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Discussion Starter · #41 ·
Change jelly is a tumbling service from what I understand, which results in a higher fee for trades, but admittedly, I have not taken a thorough look at it so I could be wrong, or the info could be dated.
 

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So I think I am getting close to wrapping my head around cryptocurrency.
If I don't think of it as money but instead think of each currency/blockchain as a 'company stock' or new IPO. So BTC, Ether and Lite would be the Blue Chips.
And this is where the buy and keep, stop loss and shorts come into play.
Still goes back to my initial old school thought of what gives it 'backing' but I am getting there. After all the Book of Faces has no real backing other than the people that uses it, and look at the people it made into millionaires and billionaires.
 

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So I think I am getting close to wrapping my head around cryptocurrency.
If I don't think of it as money but instead think of each currency/blockchain as a 'company stock' or new IPO. So BTC, Ether and Lite would be the Blue Chips.
And this is where the buy and keep, stop loss and shorts come into play.
Still goes back to my initial old school thought of what gives it 'backing' but I am getting there. After all the Book of Faces has no real backing other than the people that uses it, and look at the people it made into millionaires and billionaires.
Crypto exchanges are essentially like stock exchanges, right? I've read the Winklevoss twins (among others) essentially own their cryptos' exchange. Is that correct?
 

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Crypto exchanges are essentially like stock exchanges, right? I've read the Winklevoss twins (among others) essentially own their cryptos' exchange. Is that correct?
To me, Yes and No. The concept/crypto is software driven, what confuses me is that I am thinking of crypto as currency, I have to think of it like a Hybrid between stocks and currency. I may be wrong but the 'exchanges' to me are places that gives access, makes it easier for the newbie and commoners like me to buy and sell crypto by having a place that the miners get the transactions to validate . BUT to me, the reason I am using the exchanges like CoinBase and Poloniex as recommended by Chris because if an exchange is dishonest or hacked you can lose your money.
Anyone it seems that can write crypto software can create a currency, then it is up to the 'miner' to legitimize it by validating the buy and sell transactions that people are putting their money in it. That is why some will call it a Ponzi scheme but I think it is going to be the future for online payments, similar to how Paypal started way back when, it will make it harder for Governments and Banks to control so that they can get their piece of the action. Even JP Morgan I think is starting their own group to trade in crypto.
Still trying to fully understand it so I maybe incorrect in the above.
 

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To me, Yes and No. The concept/crypto is software driven, what confuses me is that I am thinking of crypto as currency, I have to think of it like a Hybrid between stocks and currency. I may be wrong but the 'exchanges' to me are places that gives access, makes it easier for the newbie and commoners like me to buy and sell crypto by having a place that the miners get the transactions to validate . BUT to me, the reason I am using the exchanges like CoinBase and Poloniex as recommended by Chris because if an exchange is dishonest or hacked you can lose your money.
Anyone it seems that can write crypto software can create a currency, then it is up to the 'miner' to legitimize it by validating the buy and sell transactions that people are putting their money in it. That is why some will call it a Ponzi scheme but I think it is going to be the future for online payments, similar to how Paypal started way back when, it will make it harder for Governments and Banks to control so that they can get their piece of the action. Even JP Morgan I think is starting their own group to trade in crypto.
Still trying to fully understand it so I maybe incorrect in the above.
Its currency, just not government backed. To treat it as anything else I feel would be a mistake. But one needs to understand that until a crypto is fully adopted by an economy, it's highs and lows will be sharp and immediate.

It's only valuable as long as it's used though. Having said that, there is virtually infinite value in companies that maintain and develop the software that runs crypto currency.

It's my opinion that one should invest in marijuana, crypto infrastructure, security technology (anti hacking), and crypto itself.




Sent from my iPad using Tapatalk
 

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But who owns the exchanges is my question......
 

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I guess anyone that has the software and the funds to start one?
If that's the case, there's a huge potential for fraud.
 

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If that's the case, there's a huge potential for fraud.
Yes, that is why I would only use the ones that come recommended from others with "fat in the pot" too.

Story:
Sister-In-Law told me a co-worker last night started in November, small at first but then increased it up to 40k for Verge I think, now it is worth 200k. TRON is supposedly a good long term pick too.
 

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But who owns the exchanges is my question......
Anyone can own an Exchange. There isn't much regulation. I'm a heavy miner. I've lost more on exchange hacks, bankruptcies, etc than having problems with my wallet. MtGox got me back in the day with 78 BTC. I got a 200 dollar settlement from the Japanese Bankruptcy court. I'd avoid Coinbase. They are duche bags. I prefer Bitstamp.


PS a good exchange has offline wallets to protect coins and tries to make it's money with transaction fees.
 

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Damn Paul, 78BTC is 1.1Mil in todays money!
I was going to use GDAX but do tell on why the Coinbase feelings, since they own GDAX.
Can you transfer from one exchange to another? Have not gotten that far yet with my knowledge of crypto. Bitstamp can fund and withdraw to a bank account?
 

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Anyone can own an Exchange. There isn't much regulation. I'm a heavy miner. I've lost more on exchange hacks, bankruptcies, etc than having problems with my wallet. MtGox got me back in the day with 78 BTC. I got a 200 dollar settlement from the Japanese Bankruptcy court. I'd avoid Coinbase. They are duche bags. I prefer Bitstamp.


PS a good exchange has offline wallets to protect coins and tries to make it's money with transaction fees.
So if I understand correctly, it's very much like an exchange that can operate in violation of the Securities Exchange Act via some sort of loophole?
 

