Why I’m Buying Bitcoin Again

The world is moving fast and keeping up with technology is key to thriving long term in the financial markets. Lately bitcoin has become a hot topic on the internet. So I’ve been scooping it up over the last few months. I mentioned this on Twitter.

The last time I blogged about buying bitcoin was in 2017 where I made a decent profit by pumping and dumping. However this time will be different. Instead of trading, I plan to buy and hold BTC as a long term investment. πŸ™‚

I currently own 0.28 BTC. Why this number? Because according to analyst Jake Levison, 0.28 bitcoin is all you need to be in the top 1% of all bitcoin owners. πŸ™‚

This amount represents less than 1% of my net worth. I can lose all 0.28 bitcoin and not care too much about it. But if the value soars then being in the 1% club should give my future purchasing power a significant advantage. I may buy more BTC on price pullbacks until it’s 2% of my net worth. πŸ™‚

But this post isn’t about convincing anyone to buy bitcoin. There are plenty of other articles on the internet for that already if you search for them. To be honest I don’t fully understand bitcoin myself yet.

The point of this post is to outline the reasons why I’m adding bitcoin to my portfolio so readers know what I’m buying these days, and that I am biased.

 

Reasons why I’m bullish on bitcoin

  • It’s a hedge against inflation because it’s a deflationary currency. Only 21 million bitcoin will ever exist.
  • It’s been here for over a decade so it will probably stick around.
  • Institutional investors and large fund managers have began to show interest in cryptocurrencies.
  • Many macro strategists including Lyn Alden started to become bullish and are buying bitcoin this year.
  • Widespread adoption in 2020. BTC is now compatible with mainstream financial services like PayPal.
  • Governments have announced they want to adopt digital currencies. Central banks are creating their own.

But due to its speculative nature it’s hard to recommend BTC to someone who don’t already have some level of investment experience. It’s a good idea to build up at least $10,000 in stocks, ETFs, or other traditional assets before buying bitcoin.

There are also transactional fees to consider. If I take out my physical wallet and hand you $1, you will be $1 richer. But if I send you 1 BTC from my digital wallet, you will receive less than 1 BTC due to fees. This makes bitcoin difficult to use as a widespread currency.

And if you have trouble handling large price fluctuations then BTC is definitely not for you.

You know yourself better than anybody else. Don’t just follow what others do on the internet. Learning to develop your own strategy will give you more conviction and control over your financial outcome. The attitude to adopt isn’t who’s going to lead you. It’s who’s going to stop you! πŸ™‚

 

How to buy bitcoin

There are many different ways to buy BTC. Coinbase is very popular in the United States. For Canadians I would suggest using Shakepay as it is what I currently use after comparing many different services. Just make sure you understand all the risks and talk to a financial expert before you buy anything.

Shakepay actually has a special holiday promotion right now. If you use my referral link here, we will each receive a $30 cash bonus once you spend at least $100 on the platform.

So if you do conduct your own research and decide to buy BTC, then getting a 30% discount on a $100 bitcoin purchase is not a bad way to get into this space; most people have to pay full price. πŸ˜‰ But this offer is only temporary. The bonus will drop back down to $10 when the holiday promotion ends.

 

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Random Useless Fact:

Predators evolved to have better depth perception and focus for hunting. Preys have a wider field of view to better spot danger.

 

 

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Carla
Carla
12/21/2020 10:44 am

Can it be bought in a registered account?

Carla
Carla
12/21/2020 10:45 am

Also, governments seem to be moving towards digital currency. What will happen to the value of bitcoin if that happens?

harry
harry
12/22/2020 2:11 pm

Great article.
How to get offline wallet ?Is there any extra fee to pay for that?
How liquid BTC is? Can you sell it like stock on any trading day ?
What are you thoughts on ETH? Does it have same prospectus as BTC?
Thanks

Last edited 2 months ago by harry
Impersonal Finances
12/22/2020 2:12 pm

So over my head but seems like a lot of smart people are into it now as opposed to the more speculative nature of it a few years ago. Though obviously still a speculative bet, seems like the smart money is literally on your side. I can’t help but think of tulips in Amsterdam but while I’m busy poo-pooing alternative investments people are making very real money. Might have to buy a small amount just so I don’t feel left behind.

