Trust


Johnczyk asked 6 months ago

Why is it when making an inquiry regarding bitcoin investment you suddenly get loads of email and calls asking you to invest a small amount of money. The company then tells you your account manager will be in touch and he/she then says you need to invest lots more money to make any money. who can we trust

1 Answers
Steven Hay answered 6 months ago

Hi Johnczyk,
 
Well, personally I wouldn’t trust any unsolicited offers. Bitcoin isn’t something you need to invest in via a brokerage or middleman – it sounds to me like these are the types of firms and people pestering you.
 
Bitcoin wallets may be freely downloaded from the internet (see our Wallets section up top for some recommendations and guides) and then bitcoins may be purchased directly from an exchange (see the Buying section).
 
If you’re being offered some kind of investment product, well, that may be based on Bitcoin (like the CME or CBOE Bitcoin futures) but it isn’t actual Bitcoin.
 
I’m not saying those products aren’t any good but to me it makes a lot more sense to hold actual Bitcoin (although you need to put in the research first, so you know how to hold it securely). The reason it’s best to hold Bitcoin is that it has no counterparty risk – it’s much like gold in that way. Personally I’d rather have gold in a safe or vault than “gold” in some contract with a broker on some exchange. If the contract, broker or exchange has a problem, the real gold is still there…
 
If you’re interested in making an investment into Bitcoin, then my recommendations are that you learn the basics and keep the coins under your own direct control. Our Bitcoin Beginners Course (a free series of no-nonsense videos) found under the Help tab should serve as a good introduction to the basic concepts.
 
A hardware wallet (covered in our Wallets section) is an excellent tool for highly secure and simplified storage, if the size of your investment warrants it.

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