Personal Finance

Where do you buy and hold your Bitcoin investments?

  • Last Updated:
  • Aug 8th, 2014 3:03 am
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Jr. Member
Jan 23, 2012
143 posts
19 upvotes
Mississauga, Canada

Where do you buy and hold your Bitcoin investments?

I'd like to start adding some Bitcoin to our portfolio, but totally new to it and not sure where to start. My searches revealed several exchanges and https://localbitcoins.com/.

What is the best practice is for this sort of thing? My intention is to buy and hold them over the long run, until retirement.
21 replies
Newbie
Oct 18, 2014
11 posts
Orillia, ON
Vault of Satoshi... I leave mine in the virtual wallet so I can sell on demand.. I've been to their office in brantford and it's a fairly legit operation. Had to go through a fairly rigorous verification process as the new FINTRAC laws include bitcoin exchanges.
Deal Fanatic
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Apr 20, 2011
5310 posts
484 upvotes
Vancouver
what about BTC-E and okcoin?
Deal Fanatic
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Apr 29, 2008
8010 posts
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Montreal
Buy and hold is a good way to treat investments.

However, does Bitcoin qualify for long-term buy and hold? Your call.
Jr. Member
Jan 23, 2012
143 posts
19 upvotes
Mississauga, Canada
So just join an exchange and start buying? Seems simple then.

Tax-wise then, it simply counts as capital gains income when you sell them?
Jr. Member
Jan 23, 2012
143 posts
19 upvotes
Mississauga, Canada
cashinstinct wrote: Buy and hold is a good way to treat investments.

However, does Bitcoin qualify for long-term buy and hold? Your call.
Yeah, I don't have time to speculate with this stuff. I'm hoping it'll continue to be adopted and value will go up. Maybe when it becomes just like any other currency, I'll get out.
Deal Guru
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Nov 18, 2005
11955 posts
3699 upvotes
Kingston
If you don't plan on spending your bitcoins you can hold them in your own wallet off-line and avoid an exchange entirely. All the big losses of bitcoins have happened when when mickey mouse exchanges with impressive sounding names are hacked.
HeliosOne wrote: Vault of Satoshi... I leave mine in the virtual wallet so I can sell on demand.. I've been to their office in brantford and it's a fairly legit operation. Had to go through a fairly rigorous verification process as the new FINTRAC laws include bitcoin exchanges.
They may well be the best choice among bitcoin exchanges, but I find it interesting how much lower peoples' standards are for depositing bitcoins with a third party than they would be for a bank for normal currency. I suppose it is better to know that there are people in an industrial strip mall on the outskirts of Brantford rather than some ambitious programmer in a basement on the other side of the planet (which is what some of the hacked exchanges have turned out to be).
Newbie
Oct 18, 2014
11 posts
Orillia, ON
JWL wrote: If you don't plan on spending your bitcoins you can hold them in your own wallet off-line and avoid an exchange entirely. All the big losses of bitcoins have happened when when mickey mouse exchanges with impressive sounding names are hacked.



They may well be the best choice among bitcoin exchanges, but I find it interesting how much lower peoples' standards are for depositing bitcoins with a third party than they would be for a bank for normal currency. I suppose it is better to know that there are people in an industrial strip mall on the outskirts of Brantford rather than some ambitious programmer in a basement on the other side of the planet (which is what some of the hacked exchanges have turned out to be).

As someone who works in a financial institution, nothing will compare to it. But you need to realize, we're dealing in ultra-volatile securities here. The assumption with me at least is I've already spent the money. Holding it in a place like VoS allows me to make immediate trades.
Deal Addict
User avatar
Aug 30, 2011
1370 posts
265 upvotes
Winnipeg
CaVirtex is the big one for Canadians. VoS is pretty good too from what I hear.
Jr. Member
Jan 23, 2012
143 posts
19 upvotes
Mississauga, Canada
JWL wrote: If you don't plan on spending your bitcoins you can hold them in your own wallet off-line and avoid an exchange entirely. All the big losses of bitcoins have happened when when mickey mouse exchanges with impressive sounding names are hacked.
I didn't know I can hold my own bitcoins. Looks like I have some more reading to about how this works. Like I create a wallet, how to transfer them in and out, etc.
Jr. Member
Jan 23, 2012
143 posts
19 upvotes
Mississauga, Canada
Ugh, just reading up on how to store my own bitcoins and it sounds too complicated and still I have to be on top of security. Buying and holding bitcoins with the intention of holding them for years sounds too risky too with these exchanges that exist now.

