I only have a small amount of Bitcoin. What do I do?
A common dilemma
Many newcomers to Bitcoin often face a common dilemma: they don't yet have a significant amount of Bitcoin, but they're concerned about the safety of leaving it on an exchange. At The Bitcoin Adviser, our primary mission is to help clients secure their Bitcoin holdings and transition them off exchanges.
However, we understand that the decision can be challenging, especially when you're dealing with a relatively small amount of Bitcoin. In this article, we'll explore the options available and provide guidance on what to do if you're in this situation.
Understanding Bitcoin Custody Options
To make an informed decision, it's essential to understand the various custody options available. We've detailed these options in our comprehensive article, "Understanding Bitcoin Custody". This article explains the trade-offs between different custody solutions, allowing you to assess which one aligns best with your needs.
Factors to Consider
When you're dealing with a small amount of Bitcoin, there are several factors to consider before deciding on the most suitable custody method:
Hardware Device Cost: Evaluate the cost of acquiring a hardware wallet like Trezor or Ledger compared to your Bitcoin balance.
Tolerance for Risk: Assess your comfort level with the potential risk of losing your funds, considering the security of different custody options.
Fees: Consider the 1% fee for Bitcoin Adviser services and transaction fees for performing Bitcoin transfers
Recommended Approach for Small Balances
The significance of the amount of Bitcoin you hold can vary greatly from person to person. Thus, the choice of custody should be based on the amount you are prepared to lose. If the sum you hold is beyond your comfort zone for potential loss, it's a sensible move to book an appointment with a Bitcoin Adviser today to ensure a well-informed and secure custody strategy. If it is less than this then there are other options:
Store your funds on a hot wallet like "Green" for ease of access and minimal fees. Green Wallet can be used on iOS and Android. Blockstream Green is a simple and secure Bitcoin wallet that makes it easy to get started sending and receiving Bitcoin. Built by Blockstream, one of the most security-focused teams in the Bitcoin industry. You can search for "Green: Bitcoin Wallet" on your app store.
Alternatively if you prefer the alternative of a hardware key and single sig you might consider investing in a hardware wallet like Trezor if you want added security, a device like this can then be used when you do become a Bitcoin Adviser client as your key in the multisig, so you aren't wasting your investment.
We want to ensure that our services are accessible to everyone, especially those just starting their Bitcoin journey. When you're Dollar-Cost Averaging (DCA) small amounts of Bitcoin, stacking as much as you can is essential.
Transitioning to Collaborative Custody
As your Bitcoin holdings grow, collaborative custody using multisig with The Bitcoin Adviser becomes a more suitable option. Collaborative custody provides enhanced security while ensuring you maintain control over your funds. This approach is particularly beneficial for clients looking to secure more substantial Bitcoin holdings or with aggressive buying schedules.
Conclusion
The decision regarding the custody of your Bitcoin holdings ultimately depends on your unique circumstances, risk tolerance, and long-term goals. Whether you're just starting with a small balance, accumulating Bitcoin rapidly or looking to secure a large balance, The Bitcoin Adviser is here to provide guidance and support.
Our goal is to help you secure your Bitcoin holdings and achieve peace of mind, no matter where you are on your Bitcoin journey. Even if you have a small holding currently please don't hesitate to reach out to our team of advisers to discuss your personal circumstances and the best way to secure your funds.