If you have cryptocurrencies in Binance, may want to move them out...

[Gazrok]

Looks like China is cracking down on exchanges, and this one (Binance) is based in China, so most folks are pulling their crypto currency out of it and moving it to other exchanges, like US based Coinbase and Poloneix.

If you don't know much about cryptocurrencies, can't blame you...most have only heard of Bitcoin...but there are nearly 1000 out there like it.

I just recently dipped a toe in it, after the market hit a big low in the beginning of the year. Mostly rumors caused the crash, as this market really responds quickly (and drastically) to FUD (Fear, Uncertainty, Doubt).

For me, realizing that even with the crash, most crypto currencies still had gains of hundreds or even thousands of percent, it made me really want to know more about it for FOMO (Fear of Missing Out).

Currently, the market is a bloodbath, crashing amidst fears of China banning exchanges and putting serious restrictions on cryptocurrencies. South Korea and Japan (also large crypto markets) are considering similar means as well.

But, most of us believe in the idea of HODL (Hold On for Dear Life), just holding onto it and waiting for the currencies to again go back up. I just dipped my toe in it, less than $200 invested, to see what would happen over the course of a month first. Boy, did I pick a weird month....lol.

EDIT: Yes, I purposefully worked these new acronyms into this post, as these seem to come up a LOT when looking at crypto articles, so sucks if you don't know them, lol.

 

[Squirtgunsquirter]

They will go back up. Even with (I think) upcoming restrictions and regulations. The blockchain is here to stay, IMO it's going to be interwoven with all sorts of online transactions in the coming decade. I converted a small barn into an office for a guy a few years back, he offered to pay me in bitcoin.

I said no! It would have been thousands of dollars in bitcoin in 2014 ! 0.0

 

[Gazrok]

Oh, I have no doubt they'll go back up, I just wouldn't advise keeping any in a Chinese based exchange right now.....

I said no! It would have been thousands of dollars in bitcoin in 2014 ! 0.0

Would likely be MILLIONS now...lol.

 

[Squirtgunsquirter]

Do you keep yours on an exchange, or in a private wallet? That's been the sticking point for me, how to set up a wallet, and keep it off any exchange.

If I can get over that hurdle, I might sock a bit of cabbage into Ethereum, or another one of the "transactional" coins. I think of bitcoin more in HODL terms, than a usable currency.

 

[DrHenley]

It seems to have shattered confidence in all cryptocurrencies.

"What goes up..."

Bitcoin is in a freefall right now:

 

[Gazrok]

The entire MARKET is in a freefall right now, but really, that's kind of not new to the market. Historically, it's just been a good time to buy.

Do you keep yours on an exchange, or in a private wallet? That's been the sticking point for me, how to set up a wallet, and keep it off any exchange.

Currently, I keep mine in an exchange (Coinbase) and a digital wallet (for my Ripple, which isn't yet supported in Coinbase). I'll get a hardware Trezor wallet if my investments get to a certain point. (the hardware wallet is about $160, so has to be worth it)....

https://www.amazon.com/Trezor-bitco...&qid=1516203478&sr=1-3&keywords=trezor+wallet

I want to get into some other currencies, so trying to sign up with Poloneix, another US-based exchange. It's just really picky trying to get a non-blurry and glare-free pic of your verification docs, etc., so I have to find a place I can take a good pic of these (not work), lol. Poloneix supports the vast majority of other coins, so between it and Coinbase, I should be able to get into most of what interests me.

Mostly, looking at things like IOTA, Monero, Stellar, and Cardano

 

[DrPrepper1]

My husband purchased about $50.00 of litecoin. He doesn't know much about it either. I am sending him this information. Thank you for the education in acronyms.

 

[DrHenley]

The entire MARKET is in a freefall right now, but really, that's kind of not new to the market. Historically, it's just been a good time to buy.

There is an expression that was used a lot in reference to the precious metals market in the last few years...

"trying to catch a falling knife"

 

[Gazrok]

My husband purchased about $50.00 of litecoin. He doesn't know much about it either. I am sending him this information. Thank you for the education in acronyms.

My advice is to sit on them. It's going steadily back up, almost to where it was at 5pm yesterday...which was still low. (and then down again, up again, etc. all just today) But, this whole market goes up and down. Best to just sit tight and see what's what in a month, a few months, a year, etc.

 

[Gazrok]

"trying to catch a falling knife"

More like trying to catch a knife being juggled...could be up, down, etc.

 

[Maverick]

I don't know much about these but if china japan and south korea ban these I don't see much use if it's not a global stable currency plus the fees associated with these currencies, I kindly want some form of tangibility tied to it. If I want to purchase another form of currency or holdings that has better odds and far more stable it would be precious metals though I suppose it's not near as fun as the crypto-currencies.

 

[Gazrok]

Nor is the buy in as low. That's really the kicker.

I used to think the same, but I've been researching it a few weeks, and now understand it a bit better, and WHY it came to be. I've gone from skeptic, to convinced this will eventually be the money system of the future (but with state buy in and regulation, etc.). The banks have already even realized this.

China and South Korea...a lot of this is really poor journalism. Neither of them plan to ban it. But, they will be the first to regulate it. Mostly, because so much of it is used for nefarious activities. There are even cryptos that are basically SUPPORTED by the state in China, for example, so these fears are completely unfounded. coincidentally, these state supported coins are weathering this storm much better.

