A thread request for Crypto buying information

I know a few members here have been buying Crypto coins for a while. I trade stocks a bit, but never dove into that market. I recently decided to buy some DOGEcoin, and went the wimpy way with Robinhood. I was a bit intimidated when I read some things talking about wallets and such, and was told of you don't know what this is, you don't need to be trading coins.

So I figured with all the knowledge we have here, maybe a few folks can explain the process, the terms, and what mistakes could be made, and what benefits could be had. I realize that trading stock, coin, whatever, is a gamble. Like the lottery with slightly better results....maybe.

So if the experts here could share some things, like what's a digital wallet, and why do you need one, what coins they bought and why type stuff, perhaps everyone here could learn a bit.

Thanks in advance!

a reply to: network dude

A wallet is your access to your keys on a blockchain. There are software and hardware wallets which shouldn't be confused with exchange wallets in which case you are not in control of your personal keys like the former.

Enjin makes a handy mobile wallet.

Exodus has a software wallet

There are a few hardware wallets but not all coins are supported.

For exchanges, the largest in the US are Coinbase, Binance US, Kraken and Bittrex. IIRC all employ KYC registration and fiat deposit.

Search around for blockchain 101. A few useful articles should pop up.

originally posted by: network dude
Like the lottery with slightly better results....maybe.

Funny you mention that. You know ... That's a tax on people who were bad at math.

Crypto is a tax on people who enjoy being cheated ... deep into relationships.

As I see it, you can't spend it on 'anything' you want, 'anywhere' you want, 'anytime' you want ... so it's not really money. Plus, you're now in direct competition with the biggest crooks of all time (banks and government). Likelihood of coming out a winner if you're not already in the game and ready to bail right now: slim-to-none

I go the route of using robinhood. Has several crypto currencies on there. When litecoin is down say 3% buy $1000 of it. When it goes back up 3%, you've made "400 and cash out. Or stay in and hope it goes up more then cash out. Doesn't have to be any more complicated than that.

originally posted by: Mark08
I go the route of using robinhood. Has several crypto currencies on there. When litecoin is down say 3% buy $1000 of it. When it goes back up 3%, you've made "400 and cash out. Or stay in and hope it goes up more then cash out. Doesn't have to be any more complicated than that.

I would rather play poker.

I'm looking into it but it is rather confusing, it seems so volatile and subject to huge fluctuations. That said look at where Bitcoin is today compared to a year ago.

I love to have a cryptocurrency forum, Ive looked at coinbase and coinmama but even though I don't have much to put in Id like to start

a reply to: network dude

A few pieces of advice:

Start out small and don't buy more than you can afford to lose.

Use a legitimate exchange. I use Coinbase and Binance US almost exclusively, with some small amounts on Kraken and Kucoin

Try to purchase coins that have some meaningful purpose. As an example, Ripple (XRP) is a strong contender to be used in banking infrastructures. Vechain (VET) is becoming pretty popular as a logistics type blockchain and high end companies are tracking their products on it. Some counties are also discussing using it to track their Covid vaccines.

Don't expect to not pay taxes. Consider it just like an investment account and use the same strategies and planning you would with short vs long term capital gains. US based exchanges will report your transactions to the IRS.

Don't think you've missed the boat on certain coins...especially Bitcoin. Yes, it's almost $60k, but you don't need to buy a whole one.

Consider putting 5% of your assets in crypto as a long term holding.

Hope this helps. Feel free to PM me if you have any questions.

First, if you don't know anything about crypto wallets or whatever, go the safe route and buy from large established exchanges like Coinbase or Kraken. These store your coins for you. You just buy and let them worry about the storage. Coinbase and Kraken are both safe and trusted.
Now, coins. The BIG one I would recommend paying attention to is Ethereum (ETH). Ethereum isn't just a cryptocurrency, it's actually an entire huge technology that is actively being used. Not only that, but major corporations such as Microsoft, JP Morgan Chase, AMD, Intel, FedEx etc etc - too many to list - are all working together as part of the "Enterprise Ethereum Alliance" to develop it. Investing in Ethereum right now is essentially like going back in time and investing in Microsoft or Apple. If anything, get into Ethereum.
Another one I might recommend looking into is AAVE, which is currently up over 72,000% over the past 6 months. No, that's not a typo. AAVE was about $0.51 in October and it's now $375. AAVE powers a borrowing/lending platform that is available to anyone. You can deposit money into it to provide liquidity and earn passive income, or lend cryptocurrencies out for varying rates of interest. You can check out its websites HERE and HERE.

Anyway, in summary: Pick either Coinbase or Kraken and buy as much Ethereum as you're comfortable spending. Sit on it for a few years and you'll be extremely happy. 6 years ago ETH was $0.51. Right now it's over $1,800. $1,000 of ETH back then would have netted you about $3.6 million today. Also, whatever you buy - sit on it. Never panic sell.

originally posted by: peter_kandra
Ripple (XRP) is a strong contender to be used in banking infrastructures.

Ripple is currently being sued by the Securities and Exchange Commission. The outcome of this is currently unclear. Buy with caution.

originally posted by: peter_kandra
Don't expect to not pay taxes. Consider it just like an investment account

You don't have to pay capital gains taxes on cryptocurrencies you simply buy and hold; you only pay capital gains when you trade one cryptocurrency for another, or when you cash out/sell. If you're just buying and sitting on them you don't need to worry about taxes until you actually do something with the cryptocurrencies.

originally posted by: Snarl
Crypto is a tax on people who enjoy being cheated ... deep into relationships.

