Bitcoin crash

[treebit]

I always see loads of MNs say they have large amounts of crypto. Is there any concern with coinbase & losing your money?

I hold about £20 worth 😆

I am a currency trader. I’ve always stayed out of crypto cos I thought too risky. I did buy about $100 worth of Bitcoin a few months ago, just for the sake of it. Now worth $44…. Pushy advertising has drawn in lots of inexperienced investors hoping to get rich quick, who are now nursing enormous losses. Some people will now say now it’s time to buy as prices so low… But in the words of the great Bob Dylan “when you think that you’ve lost everything, you find you can always loose a little more…”

DH big on crypto, buying now prices are low. He's only gambling gains anyway so I see it as free money. Hugely volatile right now. I just let him play. I'm the opposite and don't invest enough though I did give him chunk of change which is in a longer term holding.

With any investment you have to accept fluctuations.

I just found it odd that there were not any threads about it as there have been many threads discussing investing in it. It's made me a bit suspicious as to how many posts were true tbh.

With cryptocurrencies there is a saying : Not your Keys, Not Your Coins.

As with any large organisation if it goes under it can take your funds with it Crypto isnt the only space this happens in - so many pensions and investment funds have had the same problems over the years.

In short if you're just getting into crypto - a larger exchange should be fine.
If you're getting a bit of a portfolio, then you should be looking at maybe spreading it between a couple of exchanges and a wallet.
If you have a large portfolio then you should be spreading it wider an considering a hardware wallet.

In the uk there are few firms that are actually FCA registered for cryptocurrencies they can be found on companies house website.

I'm not a financial advisor. Happy to clarify crypto questions in plain english where I can to educate.

This is mostly bollocks.

The FCA does not regulate crypto. It has limited powers to make sure it's not used for money laundering.

And it's nothing to do with Companies House.

I'm not going to speculate on whether you're a Christopher or a Christine, but this has strong Random Man vibes.

Thanks for the polite response - nice to be welcomed with such warmth.

No , indeed the FCA doesnt regulate crypto, but it does have a list of companies that have agreed to abide by the anti money laundering guidance.. A significant numberof international firms havent even bothered to register so that should give your some indications of their sincerity.

And yes - my bad ,not companies house - the FCA website.

As for Random Man vibes - whatever floats your boat , but surprised at your vehemence at what was actually pertinent information!

Crypto kept in a personal wallet that you have keys to is considered more secure than an exchange, just the way it is.

And should it matter whether I'm a christine or a christopher?

It's not 'pertinent information'.

Your post implies that crypto can be regulated, therefore safe. That's not true. If people misunderstand this they risk losing money needlessly.

And as you say, you told people the wrong source of information. Lots of crypto outfits are registered on Companies House, but that tells you next to nothing about how trustworthy they are. Again, you risk suggesting to people that they can gain reassurance in a way that is potentially dangerously misleading.

And yes, I feel 'vehemently' about trying to make sure people aren't ripped off.

Educating and informing is the best way to prevent people being ripped off.

Those registered on the FCA have made the first steps to be transparent and work with the authorities. Its a good first step, but its not protection against losing funds.

Traditional savings accounts in the UK have an element of cover under the FSCS compensation scheme.

I am unaware of any crypto based account that is covered by that , so yes , invest in crypto at your own risk.

In short, don't invest what you cant afford to lose.

Ironically i think we both have the same aim to prevent people being ripped off.

And sorry, but it is pertinent information if you do hold any cryptocurrency to understand the difference between exchange held and personal wallets with keys.

DH mined his bitcoins in 2010.

the processing power needed to mine has increased over time to the point where the payoff doesn’t cover the cost of the electricity to do it domestically. He stopped mining them years ago.

DH works in investment research.

He has always steered well clear of crypto.

A relative invested a (relatively) small sum against DH advice & has lost money.

Have a look at crypto charts noone has lost on money invested if they've held it for 4 years... you've got to be in it, to win it

I would not be worried about the coinbase giving you your money back. I would be more concerned about the value of the "investment" dropping to zero.

Bitcoin investors are laughing now!