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Cryptocurrency thread


phart010

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2 hours ago, Bearcat-Doug said:

@OptOut Here's a quick explanation.

A seed phrase is a series of words generated by your cryptocurrency wallet that give you access to the crypto associated with that wallet. Think of a wallet as being similar to a password manager for crypto, and the seed phrase as being like the master password. As long as you have your seed phrase, you’ll have access to all of the crypto associated with the wallet that generated the phrase — even if you delete or lose the wallet.

Right! So you don't actually need the wallet then right? There's no money on the wallet itself? How come all those other dudes lost their money then? I'm still a little confused! 

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27 minutes ago, OptOut said:

Right! So you don't actually need the wallet then right? There's no money on the wallet itself? How come all those other dudes lost their money then? I'm still a little confused! 

You need a wallet to generate the keys, but once you have those, you can use them to access your funds from a different wallet. You also need the wallet to send your coins to an exchange if you decide to sell them. Usually the people that have lost their money have forgotten or lost access to their original wallet and have lost/forgotten their keys to be able to recover their funds on a new device.

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47 minutes ago, Bearcat-Doug said:

You need a wallet to generate the keys, but once you have those, you can use them to access your funds from a different wallet. You also need the wallet to send your coins to an exchange if you decide to sell them. Usually the people that have lost their money have forgotten or lost access to their original wallet and have lost/forgotten their keys to be able to recover their funds on a new device.

Oof, that's gotta sting! 😅

I guess that's one of the cons of decentralised currency then, you got no one to fall back on to help you out when things go pear shaped! 😨

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The "wallet" is a good name but it's not perfect. To use a real world analogy that works with the wallet concept, your wallet "holds" the keys to using your funds.  A wallet is usually cloth or leather and often doesn't hold much value.  Loosing a wallet is no big deal.  Losing what's in a wallet is what's problematic.

What's in the wallet are the "keys" to your money.  You can export them, which is like take a credit card out of your physical wallet. You can then hide those keys (put them in an encrypted file, for instance, and save it to a back up location) or you can re-import them to a new wallet on another PC (which is akin to simply moving your credit card from one wallet to another.

Regardless, your "keys" are what's important and most similar to a credit or debit card.  The main difference is that if you lose your cryptocurrency keys, you aren't getting them back.   With a credit card company, you can call them up, cancel the old one and get a new one.  With crypto, what is lost is lost for good.  Likewise, if someone steals your wallet, they have your "keys" and creating a new wallet and loading your old keys is useless.  Instead, if you managed to somehow, miraculously catch an attacker stealing your crypto keys, the only chance you have to save your funds is to send everything you have to a new, fresh account built of new crypto keys.

Interesting point, in the early days, many cryptocurrency keys (and possibly even Bitcoins, but I can't recall) were based off of "passwords".  Meaning, when you loaded a client for the first time, it would prompt you for a wallet password, that could be anything... including "password".  Yes, people lost crypto in those early days because they happened to use passwords in look-up tables and many people had tools to just cycle through those values, generate a rainbow tables of addresses and would then immediately re-send any incoming crypto addresses if they ever appeared in the blockchain.

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1 minute ago, NostalgicMachine said:

I've had a TREZOR for months, still in the box. All I read are horror stories about people losing data/getting locked out somehow LOL.

You will always have access to your funds if you back up your private key or seed phrase separately. People only get screwed if they fail to do that.

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On 1/21/2022 at 3:19 PM, DoctorEncore said:

I'm telling you guys, get your crypto into liquidity pairs. It saved me at least $10k.

So what ya'll buying?

I never seem to seem have any substantial money to buy when these crashes happen, but I'd likely be buying more bitcoin. I don't know what you think of Solana currently given that it had dropped quite a bit before this due to the network issues, but it was as low as $88 this week after being at $240 a few months ago.

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15 hours ago, Bearcat-Doug said:

I never seem to seem have any substantial money to buy when these crashes happen, but I'd likely be buying more bitcoin. I don't know what you think of Solana currently given that it had dropped quite a bit before this due to the network issues, but it was as low as $88 this week after being at $240 a few months ago.

I'm hoping to buy into an NFT project launching on the 26th which requires having some SOL on hand, so I'm still buying. The network is going through a lot of growing pains due to the huge increase in users, but their engineers seem to actively working on fixes if their Twitter is to be believed. Overall, I still think it has more utility than Bitcoin or Ethereum and I think that will protect it long-term. Most projects on Solana are still in their infancy with lots of room to run.

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38 minutes ago, Gloves said:

 

Yeah this showed up in my Youtube feed too. I thought it was a great explanation of why the bad parts of crypto are pretty bad. The guy clearly has an understanding of the technology and all of its glossed-over limitations and faux decentralization and isn't just whining about people buying monkey pictures for too much money.

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