Let's talk about Cryptocurrencies

[SilverKast]

I'm still learning on a lot of this so bear with me. I have a small amount of XRP on Coinbase (maybe $2k) but I'd really like to learn more about using a wallet so that I'm not reliant on a platform such as Coinbase - the whole not your keys not your crypto thing. I have no idea where to start on this or how to set it up. I'd like to be able to trade in some of the crypto that isn't listed on Coinbase, some of the DeFi stuff for fun.

I was never big on Bitcoin until they added an ETF, which to me sort of legitimized it as now there's a lot more access to everyone. Add in Trump going on about a Bitcoin reserve and the fact that it's a limited resource in terms of how many tokens there are and I can see it continuing to hold value in the future. Something like XRP I'm not so sure about though as there are a huge amount of tokens available (in the billions?) compared to BTC. I guess I'm not sure how it's supposed to continue to go up as that would represent a massive market cap for something that I'm not sure what exactly it does.

At least with BTC I can see the use, and the fact that to me it's like gold - something that really only holds value because everyone ascribes to the fact it's valuable. Add in limited supply and I'm fine with holding some for sure, but the altcoins are something I'd like to play around with here and there without worrying about another Quadriga.

[PsYcNeT]

Basically same advice as last page; buy a hard wallet (Ledger, Trezor, Safepal, whatever), follow their instructions on how to attach it via HID to Rabby or a similar Web3 app, and migrate your funds to it from the CEX. Once there you can play around on whatever chains you like without exposing it (as long as you don't cough up your seed phrase to a malicious site or grant infinite approval to another)

[photon]

Yeah a hardware wallet really does seem like the way to go. I let my kid know about them so if he decides he wants to play around with it more beyond the paper wallet I setup for him he can get one for himself.

I did get a neat steel plate where you can punch in your seed words so the paper wallet can survive a fire

I even thought "Hey this would be a good side hustle I could use a desktop router to make custom metal etchings of people's paper wallet seed words they just send them to me... oh wait.."

I guess I could still try that as a side hustle though it wouldn't be the kind of hustle I initially thought.

[chummer]

Ouch-

https://twitter.com/user/status/1865854696793022547

[Winsor_Pilates]

Would be a real ouch if it was real

[afc wimbledon]

Originally Posted by chummer

Ouch-

https://twitter.com/user/status/1865854696793022547

The problem with this is it essentially shows why you can't buy property with crypto though, the issue isn't what is Crypto worth a few years later, the issue is what is it worth when you close 3 months later, you could lose half the value of your house just as easily as make twice as much over any 3 month period

[chummer]

Microsoft shareholders voted against using 5% of their cash to buy Bitcoin.

Love it, when there are no doubters I will be selling all my altcoins but holding my Bitcoin.

[kevman]

Originally Posted by Winsor_Pilates

Would be a real ouch if it was real

That and nobody would hold on to an asset without cashing out, at least a little, if it was up 39,000%.

[activeStick]

With Elon as part of the incoming administration, you know some sketchy, corrupt stuff is going to happen so it's probably worth getting some DOGE, I'd imagine...

[dino7c]

Originally Posted by afc wimbledon

The problem with this is it essentially shows why you can't buy property with crypto though, the issue isn't what is Crypto worth a few years later, the issue is what is it worth when you close 3 months later, you could lose half the value of your house just as easily as make twice as much over any 3 month period

10 years ago for sure...today you probably wouldn't because nobody with that much Crypto would want to get rid of it.
There have been 500M+ real estate Crypto deals though its not unheard of.

As the price of BTC goes higher you will see fewer wild swings as the people who now hold it are in better financial positions. Micheal Saylor isn't gonna panic sell or try and "take profits" The purchasing power of the dollar is dropping rapidly. It doesn't have to be Crypto but keeping cash is a bad play.

[afc wimbledon]

Originally Posted by dino7c

10 years ago for sure...today you probably wouldn't because nobody with that much Crypto would want to get rid of it.
There have been 500M+ real estate Crypto deals though its not unheard of.

