Cryptocurrency thread

[Bearcat-Doug | 5,105]

41 minutes ago, Hammerfestus said:

Oh don’t worry I fucked that up too.  I sold it when it started moving back after it first hit 50.  I’m pretty cowardly.  I made a nice little profit on it at least.  Got in initially at 13 I think.
I’ve been really just pumping everything into ETH.   

Given how ETH is doing, that's not a bad idea.

[BriGuy82 | 768]

Can somebody please explain tether to me? It's a stable coin that goes up and down about 1% 100 times a day. Do I have that right? Do people just buy and sell it all day to make the 1% gain over and over again? 

[arch_8ngel | 1,597]

14 minutes ago, BriGuy82 said:

Can somebody please explain tether to me? It's a stable coin that goes up and down about 1% 100 times a day. Do I have that right? Do people just buy and sell it all day to make the 1% gain over and over again? 

Surely it has some kind of fee that would negate any gains from swing trading a swing that small, right?

[Code Monkey | 2,011]

1 hour ago, BriGuy82 said:

Can somebody please explain tether to me? It's a stable coin that goes up and down about 1% 100 times a day. Do I have that right? Do people just buy and sell it all day to make the 1% gain over and over again? 

 

[BriGuy82 | 768]

1 hour ago, arch_8ngel said:

Surely it has some kind of fee that would negate any gains from swing trading a swing that small, right?

Beats me. But just looking at the daily graph and the volume, that's what it looks like to a layman like myself. It has a set frequency almost. I just wonder if big institutions are getting in and out trading millions of coins at a time. 

[DoctorEncore | 3,691]

1 hour ago, BriGuy82 said:

Can somebody please explain tether to me? It's a stable coin that goes up and down about 1% 100 times a day. Do I have that right? Do people just buy and sell it all day to make the 1% gain over and over again? 

 

1 hour ago, arch_8ngel said:

Surely it has some kind of fee that would negate any gains from swing trading a swing that small, right?

Tether is a USD stable coin backed up by actual dollars, so it's not traded for profit like that. That also makes it much safer since its value should not fluctuate. Think of it more like a bank account where you keep your money as you decide what you're going to invest into. This allows you to transfer money into an exchange/brokerage before you plan on actually investing it. This is important since it can take days or weeks for transfers to clear depending on your provider (Coinbase will allow you up to $35k per day, but other exchanges vary). It also allows you to transfer money between wallets so your money isn't stuck in one place.

Personally, I put my money into USDC (another USD stable coin) on Voyager since it gets 9.5% interest there. Then when a good buying opportunity arises, I sell it and move it into what I actually want to buy. There is no delay in selling 

Edited May 5, 2021 by DoctorEncore

[BriGuy82 | 768]

1 hour ago, DoctorEncore said:

 

Tether is a USD stable coin backed up by actual dollars, so it's not traded for profit like that. That also makes it much safer since its value should not fluctuate. Think of it more like a bank account where you keep your money as you decide what you're going to invest into. This allows you to transfer money into an exchange/brokerage before you plan on actually investing it. This is important since it can take days or weeks for transfers to clear depending on your provider (Coinbase will allow you up to $35k per day, but other exchanges vary). It also allows you to transfer money between wallets so your money isn't stuck in one place.

Personally, I put my money into USDC (another USD stable coin) on Voyager since it gets 9.5% interest there. Then when a good buying opportunity arises, I sell it and move it into what I actually want to buy. There is no delay in selling 

Why is the daily trading volume so high then? It shows the 24hr volume like almost 200 billion. 

 

[arch_8ngel | 1,597]

1 minute ago, BriGuy82 said:

Why is the daily trading volume so high then? It shows the 24hr volume like almost 200 billion. 

 

His point is that the various stable coins exist as places for people to shuffle money in-and-out of the major cryptocurrencies.

It is all churn as people move between other assets on the exchange.

[BriGuy82 | 768]

1 minute ago, arch_8ngel said:

His point is that the various stable coins exist as places for people to shuffle money in-and-out of the major cryptocurrencies.

It is all churn as people move between other assets on the exchange.

Ok that makes sense to me now.

[DoctorEncore | 3,691]

2 hours ago, arch_8ngel said:

His point is that the various stable coins exist as places for people to shuffle money in-and-out of the major cryptocurrencies.

It is all churn as people move between other assets on the exchange.

 

2 hours ago, BriGuy82 said:

Ok that makes sense to me now.

