Ask HN: What's the best way to invest in Bitcoin?

5 points·jgrahamc··5 comments

Suppose I want to add some Bitcoin to my investment portfolio (meagre as it is). What would be the best way?

I would guess that the smartest way is the way you would invest in California gold in 1849: by not investing in the too-good-to-be true dream of easy free money, but investing instead in the businesses that profit on the greed of the dreamers. Which ones those are, I don't know.

Selling those GPU-enhanced servers is akin to the toolmakers selling shovels and other tools to gold-diggers.

To get the bitcoins you need a broker, an exchange, or buy them in person. Check out Coinbase, Kraken, and Localbitcoins.

To keep your coins safe you can use Electrum. It will generate a "seed" that you need to print or write down and keep it safe. The wallet will use that seed to generate addresses you can use to receive bitcoins. If you are into Linux, you can use a Tails DVD to generate the seed in a clean environment, which is safer. I think the last version added Electrum so you won't need to install anything extra.

Another option is to use multi-signature online wallets like Coinkite (I think Coinbase offers multi-signature too now).

Define 'some'...

You could simply buy them, take your wallet offline (store it on a couple of USB sticks and check on them periodically to make sure they're all still readable).

Buying bitcoin is not an investment, it's mostly a gamble.

Depends where you are from.

If from US just sign up at coinbase, add bank account, and buy them.

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