a reply to: the owlbear
I would send bitcoin to my unique Coinbase or cex.io btc wallet address. I would then use Coinbase or Cex.io to instantly sell btc for USD the current
usd/btc exchange rate. Those sites are also an exchange so they can be used to trade back n forth as well.
Then i would choose to withdraw my USD to my bank account or to a debit card. Funds in USD would hit my checking account within 24/48 hours. Could
then withdraw physical cash from my bank.
Now just talking turning bitcoin into US dollars fiat currency on a debit card issued by your bank? Even easier. Instantly through coinbase or cex.io
with 0% fee on the latter. There are also bitpay debit cards. You have a btc address associated with your debit card. You send btc there, and it is
instantly available to spend as USD anywhere Visa is accepted.
Even better, there is a coinbase shift card which does the same thing except the btc/usd exchange date remains fluid until you actually make purchases
with the card.
Sorry for being long winded. About your first question. I assume you are referencing Mt. Gox. It was one of the original btc/usd exchanges. The
'vault' did not really go down and the 'wallets' did not really dissappear.
What happened was, the owner of that exchange was stealing enough bitcoin from peoples accounts until the exchange became insolvent. This was a
website with backend servers. While the owner was stealing peoples funds, he maintained the correct amounts on the front end so nobody was the wiser
until the exchange became insolvent and it all came crashing down. The owner then claimed it was all the work of hackers. There may have been some
hacks as well but the owner certainly was the main thief and tried to shift blame. I am pretty sure he is in jail now.
Could this happen again? Sure. That is why you are careful about what exchanges you use. If it is US based and long established - chances are the
owner is making enough millions in trading fees that they would never consider running off with users' bitcoin and risk most certain jail time.
Which brings an excellent distinction. When your 'usd' or bitcoin are on an exchange they are at risk. That is a fact. Hacks happen. People get greedy
and steal. Its risk vs reward.
When you have your bitcoins on a private wallet on your computer or on a thumb drive, with the wallet locked, encrypted, keys exported, wallet.dat
backed up, nobody can steal your coins. You can also by hardware btc wallets these days. Or write your wallet address keys info on paper and store
them nowhere on your pc. They call this a paper wallet. And you could use those keys to regain access anywhere at any point in the future. Simply by
downloading the wallet again and importing.
Realized i was silly and did not mention the easier method - go Here
Create a wallet, write down all your info + your 12 word passphrase and enable 2FA, the whole nine yards. You will forever have a secure bitcoin
wallet addy on the web withought having to download the blockchain and all that jazz. Send there, keep your hands off for years, profit.
on 22-5-2017 by lightedhype because: (no reason given)