Yeah, the volume is misleading. You can move your money between Tether and USD an infinite number of times in a day. I have moved cash back and forth into USDC ten times in a single day when I've made a lot of trades quickly. By doing that, my money registered as ten times the volume it actually is. Since people (and computer programs) are day trading 24/7, the apparent activity of stable coins can be enormous.

[Bearcat-Doug | 5,105]

11 hours ago, DoctorEncore said:

 

Tether is a USD stable coin backed up by actual dollars, so it's not traded for profit like that. That also makes it much safer since its value should not fluctuate. Think of it more like a bank account where you keep your money as you decide what you're going to invest into. This allows you to transfer money into an exchange/brokerage before you plan on actually investing it. This is important since it can take days or weeks for transfers to clear depending on your provider (Coinbase will allow you up to $35k per day, but other exchanges vary). It also allows you to transfer money between wallets so your money isn't stuck in one place.

Personally, I put my money into USDC (another USD stable coin) on Voyager since it gets 9.5% interest there. Then when a good buying opportunity arises, I sell it and move it into what I actually want to buy. There is no delay in selling 

Do you leave your long term hold coins on the exchange? I honestly don't have an issue with it, but there are a lot of people that swear by hardware wallets.

[Code Monkey | 2,011]

On 4/18/2021 at 9:37 PM, Code Monkey said:

2 full weeks in and here we are:

initial investment: $3991 USD

Expected total after 1 week: $4190

Actual total after 1 week: $4230

Expected total after 2 weeks (today): 4400

Actual total after 2 weeks (today): $4411 as of right now

5% per week for 2 years, it's working so far.

4 weeks was actually earlier this week but I'll post the gains as of today.

Expected total this week: $4851

Actual total today: $4950

I still think people getting in now are getting in early. XRP and ADA have a long way to go, as well as many other 10 cent coins.

[DoctorEncore | 3,691]

9 hours ago, Bearcat-Doug said:

Do you leave your long term hold coins on the exchange? I honestly don't have an issue with it, but there are a lot of people that swear by hardware wallets.

I do leave my crypto in Voyager although I also have a wallet on Exodus. There is some risk in leaving it in an exchange wallet (hacks, scams, exchange corruption, etc), but it's worth it for the high interest rates, in my opinion. Also, Voyager is a publicly traded American company with public finances so I'm fairly confident in their ability to protect my money. If Voyager dropped their interest program, I'd move all my money to Exodus and just stake what I could. Hard wallets are even safer, but a bit of a hassle.

One of the cool things about Exodus is that they just finished up the first ever SEC approved IPO/ICO. They offered sale of 75 million dollars in stock through their wallet exchange. After the IPO is complete, stock owners will have coins (EXIT) which represent their shares. These can then be traded as crypto tokens.

Just one of many cool things happening in crypto.

[Bearcat-Doug | 5,105]

3 hours ago, DoctorEncore said:

I do leave my crypto in Voyager although I also have a wallet on Exodus. There is some risk in leaving it in an exchange wallet (hacks, scams, exchange corruption, etc), but it's worth it for the high interest rates, in my opinion. Also, Voyager is a publicly traded American company with public finances so I'm fairly confident in their ability to protect my money. If Voyager dropped their interest program, I'd move all my money to Exodus and just stake what I could. Hard wallets are even safer, but a bit of a hassle.

One of the cool things about Exodus is that they just finished up the first ever SEC approved IPO/ICO. They offered sale of 75 million dollars in stock through their wallet exchange. After the IPO is complete, stock owners will have coins (EXIT) which represent their shares. These can then be traded as crypto tokens.

Just one of many cool things happening in crypto.

Yeah, I don't think leaving your coins on a major exchange is any less risky than leaving your money in a bank. Obviously some people want to get away from that system, but I don't think it's as necessary as it may have been years ago. 

[Tanooki | 4,934]

I've kind of been thinking it could help with some of my financial issues perhaps if I dipped in on this and tried it out on a low end.

Crypto is foreign to me, but I was curious if someone had some advice or tips to test the waters?  I get doge is popular at the moment, also very cheap too, which would be encouraging to try and wade into it.  I've dug a little, seems like for the US kraken looks like a good point of entry for management services of the coin.

 

I've noticed some people settle in, others deal with it rapid like a short seller.  Is it all that really complicated to pop in and put a few hundred towards it to see what happens?

[OptOut | 8,889]

21 minutes ago, Tanooki said:

I've kind of been thinking it could help with some of my financial issues perhaps if I dipped in on this and tried it out on a low end.