While it's true that the instant millionaire phase is probably long gone, the chance for small investors to make thousands from investing a hundred or so, is still (I think) quite plausible. Bitcoin has been around since 2009, yet if you bought it in Jan of LAST year, and then sold it in Dec, you could have had a return in the THOUSANDS of percent. What other investment is going to give you that? None.

 

[Maverick]

Though the anonymity tied to the crypto-currency, I've gone to a couple of sites that offer anonymous purchasing that can easily elate to money laundering thus I see a major issue with underground movement of currency far exceeding tangible paper currency. I really do see a very dark future with this form of currency where checks and balances are far harder to govern?

 

[Gazrok]

Monero is basically the criminal coin, it seems. A lot of currencies started as a means for currency for industries that were frowned upon (like porn, pot, etc.) as well. Probably why so much of the actual usage of these cryptos is in Asia.

But, the technology that developed did solve a business need, and that was what was seized upon years ago. Much more legit purposes, but yeah, the fact that there aren't laws, regulations, etc. governing it yet....that will end though. But, it doesn't mean crypto won't still fulfill a need. It will simply be an evolving one.

Still waiting to see if my friend is a millionaire...from another thread, she was paid some bitcoin back in 2010 (where it never peaked above a dollar). So, even if she has like (at the time), $50 worth of bitcoin, today, it's over half a million dollars! (and that's the worst case scenario). Depends on what price it was that summer. She worked for a err...um...phone service...lol...that paid her some bitcoin the last couple of paychecks. She just has no idea how to access (or if she still can). If she can.....

 

[DrHenley]

More like trying to catch a knife being juggled...could be up, down, etc.

What the expression specifically refers to is trying to guess when a commodity like gold or silver which is in freefall is at or near the bottom of the fall. You can usually count on a bounce off of the bottom - IF YOU KNOW WHAT THE TRUE BOTTOM IS. Guess right and you can reap a handsome reward. Guess wrong and you catch the knife by the sharp edge, so to speak.

So right now, the chart appears to show a bottom and a bounce today, but it might not be a real bottom, just a temporary rally (these things happen all the time).

 

[Squirtgunsquirter]

Gazrock, thanks for the answer. I definitely wouldn't throw in more than I could afford to lose, and that aint much lol.

 

[Gazrok]

No problem...

IF YOU KNOW WHAT THE TRUE BOTTOM IS.

Yeah, my guess at the bottom was too low the other day, so didn't buy. Now wish I had. It's almost all back up to where I got into it...almost. Going to just hold off until the next FUD event drives it down again, and then try to gauge the buy point a bit better.

 

[DrHenley]

Support trend line for Bitcoin:

 

[Gazrok]

Have to look at it since 2009 though...really.

 

[DrHenley]

Have to look at it since 2009 though...really.

 

[Mountain trapper]

Don't trust it. I'll stick to what has always worked for me. I've done very good in real estate and the stock market. I don't do risky investment's anymore.

 

[Gazrok]

Can't blame you there....but the stock market and real estate have MUCH higher buy ins for investing.

 

[Maverick]

https://www.thesun.co.uk/news/5396239/bitcoin-price-investors-selling-gold-value-collapse/

 

[DrHenley]

Here is what looks like as of today.

 

[DrHenley]

This is what a "falling knife" looks like. If you bought in at the $12500 dip thinking you were catching it at the bottom, you would probably not have sold when it got up to near $17500. Instead of "catching it," it sliced right through your hand and kept falling. The support trend (red line), which was predictable before, has now collapsed, meaning there are no longer any reliable trends. There are no "fundamentals" like there are with precious metals or stocks. So the future of Bitcoin is now completely dependent on psychology instead of economics. Unlike gold, there is no base support level. When gold falls below the cost of mining and refining it, the mines close, choking off the supply. It would be virtually impossible for gold to go to zero.

 

[Brent S]

I agree with liking more tangible assets like real estate and physical things you can hold and touch. I do think that any good portfolio should have a good mix of assets though. As the old saying goes, don’t put all all your eggs in one basket. I do know one thing, a lot of people have gotten rich with bitcoin. Even small investments early on made some people very rich.

 

[Brent S]

Even the stock market has its risks. The Dow has taken a beating in the last couple days. It dropped 1200 points just today, or almost 5%.

 

[Maverick]

Even the stock market has its risks. The Dow has taken a beating in the last couple days. It dropped 1200 points just today, or almost 5%.

Though the Dow going down is actually a good thing, it need to head towards correction and back down to reality. Though I fear inflation may fallow all the good economic news. I am wondering what’s fueling the crypto currency spiraling down?

 

[Squirtgunsquirter]

Crypto went back up after the 3 PM market crash. Back to where they were before the dip.

BTFD? Seems dangerous...

 

[DrHenley]

Stock market people have known for a while that a correction had to occur in the stock market sooner or later. I saw this coming and converted all my stocks to a cash position a while back, and have been waiting for this before I jumped back in.

Don't listen to the analysts in the mainstream media, they have an axe to grind. I believe that what we are seeing is a return to a fundamentally sound stock market after years of a bull market that was disconnected from reality and being artificially propped up with "helicopter money." Years of plenty on Wall Street but pain and suffering on Main Street. Good economic news is what is driving down the overinflated stock market. The fundamentals are all good for the economy. Real wages are up, companies are hiring, quarterly profits are good. This leads to higher interest, higher inflation, and the end of the "helicopter money." I think what you are seeing are withdrawal symptoms of going cold turkey on the "helicopter money" they have been addicted to for so long.