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Thread: Do you trade cryptocurrency?

  1. #21

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    Quote Originally Posted by I_royalty_I View Post
    Well the people at the top, who are mining MASS amounts of bitcoins are paying millions of dollars to do so. Some are paying millions every single day to cover the electric they use, the computers and such that provide the processing power. It's not cheap for them, they just do it on a much bigger scale. So the average user will get the same return as the big guys, at the same rate at least. The more you put in, the more you will get out.
    I don't think it will ever be backed by anything as that's how it was built. It won't one day switch to being back by USD or anything like that. It isn't just the big guys selling their bitcoins either. On the exchanges, everyday people are trading the majority of bitcoins each day. Sites like coinbase charge a fee to trade there, but that's worth it (imo) for the convenience. You don't have to worry about dealing with any sketchy folks. You can cash out whenever you want. Easy.

    No one person/corporation can manipulate the currency enough on their own considering the market cap is almost $40,000,000,000 in value. They may be able to flood the market with their coins. That would cause the price to drop a bit, but then it would cause buyers come swoop in and buy it all up, pushing the price back up to what it used to be. It's all a guessing game though unless there's big news relating to the issues.
    So then what dictates bitcoin value? Is it just completely random?

    The USD used the be based on the gold standard, or amount of gold in our federal reserve. Now it's based more on a "faith system," which operates as credit via banks, federal regulation and international trade. All of these things are tangible outliers. What makes bitcoin rise or fall? And if the answer truly is nothing, who would invest in something that just randomly crashes or inflates? Even stocks on the stock market are based on the success of a company or a market trend. It's not random.

    Rather than trading a weird currency to later convert it to USD, I'd rather just deal with the USD.

  2. #22
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    Quote Originally Posted by champloo View Post
    So then what dictates bitcoin value? Is it just completely random?

    The USD used the be based on the gold standard, or amount of gold in our federal reserve. Now it's based more on a "faith system," which operates as credit via banks, federal regulation and international trade. All of these things are tangible outliers. What makes bitcoin rise or fall? And if the answer truly is nothing, who would invest in something that just randomly crashes or inflates? Even stocks on the stock market are based on the success of a company or a market trend. It's not random.

    Rather than trading a weird currency to later convert it to USD, I'd rather just deal with the USD.
    The main value of bitcoin is that it is decentralized. It can not be monitored or approved/disapproved by any central authority. It's peer to peer setup ensures that it cannot be shutdown or really regulated in anyway. The dollar used to be backed by gold but like you said, now it's more of a faith system. Bitcoin is similar, to some degree. It's not backed by anything but it holds value because people see it as a valuable commodity. Back in the day when it was new and nobody cared, it was worthless. Now, many people want in and thus the price went up. Right now, it's pretty well known so the price is widely influenced by speculation so it's a gamble.


    There is no certainty that the price won't crash, but there also isn't any guarantee that a stock won't tank tomorrow. Most investments are a gamble. Those that aren't really considered a gamble don't really pay much and can barely be considered an investment. It all depends on how much risk you want involved with your investments. Personally, I don't invest anything but my spare cash in cryptocurrency. I have 401k, IRAs, etc for diversification.

    ---------- Post added at 01:59 PM ---------- Previous post was at 01:57 PM ----------

    Quote Originally Posted by oneone View Post
    I'm looking into getting some Ethereum when the price drops. It looks like profit is very promising in the long term. Is it similar to stocks where you can easily buy/sell?
    It is very easy. If you go to an exchange like coinbase it's very streamlined. You sign up, link your bank account and then you can buy from there. It takes a few days to verify your bank. Then it also takes a few days from the time you purchase to the time the coins are deposited into your account. You can get the coins instantly if you buy form a third party but since coinbase needs to withdraw from your bank, it takes a little bit.

    ---------- Post added at 03:22 PM ---------- Previous post was at 01:59 PM ----------

    From time of making this thread, the price of ethereum has gone down almost $30.
    I was reading an article where somebody predicted the selloff from this weeks price jump would take place pretty soon. I imagine lots of people unloaded once it got over $200, that make it drop back to the $180-$190 range it's been sitting at for the past few days.