Seems like for a buy and hold strategy and being a noob, the barrier is just too high. Is this a reasonable conclusion? Or am I missing something?
Banned
Apr 15, 2006
4572 posts
126 upvotes
Chatham
sguptaet wrote: Ugh, just reading up on how to store my own bitcoins and it sounds too complicated and still I have to be on top of security. Buying and holding bitcoins with the intention of holding them for years sounds too risky too with these exchanges that exist now.

Seems like for a buy and hold strategy and being a noob, the barrier is just too high. Is this a reasonable conclusion? Or am I missing something?
Feel free to PM if you need answers. Its not complicated. Its infact the safest asset you can hold in the world. Every other asset requires proof of ownerships and IOUs.
Deal Expert
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Oct 26, 2003
39338 posts
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Winnipeg
^ditto on pm jetway, i will not answer any btc questions
Member
Aug 2, 2006
328 posts
43 upvotes
Can't you just 'download' them to a USB key and keep them in a safety deposit box, or hidden in the house somewhere?
Banned
Apr 15, 2006
4572 posts
126 upvotes
Chatham
thedead wrote: Can't you just 'download' them to a USB key and keep them in a safety deposit box, or hidden in the house somewhere?
Let me clarify it a little. Bitcoin isnt a software or data that you "download" and store. Its a protocol.

Owning a bitcoin is basically having a private key that let you transfer/move that bitcoin. To "store" that bitcoin, you simply store the private key. There is no data that you need to secure. Hence bitcoiners usually prefer paper wallet ( just a piece of paper with a private key).


I dont want to confuse newbies with further details. Just something you can be familiar with for now.
Member
Aug 2, 2006
328 posts
43 upvotes
jetway1212 wrote: Let me clarify it a little. Bitcoin isnt a software or data that you "download" and store. Its a protocol.

Owning a bitcoin is basically having a private key that let you transfer/move that bitcoin. To "store" that bitcoin, you simply store the private key. There is no data that you need to secure. Hence bitcoiners usually prefer paper wallet ( just a piece of paper with a private key).


I dont want to confuse newbies with further details. Just something you can be familiar with for now.
Right, if you need the private key to use the coin, you are effectively downloading the 'coin' to a USB key. Unless I understand that wrong.

Why would you want to use a 'wallet' and trust someone else's security protocols? Are you not safer with it in bank?
Banned
Apr 15, 2006
4572 posts
126 upvotes
Chatham
thedead wrote: Right, if you need the private key to use the coin, you are effectively downloading the 'coin' to a USB key. Unless I understand that wrong.

Why would you want to use a 'wallet' and trust someone else's security protocols? Are you not safer with it in bank?
Do you download the internet when you're surfing web?

I failed to see why you even come to that conclusion.
Also bitcoin protocol does not belong to "someone else". Is the internet owned by someone?
Deal Expert
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Oct 26, 2003
39338 posts
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Winnipeg
jetway1212 wrote: Do you download the internet when you're surfing web?

I failed to see why you even come to that conclusion.
Also bitcoin protocol does not belong to "someone else". Is the internet owned by someone?
as matter of fact, yes, I own the internet, and if I don't like your post, I will shut off the web.
Member
Aug 2, 2006
328 posts
43 upvotes
jetway1212 wrote: Do you download the internet when you're surfing web?

I failed to see why you even come to that conclusion.
Also bitcoin protocol does not belong to "someone else". Is the internet owned by someone?
My point is if you store the private key on a USB file it is much safer then any online site...Your safety deposit box is much more difficult to break into then a website.

Again, I could be wrong... That is more of a question
Deal Addict
Jul 9, 2004
1572 posts
173 upvotes
Delta
thedead wrote: My point is if you store the private key on a USB file it is much safer then any online site...Your safety deposit box is much more difficult to break into then a website.
Yeah it's safer, but you better have a good backup strategy (even just writing the key on paper) because if your USB drive gets corrupted your SOL.

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