Crypto is foreign to me, but I was curious if someone had some advice or tips to test the waters?  I get doge is popular at the moment, also very cheap too, which would be encouraging to try and wade into it.  I've dug a little, seems like for the US kraken looks like a good point of entry for management services of the coin.

 

I've noticed some people settle in, others deal with it rapid like a short seller.  Is it all that really complicated to pop in and put a few hundred towards it to see what happens?

Oof... Be CAREFUL dude!

This is not the sort of thing you want to get into with any amount of money you can't afford to lose. The way you're talking, like looking for a quick money infusion, well, it's obviously possible, but it's also possible to win a hand of blackjack at a casino table...

I would be very hesitant to get into this with any more than I would be totally comfortable flushing down the drain... And I've already earmarked all THAT money for wasting on vidya games, which is why I don't own any crypto, lol!  

[Bearcat-Doug | 5,105]

2 hours ago, Tanooki said:

I've kind of been thinking it could help with some of my financial issues perhaps if I dipped in on this and tried it out on a low end.

Crypto is foreign to me, but I was curious if someone had some advice or tips to test the waters?  I get doge is popular at the moment, also very cheap too, which would be encouraging to try and wade into it.  I've dug a little, seems like for the US kraken looks like a good point of entry for management services of the coin.

 

I've noticed some people settle in, others deal with it rapid like a short seller.  Is it all that really complicated to pop in and put a few hundred towards it to see what happens?

It's pretty easy to get started. If you are willing to hold, you are likely better off with bitcoin or ethereum. If you're willing to take more of a gamble, there are plenty of < $1 coins out there.  

[arch_8ngel | 1,597]

2 hours ago, Tanooki said:

I've kind of been thinking it could help with some of my financial issues perhaps if I dipped in on this and tried it out on a low end.

Crypto is foreign to me, but I was curious if someone had some advice or tips to test the waters?  I get doge is popular at the moment, also very cheap too, which would be encouraging to try and wade into it.  I've dug a little, seems like for the US kraken looks like a good point of entry for management services of the coin.

 

I've noticed some people settle in, others deal with it rapid like a short seller.  Is it all that really complicated to pop in and put a few hundred towards it to see what happens?

Absolutely do not view this as any sort of a sure-thing.

You are reading accounts of speculation and gambling that happen to have paid off.

 

If you have some amount of money you can "afford to lose", then making asymmetric bets can be a worthwhile risk to take.

But if you are on the margin financially -- you have to recognize it is a gamble that you may lose.

 

It is easy enough to get into -- though depending on how much you trade, I'm sure it can considerably complicate your taxes, compared to what you're accustomed to.

 

EDIT: I'd say the important thing is setting realistic expectations.

Codemonkey's speculation on 5% weekly returns for 2 years MIGHT pay off -- though it is exceedingly unlikely, because that represents very high real returns resulting in absurdly high market caps for the underlying markets.

Much more likely that rates of return either plateau or have some reversion-to-mean, over longer periods of time.

Edited May 7, 2021 by arch_8ngel

[Tanooki | 4,934]

1) I have a few hundred I can piss freely in my PP account without worry.
2) An infusion would be helpful, but I was thinking something more mid-term, or at least hawk watching it to see if something rises/drops at least to come out ahead, not under as I"m not comfy just sitting back and ignoring it like an idiot.
3) I 100% get this is gambling, and accept that as a variable of loss or gain depending what occurs which is why it would never come from an actual real account to harm myself.

I'm more interested in the basics, how to setup into it and then I'd look at the tools and stuff before comfortably dropping something into the pot to see what happens for better or worse.  I don't anywhere where this could be seen as reliable income, if on the better side of luck like an armchair at home e-trader you watch for rise and falls and sell when you can get something nice from it, or at worst bail before the losses really suck.

[MiamiSlice | 3,096]

2 hours ago, Tanooki said:

I've kind of been thinking it could help with some of my financial issues perhaps if I dipped in on this and tried it out on a low end.

Crypto is foreign to me, but I was curious if someone had some advice or tips to test the waters?  I get doge is popular at the moment, also very cheap too, which would be encouraging to try and wade into it.  I've dug a little, seems like for the US kraken looks like a good point of entry for management services of the coin.

 

I've noticed some people settle in, others deal with it rapid like a short seller.  Is it all that really complicated to pop in and put a few hundred towards it to see what happens?

DOGE is gambling, like GameStop or AMC. The fact you are talking about tossing a few hundred is even more indicative you are going in with a gambler's mindset. You may as well pop a few hundred at scratch cards. 

