I want to invest £25 per month into bitcoin for the next couple of years

CatFur

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Quote from: ummahusla on December 14, 2017, 08:50:06 AM

Quote from: Thirdspace on December 14, 2017, 08:36:08 AM

It's a good idea!
cons: depending on how you buy your BTC, the current minimum tx fee will be the downside
it would cost you (or seller) significantly high when dealing with low amount transaction
if you can find a way to reduce the fee close to negligible, it would be perfect

Atm I just registered on Coinbase and waiting for verification from there, I thought of buying on monthly basis. Is it a good idea?

Being the investment expert which I'm not Grin

I'm going to agree with those suggesting diversification. But definitely not making a loan to make an investment. If I had that kind of money I would be looking into storing some on a regular basis at FreeBitco.in where I can earn some interest [in addition to where ever you're planning to store your bitcoins].

FrankNorway

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.... Forgot to mention. There is a whole lot of fake sites offering hosted mining or sky services. I almost lost 2000 to genesismining.org

~Money~

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Quote from: HappyMod on December 17, 2017, 01:09:35 AM

I feel like this is a silly comment. If you are worried about losing money in fees you probably shouldnt buy or use BTC ever. It has never really been cheap, if your thinking in BTC terms.

Hes a new guy, let him invest how he pleases. You worried about fees? Go to LTC or something. If you want BTC, buying in small amounts over time is the best option. Especially because of it being high right now. This doesnt really show signs of stopping mate. Get over it.

Yes btc was never that cheap, but it will be better and faster after upcoming forks,
Currently, btc is going to the moon again as it is preparing to start "BTC FUTURE" trading tomorrow in usa,
So the price is too high to invest such low price, i still think altcoins investment is much better now

HappyMod

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Quote from: 7BEN7 on December 15, 2017, 06:37:08 PM

Quote from: ummahusla on December 14, 2017, 08:24:07 AM

I'm 25, I have a full-time job and sometimes I freelance. I'm thinking about making a small investment (£25) into bitcoins on monthly basis. Additionally, I want to invest the money I get from the freelance into it as well, but it's not very stable income, so I mainly want to focus on small monthly investments.

Can anyone consider this idea as a good one?
What are the possible cons of this idea except losing all money?

Why are you suggesting him that? It's such a bad idea; he will LOSE a bunch of money on fees. Plus BTC is high now.

I feel like this is a silly comment. If you are worried about losing money in fees you probably shouldnt buy or use BTC ever. It has never really been cheap, if your thinking in BTC terms.

Hes a new guy, let him invest how he pleases. You worried about fees? Go to LTC or something. If you want BTC, buying in small amounts over time is the best option. Especially because of it being high right now. This doesnt really show signs of stopping mate. Get over it.

7BEN7

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Quote from: ummahusla on December 14, 2017, 08:24:07 AM

I'm 25, I have a full-time job and sometimes I freelance. I'm thinking about making a small investment (£25) into bitcoins on monthly basis. Additionally, I want to invest the money I get from the freelance into it as well, but it's not very stable income, so I mainly want to focus on small monthly investments.

Can anyone consider this idea as a good one?
What are the possible cons of this idea except losing all money?

Why are you suggesting him that? It's such a bad idea; he will LOSE a bunch of money on fees. Plus BTC is high now.

lazzackweach

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I followed the same strategy with stocks. I put all my spare money month after month into the market. 10 years later that turned out to be an excellent idea if you compare it to normal interest rates or investing in real estate.

I really like Warren Buffets philosophy about a rolling snowball getting bigger and bigger. The snowball is your £25 you put in every month. Go for it my friend.

siagh357

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It is a good idea, but I think the value is small and as a result, transanctions fees will be eating your capital. Is good idea though. Hope by the time the month end for you make another deposit, the coins would have appreciated to cover the fees.

guybrushthreepwood

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Quote from: ummahusla on December 14, 2017, 08:24:07 AM

I'm 25, I have a full-time job and sometimes I freelance. I'm thinking about making a small investment (£25) into bitcoins on monthly basis. Additionally, I want to invest the money I get from the freelance into it as well, but it's not very stable income, so I mainly want to focus on small monthly investments.

Can anyone consider this idea as a good one?
What are the possible cons of this idea except losing all money?

