crypto currency

[QuarterMillionMan]

Interesting article on Ripple (XRP) vs Stellar (XLM) and they compare it w/Bitcoin to some extent. After reading the article I will be getting some XLM now. Coinbase gave $10 free Stellar once in their learning rewards program.

Stellar VS Ripple: What's The Better Choice?

[QuarterMillionMan]

Buying bitcoin but XRP which has utility is drawing me in as well. Still have $34,000 to spend but might do 80% bitcoin, 20% XRP. Research SWIFT payments vs Ripple (XRP). I doubt XRP will replace SWIFT but for pennies per transaction and seconds vs days w/SWIFT and its high costs, banks and institutions would adopt Ripple in a heartbeat. Look at Japan who is jumping onboard with XRP.

[QuarterMillionMan]

Bought another $2222 worth of bitcoin at $94,000. Big sale and will keep buying should it keep dropping.

[QuarterMillionMan]

Bought another $2000 worth of bitcoin today at $98,000. I hope it keeps dropping where I'll buy more on the way down.

[QuarterMillionMan]

Just bought $1111.11 worth of bitcoin w/a 1% fee and they add about $300 to the spread where the execution price was $101,000 when the actual spot price was $100,800 but that is the price of doing business. Tomorrow will buy another $1000.

[QuarterMillionMan]

Yes both you and kork are right and to do what is in my comfort zone. Lump sum was making me nervous.

[disneysteve]

I'm getting cold sweat thinking about a lump sum of $52,000 in bitcoin.

Then that’s your answer. If a lump sum makes you nervous, don’t do it.

[QuarterMillionMan]

I'm getting cold sweat thinking about a lump sum of $52,000 in bitcoin. Today's price of one bitcoin is $101,000 so I can buy 1/2 of a bitcoin. Bitcoin trades 24/7 but I think I'll wait until Monday during business hours.

[kork13]

This question might seem quirky to some since it involves buying bitcoin but let's say you would be buying stocks with this money would you buy it all at once or dollar cost average overtime let's say $5000 per week.

It's really not much different that any other "Lump Sum vs. DCA" question that we see here all the time. So the same "normal" advice applies, though with higher risk (related to the higher volatility risk that BTC presents) --- In general terms, "Time in the market beats timing the market" ... so when you've got the money available to invest, invest it. Of course, if the volatility risk makes you nervous, spreading out your investment over a short period of time (say, weekly across 4-6 weeks) is also totally fine. Really, the "best" answer is just to do whatever helps you sleep at night.

I'm not really sure if this entirely applies to commodities/currencies, since they don't actually grow/create income ... but it's likely still best/simplest to follow the standard advice.

[disneysteve]

This question might seem quirky to some since it involves buying bitcoin but let's say you would be buying stocks with this money would you buy it all at once or dollar cost average overtime let's say $5000 per week.

Dollar cost averaging is a method to invest money that you don’t have yet. When you have a lump sum available, invest a lump sum.

[QuarterMillionMan]

On 12/8/24 I requested a direct transfer in cash $52,000 from custodian A (traditional brokerage) to custodian B (crypto brokerage) in my Roth IRA accounts. On 1/31/25, the funds finally settled in custodian B which is a crypto Roth IRA account. It took almost 2 whole months. Will be using these funds to buy BTC exclusively. This question might seem quirky to some since it involves buying bitcoin but let's say you would be buying stocks with this money would you buy it all at once or dollar cost average overtime let's say $5000 per week.

[LivingAlmostLarge]

I still don't get crypto. I don't understand how to invest it it still other than it's something you say it's worth $X like buying tulips. It's what someone else will buy it from you for.

[QuarterMillionMan]

I bought $2200 worth of XRP beginning in November. Today the unrealized gain is $2100, not bad.

[QuarterMillionMan]

Let's say you're not an American and either a Nigerian or Venezuelan and given a choice of being paid in USA dollars, Chinese Yuan, or bitcoin. Which would you choose? I would take bitcoin over USA dollars or Chinese Yuan any day.

[QuarterMillionMan]

This might be a simplistic view that I have between people who own cryptos and people who don't. Let's start with people who don't own cryptos in my view trust their government. People like me who own cryptos do not trust the government. Just a generalization of mine.