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Damn Paul, 78BTC is 1.1Mil in todays money!
I was going to use GDAX but do tell on why the Coinbase feelings, since they own GDAX.
Can you transfer from one exchange to another? Have not gotten that far yet with my knowledge of crypto. Bitstamp can fund and withdraw to a bank account?
Yes you can. Depending on what you send and how much the fees can vary. I don't buy Bitcoin to exchange for other Cryptos these days. It is too slow and fees are too high. I buy ETH or LTC instead. Coinbase does suck. It is constantly down or has hours to days long delays for transactions. But they are the most newbie friendly. I have not used Bitstamp. Gemini is another US based exchange owned buy the Winklevos bros. I currently just buy ETH on Coinbase and then transfer to my wallet on Bittrex or Binance to buy my Altcoins. Then transfer those to my Ledger. I have not done any day or swing trading yet, just buy and hold. I plan to dabble a bit more after the first of the year with some fun money on separate accounts and ledger to make tax time less of a nightmare then it is already going to be.
 

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The biggest reason to use Coinbase in my opinion is that it is the cheapest way to buy Crypto with a credit card. If you don't care about that there are better places to go. If you do go that route dont expect any transactions to be timely thatt are during any big surge up or down, or during any big announcement. Also transfer the money to Gdax from Coinbase (free to do), then whatever transactions you want from there as fees are much lower.

Yes I know it is 3.5% to use the credit card, but I get airline points and my bank account info isn't on the exchange. I'm up @ 6X at this point so I can live with the 3.5%. When I am ready to pull any funds out of the market I will set up a bank accou t just for that and the funds will be promptly withdrawn to avoid d exposing my personal account.
 

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To me, Yes and No. The concept/crypto is software driven, what confuses me is that I am thinking of crypto as currency, I have to think of it like a Hybrid between stocks and currency. I may be wrong but the 'exchanges' to me are places that gives access, makes it easier for the newbie and commoners like me to buy and sell crypto by having a place that the miners get the transactions to validate . BUT to me, the reason I am using the exchanges like CoinBase and Poloniex as recommended by Chris because if an exchange is dishonest or hacked you can lose your money.
Anyone it seems that can write crypto software can create a currency, then it is up to the 'miner' to legitimize it by validating the buy and sell transactions that people are putting their money in it. That is why some will call it a Ponzi scheme but I think it is going to be the future for online payments, similar to how Paypal started way back when, it will make it harder for Governments and Banks to control so that they can get their piece of the action. Even JP Morgan I think is starting their own group to trade in crypto.
Still trying to fully understand it so I maybe incorrect in the above.
Here is what the folks that matter say what it is and isnt:
https://www.marketwatch.com/story/h...ulating-bitcoin-and-cryptocurrency-2017-12-18
 

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What about capital gains? I'm assuming you have to hold at least a year to avoid the higher tax penalties, right?
 

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What about capital gains? I'm assuming you have to hold at least a year to avoid the higher tax penalties, right?
I'm no tax expert, but that is my understanding, and how I will be paying any taxes owed.
 

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Sooooo ran into a little issue with using CoinBase. Disclaimer: Maybe my fault for not understanding the process. BUT after being verified using a different email address, since they have not fixed or gotten back to me about the other account I could not verify. It seemed to me from clicking to "test buy" that you have to deposit money to your account before you can, I went ahead and did a deposit some dollars. Then I went ahead and used 50% to purchase BTC and 50% to purchase ETH. Everything seemed fine because it allowed me to make the purchases and my bank showed what I thought was the ACH deduction.
CB takes up to 8 days to make the deposit to your account but my thinking was that by allowing me to buy BTC and ETH it was not a problem since the bank showed it coming out.
Fast forward to this morning and in checking the bank, it shows my 2 purchases and the deposit. Since I only put enough money into that account as needed, I got dinged for an Overdraft fee.
My bones of contents are:
  1. Why give the impression that you first have to make a "Deposit" to your CB account before you can purchase!
  2. Rather difficult to make contact with any of these people!
  3. Warning that when buying that there is a Pending Deposit that Cannot be used and they will use instead the bank on the account!
  4. Or at least a drop down showing the Pending Deposit and the bank accounts to choose from.
  5. It takes 2-3 days to process the buy orders, even after taking the ACH out.
Like I said it is probably my fault but safeguards should be put in place for dummies like myself.:rolleyes:
 
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I'm no tax expert, but that is my understanding, and how I will be paying any taxes owed.
We have to pay taxes on this.................................:p
 
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Discussion Starter · #60 ·
Sooooo ran into a little issue with using CoinBase. Disclaimer: Maybe my fault for not understanding the process. BUT after being verified using a different email address, since they have not fixed or gotten back to me about the other account I could not verify. It seemed to me from clicking to "test buy" that you have to deposit money to your account before you can, I went ahead and did a deposit some dollars. Then I went ahead and used 50% to purchase BTC and 50% to purchase ETH. Everything seemed fine because it allowed me to make the purchases and my bank showed what I thought was the ACH deduction.
CB takes up to 8 days to make the deposit to your account but my thinking was that by allowing me to buy BTC and ETH it was not a problem since the bank showed it coming out.
Fast forward to this morning and in checking the bank, it shows my 2 purchases and the deposit. Since I only put enough money into that account as needed, I got dinged for an Overdraft fee.
My bones of contents are:
  1. Why give the impression that you first have to make a "Deposit" to your CB account before you can purchase!
  2. Rather difficult to make contact with any of these people!
  3. Warning that when buying that there is a Pending Deposit that Cannot be used and they will use instead the bank on the account!
  4. Or at least a drop down showing the Pending Deposit and the bank accounts to choose from.
  5. It takes 2-3 days to process the buy orders, even after taking the ACH out.
Like I said it is probably my fault but safeguards should be put in place for dummies like myself.:rolleyes:
.....are you on a phone or tablet?
 
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