Cryptocurrency Investors - Where to start?

[BugOutBob]

One thing to keep in mind with Robinhood, you don't own the actual coins, you own an IOU for the value. I know nothing of eToro, but I use coinbase and I do have some in Robinhood.

I use to buy lotto tickets, now I buy crypto and penny stocks. So far I have a better return on my money...

 

[amc rulz]

One thing to keep in mind with Robinhood, you don't own the actual coins, you own an IOU for the value.

There’s a difference?

 

[Steve]

I would rather invest in tulip bulbs.

No, actually, I invest in solid dividend paying companies and a smaller portion in growth companies, through a combination of either direct stock ownership, or Exchange Traded Funds.

Rudy, not to venture into the conspiracy zone.. but why would a company even bother paying dividends? Why not just borrow fiat at nearly 0% and buy back their own stock which is paying a higher %. And if there is ever any trouble in the future (insert list of companies here) the FED/USG will just cover their loses.

 

[Steve]

Reminds me of the guy who accidentally threw out a hard drive containing Bitcoin worth 280 million now.

The 2 brothers that Zuckerberg scammed the Facebook idea from had some sort of crystal ball in front of them... They invested millionsssssss of the $ from the lawsuit into BTC when the price was well under $1. They might be worth more than Facebook now if they held the positions.

 

[Rudy]

Rudy, not to venture into the conspiracy zone.. but why would a company even bother paying dividends? Why not just borrow fiat at nearly 0% and buy back their own stock which is paying a higher %. And if there is ever any trouble in the future (insert list of companies here) the FED/USG will just cover their loses.

That doesn't make sense. Not the way it works.

 

[Steve]

That doesn't make sense. Not the way it works.

i edited the post before you got a chance. looks like i better do more researching into how it works and why the stock market is where it is. thanks

 

[Metal Pig]

I wouldn't touch cryptocurrency with a ten ft pole. I don't trust it. Start a Roth I.R.A instead.

Ditto this 100x over.
Every fiber of instinct in me tells me its the Mark of the Beast and should be avoided completely.

I already have two IRA's, a 401k and a personal trading/brokerage account with Ameritrade. Ive never met anyone who invested in cryptocurrency, nor anyone who KNOWS anyone invested in cryptocurrency. I think its a demonic manifestation that preys on Millennials who live on the internet. Ok, I'm joking...but you get the idea.

Currently I'm invested in a few gold mines, but I've also invested in other geological resources, biopharmaceuticals, energy, shipping, medical marijuana, coffee, educational tools and more.

 

[Rudy]

i edited the post before you got a chance. looks like i better do more researching into how it works and why the stock market is where it is. thanks

Here is a good place to start, as far as shares buy back. https://www.investopedia.com/articles/02/041702.asp

 

[Tpmetal]

Ditto this 100x over.
Every fiber of instinct in me tells me its the Mark of the Beast and should be avoided completely.

I already have two IRA's, a 401k and a personal trading/brokerage account with Ameritrade. Ive never met anyone who invested in cryptocurrency, nor anyone who KNOWS anyone invested in cryptocurrency. I think its a demonic manifestation that preys on Millennials who live on the internet. Ok, I'm joking...but you get the idea.

Currently I'm invested in a few gold mines, but I've also invested in other geological resources, biopharmaceuticals, energy, shipping, medical marijuana, coffee, educational tools and more.

yeah I too have my investments and was very unsure about crypto, but just for giggles I threw 500 bucks at one of the cryptos a few years ago. The coin price was worth 700 or so then, Just looked at it and its up to 2700. So still not sure what will happen to it, but I'm a curious cat and I just had to see what would happen. Just gonna leave it in there till it busts, or hey maybe ill actually be one of those crypto millionaires one day but I doubt it

 

[Steve]

Here is a good place to start, as far as shares buy back. https://www.investopedia.com/articles/02/041702.asp

Thanks for the link. I think it helps to explain why TESLA is worth more than every other single car company combined.

 

[Rudy]

Thanks for the link. I think it helps to explain why TESLA is worth more than every other single car company combined.

Tesla is way overpriced. There is a huge difference between investing and speculating. At least that is my humble opinion.

 

[Steve]

Tesla is way overpriced. There is a huge difference between investing and speculating. At least that is my humble opinion.

Rudy, there is no market anymore. Its a manipulated hyper bubble to the upside (indexes) or downside (money).. price discovery is a thing of the past.

Lets just hope the debt bubble doesn't explode anytime soon... Luckily, and at a perfect time, money velocity ceased to exist due to the lock downs. If money velocity was anywhere near the yearly average a can of Coke would be in the $5 range right about now.

 

[metaladdict]

yeah I too have my investments and was very unsure about crypto, but just for giggles I threw 500 bucks at one of the cryptos a few years ago. The coin price was worth 700 or so then, Just looked at it and its up to 2700. So still not sure what will happen to it, but I'm a curious cat and I just had to see what would happen. Just gonna leave it in there till it busts, or hey maybe ill actually be one of those crypto millionaires one day but I doubt it

I would take your crypto profit and go!

 

[Tpmetal]

I would take your crypto profit and go!

Whats the fun in that? Haha

 

[Rudy]

Rudy, there is no market anymore. Its a manipulated hyper bubble to the upside (indexes) or downside (money).. price discovery is a thing of the past.

Lets just hope the debt bubble doesn't explode anytime soon... Luckily, and at a perfect time, money velocity ceased to exist due to the lock downs. If money velocity was anywhere near the yearly average a can of Coke would be in the $5 range right about now.

