crypto currency investing, anyone?

General Discussion

  1. Ironracer

    Ironracer Gearhead

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    To me, it's like Hunter tha' Crack ho's "art?" Puke... LMAO it's NON TANGIBLE! ya know, like digital art, with a one of a kind digital signature.... Wtf... GTFO
     
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    • dukeboy_318

      dukeboy_318 FABO Gold Member FABO Gold Member

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      I’ve dabbled in it. It’s basically like shooting craps. Honestly. Traditional stock investment strategies don’t usually work. It’s 10 percent knowledge, 40 percent guess work, 50 percent luck

      that’s said, I’m up 749 % on the year and that’s after I held longer than I should have.
       
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      • dukeboy_318

        dukeboy_318 FABO Gold Member FABO Gold Member

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        Not entirely true. The rest of your quote is but once a crypto is issued/created, they cannot increase the total number of “coins”.
        , only decrease it.

        cryptos like Bitcoin have relatively low numbers of coins. Others like Shib, have more coins than the entire world has real currency. They operate on supply/demand/hype .

        now with Bitcoin, only some percentage of the number of total existing coins are released. That’s why people set up mining rigs etc for them. Mining rigs basically allows computers to solve complex equations, to which fractions of a fraction of a fraction of a new Bitcoin is released to the public market. But the total number of bitcoins, stay the same.

        For example, it’s like having a pie. You have one pie, first you cut it in 4 pieces, you set 2 of those aside, than you cut the other two pieces in half. Then you cut them in half again. Eventually you come back to the pieces you set aside, start cutting those
         
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        • dukeboy_318

          dukeboy_318 FABO Gold Member FABO Gold Member

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          One other thing. While I am not an expert in crypto trading or it’s practices, and I do not encourage anyone to follow my lead. I will tel of one thing I have been doing to some success is not fully selling. So for example, I had put just 100 bucks in one crypto, it went up to 1400, I didn’t sell out entirely, I took half. A few days later, the bottom fell out and it tumbled 75 percent. But then a week later, it was up 300 percent. So I locked in a partial profit and then was able to sell the bounce back up. This allowed me to take the profit and invest in other cryptos and cash out my initial investment. So now I’m playing with house money.

          I started doing this after I got burned early on in the summer. That crypto I held way too long, missed the peak and tried to ride out. It’s still down, pretty much flatlined.

          which is what is killing my Rate of Return.



          also, keep in mind, you have to pay taxes now on any REALIZED crypto returns. So track your moves.

          and never ever ever “invest” more than you can afford to flush down the toilet. You will take losses in crypto. It’s wise to view crypto as a form of gambling. You may win but you may lose as well. Especially if you dabble outside of the big two of Bitcoin and Etherum.
           
        • Car Nut

          Car Nut Mopar Master

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          I have some oceanfront property in Montana I will sell you cheap, I heard there was gold found on the beaches.
           
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          • dukeboy_318

            dukeboy_318 FABO Gold Member FABO Gold Member

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            Meh i disagree with that sentiment. Granted, a year ago, I was completely in agreement with you. Heck 7 months ago I was. Until I began to research it heavily. I spent several months reading and learning about it. Some are ponzy schemes for sure, others aren’t.

            Digital currencies like Bitcoin and Etherum are legit and are here to stay for the foreseeable future. These two actually offer a service and return of that service.

            now the other random alt coins and meme coins like Doge and Shib will be lucky to survive another year because they don’t actually do anything or offer anything.

            Keep in mind too, the US Dollar only has value because it’s widely accepted as a payment for goods and services. In actuality, it’s just paper, 25 percent cotton, 75 percent denim. And some special ink. But it’s backed by the belief that it holds some sort of value and that the value is transferable from one person (or entity) to the next. But in actuality, the dollar is just a piece of paper that says the Federal reserve owes the holder of that piece of paper, 1 dollar. The currency we have now is for all practical purposes, a piece of debt.

            anywho, as more and more places pick up cryptos like Bitcoin, the only difference is that instead of having a piece of paper, you now have a unique, several hundred character long, hyperlink.

            bottomline is this, anything outside of the Bitcoin and Etherum coins, is a gamble. But those two are only going to go up in value.
             
          • Treblig

            Treblig Well-Known Member

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            Isn't it encumbent on those who own crypto to encourage other to buy.....otherwise the whole thing would crash??
             
          • dukeboy_318

            dukeboy_318 FABO Gold Member FABO Gold Member

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            Ehh in some coins yes. Doge and Shib and the other countless “meme” coins are definitely that way.

            Bitcoin and Etherum, no. Not entirely. Only a portion.

            Bitcoin and Etherum actually offer a service. It gets into computer programming, but a large portion of the value of those two are in the services they provide. Etherum runs on a protocol that processes millions upon millions of banking transactions for minute. This service is paid from the banks and credit card companies in the form of Etherum coins which are then sold for cash .
             
            Last edited: Nov 28, 2021
          • Dartnut

            Dartnut Don't hate me because i'm beautiful

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            I don't know much about investing money, let alone crypto currencies.
            All I know is buy low sell high...lol
            When I was younger I chose to invest in property and car parts.
            And so far, it has turned out okay for me.
            As with any investment, patience is a virtue.....
             
