Hi folks
Better late than never, I'm looking invest $500 in bitcoin. Does anyone recommend a place to buy bitcoin and what the process is.
I heard people talking about dodge coin and rippl, are they recommended?
Crypto Currency - Where to Invest
alz on 05/05/2021 - 18:54
Comments
All crypto is very high risk, Bitcoin included.
The greater risk imo is not being exposed to bitcoin.
Less than 1% of institutions own bitcoin, there's a very real chance that increases over the next few years.
Guess what happens to the price when the supply is fixedLess than 1% of institutions own bitcoin
For go reason. If you are say one of the big banks in Australia. As an asset it needs to make money. You know why retail banks don't hold gold, because it might be an asset but it is too volatile. Imagine if you agreed to fund someone's $1m home loan and your gold today is $900k on the day and you need to find $100k, imagine that over hundreds of millions committed.
It is alright when prices are rising, imagine if Elon Musk says he lost $500m of Tesla shareholder money and need to tap them for more money.
Most of this talk of adoption is BNY Mellon, JP Morgan, Paypal facilitating in buying crypto not owning it. It is the best money to make, commissions on deal flow. Don't confuse where the money is. Look at Coinbase, they don't hold any crypto, they facilitate trading and making a commission and it is the best money to make. Price goes up or down you still make money.
Guess what happens to the price when the supply is fixed
Scarcity. You can also guess what happens when there is no helpdesk when you lose the key to your bitcoin wallet.
Invest in crypto. Just be very careful. There is no bail out, no help desk, no head office to complain to and lots of scammers out there.
@netjock: Bitcoin is lowering in volatility and has continued to over time. This is a trend and there's no indication it will stop.
It's inevitable more institutions will buy bitcoin. It simply holds its value better than cash reserves, that's all there is to it.
@Tiredman: Bitcoin is great but has serious usability concerns going into the future. Lightning is a great demo but managing incoming liquidity, paying to receive money, and having to juggle payment invoices are all bad UX.
@Tiredman: It's basically like if I offer to buy your car for a leftover wrapper in my pocket. You'd be like "no, it's not a fair trade". But, what if I told you that the leftover wrapper is actually worth $30,000? You might be skeptical, but if I had thousands of people who confirmed that they sold me their car for the same wrapper, you might start to believe it right?
That's what basically what crypto comes down to. It's a pyramid scheme that has gotten big enough to be somewhat legit.
Your investment is only worth what the collective community agrees upon. If everyone suddenly believed that Bitcoin was worth $20,000,000, it would be worth just that. If they suddenly decided to believe that it's only worth 20 cents, that's what it'd be worth.
There's no set formula to determine the value. There's no way to verify what you're buying is as valuable as it seems. And most of all, there's no validity to the claim that it is decentralised. Anything that is traded, bought, and sold by real money is not decentralised. Bitcoin is basically just PayPal with an inflated balance.
@SlavOz: And for the same reason, a dollar is only worth a dollar because the government tells you it's worth a dollar and everyone agrees on that. Not so dissimilar to Bitcoin, except that Bitcoin cannot be printed out of thin air and government "fiat" money can be.
@divstar: If Bitcoin cannot be printed out of thin air, then where did it come from? Did humans magically discover it as a tangible form of currency like gold?
It's literally just an algorithm of numbers scrambled by a computer. It is 100% created out of thin air. And when it's sold, purchased, and valued by "fiat" money, it is prone to the same issues as fiat money.
@SlavOz: Arguably you could price bitcoin on the cost of power used to mine it. I'm not sure what that comes out to. Even though the power used is apparently more that what Argentina uses, it's still less that what the coins are valued at.
@Toffees: But Etherium is superior tech, but worth less? That being said, that's a common theme I see in crypto. But if crypto goes mainstream, then I think the limitations of BTC will be more apparent. At the moment I think most really see it as an NFT.
@Toffees: Do you still stand by this comment? In the last month the value has decreased approximately 30% (and 20% in the last week) because one rich guy has given it some negative feedback.
Cash reserves have held their value over the same time period. Bitcoin is extremely volatile and still considered very high risk.
@pantsparty: It hasn't crashed because of Elon, it was due a correction and he exacerbated it.
And yes I very much stand by that comment, nothing's changed.
Look into tether and prepare to be horrified. Majority of transactions happen on tether.
Run by shady people linked with money laundering. Prints billions of fake USD and Noone cares.
Will be slammed hard in time. Law is slow.@kasp: Money laundering is how crypto became big.
