Any Forum suggestions to learn about Crypto trading?

[StillShaving]

I am not a trader and I have some reservations about the foundation that crypto is built upon. Specifically, internet accessibility as a whole, software used to build crypto clients and servers even if some of that software is open source, the complex math algorithms that underpin it, and first world governments continuing to allow it to exist in their economies. I see too many potential downsides to buy.

But I do see the appeal and it is tempting to start a position in BTC, as it continues to grow in value and one can make arguments as to why it will continue to increase in value for the next few years. Especially when comparing to fiat currencies. With the US debt growing by 10 billion every day (1 trillion every 100 days), the USD will need to inflate more and more to avoid implosion which will mean BTC increases in value by sitting still and should accelerate more as people look for investment alternatives. But how to make a net profit if that gain is taxed as income?

The way I frame the question for myself is it more prudent to take a small position in crypto or to buy $MCD (McDonalds stock) instead for example. The price of Big Macs rises at roughly the rate of inflation, but each bitcoin is rising even faster in the present day. I take that as a base case for now, but over a decade or two which will remain viable?

 

[DesertIguana]

Can one;y sharer that someone I know bought Bitcoin when it was under $5.00/Coin, now each time he sell a coin UNCLE SAM takes 46% of SALE PRICE. In 2025 he will pay hefty buck for profit.

 

[brucered]

Crypto scares the crap out of me.

I am not a genius but consider myself somewhat intelligent. I have tried to understand it but can't even even comprehend the basics.

I know enough to know that I will never know about crypto.

 

[nortac]

I have been tempted to write more previously, but have refrained. Refraining is probably the more judicious approach, while I have the right to remain silent, I do not seem to have the ability to. Given the information out there, I do not think that I have the ability to understand crypto, or more specifically to analysis the risks and benefits. I am not sure anyone really does, but if they do they probably have some sort of inside track or something similar anyway. Given that I doubt that investing in crypto I would be playing on a level playing field. I like my markets to be transparent.

I think to invest in crypto one sort of has to think that there are players in the market whose interests are aligned with mine, so even if I do not have control or knowledge, I can ride their coattails. I have no idea who these people might be or what their interests are aligned with mine.

Also, I think part of crypto is allow criminals and others to transfer funds in a non-traceable manner. To me that renders the whole enterprise suspect. Moreover, if you lie down with dogs, you get up with fleas.

I certainly have to believe that this is the case. There are certainly well known investment authorities who are getting behind crypto as being a viable option for at least a portion of one's portfolio. There are some who started out cursing crypto who now are coming around to seeing it as a legitimate investment vehicle. Follow the money? When Blackrock, Fidelity, et al get interested, shouldn't that give some support to the viability of crypto? Not that I have absolute faith in these firms, far from it. But it is hard to not take notice of the trends.

As far as crypto being used by criminals to transfer funds, do they not also find ways to do the same with conventional financial vehicles? Criminals will be criminals regardless.

 

[nortac]

A little bit about the Web 3 concept:

Web3 - Wikipedia

en.wikipedia.org

 

[nortac]

So where I am so far, investment-wise with crypto. I initially bought 6 altcoins and on average I'm up 32% in a little over 2 months time. So far, so good. One crypto saw an initial 100% gain, but has currently drawn back to about 85%. I'll take it. My worst performing altcoin is up about 12%. I eventually bought some Bitcoin (BTC). It has been volatile. When I first started looking at crypto, BTC was selling for about $42K, when I actually bought some, it was about $51K, and it peaked briefly to about $73K. As of today it's down around $64 K. I'm still slightly ahead on BTC. By the way, you can buy very small fractions of BTC and other crytos. I'm no big time speculator!

So obviously things can change drastically over the next few months in either direction. Only time will tell. It will be interesting to see where I am a year from now.

 

[StillShaving]

I certainly have to believe that this is the case. There are certainly well known investment authorities who are getting behind crypto as being a viable option for at least a portion of one's portfolio. There are some who started out cursing crypto who now are coming around to seeing it as a legitimate investment vehicle. Follow the money? When Blackrock, Fidelity, et al get interested, shouldn't that give some support to the viability of crypto? Not that I have absolute faith in these firms, far from it. But it is hard to not take notice of the trends.

As far as crypto being used by criminals to transfer funds, do they not also find ways to do the same with conventional financial vehicles? Criminals will be criminals regardless.

Aren't the big firms participating to profit from ETFs and other trading products that they can offer customers. Which may or may not indicate they think it is truly a viable investment. Despite my worse case concerns about it being a long term store of value, I think crypto will continue to increase in price for some time. It will be interesting to see whether $NVDA or $BTC will increase in value the most in 5 years and 10 years from now.

A little bit about the Web 3 concept:

Web3 - Wikipedia

en.wikipedia.org

IMO it looks like the crypto folks are trying to muscle their way into the redefining what is not theirs. Web 1.0 to Web 2.0 is all about HTTP, HTML, how to build web apps, etc. Saying Web 3.0 is about "decentralized online ecosystem based on blockchain" is like saying an updated electric grid is about some fast-charging stations along the interstate. Or that high speed internet is about Youtube streaming.

 

[nortac]

I would think that with all the money going into ETFs, if they didn't pan out that would hurt the large investment firms going forward. I can't see it being worth their while to just skim some money from suckers.