MMM
MMM
12/25/2020 9:35 am

Thanks for the Shakepay recommendation. I had looked into Coinbase and others a few years ago and seemed like all the fees and hoops you had to jump through were not worth the hassle. Almost put money on Quadriga at the time (that exchange ended very badly). But Shakepay seems transparent and seamless if you’re Canadian. The $30 holiday bonus was sweet too. Merry Christmas!

Diego
Diego
12/26/2020 4:16 pm

Is a good time to buy Bitcoin or I should wait that the price drop?
Thanks

Hao
Hao
01/02/2021 6:28 pm

Hi Liquid, I opened an Shakepay account using the link in the post. While seeking for the $30 cash bonus to their customer service, they asked for your @shaketage or referral code info? Any chance you could provide it to my email?

Lina
Lina
01/08/2021 2:09 pm

Hi Liquid, can you send me as well?

Lina
Lina
01/08/2021 6:26 pm

Thank you so much Liquid!

Jay
Jay
01/03/2021 11:25 pm

Liquid, your timing is impeccable, yet again. I’ve been subscribed for 5 years now and have been amazed how your (unconventional?) strategies seem to work time and time again. I don’t know if it’s luck or skill, or a little of both :), but I hope you keep at it and keep the blog going!

I’ve been debating how best to get into Bitcoin for a while now since I think it could reasonably go up over 100K this year: https://www.tradingview.com/chart/BLX/uYKn9Nrx-Bitcoin-longterm-chart/

So after seeing your ShakePay recommendation a couple weeks ago I bit the bullet and bought some using your referral link a couple weeks ago. Again, looks like your timing couldn’t have been better.

Last edited 1 month ago by Jay
Vivianne
Vivianne
01/13/2021 7:54 pm

A few years ago, I watched my fellow blogger were able to retired by investing in litecoin, it was literally went from $6 to $60 in just a matter of a couple month. It was still way too much risk for me.

I read your post, since you bought in the the $10K, and bitcoin shot up to $42K before cooling down. I thought, man, you’re a genius.

But it’s still way too much risk for me. I’m more of a the proponent of “no skin in the game”. I found Etoro trading platform, they offer $50 to sign up and invest $100, it’s like 50% off. So I signed up put in my $100, I got the $50 bonus, so I sold $50 worth of bitcoin, transferred $100 back to my bank. Now, I got $50 to play with.
You can do the same with the referral code to get a free $50. πŸ˜›

https://etoro.tw/3i3lOsb

Vivianne
Vivianne
01/14/2021 8:13 am

I checked again, EToro is only for the US investor.
I’ve never heard of it until I saw the ad in Coinbase to join for the bonus.

Coinbase is going IPO in the first quarter of this year. And EToro is filing to IPO in the second quarter of this year. EToro is own by the 2 Bitcoin billionaires.

I might buy the IPO if it doesn’t exploded 3x the IPO price like AirBNB . I made a couple of trades and they earn 1.5-3% depending on the type of crypto OMG they’re so profitable both Coinbase and eToro. I think I’ll bet with the house instead πŸ™‚

EToro and Coinbase are crambling to get more customers/traders hence all the bonuses that they’re offering.

harry
harry
01/16/2021 1:23 pm

Great post, as always. Can you buy Lite coin ,ETH or others cryptos with Shakepay or just Bitcoin. How much is the fee for a CAD 100.00 Bitcoin. How will Shakepay deliver it to me and how to store Bitcoin once you purchased. I have heard if you lose hard drive you will lose them and cannot recover ? Would you mind sharing the way you are storing your Bitcoins?
Thanks

harry
harry
01/16/2021 2:25 pm
Reply to  harry

BTW I used you link to open account with Shakepay