Large institutions is what crypto will rely on to go mainstream and become the new norm instead of just a "scam".Some are scams indeed, but many has insane utility that's well ahead of its time to the point where many jo blows won't know wtf you're talking about even if you try to explain it AFTER dumbing it down.
@kasp: Tether has been repeatedly audited and time and time again they've been shown to fully back USDT by USD. This tether story is just fud.
There is real demand for digital fiat currencies and the increase in the USDT/USDC/BUSD mcap reflects this - it's organic growth and real adoption of digital currencies.
@Toffees: This is fud that will never go away. Same thing in 2017. And the fud goes quiet in the bear years.
Scarcity has no effect on the item value. Demand does.
Everyone has their own view on crypto, for me it’s no different than playing black or red in the casino. The ONLY purpose of buying crypto is wait and pray that there’s a greater fool who will pay more than you did down the road.@wayne7190: Scarcity does. Real estate, stocks tend to go up not because they are really increasing in value, but because the value of the dollar goes down.
You retain value better by holding assets (nearly any asset) than cash.
Bitcoin is a new asset. It's scarce, easily divisible, easy to send and secure. It's simply somewhere else to put your cash (which is constantly decreasing in value).
We are seeing people trust it more and more, and the beautiful thing is, as more people join the bitcoin network, the more secure it becomes and the more scarce bitcoin becomes, and in turn, the more valuable it becomes.
Bitcoin holders hold bitcoin with conviction - so many believe that it'll be worth much much more than it is. It might seem outlandish to say but it seems almost inevitable now that a single bitcoin is worth more than $1 million in a few years. To those who understand bitcoin, it's not a crazy statement.
Bitcoin will absorb parts of other asset classes (gold, stocks, real estate, bonds etc.) - and the bitcoin market cap is tiny in comparison to those traditional assets, so it really doesn't take much in a change of people's actions for the bitcoin price to soar.
Most people still dismiss it and don't understand it which is positive because it shows we are still early.
If you have a couple hours to spare, watch the YouTube video I linked above. It could quite possibly be life changing.
@Toffees
Scarcity doesn't. I still have a Samsung Note 7, with the recall before, there ain't many around making it really scarce. Can I sell it more than I paid? Certainly not because there's no demand for it.
Like you say yourself, the more people join, believe in crypto make it more valuable. It's the demand that dictate the price. Not how many BTC there is. Obviously the supply of it play a role, but if there's no demand, supply means nothing. Just like the crash in Feb 2018, the amount of BTC was about the same as 2 months ago, yet the price felt of a cliff. The only change was the demand of it.
You can say it's a store of wealth or asset or whatever. Yet can you tell me another reason why you bought it other than hoping someone will pay more than you did down the road?
As I say everyone has their own view on these things and if yours is different than mine, it's perfect normal.
Yes but dogecoin has no purpose other than somr retarded meme. Its gme 2.0 and idiots will get burnt
While I don't enjoy the sheer asinine stupidity around Dogecoin, my $1,000 dabble on 17th April is now worth $2,460 today and not letting up, still rising…
I used CoinSpot which is sleek and works well but were a pain to provide verification. They wanted a picture of yourself holding up passport and a note to verify.
I bought around the same time and I'm up about $1000, not sure how long doge will keep going up for.
Probably watch it carefully when it approaches 90 US cents. I imagine a lot of people are aiming to sell at the $1 mark but may start early as they expect others have the same idea
@onetwothreefour: Wish I had a crystal ball and had chucked some cash into DOGE a while back. It's definitely a meme coin with no practical use but as we have seen with GameStop, people will drive up prices simply because they like it and it's fun lol
@Menzoberranzan: Gamestop is different, there is a strong chance that there is a number of people legally required to buy game stock regardless of price.
@onetwothreefour: Elon Musk is hosting Saturday Night Live in the US, there are rumours that he will mention crypto. However, as you may or may not know, Elon has the power to send the market through the roof, or through the floor.
He has openly said people should not be putting their lives savings into crypto, and this DOGE bull run is probably going to end badly for a lot of people.
On the other hand, he does own 40?60?% of all DOGE. At the end of the day, Crypto isn't an investment, it's a gamble.
CoinSpot seriously wanted that? Drivers License number was sufficient enough for me.
They only want the photo if you want to increase your daily deposit limit past $2k
I got into DOGE when it was about 6c - my original AUD$50 has really soared!
Same here - but I only "invested" $10.
