Investing

Bitcoin and Ether

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  • Nov 17th, 2017 2:00 pm
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Mr_Dogg wrote:
Jul 11th, 2017 10:11 am
Can someone give me a link to a very very simple guide to buying Ethr?
The simplest way I know how is to go to coinbase.com and buy some using your credit card. Note that you won't be able to buy much at the beginning and they will ask you for ID.

After that point, you can go to myetherwallet.com (use google to search for it because you shouldn't trust any links when creating a wallet) and create your personal wallet. If you are paranoid, you can google how to create an offline wallet.

I would recommend sending funds from your exchange account to your wallet just in case your exchange gets hacked.

To sell ether, you have to get an exchange account other than coinbase as they don't allow canadians to sell. Someplace like quadrigacx will let you create an exchange account.
Last edited by PennyArcade on Jul 11th, 2017 11:50 am, edited 1 time in total.
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samin62 wrote:
Jul 11th, 2017 6:28 am
Well at corrections everyone is quiet. When thry should be shopping and asking questions
For all you know, people are quietly buying and loading up on the dips :P
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Mr_Dogg wrote:
Jul 11th, 2017 10:11 am
Can someone give me a link to a very very simple guide to buying Ethr?
I don't have a link but you can just Google your question. I would highly recommend you take your time and research before diving in.

Find an exchange, there are many and each has their pros and cons. For a beginner you might want to start with quadriga cx or coinbase.

Bitrex
QUADRIGACX
Kraken
Coinbase
Bitfinex
Polenex

After the above you will need to send cash fiat to the exchange and then buy ETH. Check the how to on the individual exchange

don't leave your crypto on the exchange, move it to a wallet.

The above is just my opinion. Don't invest money that you can't afford to lose as this is an extremely volatile market with potential of enormous swings.
"Talent gets you in the door. Character keeps you in the room."
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treva84 wrote:
Jul 8th, 2017 9:59 am
So I must admit I'm a cryptocurrency newb. Even though I'm a millennial, I don't totally understand cryptocurrencies. They are interesting though - from what I gather the idea is to create a form of payment that is i) not subject to currency inflation as there is a fixed amount; ii) not subject to government manipulation; iii) a secure way to store wealth and iv) a low cost way to transfer wealth (i.e. not subject to middle man bank fees).

I also gather there are many cryptocurrencies out there as it's a free market and thus barriers to entry are low. Thus it seems the value of the currency is only based on what people assign it - i.e. if your user base switches from one currency to another because one is deemed more secure then the former currency is automatically devalued. Furthermore if a fork occurs and your legacy coins are devalued, you have lost your money.

Obviously this creates much fluctuation in the value of cryptocurrency and I'm sure scares many users (myself included) off from this. For you guys that buy, other than hoping it goes up, how do you rationally approach the value of the cryptocurrency you buy?
treva84 wrote:
Jul 11th, 2017 10:23 am
Based on what I've read (for those with insight correct me if I'm wrong but so far no one has responded to my post above)

1) Speculate price movement
2) Buy
3) Hope

By no means a rule of thumb and can be applied to crypto currencies in general but is what works for me. Interested to hear what others use as their strategy.
1) research white paper
2) understand vision and goal for currency
3) projected outlook and adoption, valuation.
4) what's the viewpoint from others on said currency
5) have any money you can invest and afford to lose? Yes ? okay then read on. If not, Stop and quit while you're ahead.
6) profitability : what's the ROI. How long to break even etc. looking good still? If not stop. Look into other currencies.
7) where to buy? Exchange, mine or look at other sources to obtain said currency
8) buy
9) learn to hold/control emotion. Blockchain is here to stay. Can't deal with the swings in the market then don't invest. The longer you can hold the higher the risk tolerance and potential reward. Hopefully your research will be good enough to let you know what to expect. If all goes south then at least you followed step 5.
10) profit / sell when time is right. (E.g. Retirement, kids are going to college etc. as needed)
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bigjee wrote:
Jul 11th, 2017 1:32 pm
By no means a rule of thumb and can be applied to crypto currencies in general but is what works for me. Interested to hear what others use as their strategy.
1) research white paper
2) understand vision and goal for currency
3) projected outlook and adoption, valuation.
4) what's the viewpoint from others on said currency
5) have any money you can invest and afford to lose? Yes ? okay then read on. If not, Stop and quit while you're ahead.
6) profitability : what's the ROI. How long to break even etc. looking good still? If not stop. Look into other currencies.
7) where to buy? Exchange, mine or look at other sources to obtain said currency
8) buy
9) learn to hold/control emotion. Blockchain is here to stay. Can't deal with the swings in the market then don't invest. The longer you can hold the higher the risk tolerance and potential reward. Hopefully your research will be good enough to let you know what to expect. If all goes south then at least you followed step 5.
10) profit / sell when time is right. (E.g. Retirement, kids are going to college etc. as needed)
Thank you for the reply.

