Cryptocurrency

[GAME05]

Crypto is a darn big rabbit hole. For the longest time I'd wondered how people were buying these tiny coins which I never saw available on exchanges. Then I saw a video on it and discovered what a dex is. But then a dex only works for certain types of coins and you need different dex-es for different coins. Then access via Metamask, etc. etc. etc.

 

BUT I'm accomplishing my goal of better learning why one is better than another and not just picking things based on hype or which has the cooler-sounding name. A cousin is huge into crypto and has a good few crypto-millionaire friends and he'll also throw me a name or two here and there.

 

Hopefully we see a nice little run into December. I'm figuring first come the big coins, then the alt coins, and then maybe the small ones will catch whatever trickle down is left. Basically I'm hoping to catch a run in one and then just shift over to another which hasn't hit a run yet, all the while reverse-DCA-ing by cashing out a little at a time. After that probably hold a lot as cash expecting a cool-down period and move a little bit to new NFT coin gambles (not actual NFTs as I just can't figure why one is popular and another isn't), especially since those don't often go up/down according to the market above them.

 

Also the coin "Tulip" just reminds me of the Dutch tulip craze and its name alone makes me want to avoid it.

[Joseph Zarr]

Crypto is a darn big rabbit hole. For the longest time I'd wondered how people were buying these tiny coins which I never saw available on exchanges. Then I saw a video on it and discovered what a dex is. But then a dex only works for certain types of coins and you need different dex-es for different coins. Then access via Metamask, etc. etc. etc.

 

BUT I'm accomplishing my goal of better learning why one is better than another and not just picking things based on hype or which has the cooler-sounding name. A cousin is huge into crypto and has a good few crypto-millionaire friends and he'll also throw me a name or two here and there.

 

Hopefully we see a nice little run into December. I'm figuring first come the big coins, then the alt coins, and then maybe the small ones will catch whatever trickle down is left. Basically I'm hoping to catch a run in one and then just shift over to another which hasn't hit a run yet, all the while reverse-DCA-ing by cashing out a little at a time. After that probably hold a lot as cash expecting a cool-down period and move a little bit to new NFT coin gambles (not actual NFTs as I just can't figure why one is popular and another isn't), especially since those don't often go up/down according to the market above them.

 

Also the coin "Tulip" just reminds me of the Dutch tulip craze and its name alone makes me want to avoid it.

 

 

The catching a run in one and shifting to another is a workable strategy in this type of Market - when it takes off. I will say, it can be tricky. You would think the Makers are going to run Bitcoin, Ether, LTC for example - the OG's - and then they'll change it up on you. Just as sometimes the USD index and chart can adversely impact cryptos pegged to the dollar and then, voila, suddenly it makes no difference. I tend to say: The Makers do what they want, when they want, how they want...and it's all priced in. THEN, they tell us 'why' they did it. In the past, for example, Litecoin often led the way. But, right now, LTC has been floating in a sea of nothing for months - of course, unless you were playing bounce trades off of obvious potential Support and MA's. Anyhow, my friend, best of luck! Let me know if you learn of anything interesting. I feel like, with this new wave of NFT's and DeFi evolutions I suddenly find myself less 'in the know' on projects and the like. I was in on Polkadot, Atom, and Hedera from Day 1 BUT, man, I missed out on Solana and that one hurts. Oh well. As I said, best of luck.

[GAME05]

I do only have thoughts on trying to time things during this expected bull run. Next year my goal is just to get better at taking profits during market runs so that I can better buy back into the dips. By the numbers crypto is 8x more volatile than the S&P, and so I do think that degree of volatility requires a different approach from regular market investing.

 

I missed Solana, too, but I think there's still some room to grow underneath it. Solana grows first and then everything underneath it. For example, Uniswap's market cap is 4.3% of Ethereum, but Raydium is 1.6% of Solana, not to mention whatever more room Solana has to grow. And I'll also be looking at more gaming/NFT projects underneath Solana because being faster and cheaper I think Solana will be the more preferred blockchain for them to use. Build on Ethereum and who's gonna buy a $5 sword along with a $5 gas fee? (I kinda hate Ethereum, but we'll see what 2.0 brings us.)

 

Not sure what you all think, but I'd imagine if there's going to be a "next Solana" in 2022, for now I'm presuming that to be Fantom. I'll probably move into Trader Joe and Chain Guardians come December in the NFT/Gaming space.