This is a good idea and I don't see any bad other than what you already stated IE losing all your money. You have to gauge whether it's worth the risk to you and the phrase "don't invest more than you can afford to lose" applies to not just bitcoin but all investments. If you're comfortable with £25 loss per week then go for it. You'd probably spend that at the Cinema and a few drinks and popcorn these days so it's not much to lose. If you're wondering whether it's worth it just think what would have happened had you invested £25 a week since a few years ago. You'd be pretty well off by now.

J. Cooper

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Alea iacta est

Quote from: ummahusla on December 14, 2017, 08:24:07 AM

I'm 25, I have a full-time job and sometimes I freelance. I'm thinking about making a small investment (£25) into bitcoins on monthly basis. Additionally, I want to invest the money I get from the freelance into it as well, but it's not very stable income, so I mainly want to focus on small monthly investments.

Can anyone consider this idea as a good one?
What are the possible cons of this idea except losing all money?

It's a very good strategy to invest (I actually use it myself so I might be a little biased but regardless), because first of all you're only investing tiny bits of money that you don't really need and those bits (see what I did there?) combined with the natural growth of bitcoin will bet you a reasonable amount over time. Since you've said you're going to apply this for the next couple of years I'm assuming you are interested in a long position on bitcoin. Therefore I would advise to directly deposit whatever you bought into a cold storage vault. That way you won't risk losing anything over time.

MR2O4

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The other problem I see, is how to cash out to GPB easily. It is all well and good having thousands of pounds worth of bitcoin, but unless you can easily convert it into thousands of pounds it isn't worth the memory chips it is stored on...

HappyMod

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The biggest issue is that we dont really know what kind of valuation there could be for a financial chain like BTC - What do people really put as far as value is concerned on something in which you own your own money.
This is something the world has never seen.

It all becomes a question of what is Bitcoin really, and what does it stand for?

~Money~

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Quote from: tocketsearful on December 14, 2017, 02:42:19 PM

No one can know if BTC price will keep raising or not. So, no one can really tell you if it is a good idea to group your monthly £25 purchases into bigger ones. If BTC raises just as much as it has done this year it is not recommended. .....

absolutely, according to Bloomberg, there are many who think bitcoin price will crash once again like before and at the time there are some few tech dudes who believes bitcoin price can really go to the moon where no one ca even think right now, i am talking about a number with 9 zeros, which we still can think of yet, but they are all gossips now, no exact prediction about bitcoin or any other crypto currencies

the main big problem which is preventing any prediction are governments

MR2O4

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Quote from: Intensity on December 14, 2017, 12:34:31 PM

Besides the lower fees on GDAX, they pay the tx fee for sending your coins to another wallet/exchange. The downside, you can not automate the purchasing process on GDAX. Still an overall better approach in my opinion.

That is really interesting to note. I am a few months ahead of the original poster, and have been putting roughly £25 per month into Bitcoin, on Coinbase. However, I would like to get my coins into a wallet on my computer, rather than leaving it with Coinbase. I was worried that the tx fees would eat into my small about of bitcoin.

With regards to "is buying on a monthly basis a good idea?", I'd say it is, I do it with other investments. Constantly drip feeding a small amount smooths out the fluctuations in the asset you are buying. "Pound cost averaging" is a term I have heard used to describe it.

Tanhdoit

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If you want to dip your toes into cryptocurrency that is the perfect plan. BTC is known for the wild rollercoaster rides from ATH and retracement of close to 40%. But buying every months 25 a time you will definitely have a better average and you'll definitely won't risk as much all at once. BTC will eventually keep rising and never die it. When everyone talks about cryptocurrency the first things people think of his BTC, so it is the best sound investment. Like the other user stated, use gdax because there are no fees for deposit, withdrawals and trades.

HappyMod

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Quote from: mayo2u on December 14, 2017, 10:41:31 AM

Quote from: ummahusla on December 14, 2017, 08:50:06 AM

Quote from: Thirdspace on December 14, 2017, 08:36:08 AM

It's a good idea!
cons: depending on how you buy your BTC, the current minimum tx fee will be the downside
it would cost you (or seller) significantly high when dealing with low amount transaction
if you can find a way to reduce the fee close to negligible, it would be perfect

Atm I just registered on Coinbase and waiting for verification from there, I thought of buying on monthly basis. Is it a good idea?

