This article is provided as an overview of how I personally use CNY to purchase cryptocurrencies (primarily Bitcoin and LiteCoin). It is not meant to be any sort of financial advice, nor do I accept any responsibility for any losses you suffer by making an investment that leads a negative result, or if you are robbed or duped by a shady seller. Please fully understand the risks before you 'play'. Any decision to purchase or sell Bitcoins is your decision and I will not be liable for any loss suffered.
At this stage I will not go into 'What is a cryptocurency?', 'Which cryptocurrency should I buy?' or 'What can I spend my cryptocurrency on?', for the following reasons:
OK, before I begin, I know what you're thinking: "If Clulow is already publishing an article about how to do this, this ship must have already sailed". Ok, yeah, fair point, BUT: although I'm kicking myself for not having jumped on this 3 or 4 years ago (I want to blame the bubble that is China, but really I just missed it), I'm getting in now because I have done some initial research and still strongly believe that this is just the beginning. When tech experts use phrases like "This is like back in the day when we had the internet but we didn't know what to do with it" and "this has the potential to change the world", then there's no point dilly-dallying. I'm also really lucky that I have a small amount of expendable income to invest on this, over a period of time.
My strategy is to follow the advise of "The Intelligent Investor" author Benjamin Graham, and pick my game-plan, then just add to it as regularly as I buy groceries, each month paying in, regardless of wether it's up or down, knowing that in the long-term it will be up and up.
Finally, the question: why I am writing this? Well, as you may or may not know, when I think I'm on to a good thing, I like to tell my friends and family, even if just to let them know what I'm up to. Moreover, if you would like to try as well, I hope the following steps help you to get underway yourself!
CASH (CNY) | >>>> | CRYPTOCURRENCY |
CASH (CNY) | >>>> | BANK OF CHINA | >>>> | COINCOLA | >>>> | EXODUS | >>>> | LEDGER NANO S | >>>> | CRYPTOCURRENCY |
>>>> | >>>> |
* I only purchased my offline wallet yesterday, so have not yet been able to do this step yet, but I will update here when I do.
I hope this doesn't need too much explaination, but the main takeaway here is that this is a decentralised, borderless way to move funds around the world, without the need of a clearing house, a third-party financial institution or even a governing body to monitor what you're doing with your own money.
If, like me, you are playing for the long game, this might be an excellent way to get finances generated in China out of the country, otherwise you may choose to bring money into China in order to follow the process I outline below.
(I'm not going to explain downloading and setting up the app here as it's in English and relatively straight-forward - I think it took me about 5 minutes.)
So this is where we lose a little annonymity in the entire cryptocurrency world, but you can use certain addresses for more public exchanges and addresses for more private exchanges.
Overall, as long as you maintain solid control over your wallet, there's not too much to be concerned with, at least as you get started.
(Check out "The Art of Invisibility" by Kevin Mitnick for more on this)
Once they confirm their WeChat details, you add them and make a cash transfer like any other WeChat friend. You may or may not choose to send them a screen shot of your request to buy, just to clarify.
My personal process is to add the tags 'BitCoin' and 'cryptocurrency' to their WeChat profile on my phone, include the words 'CoinCola' in the description and block them from being able to see my personal moments (unless I'm totally sure I wouldn't buy from them again, in which case I delete them altogether)
I would like to personally thank Amir, Richard, Mieni, Iago, Zobbster, Peter and Tom for either advising me, guiding me or joining me on this journey.
Last Updated: 2017-11-02
It is thanks to some incredible tech companies, software providers and SaaS organisations, that I am able to be as effective as I am.
You will recognise many, I'm sure, and may even see some you don't recognise.