[thebruce44]

Most of the analysts I follow are saying that the major melt up wont start for another month or two and the bull run will likely extend a couple months into 2022. This is based on the fact that long term investor accumulation was still peaking into the end of September.

 

So now I'm wondering if the ETH merge will actually happen before the correction. I need to take some profits for an upcoming renovation, but I will likely change my overall strategy after that.

[GAME05]

Bitcoin ETF rumored to be coming maybe even this month. Load up now before everyone else does!

[GAME05]

The Valkrye Bitcoin ETF was approved, though it's a futures ETF. As Mark Cuban said "Why buy futures when I can buy the real thing?" Should be a fun day on Monday when the markets open.

 

Fantom jumped a few weeks ago and Polkadot did last week, though I expect a continued big rise out of Polkadot. I think Avax will be a big mover next. Luna took a bit of a jump recently but I think it still has a lot of steam behind it. But overall I think the Tier 1 coins will bounce first followed by the ecosystems behind them. At least that tends to be the way of things with investment money that it trickles down in order of more secure gambles to less secure. People don't want to buy a Bitcoin that's already risen, so they move onto the next best thing and so on.

 

But 1Q and moving forward I really like gaming and gambling. It presents the most immediate use case for crypto along with some new ways consumers can spend money which doesn't exist yet. Plus we're due for a bear market soon which could last a year or so, and what tends to last in bear markets are projects with use cases compared to "what we'll eventually be able to do" projects, same as value stocks vs. growth stocks in the regular market.

[superfly]

i cant be the only idiot playing with SHIB dogcrap coin right?

[GAME05]

Whenever you start to think that crypto has gone too mainstream just remember there's two coins in the Top 10 which offer nothing but a picture of a dog. Then again when people say crypto is stupid and is going to fail, I also can't help but realize there's two coins in the Top 10 which offer nothing but a picture of a dog.

 

I get a little frustrated I haven't made any huge ton of money this year, but then again I started off in regular Coinbase with only the major coins and only got into the small stuff pretty late. Plus coming from the stock market side of things I was going with the Buffet advice of "The best time to sell is never" and ended up eating that 50% July crash and it took a while to recover from that.

 

I had it in my head that the market would move from Bitcoin to the Tier 1s and on down the line. Saw a video recently I tended to agree with and he was saying that in 2017 it worked like that, but that was also when information was sparse, there weren't stablecoins to facilitate trading as well as no major exchanges. But now I'm more moving to the idea of either finding an area you have a particular knowledge of, or deciding on what area will do the best and sticking to that. Ideally both. But basically finding your lane and sticking to it. But money just isn't flowing in an orderly fashion anymore.

 

For the past month I've moved things around a lot. Not chasing trends and buying what's already gone up, but still moving around. I'm trying to stop that now and just sticking with the gaming/gambling side of things. Polkadot is still my #1 holding (was AVAX) but by in large I'm liking the tiny-cap coins and will look to just stick it out with them the rest of the way. I keep making the mistake of not being patient enough, like getting tired of Chain Guardians not moving much at $0.90, selling it and then seeing it at $1.70 a few weeks later.

 

I'm still not great at knowing when to sell. Still fighting the value investing stock market habits. One could certainly just wait to sell when a coin hits an appropriate market cap, but that alone ignores the vagaries of the crazy crypto market as a whole. Not that the answer could ever be concrete and easy.

 

Still, at least the long-term strategy is in place. Hope that the ridiculous fourth-year jump really does happen then get out of the market entirely for six months until things bottom out. Stake the majority in Tier 1 coins. Use a gambling-level amount to play around with new gaming coins, and then just wait four years and hope the trend happens again. And fortunately long-term plans like this *always* work out the way you expect them to! (And likely the four-year bumps and those extreme changes reduce with the further adoption and investment in the space.)

[thebruce44]

My ETH purchases are up 10x and we are just getting started. I'm going to start pulling money out when it hits $6k. My guess is it peaks at $16k (something like going from 8k-16k in a week in Feb).

 

I'm just sticking with the boring basics this cycle.

[GAME05]

Nothing about a 10x sounds like boring basics to me. Well done!

