Cryptocurrency thread: Bitcoin, Bitcoin Cash, Ethereum, Monero, Dash, etc - discuss it all here.

Discussion in 'Off-topic Discussion' started by JesusGreen, Sep 1, 2017.

  1. What do you mean by money illusion? Are you saying that money in general is an illusion or are you saying that bitcoin is just a trend that's going to fade?
     
  2. pathetic guy

    pathetic guy Fapstronaut

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    I'll counter young fellow and ask why the thread should be cheapened.
     
  3. Buzz Lightyear

    Buzz Lightyear Fapstronaut

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    Well, just that we get used to the nominal value of something in our currency, when this is quite arbitrary. The trend will most probably collapse only once everyone has piled into it. So looks like more room to the upside. Like property, it will most probably be a useful vehicle to absorb all the money sloshing about from Central Bank money printing.
     
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  4. Flossy Carter

    Flossy Carter Fapstronaut

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    A moment of silence to those who wasted their bitcoins years ago over a pizza.....

    It's 10,511$ right now!

    I always read sad stories on reddit about how someone had hundreds of bitcoins years ago when it was barely worth 2$ and how they could've had 7 figures on their bank accounts :(
     
  5. Buzz Lightyear

    Buzz Lightyear Fapstronaut

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    Starting to average in here. Better late than never I guess.:rolleyes:

    I say that as far as speculative investing goes [thank to the Central Banks' crazy policy of money printing], one has to sail between Scylla and Charybdis - don't bet the farm, but also put enough skin in the game so it hurts a little.

    Now, watch the price plummet.

    But as they say the trend is your friend.
     
    Last edited: Nov 30, 2017
  6. Buzz Lightyear

    Buzz Lightyear Fapstronaut

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  7. Buzz Lightyear

    Buzz Lightyear Fapstronaut

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    Good entry point might be 8500 in a week or so.

    A retracement to the base from which it spiked... and similar to the previous spike in November. And it is still November!:eek:
     
    Last edited: Nov 30, 2017
  8. JesusGreen

    JesusGreen Fapstronaut

    For those looking to invest, I suggest dollar cost averaging i.e. making regular purchases for a set amount (i.e. lets say $75 once a month) rather than investing everything at one point.

    I'm going to give some really basic math on why dollar cost averaging is a good idea in a field as volatile as cryptocurrency.

    We'll look at two different made up trends for a 3 month period. In example A, Bitcoin does quite well, but with some of the usual big dips along the way. In example B, Bitcoin doesn't fare quite so well, and the overall price ends up lower than it started. In example C, Bitcoin's price does terribly and we see it drop a lot.

    Example A:
    January: $10,000
    February: $8000
    March: $11,000

    We have two investors, Jim, and Bob.

    Jim decides to invest $1000 in January, and sell in March. For $1000 in January he is able to buy 0.1 Bitcoin. In March, 0.1 Bitcoin at the $11,000 price is worth $1100. He makes a 10% return on his investment, leaving with $1100.

    Bob decides he also wants to sell by March, but he wants to use dollar cost averaging, so invests $500 in January and $500 in February. In January, $500 gets him 0.05 BTC, in February it gets him 0.0625 BTC. In March, he sells his 0.1125 BTC at the $1100 price, leaving him with $1237.50. A 23.75% ROI. Here dollar cost averaging has led to more profit by taking advantage of the times when the price isn't in his favour.

    Example B:
    January: $10,000
    February: $5,000
    March: $8,000

    Jim invests $1000 in January, getting his 0.1 BTC. By March that 0.1 BTC is worth only $800, so he takes a 20% loss on his investment.

    Bob on the other hand, invests $500 in January, and $500 in February, getting 0.05 and 0.1 BTC respectively at the $10,000 and $5000 prices. His 0.15 BTC is worth $1200 come March, and he makes a 20% profit rather than a loss!

    Example C:
    January: $10,000
    February: $8,000
    March: $7,000

    Jim invests $1000 in January, getting 0.1 BTC, and by March when he sells it, he only gets $700, losing $300, and taking a 30% loss.

    Bob invests $500 in January, and $500 in February. He gets 0.05 BTC in January, and 0.0625 BTC in February, leaving him with 0.1125 BTC in total in March. At the $7000 price, this sells for $787.50. He only takes a 21.25% loss, compared to Jim's 30% loss.

