Crypto-currency

[caterpillar]

I'm new to the forum, and to the finance world as well. But recently I came across crypto-currency: Bitcoin and Dogecoin. What do you guys think about it? Is it real, should I invest or use it?

[elessar78]

Bitcoin is real. People use it to buy goods and services as well as trade it and mine it.

As with anything speculative, know inside and out what you are investing in and how to obtain it—sounds like you're starting from square one on this subject.

As with any investment, don't put all your eggs in one basket. Especially something like this because it's on the Fed's radar and you don't really know how it will be regulated in the near future.

[ua_guy]

It looks interesting, but I'm staying far, far away.

[richard johnson]

I don't trust on crypto currency. Bitcoin is not the true currency, it is just created by crazy man.

[Planet of finance]

Bitcoin Super Star or Scam?

By January 2015 Bitcoin’s price had plummeted back to around $224. It was then suggested by the New York Times that with no signs of picking up in price, the Bitcoin industry should brace itself for another decline. In fact, the opposite happened and the price increased again. According to an article in The Wall Street Journal in April 2016, Bitcoin had been more stable than gold, and it was suggested that its value could become more stable yet.

Back to 2017, and earlier this year in March, the price of a Bitcoin surged to an all-time high and surpassed the market value of an ounce of gold.

Given Bitcoin’s volatile market value, it is all speculative as to whether it will survive and possibly even thrive. But what is very clear is that the growing popularity for accepting Bitcoin as a trading currency in the marketplace is securing both name and reputation. Banks who are publicly rejecting Bitcoin but building their own version of the blockchain model behind the scenes are not investing millions of dollars to do so on a whim. They believe there is longevity in this model. Maybe the way Bitcoin will really hit mainstream is when Governments and banks "get on board", but that would require significant regulation.

[snafu]

I see you are very anxious to make money quickly. It is very difficult for wealthy, experienced, educated/trained investors to keep churning out significant profit. If you read their biographies', you realize they go bankrupt, pick up the pieces of their lives and do it all over again!

I agree, some people make it with pure, dumb, luck. It's really more like being lucky in Las Vegas than 'investing.' The rest of us just follow a formula based on a percentage of income, employer offerings and any match as well as considering our personal 'risk tolerance'. Nothing like a sudden, unanticipated downward swing in the DOW to realize you've just lost 30% of value of investment, your job is in jeopardy and your house is underwater. You owe more than it's value!

I'm confident you'll meet your goal but while you're learning the ropes, I suggest you set a target Net Worth for 2022. Before you spend a Dollar, a Pound or a Yen, ask yourself how that item will help you reach your Target.

[clatoden99]

Seems like at the moment this is the best (although somewhat riskier) investment opportunity.

Cryptocurrencies get adopted quicker than anyone would have exactly predicted still leaving some space for risks of regulators for rejection.

Me personally I doubt regulators and governments can really do anything about it anymore in an ever rapidly evolving world. Thus they would have to simply accept it and shift their attention to opportunities rather than obstacles they create now with old-world regulations and rules.

The natural flow of evolution implies here a great surge in Blockchain based projects and thus cryptocurrency usage.

[Sam1000]

The correct answer depends on your objectives and risk tolerance.

Up until 2009, when Satoshi Nakamoto invented bitcoin, a digital form of cash did not exist. There were no forms of money where party A could send money to party B without some financial intermediary. It was the invention of bitcoin that made remote cash payments possible for the first time in human history.

I think it's safe to say that these cryptocurrencies will play a major role in human development in the decades to come. The low adoption rate is due entirely to the curve of consumer understanding. Once the world awakens to the power of cryptocurrency, these currencies will soar in popularity and value.

[krishna]

cryptocurrency

A crypto currency is a digital asset designed to work as a medium of exchange that uses cryptography to secure its transactions, to control the creation of additional units, and to verify the transfer of assets.

As far as i am concerned investing all your money in crypto currency like bitcoin is not ideal, i prefer to invest 30% of your income is OK.

[Gailete]

Seems like at the moment this is the best (although somewhat riskier) investment opportunity.
.

Actually the time to have invested in Bitcoin was back when it was worth around $500 and be selling it now. It isn't 'on sale' currently. This is the time for early adopters to be cashing out not for new folks to buy into it. But that is how a lot of folks deal with their stock portfolios. Buy when stocks are high and sell when they fall, instead of the other way around.

[james.hendrickson]

A crypto currency is a digital asset designed to work as a medium of exchange that uses cryptography to secure its transactions, to control the creation of additional units, and to verify the transfer of assets.

As far as i am concerned investing all your money in crypto currency like bitcoin is not ideal, i prefer to invest 30% of your income is OK.

Wait...30% of your income or 30% of your net worth?

[QuarterMillionMan]

I just bought $2300 of crypto currencies. This is my breakdown;

$300 in bitcoin at $16,700 ($17,249)
$1000 in Ethereum at $500 (now at $698)
$1000 in Lite Coin at $222 (now at $323)


I wanted to get more bitcoin but for that purchase I had used my credit card which restricts purchases to $300 max.


It is really easy to get started, with a 3-step process. Open up a coin base account or other e-wallet. Link a credit card (4% purchase fee) or bank account (1.5% purchase fee) to fund the account. And finally buy bitcoin.

[QuarterMillionMan]

I had $5000 to invest in Bitcoin when the price was at $1000 and I'm kicking myself for not pulling the trigger back then. Fifteen times $5000 today would be worth $75,000 but that is water under the bridge.


For 2018 I'm looking to open a Bitcoin IRA. My preliminary search shows only 1 custodian is approved by the IRS to hold Bitcoin in an IRA and they require a minimum of $25,000 holding, in which case I will have to sell off some assets in my plain brokerage account and roll over the funds to the Bitcoin IRA. At age 51 my original plan was to just open the Bitcoin IRA with a $6500 max contribution for 2018 but that $25,000 minimum is forcing me to sell some assets but I think it will be worth it to in the long run to go this route.

[Gailete]

I just bought $2300 of crypto currencies. This is my breakdown;

$300 in bitcoin at $16,700 ($17,249)
$1000 in Ethereum at $500 (now at $698)
$1000 in Lite Coin at $222 (now at $323)


I wanted to get more bitcoin but for that purchase I had used my credit card which restricts purchases to $300 max.


It is really easy to get started, with a 3-step process. Open up a coin base account or other e-wallet. Link a credit card (4% purchase fee) or bank account (1.5% purchase fee) to fund the account. And finally buy bitcoin.

So you are already out 4% on the purchases that you had to make up?

I hope you keep us informed as to how you are doing. It will be interesting.

[corn18]

So you are already out 4% on the purchases that you had to make up?

I hope you keep us informed as to how you are doing. It will be interesting.

If you do a bank transfer, the fee is 1.49% on the way in and 1.49% on the way out. If you use a credit card to fund the account, it is 4% on the way in and 1.49% on the way out.

Best case, you are out 2.98% if you want to cash out.

Anything that has intraday swings of 25% is not something I could be in.