BTC could double easily by the end of the year, but the big gains could be in some of the altcoins. As BTC goes up after the "halving" event next month, the altcoins could experience asymmetric gains.

 

[Frito Ray]

Crypto makes me very uncomfortable, I suggest only investing what you can afford to lose.

 

[pierrelortie44]

Why buy cryptocurrencies? In the hope that someone will be willing to buy them from you for a higher price? Why would anyone do this? Think.

 

[Dtownvino]

Can one;y sharer that someone I know bought Bitcoin when it was under $5.00/Coin, now each time he sell a coin UNCLE SAM takes 46% of SALE PRICE. In 2025 he will pay hefty buck for profit.

Depends on your state. Federal it is under 24% then state tacked on if it’s owned 1 year. In PA it’s about 3.1% additional for a capital gain.

 

[nortac]

Crypto makes me very uncomfortable, I suggest only investing what you can afford to lose.

This holds for most investing, crypto or otherwise.

 

[Whisky]

My issue with Crypto is there is nothing backing it. It is the epitome of only being worth what someone will pay you. What happens when the next shiny thing comes along. Does crypto lose all its value? Does it go back to 10,000 bitcoin for a pizza? At least when I own stocks I have some idea of how the company is doing and can sell if I think they’re going to fail in the future.

Having said that I did buy into a bitcoin ETF just to diversify my portfolio a little more.

I often worry about global disruption of the internet making me unable to access my portfolio. For that reason I’ve buried a certain amount of gold and silver on my land…… I’ve said too much.

 

[nortac]

My issue with Crypto is there is nothing backing it. It is the epitome of only being worth what someone will pay you. What happens when the next shiny thing comes along. Does crypto lose all its value? Does it go back to 10,000 bitcoin for a pizza? At least when I own stocks I have some idea of how the company is doing and can sell if I think they’re going to fail in the future.

Having said that I did buy into a bitcoin ETF just to diversify my portfolio a little more.

I often worry about global disruption of the internet making me unable to access my portfolio. For that reason I’ve buried a certain amount of gold and silver on my land…… I’ve said too much.

There is nothing backing fiat currency. Of course stocks are a different thing. I would think one would treat your positions in crypto similar to a position in traditional stocks when their value begins to fall. Take profits periodically to recoup the initial investment or bail out as needed.

A (sustained) global disruption of the internet would probably result in greater problems than losing your crypto.

Plus, I won't have all of my eggs in one basket.

 

[Whisky]

There is nothing backing fiat currency

The US government is backing your flat currency. That means a lot….. or nothing.

 

[Rico Suave]

Be very deliberate and careful re issues such as password management, use of 2 factor auth, backup of passwords and 2 factor. Pay real attention to all the tedious security procedures. Unlike (say) a credit card, if you lose crypto it is gone and there is no one to call to get your money back.

 

[Rocket 1]

A lot I might say on this thread but should wait till a clearer mind, free from evening festivities. A couple of suggestions:

• Limit alt coin (non-BTC) exposure to a small amount, all of which you are prepared to lose
• If you have any meaningful amount of wealth in BTC, ETH, etc and you are not planning to sell/trade it in the short term: Get it off the Exchanges and into a cold wallet!
• Treat BTC as a store of value, not a currency. And even then there is of course volatility, not helped by the fact that many are pricing BTC in USD.
• If you are seeking to learn about short term trading in crypto, I would suggest considering traditional FX courseware for one possible education pathway. But I would not venture that path unless you have the overall financial literacy and balance sheet to do so.
• Setting up a self directed IRA is fairly easy with a number of online providers, which in turn allows investing and trading in crypto (and other asset classes) without the impact of traditional capital gains tax
• Every second of every day, the electronic entries in your savings accounts are melting away due to inflation and a debt based currency. We are on an inexorable path that every civilization has walked. If you want to go deep into the mechanics of conventional money and banking, I would recommend this set of educational lectures: https://www.youtube.com/playlist?list=PLSuwqsAnJMtwZEwkJgHZCod2xP9b7skF5

 

[StillShaving]

Depends on your state. Federal it is under 24% then state tacked on if it’s owned 1 year. In PA it’s about 3.1% additional for a capital gain.

My understanding is that crypto and precious metal gains are taxed as income, regardless of holding period. Meaning taxed at your marginal tax rate. Which limits the appeal of precious metals and crypto as a store of value in IMO.

 

[StillShaving]

The US government is backing your flat currency. That means a lot….. or nothing.

And all the citizens...at least all taxpayers are backing the US government and its liabilities, so that is a lot. Then there is the reserve currency status, projection of political power, etc.

 

[Dtownvino]

My understanding is that crypto and precious metal gains are taxed as income, regardless of holding period. Meaning taxed at your marginal tax rate. Which limits the appeal of precious metals and crypto as a store of value in IMO.

My understanding is that crypto and precious metal gains are taxed as income, regardless of holding period. Meaning taxed at your marginal tax rate. Which limits the appeal of precious metals and crypto as a store of value in IMO.

Talk to your CPA. If you mine crypto, then it should be ordinary income. If you buy it, hold it for one year and sell it capital gains.

The 12 month rule for capital gains should true of gold, silver etc. also.

If you mean owning physical gold like bars or coins I don’t know. Never bought or sold it.