Coinbase has fairly high fees as well. Take a look at GDAX. It's owned by Coinbase and the fees are considerably lower. Don't forget to pay attention to other exchanges as well. Gemini is a good US based exchange with far lower prices than Coinbase (although higher than GDAX).

Don't forget to get your own wallet, or if that confuses you start researching what's involved in having and using your own wallet.

You could probably set up a recurring deposit from your bank side and schedule it ahead of time with the exchange. Personally hate Coinbase, but its not the worst place in the world. It does make things like this easy.
Personally I prefer Kraken for both Euro and USD trading, but thats my opinion.
You can always just save some of it up until the tx fee would be worth it (around 10 dollars each right now) and then when theres enough you can pass it along at a certain limit

_________________________________-
The best way to protect yourself from volitility is to do many small transactions (ie 25 ea) rather than one big one. This way it all averages out with massive swings.

tocketsearful

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No one can know if BTC price will keep raising or not. So, no one can really tell you if it is a good idea to group your monthly £25 purchases into bigger ones. If BTC raises just as much as it has done this year it is not recommended.

I would however consider another solution which you might be on the fence about. What if you get a small loan in the bank for say £300. Transfer those £300 to kraken.com (I assume that you live in the UK and that UK are still part of the European bank transfer system). Make a SEPA transfer to kraken.com and then buy once every month for those £25.

I am not sure what interest rate you are able to get in the bank. Maybe hear your parents about a 3% loan which would still beat the fees in Coinbase etc.

Listen I am not advising you to loan to purchase BTC. I am just advising you to look at the costs related to the purchases you are going to be doing anyways.

~Money~

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m not completely sure, but with current bitcoin price and transaction fee before future forks, it might not be good to put such small amount of funds on bitcoin
why don't you go on altcins? ltc/ dash/ eth might get you more profit with low funds
of course its my idea, i have not done any research about that to check how this plan might work for you but you can easily make do it yourself by help of Microsoft excel
leaving aside the crypto you choose, investing on crypto will surely works

GMule

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On a similar idea, would it be better to group up the purchases rather than a series of small ones? For example putting the money to the side for 6 months then purchasing? I know you would risk the growth over the six months, but where would the breaks be on the fees?

Intensity

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Besides the lower fees on GDAX, they pay the tx fee for sending your coins to another wallet/exchange. The downside, you can not automate the purchasing process on GDAX. Still an overall better approach in my opinion.

mayo2u

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Quote from: ummahusla on December 14, 2017, 08:50:06 AM

Quote from: Thirdspace on December 14, 2017, 08:36:08 AM

It's a good idea!
cons: depending on how you buy your BTC, the current minimum tx fee will be the downside
it would cost you (or seller) significantly high when dealing with low amount transaction
if you can find a way to reduce the fee close to negligible, it would be perfect

Atm I just registered on Coinbase and waiting for verification from there, I thought of buying on monthly basis. Is it a good idea?

Coinbase has fairly high fees as well. Take a look at GDAX. It's owned by Coinbase and the fees are considerably lower. Don't forget to pay attention to other exchanges as well. Gemini is a good US based exchange with far lower prices than Coinbase (although higher than GDAX).

Don't forget to get your own wallet, or if that confuses you start researching what's involved in having and using your own wallet.

ummahusla

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Quote from: Thirdspace on December 14, 2017, 08:36:08 AM

It's a good idea!
cons: depending on how you buy your BTC, the current minimum tx fee will be the downside
it would cost you (or seller) significantly high when dealing with low amount transaction
if you can find a way to reduce the fee close to negligible, it would be perfect

Atm I just registered on Coinbase and waiting for verification from there, I thought of buying on monthly basis. Is it a good idea?

Thirdspace

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It's a good idea!
cons: depending on how you buy your BTC, the current minimum tx fee will be the downside
it would cost you (or seller) significantly high when dealing with low amount transaction
if you can find a way to reduce the fee close to negligible, it would be perfect

ummahusla

newbie

Activity: 4

Merit: 0

I'm 25, I have a full-time job and sometimes I freelance. I'm thinking about making a small investment (£25) into bitcoins on monthly basis. Additionally, I want to invest the money I get from the freelance into it as well, but it's not very stable income, so I mainly want to focus on small monthly investments.

Can anyone consider this idea as a good one?
What are the possible cons of this idea except losing all money?

Topic: I want to invest £25 per month into bitcoin for the next couple of years (Read 322 times)