Know anything about crypto investing?

[Ranching]

I've invested in things, mostly real estate for about 30 years, since I was about 23......a friend got me I to this crypto stuff and I'm looking into it....I don't really understand it, any advice? I wouldn't mind throwing a few grand at it.....

 

[Creeper]

I've invested in things, mostly real estate for about 30 years, since I was about 23......a friend got me I to this crypto stuff and I'm looking into it....I don't really understand it, any advice? I wouldn't mind throwing a few grand at it.....

First thing, remember that crypto is not backed by anything or anyone. It is pure supply and DEMAND. They may not be a reason why a particular crypto currency appreciates in value other than a rumor (and there are plenty of those).

Second thing. Understand the tax implications of buying and selling crypto - and the reporting requirements. Right now crypto exchanges are only reporting crypto transactions that exceed $20,000. The Government is trying to lower that. In fact, this recent push to get banks to report any transactions over $600 is really about catching crypto investors who are currently not reporting their gains. Beginning last year the IRS added a section on the main tax return to report crypto gains.

If you use crypto to purchase goods, the IRS treats the use of crypto to make a purchase as a sale. So if your crypto increased in value the difference is taxed - unlike how they treat real currency.

 

[CyberB0b]

Rule #1 in investing: if you don’t understand it, don’t invest.

 

[kmp77]

I put $3k into Shibu Inu when it was 0.000028....now it's up to .000067. It's about to be listed on Robinhood and AMC theaters may start excepting it as well.

 

[Hoofbite]

It's only worth what people think it is worth. That's all that I know, and I can't even begin to explain why people it's worth anything.

I suppose if you have a little money to burn it might be an exciting hobby if you have a volatility fetish. I've thought about just putting a little (very little) on some of the altcoins and hoping for a viral effect on just one of them. Buy $100 of what the poster above me did and if it ever gets to a $1, you're a millionaire.

That's about the extent I would go to. The main coins cost more than I'm willing to commit to something so unknown to me.

 

[rynochop]

You'd probably be better off just going to the casino and play basic strategy blackjack

 

[Hardline]

I was going to buy bitcoin when it was around $800.

I still curse those that talked me out of it. At this point there is no longer any reason to doubt the legitimacy of cryptocurrencies.
Visa even has a crypto debt card now.

 

[jsb357]

At this point there is no longer any reason to doubt the legitimacy of cryptocurrencies.

correct but eventually a big one get hit and a lot of people will loose a lot of "value"

I'm staying small time for now until it has a better footing and the threat of massive regulation
in the crypto market subsides.

 

[shabazz]

correct but eventually a big one get hit and a lot of people will loose a lot of "value"

I'm staying small time for now until it has a better footing and the threat of massive regulation
in the crypto market subsides.

Absolutely. Countries governments can decide crypto’s value very easily

 

[MichaelWinicki]

One does not invest in crypto– One speculates in crypto.

 

[DasTex]

What I don't understand is there seems to be a new one created daily - which actually get people to invest in them.

 

[Creeper]

correct but eventually a big one get hit and a lot of people will loose a lot of "value"

I'm staying small time for now until it has a better footing and the threat of massive regulation
in the crypto market subsides.

On this front, it seems like the volume of trading has gotten to the point where governments are becoming more interested in acquiring the tax revenues than whether or not crypto is legitimate. We are seeing proposals to regulate crypto but mostly for the purpose of knowing who is trading what and how much taxes they owe. Except in China where crypto threatens government control of the currency.

 

[Runwildboys]

According to Business Insider, crypto mining uses almost 0.5% of all electricity worldwide. Just sayin'.

 

[Reality]

According to Business Insider, crypto mining uses almost 0.5% of all electricity worldwide. Just sayin'.

You really need to learn about it before you post about it.

There are different types of crypto, with some using a lot of power and some using very little power depending on their methodology such as Proof-of-Work (POW) vs Proof-of-Stake (POS).

Bitcoin uses POW for mining and transactions which is why it is one of the top power consumption cryptos since it is worth the most and the most popular.

Some cryptos are using the newer POS method which uses a lot less power while some current POW cryptos have development roadmaps planned toward a shift to POS or something else less power intensive in the future.

Even with bitcoin and other POW cryptos though, many that are setting up mining factories in the US after being kicked out of China are setting them up along side, or in some cases building their own, green energy sources.

For example, in Texas, they are setting up and/or using wind farms and dams to help power their mining factories.

While POW cryptos need to be phased out at some point, the energy evolution of block-chain technology is moving much faster than all other energy using industries toward reducing energy costs significantly.

