January 1, 2020

Coincover Blog | The Coincover Guide to Bitcoin Savings

What is Bitcoin?

Bitcoin is the original and most popular Cryptocurrency or, to put it another way, digital money. Now the main difference between Bitcoin and traditional money is that individuals hold and manage their Bitcoin in their own digital Bitcoin wallets. Bitcoins don’t exist as a physical currency, there are no coins or notes to exchange. Thus, there is no cash to get from an ATM and keep safe, there is no bank to store your money, no credit cards to use to pay bills. By having your own Bitcoin wallet, you are in effect, your own digital bank.

What makes Bitcoin interesting?

Unlike central currencies such as the US dollar or the British pound which is operated by the likes of the US federal reserve or the Bank of England, Bitcoin has no central bank and isn’t linked to, or regulated by, any state. The supply of the cryptocurrency is decentralised where the network is operated and managed globally across multiple computer networks. Some really smart tech, in particular a method of encryption called cryptography and a ledger called blockchain, ensure that all transactions are accurately recorded and can never be undone – which also means a much lesser likelihood for fraudulent payments and transactions.

So owning Bitcoin means you are incomplete control of your money. There are no ’middle-men’ involved to manage or store it. Bitcoin facilitates a peer-to-peer payment network where users simply send and receive money from each other without having to go via a bank or other financial institution. In turn this makes things cheaper and faster and more secure. It is a global network, so wherever you are in the world you can instantly transfer and receive Bitcoins at anytime of day or night.

What do people do with Bitcoin?

Just like they do with money, people can acquire, spend and save Bitcoins. A person could be paid in bitcoins for a job they do, they could pay bills or buy products and services with Bitcoin, or they can simply save it all up by holding it in their own Bitcoin wallet. Again, just think of Bitcoin as the modern-day version of cash; the future of money.

Why do people save (hold) their Bitcoins?

There are several reasons as to why people do and would save their Bitcoins. The primary reason being that Bitcoin is seen as a store of value with an expectation of appreciation over the coming years. If history is anything to go by it is certainly understandable why further growth is expected. From a value of zero dollars just 11 years ago to a value in the thousands of dollars today, Bitcoin has delivered a tremendous return on investment for many. Of course, we can’t give investment advice, and no one can predict the exact price of Bitcoin but projected future value is one of the main reasons people save Bitcoins.

What is a Coincover Bitcoin Savings Plan?

Coincover has one simple goal; make it safe, secure and straight forward to access the crypto asset market at a modest level on a monthly subscription, without being ripped off by high transaction fees. Our Bitcoin savings plan means anyone has easy access to Bitcoin and can start building a Bitcoin pot from as little as £10.

What does Coincover Offer?

Coincover provides you with astraightforward monthly accumulation plan, with: 

• Complete,insured protection against the major risks of hacking, theft and key lossbacked by Lloyds of London insurance companies.

• Completecontrol and direct ownership of your cryptocurrency.

• Completetransparency on pricing allowing you to retain anyand all upsides.

How does it work?

Coincover is designed to be simple to use. Getting started is as easy as selecting the amount of money you would like to invest in Bitcoin each month. Starting from as little as £10, you set an amount to suit you and can change it at any time with no ongoing commitments.  

Your first purchase is made the same day your plan starts and then, on the 15th of each month. We combine your investment with that of all the other Coincover members to buy the Bitcoin in bulk and achieve a better price.

The bitcoin is then deposited in your individual Bitcoin wallets within 24hrs with full legal title and ownership placed in your name. You don’t need to do anything, and we’ll send you an email each month once the purchase is complete to confirm your new Bitcoin deposit.

What are the fees?

We’ve thought long and hard about the fees and come up with a model that is completely transparent. We take a fixed fee to cover, lost key insurance, theft insurance, hacking insurance, card fees, wallet creation with you as the legal ultimate beneficial owner and our audit and administration costs. We pass through the market price, so you are always getting our best execution price for your investment.  

Monthly Amount         Fee

£10 - £25                    £2.50

£50 - £100                  £5.00

£200+                         £8.00 plus £1 per £100

What if I want to sell?

It is easy to sell or transfer your Bitcon holdings.

  1. Place a sell order with us and we will give you the best price on the next monthly transaction window. There is no charge for this option. You will need to supply us with bank account details in the name of the registered account holder when you make the request.
  2. You can choose to move your cryptocurrency to an exchange or alternative platform and sell it yourself. There is no charge for this transaction, but network fees will apply.

Is Coincover safe to use?

We take the safety and security of your crypto funds very seriously.

• Coincover is based in the UK and is FCA accredited falling under UK jurisdiction.

• Coincover takes all steps to comply with the regulations it needs to.

• Coincover is in full compliance with AML/KYC compliance procedures and requires verification from users who want Coincover protection on their BitGo wallets.

• Coincover offers 2-factor authentication and follows cybersecurity best practices, including the use of multisignature wallets and all of our client keys are stored offline in grade A standard vaults and never exposed to an online environment.

• Coincover is unable to access or manage funds within your BitGo wallets. Wallet holders have full legal title and ownership with the ability to move funds in and out of their wallets as they so choose.

Up Next: Benefits of Dollar Cost Averaging with Bitcoin