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            • dukeboy_318

              dukeboy_318 FABO Gold Member FABO Gold Member

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              Agreed. I think the days of getting life changing rich off of Bitcoin and Etherum are over. But I think it’s a good opportunity for growth for long term. My goal is 10 percent of my investments going toward those two. I also have 10 percent going towards gold and silver, rest in various funds in my 401ks and IRAs.

              I think it’s reasonable to expect a 10-20 percent year over year gain with Bitcoin, probably 20-30 percent with Etherum. For the next 10 years or so.
               
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              • diymirage

                diymirage HP@idle > hondaHP@redline

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                And you bring up a good point...diversification

                This will not be my 401K or other retirement plan
                This is just a "toe in the water" type thing for now
                 
              • dukeboy_318

                dukeboy_318 FABO Gold Member FABO Gold Member

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                That’s the phase I’m still in.

                I recommend sticking to a reputable exchange like Coinbase or Biannce.US . Those two were the earliest exchanges and have not only been vetted, but they’re legit companies here inside the US so they have to follow more laws that offer a bit more protection against fraud than some of the foreign operated exchanges.
                 
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                • Righty Tighty

                  Righty Tighty FABO Gold Member FABO Gold Member

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                  In my opinion, crypto isn't a "toe in the water" stock to invest in. If you want to dip your toes in the water, start with mutual funds or ETFs, which follow the market. The market rises and falls, but always grows in the long run. After getting the feel of trading, you can branch out into publicly traded companies you know a lot about and have been around a long time.

                  Yes, folks can make good money investing in cryptocurrency, but that's not the stock they're starting out with. Unless I misunderstood, and you meant "toe in the water" in the crypto world and not stocks in general??
                   
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                  • dukeboy_318

                    dukeboy_318 FABO Gold Member FABO Gold Member

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                    Agreed. I would NOT dump any 401k savings or stop contributing to a 401k to invest in crypto.

                    What I did, I cut off fast foods for lunch. Which not only saves me money, but healthier. I use what I used to spend a week on fast food, to buy crypto.
                     
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                    • Righty Tighty

                      Righty Tighty FABO Gold Member FABO Gold Member

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                      I'd be a rich man if I cut out spending on junk food and beer....and then if I invested it??? Sheeeeitttt
                       
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                      • dukeboy_318

                        dukeboy_318 FABO Gold Member FABO Gold Member

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                        One of the guys in my guard unit way back in 2011 tried to get me to buy Bitcoin back then. It was just under 100 bucks a coin. I told him he was nuts and that it was a scam. Boy was I wrong. Last I talked to him, he’d retired from full time at the age of 26 and living in a condo in Hawaii. Owns a sandwich shop near the beach there. His initial investment was one 2 week training check way back then, which was about 2k. I know he sold out when Bitcoin was in the 30k per range.
                         
                      • Righty Tighty

                        Righty Tighty FABO Gold Member FABO Gold Member

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                        I've heard several success stories like that. They're out there, you just never know what any new stock will do until the train has left the station and it's too expensive to buy and realize that massive return. A few of my friends invest pretty heavily in crypto, but they're also watching the market several times a day and constantly reading the news. I don't have the time or attention span for that, which is why I like ETFs.
                         
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                        • dukeboy_318

                          dukeboy_318 FABO Gold Member FABO Gold Member

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                          Yeah. I’m in that group right now. I check every 30-40 minutes or try too. I’m also not in very much. Yet.
                           
                        • Mike69cuda

                          Mike69cuda 66 is the new 17 FABO Gold Member

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                          For every one guy that makes it big, there are probably thousands that lost all their money.
                           
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                          • dukeboy_318

                            dukeboy_318 FABO Gold Member FABO Gold Member

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                            Yes but the same can be said for the stock market.
                             
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                            • Mike69cuda

                              Mike69cuda 66 is the new 17 FABO Gold Member

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                              Very true, but usually not by investing in good solid companies that actually have earnings. Apple, Honeywell, Chipotle & many others like them have delivered great returns over the last ten years with very little risk.
                               
                            • dukeboy_318

                              dukeboy_318 FABO Gold Member FABO Gold Member

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                              Very true. But one should be investing in those anyway. Either thru a 401k fund or an IRA or whatever.

                              that said, chipotle is actually struggling, it’s on Forbes list of companies likely to not be around by 2025.

                              also, this doesn’t have to be an either or thing. You can do both, and should. That is my argument. Diversity outside of just the stock market. Like I said earlier. I think the days of life changing getting rich in crypto are over. Especially with Bitcoin and Etherum. The rest is like gambling. Just never throw more than you can afford to lose and never see again in.
                               
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                              • mopowers

                                mopowers Well-Known Member

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                                What is the tax rate on gains from crypto? Are they treated the same as short or long term gains from any stock purchase? I noticed last year that there's a specific line on one of the federal tax forms asking about gains from crypto, but didn't look into it any further since I don't invest in crypto.
                                 
                              • Treblig

                                Treblig Well-Known Member

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                                "Crypto taxes"..........these are taxes that don't exist in this world, only in cyber space. So you simply let those taxes die a natural death in cyberspace!!!
                                 
                              • Righty Tighty

                                Righty Tighty FABO Gold Member FABO Gold Member

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                                Same as any capital gains tax.
                                 
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