So, after setting I set up my USB dongle, also known as a “cold wallet”, I then transferred my tiny fraction of a single bitcoin onto it. That was a simple enough process.
I have put my “cold wallet” somewhere safe and made a few of copies of my 24 -word password, which I have stored elsewhere “just in case”.
Importantly, the bitcoin provider advised to have no electronic record of that password – no photo of it, no storing it on my computer, or anywhere else that might be connected to the internet. It’s a completely offline arrangement.
It does concern me a little that if I get hit by a bus, my family might never be able to recover this bitcoin, even though I have explained it to my wife and told her where the key pieces of information are kept.
All around, buying bitcoin is just like any other investment – albeit it feels a little less secure. The fact that the provider where I purchased advises you not to store them in their own platform does not instil massive confidence.
Crypto-lovers, of course, respond that the blockchain solves all this but, for me, that feels like a bit of a black box that I just have to take on faith.
Still, I am glad to finally own some bitcoin and to have gone through this experience.
Whether bitcoin becomes a major part of our financial system or not I don’t especially care, with such a small outlay. However, if it does, it’s nice to know I’ve got a tiny bit of it.
Paul Benson is a financial planner, author, and host of the Financial Autonomy podcast.