It's possible DOGE still has a ways to go up by Saturday before SNL airs but I think at this point there are better ways to make money, if that's what you want to do. But investing isn't about making money. It's about protecting your wealth. It's about finding better equities / assets than holding cash. I would recommend learning about this stuff more and testing the waters with something safer like Bitcoin or Ethereum. 

Although... losing money in trading has taught me a lot, so maybe blowing a hunny on a meme coin is a good idea. 

[MiamiSlice | 3,096]

Let me put it this way... I think Bitcoin has a better chance of doubling this year than Dogecoin. 

Not financial advice though. 

[OptOut | 8,889]

I mean, like I have no skin in this, but if I WERE looking for short to mid-term gains, and cashing in and out in quick succession, I doubt I would jump in during a period of historical HIGHS in the market.

We'll be looking at a correction in a lot of hyper inflated "investment" markets sooner or later, including crypto. If you're holding long-term, then market corrections come and go, and over time you'll eventually see gains either way. If you are TIMING the market for short or medium term gains, you'd better make sure you wound your watch properly...

2021 could be a correction year for a lot of markets, maybe it'll be 22 or 23... But it will happen eventually, and someone will be left holding the can with downside they can't afford and didn't expect to have to.

[arch_8ngel | 1,597]

1 hour ago, Tanooki said:

1) I have a few hundred I can piss freely in my PP account without worry.
2) An infusion would be helpful, but I was thinking something more mid-term, or at least hawk watching it to see if something rises/drops at least to come out ahead, not under as I"m not comfy just sitting back and ignoring it like an idiot.
3) I 100% get this is gambling, and accept that as a variable of loss or gain depending what occurs which is why it would never come from an actual real account to harm myself.

I'm more interested in the basics, how to setup into it and then I'd look at the tools and stuff before comfortably dropping something into the pot to see what happens for better or worse.  I don't anywhere where this could be seen as reliable income, if on the better side of luck like an armchair at home e-trader you watch for rise and falls and sell when you can get something nice from it, or at worst bail before the losses really suck.

Paypal is really easy to use for this, you just have limited options of which crypto is available, and no ability to move it off of Paypal.  (so the "not your keys not your coins" crowd would bemoan that option)

If you aren't getting into this stuff from the standpoint of an anarcho-capitalist, though, none of that really matters with the more trustworthy exchanges (Coinbase, Paypal, etc) since they are super-corporations with fiduciary duty to their shareholders and board that would get obliterated by any sort of malfeasance related to crypto handling.

 

If you don't typically file a Schedule D (for a taxable investment account) -- just be wary that swing trading this stuff can complicate your taxes in a hurry.

[Code Monkey | 2,011]

As I Said before, do not buy Dogecoin, it's useless. All these other coins have a use for developers to launch decentralized applications onto the blockchain but Dogecoin is literally just a joke coin made by a group of people with no development purpose. It's so useless that Elon thinks it's hilarious and his Tweeting about it is the only thing pushing it upwards. I really think people are just trying to get it to 69 cents because of how funny that would be, then they're going to abandon it.

If you want to start investing in cryptocurrency, dig into what the uses of each coin are for. Some are used to index blockchains, some are used for decentralized authentication, some are for file storage, each one actually does something. If you want my predictions, I think you should buy ADA, TRX and XRP. I know for sure XRP has another $1 to go up because it was already there 4 years ago, it just has to get there again.

Another thing you should do is sign up for Twitter and follow Coinbase announcements. They Tweeted about Cardano last week that their ADA coin is now eligible for staking and this week it went from $1.30 to $1.70 and I'm glad I have 1000 of them. It's those types of announcements that tell you what you should be buying. I bought XRP at 60 cents when they were being sued by the SEC and when they won the law suit, XRP soared to $1.90. I also have 1000 of those.

Also don't use Kraken. I started out with them and their service is a nightmare, their mobile application is a disaster. I really prefer Coinbase, it's also much easier to load money into your wallet with Coinbase.

[arch_8ngel | 1,597]

8 minutes ago, Code Monkey said:

If you want my predictions, I think you should buy ADA, TRX and XRP. I know for sure XRP has another $1 to go up because it was already there 4 years ago, it just has to get there again.

Look, it's one thing to say that you feel confident that this could happen -- but there is absolutely nothing fundamental to crypto markets that necessitates XRP "has another $1 to go up because it was already there 4 years ago".

That just isn't the way that markets of any type work.

Edited May 7, 2021 by arch_8ngel