 

[Runwildboys]

You really need to learn about it before you post about it.

There are different types of crypto, with some using a lot of power and some using very little power depending on their methodology such as Proof-of-Work (POW) vs Proof-of-Stake (POS).

Bitcoin uses POW for mining and transactions which is why it is one of the top power consumption cryptos since it is worth the most and the most popular.

Some cryptos are using the newer POS method which uses a lot less power while some current POW cryptos have development roadmaps planned toward a shift to POS or something else less power intensive in the future.

Even with bitcoin and other POW cryptos though, many that are setting up mining factories in the US after being kicked out of China are setting them up along side, or in some cases building their own, green energy sources.

For example, in Texas, they are setting up and/or using wind farms and dams to help power their mining factories.

While POW cryptos need to be phased out at some point, the energy evolution of block-chain technology is moving much faster than all other energy using industries toward reducing energy costs significantly.

Hey, I was "just sayin'". lol

This is why I said, "According to Business Insider...", because I didn't want people thinking I did all this research into it, and came to this conclusion myself. That said, it's not false information. It's just what's currently happening. If that changes in the future, great!

 

[CyberB0b]

You really need to learn about it before you post about it.

There are different types of crypto, with some using a lot of power and some using very little power depending on their methodology such as Proof-of-Work (POW) vs Proof-of-Stake (POS).

Bitcoin uses POW for mining and transactions which is why it is one of the top power consumption cryptos since it is worth the most and the most popular.

Some cryptos are using the newer POS method which uses a lot less power while some current POW cryptos have development roadmaps planned toward a shift to POS or something else less power intensive in the future.

Even with bitcoin and other POW cryptos though, many that are setting up mining factories in the US after being kicked out of China are setting them up along side, or in some cases building their own, green energy sources.

For example, in Texas, they are setting up and/or using wind farms and dams to help power their mining factories.

While POW cryptos need to be phased out at some point, the energy evolution of block-chain technology is moving much faster than all other energy using industries toward reducing energy costs significantly.

One cool thing about BTC is that it can be used to make more efficient power. Lots of power that is produced is either wasted, as it can't be easily stored, or it is lost in transmission through pipelines or electrical lines. You can convert these loses into BTC and make the usage of power cheaper and more efficient. It also promotes the use of renewable energy, like solar, which can't really go wide scale due to the fact that the sun isn't out for that long.

https://moneyweek.com/investments/alternative-finance/bitcoin/602678/bitcoin-energy-consumption

BTC mining doesn't require large battery banks, large transmission infrastructure, or anything that a traditional energy usage case would call for.

 

[CyberB0b]

Now might be a good time to look into crypto. The Fed is supposed to release inflation numbers today, which should cause a pump. There was a 40% pullback, so the value is there. DYOR.

 

[Denim Chicken]

Just throw it in Bitcoin. Its around $43k right now which is a good level to get in at. It routinely ebbs between $35k and $65k and many investors project it will surpass $100k by the end of 2022.

Don't mess with alt coins.

 

[Praxit]

I've invested in things, mostly real estate for about 30 years, since I was about 23......a friend got me I to this crypto stuff and I'm looking into it....I don't really understand it, any advice? I wouldn't mind throwing a few grand at it.....

..interesting Ranch. I've been investing and working the market for last 5-6 yrs. Crypto is not new, been around since 2011 or so.

Back in 2015 one share/coin was going for $614.00. My budget would probably get me 2-3 shares. Heck, I didn't know what it was exactly. And surely was un-confident about it. Its digital money. Only exist in the cloud.

I didn't buy. Fast forward to now. As I write this a Bitcoin is going for $43,823. You can clearly see it was hit n miss. Bad luck on my part...lol... Just like the how market runs, pure randomness.

I'm been getting about 30% on my returns, which is nice. So my trade homework is paying off. ...

Here's my take. Its a rich man's game now. Who has $43,000 lying around to buy one share/bitcoin? Not many. I missed the boat, I'll admit that.

If had $43,000 right now, I still wouldn't buy. Unless your super rich, then you have more options and more loss without drawbacks.

Bitcoin is super volatile. Major shifts occur everyday. Its suspect to memes happening on personal opinions. Not good sign for long-term investing.

I keep getting visuals that other currencies will be introduced. Down riding the worth of BC over time.

It could end up like Chuck E Cheese. Centralized money, only good in specific areas.

>>>GO Dallas. >>>>>

 

[Praxit]

Rule #1 in investing: if you don’t understand it, don’t invest.

...Munger/Buffet excellent quote.