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lizardmech

Cryptocurrency

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Anyone else here playing around with trading these? Some that I helped mine years ago rose in value unexpectedly recently so I sold some and kept a portion to trade as entertainment as I had already cashed out a decent profit. They are completely risky and extremely volatile due to being traded by less experienced people than shares or common commodities. But they are very amusing to trade as a result, they go up 300% in a couple days sometimes then crash in a few hours. I'm uncertain where all the capital has come from, some people say they have gained popularity in China, Korea, Japan and India of late.

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I'm pretty ignorant about these things, but I assume you mean bitcoin?

I love the idea of bitcoin, and articles about it make for good reading.  I've never bought any though and wouldn't know how.

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I mined some maybe 2009 or 2010... lost the wallet since though :P  Wasn't that much really, maybe 0.5BTC or less. Didn't get into it since, but some people have made pretty good profits (and probably some have lost a lot too):  http://www.coindesk.com/bought-bitcoin-2009-now-worth-983000/

$26.60 to $980000 in 4 years, not bad ;)

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2 hours ago, Dingfelder said:

I'm pretty ignorant about these things, but I assume you mean bitcoin?

Bitcoin is one of many cryptocurrencies. Bitcoin has the largest market cap. Ethereum has about half the market cap of Bitcoin. See link for a list of others.
https://coinmarketcap.com/

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3 hours ago, John Eucist said:

Bitcoin is one of many cryptocurrencies. Bitcoin has the largest market cap. Ethereum has about half the market cap of Bitcoin. See link for a list of others.
https://coinmarketcap.com/

That's interesting.   I had only known of the one.

I wonder if it's ever going to get shut down.

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59 minutes ago, Dingfelder said:

That's interesting.   I had only known of the one.

I wonder if it's ever going to get shut down.

Unlikely, some of them have backing from large corporations. At the moment many of the newer ones are at the stage bitcoin was when it went from less than a cent to $14. There's a race to see who can develop the most useful currencies based on the concept of bitcoin. Some offer cloud storage or the ability to run programs on top of the network. Others like dogecoin just started out as a prank clone of bitcoin but gained popularity as bitcoin became less economical for small transactions due to immense traffic. Probably 95% of them will fail and become worthless but the winners will make huge amounts of money. In the short term everyone is speculating like crazy, there's basically no regulation so it's a libertarian or anarchist capitalist market at the moment which makes it amusing to watch how things unfold.

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16 hours ago, lizardmech said:

Unlikely, some of them have backing from large corporations. At the moment many of the newer ones are at the stage bitcoin was when it went from less than a cent to $14. There's a race to see who can develop the most useful currencies based on the concept of bitcoin. Some offer cloud storage or the ability to run programs on top of the network. Others like dogecoin just started out as a prank clone of bitcoin but gained popularity as bitcoin became less economical for small transactions due to immense traffic. Probably 95% of them will fail and become worthless but the winners will make huge amounts of money. In the short term everyone is speculating like crazy, there's basically no regulation so it's a libertarian or anarchist capitalist market at the moment which makes it amusing to watch how things unfold.

The whole subject is very interesting.  I'll probably start reading about this more.

What surprised me is hearing, a while ago, that there are some regular retail merchants who actually accept payment in bitcoin.  I don't know how that would work re taxes etc., but the whole idea is intriguing to say the least.

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Anybody here dabble in speculating in cryptocurrency, like Bitcoin or any others? I thought about throwing a few hundred bucks into BTC a few years ago and chickened out. I definitely shoulda! :crying:

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Apparently I "merged" @dbfrese's new topic/post with @lizardmech's original thread the "opposite way" which made lizardmech's original post title change from "Crypto currency trading" to dbfrese's new thread title of just "Cryptocurrency". Since the merge also automatically created a separate alias "link" in the post listings (for 30 days) titled "Crypto currency trading Topic was merged with Cryptocurrency" I'm afraid to make it even more confusing if I try to edit this thread topic back to the original "Crypto currency trading". Since the new title seems equally representative of this thread's topic I will just leave it this way if lizardmech doesn't mind. :P 

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3 hours ago, dbfrese said:

Anybody here dabble in speculating in cryptocurrency, like Bitcoin or any others? I thought about throwing a few hundred bucks into BTC a few years ago and chickened out. I definitely shoulda! :crying:

I'm trading them using coins I mined years ago so I didn't really put my own money in so I'm being pretty reckless. All the profit is in the smaller less known coins being developed, several hundred percent profit every few days is often possible.

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16 minutes ago, John Eucist said:

which made lizardmech's original post title change from "Crypto currency trading"

Which may be why I started a whole new thread. I searched the forum for the term, but I spelled it as one word instead of two when doing my search! Thanks for merging the two.

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My main reservation with cryptocurrency trading is that in order to trade you have to put your money (or transfer your local bitcoins) to a company which then provides the platform for you to trade. In other words I'm afraid of what happened to mtgox (they were the largest bitcoin exchange in the world at the time). A similar hack happened to bitfinex which was also the largest exchange at the time but they reimbursed all customers since.

Edited by John Eucist
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I just avoid keeping them in exchanges or online wallets in general. Archive the wallet files on a few long life CDs and USB sticks. Ideally you have multiple wallets, secure offline for long term, a smaller wallet on your PC for spending them and just enough on the exchange for trading.

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8 minutes ago, lizardmech said:

I just avoid keeping them in exchanges or online wallets in general. Archive the wallet files on a few long life CDs and USB sticks. Ideally you have multiple wallets, secure offline for long term, a smaller wallet on your PC for spending them and just enough on the exchange for trading.

This works well if you never sell the cryptocurrencies for fiat currency (e.g. sell btc for eth instead). If you sell them for fiat currency then what do you do? Wire money back to your bank? What if you suddenly want to make a trade again? Wire money back to the exchange? That would cause a lot of delay if you suddenly want to buy as well as incur significant wiring fees if done repeatedly.

 

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I store my trading ones in dogecoin takes about 5 mins to get it to an exchange and has low fees. Minimizing fiat to crypto transactions is important but you have to have a decent cache of crypto to do that.

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20 minutes ago, lizardmech said:

....low fees.

Are they a percentage or flat fees? 

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Yeah dogecoin and many altcoin transfers are less than 1 cent. Bitcoin fees have become higher due to the huge volumes. It's an issue for bitcoin as it's the oldest coin it lacks many newer features others have to mitigate the issue. They might sort it out or another cryptocoin will slowly take over the bulk of transfers over the next 5-10 years.

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I use electrum for btc. What do you use for eth? I do not want to keep my "balance" at the exchanges due to my concerns in my previous two posts in this thread.

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Wow ETH has really gone full bezerk since just four months ago with like 10,000% appreciation in terms of USD.

The value of trading between ETH/BTC alone is like over 300 million USD in value per day in just ONE exchange. This is nuts.
https://coinmarketcap.com/exchanges/volume/24-hour/

Edited by John Eucist
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Eth is going up due to chinese bitcoin miners threatening to sabotage the bitcoin network. They are demanding changes be made to the software but have little support. The problem is while bitcoin was down in value the last two years chinese companies were able to get a monopoly on producing specialized chips built only for mining bitcoin. They constricted the supply of the chips so a select few chinese groups have an overwhelming amount of network power. The cut off date for it to be resolved is august 1.

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