Where do you get your ideas from? So for example, when I want to buy a stock, I can use a variety of screeners and read research reports. How do you generate your cryptocurrency ideas? Where do you pull your white papers from?
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treva84 wrote:
Jul 11th, 2017 1:43 pm
Thank you for the reply.

Where do you get your ideas from? So for example, when I want to buy a stock, I can use a variety of screeners and read research reports. How do you generate your cryptocurrency ideas? Where do you pull your white papers from?
Full disclaimer: I'm not a seasoned crypto day trader. Have more experience mining and doing hardware. But i have invested a fair bit in crypto currencies.

In a nutshell: you need to do your own research.
How? I read a lot about them ( there are several forums where people like you and I have the same questions, white papers can be googled or found on forums).
Not to be disrespectful but this forum isn't the best for discussions when it comes to crypto currencies. I tend to disagree with a fair bit that is said on here especially with the mining threads.

I also keep a track of the values for each of the top 10 traded crypto currencies so you get a feel for what the valuation is. (look at their prices on a daily basis try to understand what's causing the rise and falls).

Biased opinion:I always give weight to people who have invested their own money and their logic. (Don't have to agree with them but understanding and validating their logic is important.) look at YouTube for people who put their money where their mouth is.

At the end when you spend your own money it's your decision and you gotta live with it. As long as you do your due diligence you should be okay. If it's not okay you learn from it and build on it.

Also the bullet point 7) in my previous on obtaining crypto currencies has a lot of depth to it. Once you find the mode that suits you it could be quite profitable.

Hope this helps in some way....
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Best way to gauge eth price is to chart bitcoin..for the last week or more chart technicals where showing price going drop through supports..it's in free fall now as will eth
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bigjee wrote:
Jul 11th, 2017 1:32 pm
By no means a rule of thumb and can be applied to crypto currencies in general but is what works for me. Interested to hear what others use as their strategy.
1) research white paper
2) understand vision and goal for currency
3) projected outlook and adoption, valuation.
4) what's the viewpoint from others on said currency
5) have any money you can invest and afford to lose? Yes ? okay then read on. If not, Stop and quit while you're ahead.
6) profitability : what's the ROI. How long to break even etc. looking good still? If not stop. Look into other currencies.
7) where to buy? Exchange, mine or look at other sources to obtain said currency
8) buy
9) learn to hold/control emotion. Blockchain is here to stay. Can't deal with the swings in the market then don't invest. The longer you can hold the higher the risk tolerance and potential reward. Hopefully your research will be good enough to let you know what to expect. If all goes south then at least you followed step 5.
10) profit / sell when time is right. (E.g. Retirement, kids are going to college etc. as needed)
1) research white paper
== too complicated, who's got time for this gobbledygook. Skip
2) understand vision and goal for currency
== gonna get rich quick
3) projected outlook and adoption, valuation.
== that coin is going up 200% by the end of next month
4) what's the viewpoint from others on said currency
== the uber driver is saying the same thing in 3)
5) have any money you can invest and afford to lose? Yes ? okay then read on. If not, Stop and quit while you're ahead.
== nope, but that's sure win
6) profitability : what's the ROI. How long to break even etc. looking good still? If not stop. Look into other currencies.
== see 3)
7) where to buy? Exchange, mine or look at other sources to obtain said currency
== the barber shop that I frequent
8) buy
== what are you waiting for?
9) learn to hold/control emotion. Blockchain is here to stay. Can't deal with the swings in the market then don't invest. The longer you can hold the higher the risk tolerance and potential reward. Hopefully your research will be good enough to let you know what to expect. If all goes south then at least you followed step 5.
== sure win. see 5)
10) profit / sell when time is right. (E.g. Retirement, kids are going to college etc. as needed)
== it's going to double again by year end.

For giggles only.
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treva84 wrote:
Jul 8th, 2017 9:59 am
So I must admit I'm a cryptocurrency newb. Even though I'm a millennial, I don't totally understand cryptocurrencies. They are interesting though - from what I gather the idea is to create a form of payment that is i) not subject to currency inflation as there is a fixed amount; ii) not subject to government manipulation; iii) a secure way to store wealth and iv) a low cost way to transfer wealth (i.e. not subject to middle man bank fees).