 

So the Infrastructure Bill is set to make crypto effectively illegal in 2024. Any trade of $10k or more of any digital asset will require the buyer to collect the APY (identification, including social security number) from the seller. The wording also makes special note that multiple trades of $9999 won't fly. Failure to do so will be a felony.

 

There's some hope, anyway, that since it's three years away that this particular part of the law will be repealed in time.

Edited November 9, 2021 by GAME05

[JackNicholson1974]

Wait so is this all in an attempt to dodge taxes?

[owbc]

Ok, so I have FOMO and I want to buy this dip and make some money on crypto. First question -- crypto is decentralized so how do I buy crypto without having to go through one of these exchanges like Coinbase which is trying to charge me absurd transaction fees. I got myself a wallet and tried to put crypto in it, but that isn't possible because of the cost of ethereum. I don't want to pay more than 0.25% in transaction fees. How do I do this? I know the financial system is rigged, but crypto seems really, really rigged.

[GAME05]

There's regular Coinbase and then there's Coinbase Pro. Regular Coinbase is simpler but charges 2.5%. It basically exists just to rip off the newbies. Coinbase Pro and Binance US charge 0.5%. If you can find 0.25% let me know! I'd recommend one of those for an exchange. Or KuCoin if you want to trade more than the ~50 coins the other two offer.

 

If you don't want exchanges, then you're talking about a dex (decentralized exchange). Each blockchain has their own. So Ethereum has Uniswap and Avalanche has TraderJoe, etc. You'll need an online wallet like Metamask to use those (not every online wallet accepts every blockchain's coins). But then you're paying gas fees, which will vary by blockchain as well as how busy the network is at the moment.

[thebruce44]

You still need a FIAT onramp to use a DEX, no?

 

+1 for Coinbase Pro.

[LouisEly]

Ok, so I have FOMO and I want to buy this dip and make some money on crypto. First question -- crypto is decentralized so how do I buy crypto without having to go through one of these exchanges like Coinbase which is trying to charge me absurd transaction fees. I got myself a wallet and tried to put crypto in it, but that isn't possible because of the cost of ethereum. I don't want to pay more than 0.25% in transaction fees. How do I do this? I know the financial system is rigged, but crypto seems really, really rigged.

Buy an ETF. There's several Bitcoin or blockchain ETFs (which are mostly composed of companies that hold a lot of Bitcoin/crypto) that move with the price of the big cryptos.

[owbc]

Ok, so I have FOMO and I want to buy this dip and make some money on crypto. First question -- crypto is decentralized so how do I buy crypto without having to go through one of these exchanges like Coinbase which is trying to charge me absurd transaction fees. I got myself a wallet and tried to put crypto in it, but that isn't possible because of the cost of ethereum. I don't want to pay more than 0.25% in transaction fees. How do I do this? I know the financial system is rigged, but crypto seems really, really rigged.

Buy an ETF. There's several Bitcoin or blockchain ETFs (which are mostly composed of companies that hold a lot of Bitcoin/crypto) that move with the price of the big cryptos.

 

That's a good idea, thank you.

[GAME05]

Stuff like Valkrye that just came on the market is a futures ETF. Grayscale has applied for a spot ETF and that's likely to be approved mid/late December. Right now Grayscale has a few different cryptos it offers, though technically you're investing in the trust which only owns that particular crypto. It's worth looking at some of the differences, as Grayscale doesn't track perfectly with the crypto market.

 

But otherwise yeah, just go with Coinbase Pro. It has a good security record, though I wouldn't hold six figures there.

 

Alts are where it's at!

[GAME05]

When the market crashes I'll be curious if NFT prices go with it. If they do I'm thinking I may well buy "land" on Sandbox.

[nate82]

When the market crashes I'll be curious if NFT prices go with it. If they do I'm thinking I may well buy "land" on Sandbox.

 

NFT's are probably going to be needed for the metaverse. I know the sandbox is technically a metaverse but I see it more like AOL than the next internet of things. The metaverse is basically the next internet or so the theory goes. The metaverse will need things like NFT's to function properly I am just not sold on it being a NFT it maybe something else that hasn't come up yet or is just in development.

[GAME05]

Ok, so I have FOMO and I want to buy this dip and make some money on crypto. First question -- crypto is decentralized so how do I buy crypto without having to go through one of these exchanges like Coinbase which is trying to charge me absurd transaction fees. I got myself a wallet and tried to put crypto in it, but that isn't possible because of the cost of ethereum. I don't want to pay more than 0.25% in transaction fees. How do I do this? I know the financial system is rigged, but crypto seems really, really rigged.