As the price of BTC goes higher you will see fewer wild swings as the people who now hold it are in better financial positions. Micheal Saylor isn't gonna panic sell or try and "take profits" The purchasing power of the dollar is dropping rapidly. It doesn't have to be Crypto but keeping cash is a bad play.

yes but then conversely are you ever going to buy anything with your crypto? I mean the other side of that story is 'Idiot loses millions buying house with his crypto, never ever buy anything with crypto, you just lose money'

[dino7c]

Originally Posted by afc wimbledon

yes but then conversely are you ever going to buy anything with your crypto? I mean the other side of that story is 'Idiot loses millions buying house with his crypto, never ever buy anything with crypto, you just lose money'

Its an asset you leverage it

If I were to sell a Bitcoin it would be taxed and then the cash would be losing buying power daily
What is that house worth now? certainly not 5B. You can borrow cash at 3-4%, why make fiat income and be taxed on it? Why sell an apex asset for fiat when the banks are almost giving it away?

[Reggie28]

I own BTCC.CA, QBTC.CA and ETHX.B.CA, they have grown to roughly 7.5% of the part of the portfolio I manage.

Two questions, I know it’s tough without more information, but are you guys rebalancing when there is a run up or do you just let it ride? I have to decide what percentage of crypto I’m comfortable with.

Second question, these were some of the early ETF’s, any newer recommendations or are they still reasonable. I will admit, I haven’t done my homework on the newer ETF’s out there.

[Tiger]

Originally Posted by dino7c

Its an asset you leverage it

If I were to sell a Bitcoin it would be taxed and then the cash would be losing buying power daily
What is that house worth now? certainly not 5B. You can borrow cash at 3-4%, why make fiat income and be taxed on it? Why sell an apex asset for fiat when the banks are almost giving it away?

Also leveraging on an already volitile product it the best way to go broke. Yes bitcoin will go up, but it also repeated seen drops of 80% in the process. So leveraging is all great... until its not and you're selling the assets just to cover the call on your loan.

[dino7c]

Originally Posted by Tiger

Also leveraging on an already volitile product it the best way to go broke. Yes bitcoin will go up, but it also repeated seen drops of 80% in the process. So leveraging is all great... until its not and you're selling the assets just to cover the call on your loan.

This isn't my first rodeo, I have many baskets. IMO 80% drops are becoming less and less likely though...but I would be fine in such a case. This is a long term play for me, I don't need cash we are talking about generational wealth here. Again, why sell? To be taxed? I mean at the end of the day it depends where you think it all is headed I guess.

[indes]

Originally Posted by dino7c

This isn't my first rodeo, I have many baskets. IMO 80% drops are becoming less and less likely though...but I would be fine in such a case. This is a long term play for me, I don't need cash we are talking about generational wealth here. Again, why sell? To be taxed? I mean at the end of the day it depends where you think it all is headed I guess.

Definitely this. There's an above 0% percent chance crypto completely crashes, holding forever could work out - but there's a lot to be said for taking profits. I mean if I cash out and pay off my house, at least I have a house. If everything nosedives 90%, I'll have nothing. I believe crypto as an industry will be a part of the future for sure, but will Bitcoin? Eth? XRP? No one can know for sure and I think the fact it's a non-tangible asset should play into risk tolerance.

[Tiger]

Originally Posted by dino7c

This isn't my first rodeo, I have many baskets. IMO 80% drops are becoming less and less likely though...but I would be fine in such a case. This is a long term play for me, I don't need cash we are talking about generational wealth here. Again, why sell? To be taxed? I mean at the end of the day it depends where you think it all is headed I guess.

As I don't know your situation, and I'm sure your fine with the risk. My concern is when people give this out as advice and others follow it... but most others don't have "many baskets", so I feel that it is a reckless commit without disclaimers.

[afc wimbledon]

The problem with leveraging anything is not the price of the asset it's what your lender does, you might have the nerve to ride out the dip but if you get a margin call there goes the house and your pension, long before crypto that was how investors went bankrupt

[dino7c]

Originally Posted by Tiger

As I don't know your situation, and I'm sure your fine with the risk. My concern is when people give this out as advice and others follow it... but most others don't have "many baskets", so I feel that it is a reckless commit without disclaimers.

I was asked about my personal situation and gave an honest answer...without a time machine no newb is going to be in my situation anyway.
I believe in BTC and crypto long term, I want more not less. Why would I sell or "buy something" to prove a point and be taxed for the privilege of owning the dollar with rapidly decreasing buying power.

**Please don't put up the house or the kids college fund**

unless you are single then go balls out, what's a bankruptcy anyway? Most billionaires and millionaires have had a few...you could even be president someday

[ripTDR]

We gonna see a Trump bump in the next couple of days?