Beginners Guide Part 3/3 - How to Buy & Hold Bitcoin with Dan Held - WBD632

 




 





Dan Held is a Bitcoin educator and marketing advisor at Trust
Machines. In this interview, we discuss how to get involved
with Bitcoin: how to buy and store Bitcoin, how to spend
Bitcoin, how to avoid scams, how to engage with the
community, and the best Bitcoin-related books, podcasts and
Twitter feeds to follow.


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This is the third in a series of special What Bitcoin Did
shows aimed at opening people up to Bitcoin. In the first
episode, we learnt that Bitcoin is a new form of money. In
the second episode, were learnt what Bitcoin is and its
technical features. In this episode, we discuss how to buy
and hold Bitcoin.


To those new to Bitcoin it can feel overwhelming. Its
ideological and technical basis can seem impenetrable.
Actually acquiring Bitcoin is another hurdle that requires an
appreciation of new concepts and implementing disciplines
distinct from other types of investment. But, the technical
skills and behaviours required are actually well within the
capabilities of the majority of people.


To invest one must first learn about changing your time
preference. Bitcoin is about discipline over a longer time
frame. Volatility exists, but Bitcoin is volatile to the
upside. In contrast, other over-hyped digital assets
advertised as offering better returns hide extreme downside
risks. Those who stay humble, hold (referred to as hodl)
Bitcoin and avoid the human desire for quick returns, are
best placed to benefit over the long term.


Then one must appreciate the risks associated with custody.
Most people are overly confident in third parties keeping
their assets. But, in both traditional finance and
cryptocurrencies, there are many examples of such trust being
broken. There is a famous Bitcoin mantra: “not your keys, not
your coins”. In essence, if you don’t hold your Bitcoin, you
don’t own the Bitcoin.


Taking ownership of your Bitcoin means having to be
disciplined in how you secure that Bitcoin. But again, these
are new behaviours to attain, not difficult skills to learn.
And they are reinforcing. Self-reliance is what Bitcoin
ideology is predicated on. It is part and parcel of becoming
a good Bitcoiner. Further, these habits will naturally bleed
into other aspects of your life. Becoming a better Bitcoiner
is synonymous with becoming a better person.