Yes, money velocity should start to increase in the US and it is an indicator of inflation.

 

[TorqueMaster]

This post is meant to be based on my naïveté. So please go slow. Lol

I do NOT have a lot of disposable income. However, I get a few dollars here and there that I think it would be fun to invest in cryptocurrency. The problem is that I know nothing about either cryptocurrencies or investing in such things.

How exactly does someone get started with investing in crypto?

I have read all kinds of articles and all of that, but what gateway do you use to put money into those markets and track the investments, etc?

Thanks!

I've found coinbase/ coinbase pro to be a solid platform.
I set up a local bank account strictly for crypto trading -- to keep track and to minimize losses if any hacker shenanigans occur.

Treat it like day trading or go for "long term"-- don't invest anything you can't afford to lose. It's sort of the "wild west" of finances...could go big or could go bust.

Waaay back there was a website you could connect to and let your computer crunch data to mine bitcoins. I gave it a try, for a few days I think, and my computer created 0.01 bitcoin worth...not enough $$ to justify the electricity used. Now it'd be worth $500. I probably should have kept going.

Point is -- a relatively small investment could go POOF! Or it could send your kid to college. Will bitcoin jump another hundred-fold? I seriously doubt it. But there's money to be made off the greed that sends worthless electrons skyrocketing in value...

 

[longbow62]

I don't own any Bitcoin. I have known about it since not long after it started. While I really have never had a lot of faith in it you could have made a fortune had you got in on it pretty early when it was cheap. I have been researching it some though just to see what all the hubbub is about, and how it could have possibly reached the the high value it now enjoys.

Two recent vids one one Bitcoin vs. Gold the other Bitcoin and taxes.

https://youtu.be/coHC_9ApBdg

https://youtu.be/0OK3YV9VCms

 

[Steve]

For anyone interested... I just did a transaction through BTC.
I sent $85 or so. End user received $60 after fees and everything.

BTC... hahahha

But it did arrive in less than 1 hour.

 

[Azmodeus]

You don't want to use Etoro or Robinhood to invest in cryptos. You want to hold your own private keys and be able to send, receive, and trade them when you want. Robinhood is basically a buy and hold on their platform only, you cant send them anywhere else. You want to go through someone like CoinBase to get started and buy in through them. Those saying crypto is a sham or not to touch it just don't understand it. There are many excellent crypto projects out there. Not all of them are just stores of value but have real functionality behind them. For instance, I put 5k into one called Theta 3 years ago and that amount is now worth north of 400k in my wallet. Theta is a crypto that uses blockchain technology to revolutionize the way people stream and watch high def videos. It essentially makes all of the data transfer peer to peer to your closest peers instead of having to rely on Youtube or Twitch to first relay all of the information through their CDNs and then back to you. It helps alleviate buffering and speeds up data transfer. Several partners have already come on board to use their technology. They are backed by names like Sony, Samsung, and Google. If and when very large companies like Netflix start utilizing their protocol it would save them millions of dollars per year in CDN costs. This is just one of thousands of new crypto projects out there. The unfortunate side of things is crypto is still young and very volatile. If BTC has a plunge it usually drags the price of other cryptos down with it but if you are wanting to hold long term it shouldnt be an issue. BTC typically goes in 4 year cycles. The massive bull cycle that we're in now. Then the bear season which will probably hit around September and crash us back to 30kish, then a year of recovery and consolidation, followed by another year beginning a new bull run to all time highs once again. You have to remember there will only ever be 21 million BTC ever minted and as more and more companies and investment firms snatch them up by the day there's less and less going to be out there which is why some people are even calling for 100k BTC by the end of this run and 500k- 1 mill in 4 years during the next bull season.

 

[Steve]

Theta sounds great... but of course what is stopping Netflix from creating Thete... that does the exact same thing or better

You don't want to use Etoro or Robinhood to invest in cryptos. You want to hold your own private keys and be able to send, receive, and trade them when you want. Robinhood is basically a buy and hold on their platform only, you cant send them anywhere else. You want to go through someone like CoinBase to get started and buy in through them. Those saying crypto is a sham or not to touch it just don't understand it. There are many excellent crypto projects out there. Not all of them are just stores of value but have real functionality behind them. For instance, I put 5k into one called Theta 3 years ago and that amount is now worth north of 400k in my wallet. Theta is a crypto that uses blockchain technology to revolutionize the way people stream and watch high def videos. It essentially makes all of the data transfer peer to peer to your closest peers instead of having to rely on Youtube or Twitch to first relay all of the information through their CDNs and then back to you. It helps alleviate buffering and speeds up data transfer. Several partners have already come on board to use their technology. They are backed by names like Sony, Samsung, and Google. If and when very large companies like Netflix start utilizing their protocol it would save them millions of dollars per year in CDN costs. This is just one of thousands of new crypto projects out there. The unfortunate side of things is crypto is still young and very volatile. If BTC has a plunge it usually drags the price of other cryptos down with it but if you are wanting to hold long term it shouldnt be an issue. BTC typically goes in 4 year cycles. The massive bull cycle that we're in now. Then the bear season which will probably hit around September and crash us back to 30kish, then a year of recovery and consolidation, followed by another year beginning a new bull run to all time highs once again. You have to remember there will only ever be 21 million BTC ever minted and as more and more companies and investment firms snatch them up by the day there's less and less going to be out there which is why some people are even calling for 100k BTC by the end of this run and 500k- 1 mill in 4 years during the next bull season.