Show notes
Our hosts David and Phil Ngo take Episode 18 to help some newcomers to Bitcoin. This episode is to help give newcomers some basic practical concepts to Bitcoin so they can participate in purchasing and securely storing it.Bitcoin hit its new all time high surpassing $66k (0:59)!Information about this episode and why it's catered towards newcomers. Feel free to skip if irrelevant to you (1:49).What is Bitcoin (3:41)?Can Bitcoin be hacked (5:17)?Correction Disclaimer: Phil meant to say that there are MORE private key combinations than grains of sand on the Earth, making it mathematically inefficient to crack Bitcoin's cryptographic algorithm (6:31). Phil explains that Bitcoin itself has had issues in the past, but critical bugs have always been resolved and stands the test of time as being very secure (8:36).Is it mainstream yet? Who is buying it (9:30)?Phil thinks a lot of institutional money is flowing in now. The ProShares Bitcoin Futures ETF just launched (12:15).It's important to understand WHAT you're buying and WHERE + HOW you're buying it (13:25).We are implementing old traditional finance instruments and its problems into new tech which is supposed to get rid of those problems (15:05).How do I buy/sell Bitcoin (17:00)?Where you buy Bitcoin from is important. Are you actually buying it from a place that allows you to withdraw the actual asset and not a derivative of it (17:41)?Cryptocurrency focused exchanges like Kraken (19:23).Be very careful about leaving cryptocurrency on an exchange or with some other third-party (20:15)."Not your keys, not your coins." If you don't own the keys to where your coins are located, it's not yours (21:17).Shakepay allows you to buy Bitcoin and withdraw the asset to your own digital wallet (22:36)How do I store/keep my crypto safe (23:27)? Phil explains briefly about hardware wallets like Ledger and Trezor (24:03).Phil explains digital wallets on phone apps like Exodus (25:20).Why your 12 word recovery phrase is SUPER IMPORTANT. (25:40).NOBODY will ask you for your recovery phrase. Never give this out to anyone. Be very careful about phishing attempts. Whether that is a fake clone of an app or "customer support" looking to help you return your crypto (28:07). When should I buy/sell crypto (29:30)?Phil talks about the 200 week moving average metric (33:15).We all love data (35:00).We compare $20,000 BTC as the high of 2017 and compare it to $66,000 four years later (35:20).Phil gets theoretical again and asks what gives a money its value (38:38).David spoke to some younger financial advisors who are now learning about crypto (40:45).Shownotes:Follow Us and Subscribe: www.ngoyourpotential.com