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Cryptocurrency - what is it? Any real stories?

57 replies

Figgygal · 09/05/2021 17:28

Hi all
I’ve been looking at crypto this weekend and don’t understand a word of it
Is it easy to demystify?
Anyone have any success stories or horror stories?
My husband works in financial services so we aren’t exactly ignorant around investments but this I’m interested in learning more about

OP posts:
hiimjackie · 09/05/2021 21:00

Hi, day trader and long term hodler here so I know both sides of the crypto coin, what would you like to knowSmile

ClarasZoo · 09/05/2021 21:06

How do you buy it? Is it easy to convert back to real money?

hiimjackie · 09/05/2021 21:22

@ClarasZoo

How do you buy it? Is it easy to convert back to real money?
Yes of course

On mainstream exchanges these days, you can link your bank account up, buy 100's of different coins (depending on the exchange) and sell back into fiat currency in a click of a button (fiat being 'real money')

hiimjackie · 09/05/2021 21:22

Binance is the recommended exchange for the variety of coins and the easy day trading features after bybit ceased trading in the UK

Sweetchocolatecandy · 10/05/2021 13:29

@hiimjackie hi you seem to know what you’re talking about so could you shed some light into how to use an e-wallet please? I’ve signed up to trust wallet but I’m unclear as to what to do with it! Do I just use it to transfer profit or do I need to transfer all of my trades to there and if so does that then end the trades? I really hope this makes sense as as you can see I’m a newbie!

hiimjackie · 10/05/2021 13:44

[quote Sweetchocolatecandy]@hiimjackie hi you seem to know what you’re talking about so could you shed some light into how to use an e-wallet please? I’ve signed up to trust wallet but I’m unclear as to what to do with it! Do I just use it to transfer profit or do I need to transfer all of my trades to there and if so does that then end the trades? I really hope this makes sense as as you can see I’m a newbie![/quote]
Yes, the idea is to after you make profits on exchanges you withdraw to your wallet which is much more secure, you should be able to withdraw to the wallet

Sweetchocolatecandy · 10/05/2021 13:50

@hiimjackie ah ok so what is the difference between withdrawing to your wallet and transferring directly to your bank account as the exchange have bank details anyway? I’m just curious as to why it’s more secure. Thank you by the way!

hiimjackie · 10/05/2021 14:52

[quote Sweetchocolatecandy]@hiimjackie ah ok so what is the difference between withdrawing to your wallet and transferring directly to your bank account as the exchange have bank details anyway? I’m just curious as to why it’s more secure. Thank you by the way![/quote]
On a Wallet, you own the keys to the wallet, this means your funds can't be tampered with by the exchanges, which has happened in the past, I hope tgis answers your question?

MabelPines · 10/05/2021 14:55

Ooh I’m following this thread as I’m interested in investing in some crypto

Dogoodfeelgood · 10/05/2021 14:58

A wallet is where you keep your crypto currency (say if you had 4 Ethereum coins, instead of keeping them on the app you used to purchase, e.g. coinbase, you would move them to the wallet as they are safer there).

If you sell your crypto for normal currency then you would transfer that to a normal bank account.

Souther · 10/05/2021 15:21

The problems with keeping your coins on and exchange is, of the exchange is hacked or goes bankrupt then your coins are gone. Whereas if you have moved your coins to a wallet only you can access then they are in your possession not on an exchange.

If you have any amount of money in crypto. It is beat to have a hardware wallet rather than one in an app. It's much easier to get your wallet hacked if it is in an app.

hiimjackie · 10/05/2021 17:46

@Souther

The problems with keeping your coins on and exchange is, of the exchange is hacked or goes bankrupt then your coins are gone. Whereas if you have moved your coins to a wallet only you can access then they are in your possession not on an exchange.

If you have any amount of money in crypto. It is beat to have a hardware wallet rather than one in an app. It's much easier to get your wallet hacked if it is in an app.

This here!

If you wanna go into this properly, invest in a ledger, I have nano s, it's so easy to use and much more secure

MyOctopusFeature · 11/05/2021 05:01

@hiimjackie

The unanswered question is what is a cryptocurrency. How is it earned? What does the ‘miner’ mine? What is the unique number used for? Who buys it? What supports the value of the coin? Is it exchangeable for gold? Will central banks outlaw it? What evidence is there to support the value?