 

What I'd recommend is going to Coinbase Pro. Remember it'll be different from regular Coinbase. Pro will be the one with the candle charts.

 

It'll take a couple days to get your bank verified and all that. Definitely use a strong password and 2FA. I haven't ever been sent one, but definitely if you get an email from Coinbase that looks all official, assume it's a scam. You can also get one-time-use 2FA codes, which would be helpful if you ever lose your phone.

 

Also get some portfolio tracker, because Coinbase ain't gonna give you a tax form.

 

I use two different exchanges and will trade on them because it's cheaper and faster. I use DEXs, but only when I want to buy a token not yet listed on the exchanges. You're probably never going to have a transaction of 0.25% or less. And yeah, Ethereum's gas fees are outrageous. At this point I don't buy any Ethereum-based token on a dex unless I can get it off an exchange.

 

I feel comfortable holding a modest amount of money on Coinbase. A bigger amount you might want to look into a hardware wallet like Ledger. Online wallets are convenient, but they also end up subject to hacks if you happen to download some virus on your computer. Should be common sense, but don't trade crypto or use an online wallet on a public wi-fi. Metamask is the most popular online wallet and you'll need some sort of online wallet to eventually trade on a dex. But also double-check the online wallet address before you download it--Fantom Wallet has a pretty bad copycat version out there now that people are downloading.

 

Not sure if I've posted this before, but good Youtube channels:

 

Whiteboard Crypto--a great "What is ___" about crypto and doesn't push opinion

Invest Answers--some opinion, but generally good quality stuff

Altcoin Daily--The Nightly News of crypto

Alex Becker--good for degenerate low-cap gaming coins

Elio Trades--Been liking him more, though he can be overly bullish at times

JRNY Crypto and Sheldon Evans are also good

 

It's also of value to go on CoinGecko and use their "categories" tabs. It helps you learn basically what each coin is about. Especially if you have an industry skillset like you know the Real Estate market, you can focus on just the coins in that category. It's also a great way of investing because there's otherwise just too much out there to properly learn.

[thebruce44]

Ok, so I have FOMO and I want to buy this dip and make some money on crypto. First question -- crypto is decentralized so how do I buy crypto without having to go through one of these exchanges like Coinbase which is trying to charge me absurd transaction fees. I got myself a wallet and tried to put crypto in it, but that isn't possible because of the cost of ethereum. I don't want to pay more than 0.25% in transaction fees. How do I do this? I know the financial system is rigged, but crypto seems really, really rigged.

Buy an ETF. There's several Bitcoin or blockchain ETFs (which are mostly composed of companies that hold a lot of Bitcoin/crypto) that move with the price of the big cryptos.

 

That's a good idea, thank you.

 

The ETF route just seems like the worst of both worlds, but if it is how someone is most comfortable dipping their toe in the pool, it serves its purpose.

[owbc]

The ETF route just seems like the worst of both worlds, but if it is how someone is most comfortable dipping their toe in the pool, it serves its purpose.

 

The purpose is to make money right? How do I make money if the exchanges are taking high transaction fees? That's going to discourage me from making trades. Or is the idea that it's fine because we're not talking about 10% gains here, we're going for 100% or 1000%? What's clear to me is that these exchanges are making absurd amounts of money right now by siphoning off transaction fees. Sites I've never heard of are buying naming rights to arenas? That's just wild. The people getting rich off this seem to be the ones that are controlling the marketplace, and it's so unregulated that they can basically do whatever they want. The Michael Lewis book about this era is going to be something.

 

Thanks for those links -- GAME05. There's a ton to digest. I don't even know where to start. Honestly it seems like it would be a better use of my energy to just create my own altcoin, that seems like a better use of my energy. Get ready for BF.net coin or something...

[thebruce44]

The ETF route just seems like the worst of both worlds, but if it is how someone is most comfortable dipping their toe in the pool, it serves its purpose.

 

The purpose is to make money right? How do I make money if the exchanges are taking high transaction fees? That's going to discourage me from making trades. Or is the idea that it's fine because we're not talking about 10% gains here, we're going for 100% or 1000%? What's clear to me is that these exchanges are making absurd amounts of money right now by siphoning off transaction fees. Sites I've never heard of are buying naming rights to arenas? That's just wild. The people getting rich off this seem to be the ones that are controlling the marketplace, and it's so unregulated that they can basically do whatever they want. The Michael Lewis book about this era is going to be something.

