptocurrency-mining-computers/ and it seems like it will all cost around $1500 ,, it would worth?

    Or any other suggestions - about hardwares?

    • +1 vote

      I think you had to jump on board about 2 years ago to make it worthwhile

    •  

      yes true,, i am thinking at least now.. if possible or worth a little

    • +3 votes

      Don't waste your time. Do something else.

      • +1 vote

        Enuf said

        •  

          Isad Fune

    •  

      lol

    • +1 vote

      Learn Ubuntu, and, don't buy any new hard ware yet, jump to minergate, then use your old PC try it out

    • -1 vote

      To make money off mining you need to do better than this

      https://www.coindesk.com/my-life-inside-a-remote-chinese-bit...

    •  

      Not profitable in Australia. Those days came and went years ago. Its too late now.