Questions to ask your DH. If he is in financial services he will no doubt have researched those questions and have those answers.

hiimjackie · 11/05/2021 07:33

[quote MyOctopusFeature]@hiimjackie

The unanswered question is what is a cryptocurrency. How is it earned? What does the ‘miner’ mine? What is the unique number used for? Who buys it? What supports the value of the coin? Is it exchangeable for gold? Will central banks outlaw it? What evidence is there to support the value?

Questions to ask your DH. If he is in financial services he will no doubt have researched those questions and have those answers.[/quote]
It's not my DH, I just day trade as my main source of income, unless you meant to tag someone else?

The miners mine 'hashes', basically their computers (or multiple high spec gpus these days) solve extremely hard maths problems, this basically proves the integrity of the coin if I remember, however mining isn't part of my field

There is now cryptos that are directly backed by the price of gold, however it really defeats the purpose

Central banks won't ban it, infact the card companies (visa MasterCard) are now making crypto cards, which can be used for day to day real life purchases straight from your wallet,exchange

hiimjackie · 11/05/2021 07:36

[quote MyOctopusFeature]@hiimjackie

The unanswered question is what is a cryptocurrency. How is it earned? What does the ‘miner’ mine? What is the unique number used for? Who buys it? What supports the value of the coin? Is it exchangeable for gold? Will central banks outlaw it? What evidence is there to support the value?

Questions to ask your DH. If he is in financial services he will no doubt have researched those questions and have those answers.[/quote]
The evidence for crypto holding its value is proof of stake, proof of activity and proof of work, please research these as different cryptos use different systems, you will find this in a coins 'white paper'

And I'm not sure what you mean by random number?

NeedsImprovement01 · 11/05/2021 07:40

Does anyone have an opinion on crypto currency tracker funds?

hiimjackie · 11/05/2021 07:45

@NeedsImprovement01

Does anyone have an opinion on crypto currency tracker funds?
Wouldn't recommend really, all cryptos are really volatile, even the most proved cryptos, that you're better off just investing in some coin you've researched yourself and keeping it there for however long
Souther · 11/05/2021 19:02

@NeedsImprovement01

Does anyone have an opinion on crypto currency tracker funds?
I wouldn't invest in anything that has been packaged by an financial institute as a crypto investment. Not currently anyway.

The best thing to do would be to do your own research. And buy the coins directly then move to your wallet.

If you are going to buy a wallet. Only buy directly from the manufacturers website. And then when setting it up you will be given a seed phrase- this is basically the keys to your crypto.

There is a lot videos on YouTube that tell you how to set up your wallet.
But the seed phrase. Keep this safe. Don't take any photos of this. Do not send it in a email or input into any device that is connected to the internet, because if your phrase is hacked your coins are vulnerable.

Souther · 11/05/2021 19:05

Also when buying coins do your own research. Dont buy something just because it is being hyped.
A lot of the time people are just promoting their own coins so they can sell at a good price.
Be very wary there is a lot of scams, people trying to steal your seed phrases. And lots of coins being pumped in price and then dumped.

Prices are very volatile. Sometimes sky high and the next minute down in the dumps.

hiimjackie · 11/05/2021 19:27

@Souther

Also when buying coins do your own research. Dont buy something just because it is being hyped. A lot of the time people are just promoting their own coins so they can sell at a good price. Be very wary there is a lot of scams, people trying to steal your seed phrases. And lots of coins being pumped in price and then dumped.

Prices are very volatile. Sometimes sky high and the next minute down in the dumps.

Not to say hyped coins can't make you money, I embarrassingly hold a lot of cumrocket Blush, the case is also with dogecoin, which is literally a joke that's hyped up which made a lot of people rich
Cleanmean · 12/05/2021 09:53

I'm just about to invest in some coins. Does anyone think new clings like VET and XLM have any staying power? Looking to invest for the long term . Any advice welcome as my research has taken me down some very long black holes!

littlebillie · 12/05/2021 17:03

I m just looking at coinbase has anyone used it?

littlebillie · 12/05/2021 17:04

Also does profit fall into Captain gains tax

Mia85 · 12/05/2021 17:42

Yes it does fall under Capital Gains Tax (though I'm very unlikely to ever get anywhere near the annual exemption figure). HMRC have been getting interested in individuals' crypto gains and the major exchanges share info with them e.g.www.thisismoney.co.uk/money/investing/article-9330575/Do-pay-tax-Bitcoin-profits-tax-expert-replies.html

littlebillie · 12/05/2021 17:54

Just reading about on HMRC I think keeping records would be essential for 6 years