I have played around with running a Doge and bitcoin full node - but that was more about IT geeking out about it.
I believe it's for the KYC requirements. Swyftx required similar.
there is 1 guy who holds 36billion coin. which around 28% of the total supply, if he dump, then bye2 all, cash out while you can after this satday
Dumping that amount isn't as easy as it sounds.
@havabeer: Dumping is easy.
He can hire advisor who are having expertise in these buy/sell and make money out of it.
Another option is he can do a future trading - by selling at higher price with commission. If not sold - keep commission ; if sold - he profited anyway at the sell price.
Not true exactly.
We usually predict "dumps" to have a negative effect on the commodity, however, theoretically they can go any direction they like. It's possible that investors who played it safe and missed out, they could see this as an opportunity. Not sure of the probability. After all, this is a finite resource, unlike Fiat Currency, or the complex stock options of most companies. But to note, usually whales will dump their shares gradually so as to maximise their gains.
Hi mate, do you have any knowledge on the fee structure as in purchase crypto/fiat vs crypto/stablecoin like USTD BUSD etc.
I have been looking and it seems to be no fee for the maker if goes with crypto/stablecoin?
Cheers
The fees vary - if you do it into BNB (the backing coin) then the fee is 0.05% per trade. In most other cases the fee is 0.1% per transaction
Binance is the cheapest, but goddamn if that UI/UX isn't an utter abortion.
Its so damn confusing. Not for beginners for sure.
Ha I made this exactly today, had too have someone walk me through just to find deposit wallet
do you mean abomination or did binance physically remove an unborn foetus from a mother's womb?
Been using Binance for 6 months, but still occasionally do a mistake by setting a stop loss without switching from Limit to Stop-limit. Ended up selling an asset for less than the market price. Fcking annoying!!!
They have 0% fees when you deposit via payid but you need to convert that to BUSD which often has a large spread and you can lose a small percentage so it doesn't really work out much cheaper than other exchanges. That said, I use binance because of the lending options.
If you're just looking to buy btc, blockfi and voyager are good because you can also lend your btc and get approximately 6% apy. Very user friendly Web and mobile apps.
Are you reckon just purchasing via AUD directly to avoid the spread? the marker fee is less than 0.1%
Depends on how much you're buying and what you want to do. If you want to buy only bitcoin, I'd recommend blockfi or voyager and use their lending services. If you want to buy other cryptocurrencies, I'd use payid to deposit on binance, place a limit sell order of aud to avoid losing to the spread and then buy whatever cryptocurrency you're after.
@Toffees: Could you please explain what this means in a bit more detail/ how you do it. Cheers
"place a limit sell order of aud to avoid losing to the spread "
@tunzafun001: Say the current rate on Binance for AUD/USD pair is 0.765 but you only want to exchange at 0.77
You can place a limit sell order by selecting 0.77 and when the price does get to 0.77, it will trigger the sell order. There is no guarantee though that the price will get to 0.77 and if there are a lot of sellers at 0.77 and the price doesn't get above it, your limit order may not be fully filled.
DOGE is good you just need to know when to get out
Almost anything is good if you know when to get out (and have purchased cheap enough)?
Many investments are high risk, including property and shares investment.
You just need to do your own research.
The tokonomics of doge is very bad, that's not going to stop people from buying it though. I'm amazed at how it is able to pump this much already. Doge is a cryptocurrency like Bitcoin, that's pretty much where the similarities end. Unlike Bitcoin, there's no limit to the supply of doge and there's 10k doge being rewarded for every block with no halvening. You can make up your own mind whether this is a coin you want to invest in or not.
is it still risky if you bought in at 1 cent?
It’s risky if you want to exchange doge for other alt-coins or cash since the exchanges are often volatile. This has improved since it was first launched, but it’s not uncommon to see the value jump >20% in minutes. And not in a positive direction.
The reality is that the miners and the holdouts are often the reliable “charlatans”, since they didn’t come in with the expectations to get rich quick.
In my Bitcoin mining career (sic) I mined ~8.6 btc, lost some with mtgox, gave one away, bought a butterfly labs miner which died within 3 months, and sold the rest afterwards at $800 to buy a mobile phone which promptly got lost by a local courier company during Christmas.
Yes, I could have invested heavily 7-8 years ago and cashed out at the “Tesla model S” prices, but I don’t mind.
If you are going in with “diamond hands” HODL on doge, luck will be needed. Not every alt-coin is the successor to ethereum and Bitcoin, a significant number are now forgotten since 2011 or so.