As I see it, you can't spend it on 'anything' you want, 'anywhere' you want, 'anytime' you want ... so it's not really money. Plus, you're now in direct competition with the biggest crooks of all time (banks and government). Likelihood of coming out a winner if you're not already in the game and ready to bail right now: slim-to-none

You have no idea what you're talking about. Cryptocurrencies aren't simply magic internet money. There are all different kinds of cryptocurrencies with their own purposes and underlying technologies. Many of these technologies are being actively developed and used to replace current existing systems, from the smallest applications like browser games to literally global banking systems.
As far as spending cryptocurrencies on anything anywhere, Mastercard (like others) is in the process of allowing people to do exactly that. Mastercard

originally posted by: Mark08
I go the route of using robinhood. Has several crypto currencies on there. When litecoin is down say 3% buy $1000 of it. When it goes back up 3%, you've made "400 and cash out. Or stay in and hope it goes up more then cash out. Doesn't have to be any more complicated than that.

Yeah but hopefully you've kept meticulous records of every transaction you've made, because the government is gonna want their tax cut. It's way easier to just buy and hold over the long run. You'll still make the profit if you bought into the right things.

originally posted by: putnam6
I'm looking into it but it is rather confusing, it seems so volatile and subject to huge fluctuations. That said look at where Bitcoin is today compared to a year ago.

I love to have a cryptocurrency forum, Ive looked at coinbase and coinmama but even though I don't have much to put in Id like to start

It is volatile, yes - but what you need to think about is the technology, not the price. Ethereum for example is basically like being given an opportunity to go back in time and invest in Microsoft while it was still in the process of creating Windows. Prices rise and fall every day - I've watched myself lose over $10k. Yeah, it sucks if you're thinking of short-term profit. But you have to be able to ignore that and stick with it for the long run. Buy the right things and hold, don't panic sell, and you'll be very happy in a few years.

I'd say most replies are a bit advanced.
Beginners story, it's a 2 step process,
You need an exchange to buy/sell it Bitcoin (kickin is a good fee free one)
. Then transfer it to a wallet to hold it/transfer it to ur main bank account ( cold harsh cash) exodus is s good free wallet .
Best advice, experiment with a loose 100 buy some , transfer it, move it to ur account ... Then move up from there when u feel more comfortable. If u go with other exchanges or wallets there may be fees involved so start low , tread lightly, chop & change as needed .. It only needs a new email address and low seed money to trial n error

a reply to: network dude

originally posted by: trollz

originally posted by: peter_kandra
Ripple (XRP) is a strong contender to be used in banking infrastructures.

Ripple is currently being sued by the Securities and Exchange Commission. The outcome of this is currently unclear. Buy with caution.

originally posted by: peter_kandra
Don't expect to not pay taxes. Consider it just like an investment account

You don't have to pay capital gains taxes on cryptocurrencies you simply buy and hold; you only pay capital gains when you trade one cryptocurrency for another, or when you cash out/sell. If you're just buying and sitting on them you don't need to worry about taxes until you actually do something with the cryptocurrencies.

I don't believe the SEC lawsuit will be successful. It's really more of an offensive to prevent XRP from eventually replacing SWIFT. I'd be surprised if the EU wasn't using the XRP network for financial transactions within the next 5 years.

Yup, I know there's no capital gains if it's not sold. That's why I said to treat it just like an investment account.

On a similar note, Cardano just went live on Coinbase.

originally posted by: trollz

originally posted by: putnam6
I'm looking into it but it is rather confusing, it seems so volatile and subject to huge fluctuations. That said look at where Bitcoin is today compared to a year ago.

I love to have a cryptocurrency forum, Ive looked at coinbase and coinmama but even though I don't have much to put in Id like to start

It is volatile, yes - but what you need to think about is the technology, not the price. Ethereum for example is basically like being given an opportunity to go back in time and invest in Microsoft while it was still in the process of creating Windows. Prices rise and fall every day - I've watched myself lose over $10k. Yeah, it sucks if you're thinking of short-term profit. But you have to be able to ignore that and stick with it for the long run. Buy the right things and hold, don't panic sell, and you'll be very happy in a few years.

Thanks for the response and I believe in the tech and I'm pretty sure I've learned my lesson about holding on to it and let it grow. Wayback when Apple was failing, Jobs had just left this was pre-Itunes I bought 40 shares for.30 cents a share, just cause I liked the company, after a while of stagnant growth I sold it and put it into some other bull#. That's a true story.

Cryptocurrency isn't going away you will have companies being bought and mergers etc. The thing that interested me recently was Paypal buying Curv a digital asset security company, and all of sudden you can buy Bitcoin, Ethereum, Litecoin, Bitcoin Cash.

Robin hood ain't available outside US , which sux
a reply to: Mark08

Coinbase charge fees tho right? Media and govt finance are deliberately making this as confusing as possible,
If I invest in an ISA they're obliged to divulge all fees, charges, and whether and how my investment will lose money . Until crypto does that ppl will be scared , but 1st in, cleans the pool .
a reply to: peter_kandra

a reply to: network dude

There's a couple of apps I use depending on what I intend to do, either hold (hodl) or trade. Binance for trading and crypto dot (.) com app for holding as the user interface is relatively simple to use. Stick to the popular coins like Bitcoin, Etherium, Cardano, Polkadot etc. Be prepared to hold through extreme highs and lows, it will eventually pay off. Do not let your emotions get the best of you, come up with a strategy and stick to it. Take profit (a bit here and there) when you hit your milestones.

originally posted by: Nickn3

I would rather play poker.

Come back 5 years from now and say that again. You're missing a once in a lifetime opportunity.

a reply to: Snarl

You have no idea what you're talking about, stick to a different topic.

a reply to: network dude
Like trollz wrote, the technology behind the coin is important.

The exchange you are on matter a lot, too. Every exchange has different options. I am on Binance, lot's of options once verified. Would give you % on tradefees but it's against the TC.