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I'm new to all the crypto stuff, and I spent some time reading about it to get familiar with it, and now I'd like to start the experience, though I'd first like to have some feedback about whether I understood it correctly.

I'd like to invest in bitcoin with a moderate amount, for a long period. As a result, I'm not looking for the convenience of trading quickly between cryptocurrencies, but rather I'm looking for low fees, and security.

From what I understood, going through an exchange platform is the most secure, yet not so expensive, way to do that. They charge a fee, so I'm looking for the lowest fees applicable for depositing/withdrawing/exchanging.

In order to enhance the security, I read that I could buy a cold wallet and transfer my exchange wallet there.

So to sum up, I understood that I roughly have to follow the following steps:

  1. depositing euros to my account
  2. exchanging them for bitcoins
  3. (optional) moving them to a cold wallet
  4. (if step 3) moving them back to the account
  5. exchanging it for euros
  6. withdrawing euros back to bank account

My web search concludes that binance provides the cheapest depositing/withdrawing/exchanging fees, whilst still providing some sort of security (as opposed to, say, finding a random person online willing to exchange currencies). Am I right to think that these fees include the bitcoin transaction fee ?

Is this description accurate ? Is it the most classical / best / cheapest / most secure steps to buy bitcoins for investment purposes ? Or are there cheaper ways to achieve this investment ?

I also read about decentralized exchanges, such as binance dex, which seem to provide overall lower fees, but I don't know if they apply to my use case.

Thanks.

kupty
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  • Well no, not really. I already read a lot of articles to get me started, including actually some of the links in the question you provided. But now that I've read all this information, I was hoping I would get an answer tailored to my specific case, to make sure I understood it all, rather than just generic documentation. – kupty Jun 03 '21 at 11:38
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    Seems like a reasonable question, but I would edit your question to not mention Binance or it will get flagged. I don't think you need the cold wallet, unless maybe you are over 0.1 BTC or some amount which needs some risk protection. – djangofan Jun 03 '21 at 17:14

1 Answers1

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Your process is correct, if you're not using a cold wallet at the very least you can use a mobile wallet like Blockstream's Green wallet or software like exodus for your computer (which also allows you to add 2FA authenticator apps). However, using a hardware wallet is the most secure method.

Chiru
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  • Fair enough, thanks. Can you elaborate a bit about binance dex? I find it confusing. Do such (decentralized) platforms allow cheaper transaction fees ? Where are the cheapest way to get bitcoins with euros ? Where do rich guys go to get bitcoins and not lose too much on fees ? – kupty Jun 05 '21 at 18:40