Coinspot
I recommend Swyftx, has a super low 0.6% fee
Coinspot is super popular but their fees are higher 😔✌️
I don't understand why people use Swyftx when Binance and FTX exist.
The fees are far lower than 0.6% on both of those platforms and they also have PayID deposit/withdrawal options.I used the AU based offerings at first until I got serious, I'd imagine lots of people are the same and/or never take it beyond their initial interest.
Also, Binance's UI/UX is absolute garbage. Never tried FTX, so can't comment on them.
Binance is confusing af for newbies, that is true. FTX has it's quirks too, but I consider myself an advanced trader now so none of it really bothers me. I guess for people just dipping their toes / buy and hodl I can see the appeal of some of the more straight forward, higher fee platforms.
If I want to get into pancake swap, I believe Binance is the cheapest (since it's on their chain)? My bank has Osko. Do I just transfer AUD via Osko to Binance. Then buy BNB and convert ( or can I just buy BSC direct). Then take the BSC over to PCS and buy whatever?
I see a lot of youtube videos suggest just buying BSC via trust wallet. But that would have extra fees and possibly a worse rate on BNB / BSC yeah?
Lastly, where do all these red/green candle charts come from? Is it part of Binance?
Yes, buying BNB via Binance is the simplest option. You need to complete KYC before you can deposit fiat, but it's just as you described. Deposit AUD into Binance and buy BNB, send it to whatever wallet you want to use with Pancakeswap. I use Metamask, Trustwallet works too if you want to do it via mobile.
I would not buy BNB directly via Trustwallet, that's probably geared more towards US/Euro customers, I imagine the fees here would be through the roof.
Red/green candles are the charts based on whatever is happening on the exchange you're on, but price itself is also reflected from outside sources (other centralised and decentralised exchanges.
@bonezAU: Cheers. If I want to just use the PCS pools, do I need a wallet? Or can I send it straight from Binance, or does it need to go out to a wallet first. Same question for buying a few defi tokens on PCS.
For the Etherium chain, is Binance as cheap as any other exchange?@tunzafun001: You need a wallet, PancakeSwap is a DEX (decentralised exchange), so they don't provide one for you like CEX's do.
If you do most of your trading on a PC, Metamask is good - it's a browser plugin. For mobile, TrustWallet is popular.Whatever you do, make sure you write down the seed phrase that is given to you when you first create the wallet. If you lose that, you lose the wallet and everything inside it and it can't be recovered any other way.
For the Etherium chain, is Binance as cheap as any other exchange?
Most of the CEX's charge relatively similar ERC-20 withdrawal fees, if that is what you mean? If not, please clarify.
Swyftx and Coinspot use Binance for liquidity. Moreover, their spreads are super wide - so if you buy from either. You lose money through higher fees and wider spreads.
I would recommend that in every crypto purchase, especially a beginner, allocate at least 50% to Bitcoin.
Doge too risky. XRP, I'm not sure to be honest.
I would recommend 50-50 with ETH.
I think BTC and ETH will be as safe a bet as can be with Crypto for a while due to all the money from legit institutions going in like Visa, Mastercard, Elon and his horde, etc
Those other alt coins, that's the wild west still.
Coinspot 0.1% fee on market trade
What's their transfer out fee for BTC? Couldn't find it on their site.
0.1% brokerage is very decent.
They have an awful spread in buy/sell price for most coins, sadly
Pffft ignore everyone else here….
Use Coinspot - all on Dogecoin. To the moon we go!!!
How high you think doge is going?
To the moon?
Yeah but how high's the moon?
@onetwothreefour: But that would make it amongst the highest valued currencies in existence. Probably past the USD, haven't ran the numbers.
Then it is getting constantly diluted with I think 5 billion more coins each year. I think that is why Elon Musk loves it…Its a rediculous concept and I'm sure many said the same to him many times. But I personally can only see it going down each time it is diluted. But hats of to get a marketcap this far in a project that no one even has looked at in years.
I'm curious if it will moon if Elon mentions it on SNL which he is hosting in a couple of days time. Might be why it has increased a lot yesterday.
Binance over Coinspot if you plan to do anything other than just hold
All in ETH and HODL
agreed
My guess is ETH will eventually dominate BTC.
HODL?
It means hold, don't sell.
Hold on for dear life
f
binance is a good exchange to buy btc
edit: stay away from doge its a very high risk to lose any investment