 

Thanks for those links -- GAME05. There's a ton to digest. I don't even know where to start. Honestly it seems like it would be a better use of my energy to just create my own altcoin, that seems like a better use of my energy. Get ready for BF.net coin or something...

 

As far as I can tell, the FIAT onramp I used, Coinbase Pro, has a .5% fee (less if you are sending more money). A quick google of an EFT fee shows a yearly .95% expense ratio. For someone like me who plans to hold for more than 5 years (I am in year 5), buying the actual crypto seems to make a lot more sense. Also, I can trade at any hour of the day.

 

But again, whatever gets people into the space is a good thing.

 

Also, the exchanges, like Coinbase and Gemini, are very regulated.

[GAME05]

The ProShares futures ETF has a 1% fee. Grayscale has a 2% fee, and even free stock trading exchanges you're paying a market maker. Somebody somewhere is always making money off you/me.

 

I almost forgot that Robinhood offers crypto, too, but just a few of them. So it can depend on what you're looking to do, too. Some folks just want Bitcoin and Ethereum, and for that, Grayscale/Robinhood/futures ETF or waiting for a spot ETF is probably your best bet. But if you're hoping to find that next 10x, then you'll want a crypto exchange.

 

But yeah, when you get into it, for a good long while it'll feel like you're seven years old and you just lost your parents in Chinatown. But hey, you've always got us here!

[Joseph Zarr]

The ETF route just seems like the worst of both worlds, but if it is how someone is most comfortable dipping their toe in the pool, it serves its purpose.

 

The purpose is to make money right? How do I make money if the exchanges are taking high transaction fees? That's going to discourage me from making trades. Or is the idea that it's fine because we're not talking about 10% gains here, we're going for 100% or 1000%? What's clear to me is that these exchanges are making absurd amounts of money right now by siphoning off transaction fees. Sites I've never heard of are buying naming rights to arenas? That's just wild. The people getting rich off this seem to be the ones that are controlling the marketplace, and it's so unregulated that they can basically do whatever they want. The Michael Lewis book about this era is going to be something.

 

Thanks for those links -- GAME05. There's a ton to digest. I don't even know where to start. Honestly it seems like it would be a better use of my energy to just create my own altcoin, that seems like a better use of my energy. Get ready for BF.net coin or something...

 

As far as I can tell, the FIAT onramp I used, Coinbase Pro, has a .5% fee (less if you are sending more money). A quick google of an EFT fee shows a yearly .95% expense ratio. For someone like me who plans to hold for more than 5 years (I am in year 5), buying the actual crypto seems to make a lot more sense. Also, I can trade at any hour of the day.

 

But again, whatever gets people into the space is a good thing.

 

Also, the exchanges, like Coinbase and Gemini, are very regulated.

 

CB Pro is a free Cash transfer via Bank Account. Has been for awhile. Same with Bittrex. Same with Gemini. The fees came when you tried to wire money or use the more convenient direct deposit via a Debit card, for example. CB Pro offers free ACH Bank transfers and withdrawals and free USD to USDC conversion, fwiw. If you are trading, per se, there are Maker and Taker fees. BUT, this is the same in any trading Market - stonks or Forex. You always pay a Broker fee. The less time you worry about fees, the better - it will drive you Mad.

 

My personal recommendation would be to focus more on sensible entries at Support and gaining a general sense of the type of Market you are Buying and Selling in. My 2 Cents. (Probably worth more like, what, 1.5 cents given hyperinflation). Also, for newbie Crypto peeps: I traded this ish when CB Pro was called 'GDax'...before Gemini was even online. Believe me, the learning curve is steep. I remember being so dang frustrated way back when at how ridiculously foreign it all felt. We've come eons since that time AND, man, it still isn't hyper convenient or easy. Having dealt with GPU mining well before Asics were a thing (a vastly bigger headache than learning how to understand Exchanges etc), I can tell you: It's always better to 'own' your crypto and have it offline in say a Ledger Nano X or some comparable form of Cold Storage - maybe an offline Paper Wallet. Just my 1.5 centavos. Good luck!