    If it drops down to $140, I'm going to grab a few more coins and then wait it out.
    What's my definition of success?
    Creating something no one else can
    Being brave enough to dream big
    Grindin' when you're told to just quit
    Giving more when you got nothin' left

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  4. #23



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    Yeah I agree any cryptocurrency should be based off extra funds, kinda like playing at the casino. If you are diversified properly, taking a small gamble is fun

  5. #24




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    Do you trade cryptocurrency?

    Do you get taxed on profit just like stocks? Not sure how selling it works, but I'm assuming it gets converted to whatever currency and loaded back to your bank account?

  6. #25
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    Quote Originally Posted by I_royalty_I View Post
    The main value of bitcoin is that it is decentralized. It can not be monitored or approved/disapproved by any central authority. It's peer to peer setup ensures that it cannot be shutdown or really regulated in anyway. The dollar used to be backed by gold but like you said, now it's more of a faith system. Bitcoin is similar, to some degree. It's not backed by anything but it holds value because people see it as a valuable commodity. Back in the day when it was new and nobody cared, it was worthless. Now, many people want in and thus the price went up. Right now, it's pretty well known so the price is widely influenced by speculation so it's a gamble.


    There is no certainty that the price won't crash, but there also isn't any guarantee that a stock won't tank tomorrow. Most investments are a gamble. Those that aren't really considered a gamble don't really pay much and can barely be considered an investment. It all depends on how much risk you want involved with your investments. Personally, I don't invest anything but my spare cash in cryptocurrency. I have 401k, IRAs, etc for diversification.

    ---------- Post added at 01:59 PM ---------- Previous post was at 01:57 PM ----------



    It is very easy. If you go to an exchange like coinbase it's very streamlined. You sign up, link your bank account and then you can buy from there. It takes a few days to verify your bank. Then it also takes a few days from the time you purchase to the time the coins are deposited into your account. You can get the coins instantly if you buy form a third party but since coinbase needs to withdraw from your bank, it takes a little bit.

    ---------- Post added at 03:22 PM ---------- Previous post was at 01:59 PM ----------

    From time of making this thread, the price of ethereum has gone down almost $30.
    I was reading an article where somebody predicted the selloff from this weeks price jump would take place pretty soon. I imagine lots of people unloaded once it got over $200, that make it drop back to the $180-$190 range it's been sitting at for the past few days.

    If it drops down to $140, I'm going to grab a few more coins and then wait it out.
    Look into DGB, STRAT and SIA. Trust me.

    ---------- Post added at 07:39 PM ---------- Previous post was at 07:38 PM ----------

    Quote Originally Posted by I_royalty_I View Post
    The stock market is something I want to learn more about and get into. I just downloaded this app called Stash the other day. It basically lets you invest in different ETFs on whatever scale you want. It's pretty interesting. I've only put a little bit into it so far, so not sure how it's going to work.

    I feel like I'd have better luck trading cryptocurrencies on an exchange like Poloniex or similar. The ship definitely has not sailed on bitcoin. Not completely. It was at like $950 a month or two ago. Then it shot up to $2800. It's back down to $2400 and is fluctuating basically all day everyday. It's driven by speculation. If they FTC approves the measure to regulate bitcoins in an ETF, the price would shoot up crazy high. Keep an eye out for that. It was denied the first time but I have a feeling it will be brought up again.
    Be careful with Poloniex as they can lock you from withdrawing your funds whenever.r Try bittrex

    ---------- Post added at 07:40 PM ---------- Previous post was at 07:39 PM ----------

    Quote Originally Posted by oneone View Post
    Do you get taxed on profit just like stocks? Not sure how selling it works, but I'm assuming it gets converted to whatever currency and loaded back to your bank account?
    It's not taxed, but the IRS is working to get the information from Coinbase user's as only about 800 so people claimed cryptocurrency on there taxes?

    -

    If you're more interested in learning more about "crypto currencies" I'm going to do my best to break a few things down to you and provide you some important links for research.

    1. (you need an account to see links) Website provides data for the values across the various exchanges and includes historical data.

    2. (you need an account to see links) This is where a regular person would be able to buy and sell Bitcoin and Ethereum. It's a US based company with a long history and is very stable and trusted. It is the Paypal of crypto currencies.

    3. (you need an account to see links) Wikipedia page for quick description but some of it might be beyond average persons understanding.

    4. (you need an account to see links) Video to describe Bitcoin for beginners. Realize it's 4 years old though and doesn't fully explain everything current going on.

