This is another reason why I like keeping my net worth in Bitcoin. If I hold it for more than a year I only need to pay 15% tax whenever I decide to cash it out to USD. That’s a much lower rate than normal income tax.
Categorize your investments and look at the long picture. In the process of your research, you’ll eventually realize you’re coming across a few different categories of coins. For some of them, you believe they have good teams, great vision, amazing publicity and a track record for successful execution. Great! Put these into medium or long-term holds and let them marinate into a delicious tenderloin. When the price dips, don’t even consider panic selling because anything in your medium or long-term portfolio should remain untouched for a set amount of time. BNB is a good example of a coin Miles considers a long hold. Recently, it dipped 20% for a while, and within our community, we witnessed some sell-offs to preserve investments. A week later, it jumped up almost 3x for a period of time.
FYI, it’s worth checking out the Robinhood app. It currently offers commission-free stock trades, but will soon offer no-fee crypto trading. Register via the link for a free randomized stock as well: https://share.robinhood.com/tunaida
Margin Trading: You are allowed to use coins from peer-to-peer margin funding providers. This means, that you can borrow buying/selling power, but you need to allocate some funds (=margin) which won’t be accessible until you return the lent coins.
I came to my senses on 18 May, 2017 when I underwent an epiphany. I then made a new (self-imposed) rule : broadly track the Top 10 cryptoassets in my portfolio, regardless of my opinion about their individual merits.
Following this and into 2013 Plus500 added Bitcoin. I was going long at night and waking in the morning to see my money go and up, but one night the price crashed, and I got margin called. Over the next two months, I was chasing and kept losing. Finally when my losses hit -£20k I closed my account. I felt sick, and I reckon it took a good month to get over, maybe longer.
Be more cautious about investing your 401k into Barry Silbert’s Bitcoin Investment Trust $GBTC. The (European) XBT Provider ETN is an open-ended fund which means it maintains a premium to the NAV close to 0% at all times. The Bitcoin Investment Trust is an inferior investment vehicle because it is a closed-end fund (it does not increase its holdings of the underlying asset when demand for the product increases) which means it is subject to wild swings in its premium, which has been as high as 150%. So you could make the mistake of buying when the premium is high and suffer swingeing losses even when the Bitcoin price is stable.
Why was it important to clear this up? Because I’m earning Bitcoin but my rent is paid in USD! I need to sell BTC for USD to pay my bills. Several things were on my mind the first time I had to do this.
Each exchange offers different commission rates and fee structures. As a day trader making a high volume of trades, just a marginal difference in rates can seriously cut into profits. There are three main fees to compare:
Once a block is verified or mined, it will be attached to the blockchain. The entire chain of blocks includes every transaction that has been executed in the cryptocurrency’s history. A block is given a unique identifier that also holds the previous block’s identifier.
Hey Sirus, at the moment no I don’t but I am soon going to be partnering with some close friends who have had excellent success with crypto also and we’ll be expanding the info we have available for you guys.
If my mind hadn’t said “it will die pretty quick” (thought like 25-35, lol) I would’ve made a fortune…never underestimate the noob traders out there who only make their decisions based on market cap or stuff.
After opening an exchange account, you need to transfer an amount of Bitcoin from your wallet to your exchange account. Another option is to deposit fiat currencies (like USD, EUR etc.) – but take into consideration the fact that there are higher fees attached to those transactions.
I invest in btc I’ve also made some money of off them and used to buy stuff from online retailers. I don’t why the hate for cryptos. If you don’t want yours, feel free to send me your bitcoins: 19iS1nEGA3iuhJpzu9LnQxf3rxU7EaAYaf
Disclosure: Several members of the Futurism team, including the editors of this piece, are personal investors in a number of cryptocurrency markets. Their personal investment perspectives have no impact on editorial content.
There is also an Ethereum-based ETF pending regulatory review, and many such products are likely to follow. For now, there are just a few options available. For example, ticker symbol GBTC is one such security listed on the US-based OTC Markets Exchange, and is available at major online brokerages such as Fidelity, providing stock market investors a way to gain exposure to Bitcoin without buying the underlying or using a derivative.
The rule of supply and demand is extremely important and not only in the cryptocurrency market. The price of any cryptocurrency you pick is always very closely linked to the amount of circulating currency. That means if the market capitalization increases so do the price of a cryptocurrency, eventually. So basically the more market cap grows the more grows the price of a cryptocurrency (usually directly proportional). Here is an example of a Litecoin graph so I could prove this theory in practice.
Trading Contracts for Differences (CFDs) in Cryptocurrencies carries a high level of risk and is not suitable for all investors as there is no specific EU regulatory framework governing the trading of such products and trading these products falls outside the scope of the MiFID regulated activities.
Bitcoins have their own set of limitations that altcoins hope to solve. Some altcoins build new, useful features that Bitcoins do not offer. For example, Darkcoin is working toward creating a platform that will make the transactions completely anonymous. Whereas, some coins such as Mastercoin and CounterParty use Bitcoin’s blockchain to fully secure their own ecosystems. Likewise, every one of the available altcoins takes its unique approach to refining the concept of digital currencies.
What I like about Coinbase is they meet all the regulatory requirements in the countries they operate, and they have two distinctly separate but integrated products: Coinbase for buying and selling bitcoin or sending them to friends, and Global Digital Asset Exchange (GDAX) for more advanced and precise trading.
Few people in the world claim to fully understand cryptocurrencies right now, and even fewer can wrap their heads around the finer details of blockchain technology. You might have never even heard of the term, but it’s important to understand that blockchain is the technology that underpins the growth of cryptocurrencies.
The question remains, should you buy ICOs in an attempt to make profit? If you have an insane appetite for risk and aren’t afraid to lose any of your investing capital, then go ahead, you might come out on top. But when you take all the factors into account and think about the security aspect, or the lack thereof, then maybe you should put your money into someone else’s pocket for the time being, while ICO security is improved.