Comment: Before you start out, you

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Before you start out, you

Before you start out, you need to realize one thing: BC is currently experiencing a bubble.

However, that the current trend in BC is a bubble does not invalidate BC. IMO, the fundamentals of BC are strong enough to withstand a bubble, though it might take awhile for it to regain its former value. Gold and silver are currently in a bubble as well, though not as large as the bubble in BC. Those bubbles are safer as well, because you have less volatility.

Bubbles start out when you have periods with lots of fear/terror/excitement and when these emotions lead you to buy an asset. Whenever you have these conditions, you will get a bubble. There are no exceptions to this, despite what some may have you believe. These extreme emotions will always result in overvaluation and the price will crash after certain conditions are met.

Right now, the bubble started due to a combination of major sites accepting BC and the news in Cyprus. Cyprus is probably the largest factor here. If you step into BC at this moment, you can make some major money, but you need to know the EXACT moment to step out. If you step out too late, I reccommend holding onto the BC, until it appreciates back to its former level. It might however take 1-2 years for that to happen, but there's a good chance that this will happen. It is in BC's nature to appreciate, because it has the same concept of scarcity as gold does.

As for what you need to watch out for when determining to step out, you need to consider two factors:

- Is the crisis in Cyprus close to ending? If so, immediately step out.
- Is BC reaching the 100 dollar mark? If so, step out at 95 dollars.

Because BC is a new currency, there are relatively few players. This makes it more volatile, but IMO it also makes the market more predictable. Because there are few players, the growth of BC tends to closely follow the trendline. But the relatively few players also make psychological numbers (round numbers like 80, 90, 100) more relevant. There are ALOT of people that think that BC will crash at 100 dollars. It's best to step out at 95 dollars just to make sure, because there will most likely be an exodus at this point of people that are risk averse and want to cash out what they earned.

If you notice that BC easily goes past 100 dollars, the bubble will then probably pop after the crises in Cyprus ended. That's of course assuming that there are no further problems in Europe or elsewhere. In that case, BC might even reach the 200 dollar mark. In that case, I would step in at 105 or 110 dollars. But this is risky territory, so I would constantly try to cash out and reinvest smaller amounts.

Read these articles regarding the above:

http://bitcoinmagazine.com/13-to-26-exploring-the-bitcoin-ra...
http://bitcoinmagazine.com/bitcoin-price-breaks-all-time-high/

After you read that, start out here for an introduction with BC:

http://www.weusecoins.com/

Install a desktop client for best security (reccommend the original client). For flexibility you can use online wallets as well.

Blockchain.info has very good security
Coinbase is the second best, though they are having transaction problems at the moment.
Instawallet is good for small amounts of BC

There are phone apps as well, but I have little experience with them. But it should be obvious that like instawallet, only small amounts are supposed to be put on phones.

For exchanges, you might think of using one outside of the US. There has recently been some new regulation that may affect US based exchanges in raising their transaction fees.

Personally, I use Bitstamp.net, a Slovenian based company.