    In all 3 examples, Bob, who dollar cost averages, ends up better off than Jim who invests everything all at once.

    The only time where Bob would really do worse than Jim, is if the price went up absolutely every single month without fail. Then he would simply be better off buying all his BTC at the lower price at the start of the year. With Bitcoin, that's definitely a real possibility.. but insuring yourself against risks through dollar cost averaging has another advantage: when those dips do happen, you're less likely to be emotionally affected and panic sell. If you buy a lump sum at the beginning of the year, sure you might make more by the end of the year.. but not if you panic and sell it all during a dip.

    ----

    So if you're reading this thread and thinking of investing, that's what I suggest doing. Start off small. Take a luxury that you spend money on, and cut down your spending on it. If you smoke or drink, now's a great time to cut down or quit, and put that money into something like Bitcoin. Start off small by putting in say $50-100 a month, and then if you're earning enough to start investing more later on, and feel more comfortable doing so, go ahead.

    One thing to note is you should never invest so much that you get uncomfortable. Cryptocurrency prices are extremely volatile. You can watch the value of your BTC halve overnight. Yes, Bitcoin has come back from every single dip only to set bigger all time highs.. but, if you don't have an iron will, it's very easy to panic during those dips, sell at a loss, and then curse yourself a few days later when the new all-time high hits. If you're someone who makes a lot of emotional decisions, then you should probably stay away from checking the Bitcoin prices - just continue making a set $50-100 (or whatever number you choose) investment once a month. Store the coins somewhere safe (I suggest a hardware wallet like a Ledger Nano S or a Trezor) and at the end of the year check the prices.
     
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  9. Nasagy

    Nasagy Fapstronaut

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    I want to get into trading but I don't know where to start guys, has anyone here been successful trading?
     
  10. Buzz Lightyear

    Buzz Lightyear Fapstronaut

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    Disclaimer. I am a complete amateur at trading. I am not interesting in short term day trading, but am interesting in the longer term trade.... and not to buy and sell the spikes/ dips, which will soon make your head spin, but to follow the trend up then sell once/ if it goes into a parabolic spike.

    I think a good buying op is coming up here with this dip. Perhaps this spike and correction can be compared to the previous.

    For those that have no experience whatsoever with trading, JG's advice above is good... just average in over the longish term. But you still need to be thinking of an exit plan.

    [​IMG]
     
    Last edited: Nov 30, 2017
  11. Buzz Lightyear

    Buzz Lightyear Fapstronaut

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  12. Buzz Lightyear

    Buzz Lightyear Fapstronaut

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    Outrageous volatility. When will it calm down? This last spike took me by surprise.


    [​IMG]
     
  13. Baroque

    Baroque Fapstronaut

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    I was thinking about investing in Bitcoin for a while but I just don't understand the technology. It seems to complicated.
     
  14. JesusGreen

    JesusGreen Fapstronaut

    Watch this video:

     
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  15. Buzz Lightyear

    Buzz Lightyear Fapstronaut

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    Look to have settled down into more normal trading pattern and building a base. Anyone game to buy here? Anyone... anyone...:D


    [​IMG]
     
  16. Buzz Lightyear

    Buzz Lightyear Fapstronaut

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  17. Buzz Lightyear

    Buzz Lightyear Fapstronaut

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    So I piled in pretty heavy given the recent trend upward this year. Got caught out a bit thinking it would correct further... but bought anyway. It is always painful buying in... but if it is a bull market, you are soon rescued. I think of this as a light form of gambling, and only use money I can afford to lose. I have spent two thirds of my powder, and now looking for another correction to spend the other third.


    [​IMG]
     
  18. Buzz Lightyear

    Buzz Lightyear Fapstronaut

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    A repeat of the earlier parabolic spike... only on a vaster scale?


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  19. Tanner

    Tanner Fapstronaut

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    Mr Tone Vays on YouTube and Twitter has some of the best TA for trading:


    I do not recommend you day trade. 90% of people lose money day trading. Swing trading is a bit less risky, but be sure to do your research first. #1 before investing in any crypto is researching and understanding. #2 is having strong hands. This is an extremely volatile market. If you cant handle the sudden price drops, you're going to have a really bad time.
     
  20. Buzz Lightyear

    Buzz Lightyear Fapstronaut

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    Do you mean by swing trading, the trading of a medium long position of a month or so? I've established two long positions, and intend to hedge that with a third trading position where I will take profits on a spike.
     

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