    5. (you need an account to see links) This site is an excellent source of current news concerning cryptos. This site should be a great base to read articles around the web.

    6. (you need an account to see links) My personal favorite is Ethereum and this is their official website.

    Those links should be more than enough to get a person started. Enjoy the read.

    -

    Some more information as well, the website Coinbase, Poloinex, Bittrex.

    Coinbase is a website you guys can buy bitcoin, etherum, litecoin from with debit/credit cards. They charge a fee for debit/credit purchases, as well a extra fee when you pay with credit cards. Coinbase is similar to paypal in rules. (If anyone has had bad experiences with PayPal, you'll know why.)

    I do not recommend using Poloinex, as they have recently locked users from withdrawing whenever they feel like it.

    Bittrex is a website where you can BTC (Bitcoin) -> whatever currency you choose.

    Do NOT store your funds in a exchange website, such as any of the three.
    Last edited by 5252; 05-26-2017 at 06:50 PM.

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  8. #26




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    Do you trade cryptocurrency?

    @(you need an account to see links) can you explain a bit further about not storing the funds in an exchange website? When you buy the coins it goes into your wallet on the site, then when you sell it, its currency is converted to dollar value and can either stay as funds on the site or back into your bank account? New to this concept so please correct me if I'm wrong!

    Also, for anyone wondering, this is considered a capital gain and has to be reported for taxing in Canada from what I've just read.

  9. #27
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    Quote Originally Posted by oneone View Post
    @(you need an account to see links) can you explain a bit further about not storing the funds in an exchange website? When you buy the coins it goes into your wallet on the site, then when you sell it, its currency is converted to dollar value and can either stay as funds on the site or back into your bank account? New to this concept so please correct me if I'm wrong!

    Also, for anyone wondering, this is considered a capital gain and has to be reported for taxing in Canada from what I've just read.
    (you need an account to see links)

    Read this Wiki here, and you will understand. Mt Gox was an exchange site similar to Bittrex and Poloinex, and storing your funds in an actual wallet provided by the developers of each currency, you have full control of th funds.

    If you buy say $5 of Etherum on Bitcoin, it will go to 0.3 ETH. You then will either cash out your ETH to your own ETH wallet, trade it to another currency, etc.

    -

    If you buy currencies from Coinbase, same concept. $5 of Bitcoin bought, will provide you 0.3 BTC (obviously not exact number). You can cash it to whatever wallet you choose.



    Poloinex and Bittrex are both exchange sites, so you'll need to have bitcoin or something already.

    Coinbase is where you can buy BTC/LTC/ETH with credit/debit/bank. You can sell BTC/LTC/ETH for PayPal.

    ShapeShift.io is another site where you can exchange your currency, but you must have your own wallet.

    Changelly.com is another site where you can exchange your currency, but you must have your own wallet.

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  11. #28
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    I bought $250 USD of eth... we'll see what happens
    i love luna

  12. #29


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    No I don't trade cryptocurrency - most people in it are just speculators, not investors.

    Just as with the stock market, some people just buy whatever they think will go up without doing heavy analysis.

    & I am not personally informed enough to invest rather than speculate

  13. #30
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    Quote Originally Posted by Aura View Post
    I bought $250 USD of eth... we'll see what happens
    You will get more back than you put in. ETH had a ton of potential. Right now I have almost 20 ETH and it's the best investment I ever made.

    Quote Originally Posted by teddy View Post
    No I don't trade cryptocurrency - most people in it are just speculators, not investors.

    Just as with the stock market, some people just buy whatever they think will go up without doing heavy analysis.

    & I am not personally informed enough to invest rather than speculate
    Well nobody buys anything (investment wise) with 100% certainty that it will go up. There are lots of coins and lots of them are driven by hype, but the same can be said about stocks. Nothing is ever certain.
    Lots of the low end folks are throwing their money at this or that but many of the big time investors do their research and invest wisely. It's all in what you want.

    Personally, I'm not looking for immediate payout so I'm keeping my ETH where it's at and adding more when I can. But I also have a lot of the "hype" coins just in case they take off. Never know. There are some coins that you can tell are shit but people buy them hoping they go to the moon. It can be fun.
    What's my definition of success?
    Creating something no one else can
    Being brave enough to dream big
    Grindin' when you're told to just quit
    Giving more when you got nothin' left

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