I also gather there are many cryptocurrencies out there as it's a free market and thus barriers to entry are low. Thus it seems the value of the currency is only based on what people assign it - i.e. if your user base switches from one currency to another because one is deemed more secure then the former currency is automatically devalued. Furthermore if a fork occurs and your legacy coins are devalued, you have lost your money.

Obviously this creates much fluctuation in the value of cryptocurrency and I'm sure scares many users (myself included) off from this. For you guys that buy, other than hoping it goes up, how do you rationally approach the value of the cryptocurrency you buy?
To understand crypto currency, one must first understand blockchain, and what that entails to. That's the underlying principle to crypto currency, and helps to understand the different technologies once the blockchain concept is understood.

It's important to remember that this is a new asset class, and I don't think it's mature enough to have a defined criteria to evaluate it. At this point, it's speculative, although I use a few criteria (that might be wrong, since it's new and many elements are unknown).

First, I wouldn't compare it with other asset classes. Crypto currencies are not businesses, so they can't be compared with stocks or what equity investors do. Some crypto currencies have a defined purpose (like bitcoin as a currency use), others are simply a protocol to allow other usages (like Ethereum).

Many coins offer good application in solving problems. That doesn't translate to a good investment necessarily. That's why it's speculative and why one should invest knowing that it's possible to lose it all. I bet many folks buying crypto currencies can't afford it to go to zero - and that's why many panic and lock losses. Crypto currencies require a much stronger temperament because they're way more volatile, and if one wants to truly harvest the fruits in their portfolio, they must hold it for years, and not panic when it crashes. It's a lot easier to do it with stocks, and considering that most fail with that type of asset class, it shows how most are unprepared to hold crypto currencies.

The first step is to get involved with the community developing the coin. Read the white paper in their website. Understand what problem they're trying to solve, what potential or real use-cases they have, find out if real companies are sponsoring or giving grants. This will give an idea to how close they're to something tangible. Every coin needs to be treated as a separate project, and be evaluated separately. How frequently they release updates. How engaged are they to clarify questions. How liquid they are.

Current coins in circulation versus total coin in circulation is another metric. Find out how many coins are estimated to be added next year or in the next 5 years. Unless the demand for the coins is bigger than the supply that is planned to be added, valuation will deteriorate overtime. Although market sentiment is unpredictable to drive prices, the inflation created by the quantity of coins affects valuation. For example, bitcoin has a much smaller inflation than other coins, suggesting that it will continue to appreciate in value overtime.

Not every crypto coin carries the same risk. Bitcoin is way more mature than the new ones using some new unproved technology. The coins with new technologies might have higher potential gain, but carries more risks, since it's unknown if a major bug will the project or just cause a hiccup.

The other component is related to Proof of Work vs Proof of Stake, and its distribution that could potentially affect valuation.

Another factor is regarding the coin or management being centralized or descentralized. Centralized coins are easier to be shutdown by the government (as they see it as a thread), the same way that eGold was "investigated" and shutdown years ago (without charges). That's one of the reasons to why Ripple doesn't pickup valuation (and might never do). But it might be closer to be implemented in real life, since it's better aligned to regulatory requirements and existing processes (and then it might be worth more). For this reason, some Canadian banks are evaluating it - and considering how blockchain is a new delivery mechanism, it makes sense to see it as a new technology that enables the banks to implement something that they can't do today - faster and more secure. That's the same rationale that Visa had job postings seeking for application developers with blockchain and Ethereum experience.

So the approach regarding valuation goes beyond buy and hope. One must understand what blockchain and the crypto-currency at question entails, and the same way that when you buy a stock you're buying the business earnings potential, when you buy a crypto currency you're buying their adoption potential, where when combined to the other factors mentioned above, it builds a reasonable case for higher valuation than today.

Like any investment, temperament and discipline to ignore news and stick to the initial objectives are a must. The same motto from Lynch applies here, "know what you own and why you own it". In the end, because it's very speculative at this stage, it should be a small portion of a well constructed portfolio, made of other asset classes, ideally driven by long term (investment) and short term (trading) gains.


Rod
Everything about my Investing and automated Trading strategies to boost your income: https://boostyourincome.ca
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Shouldn't we just rename this thread to CryptoCurrency?
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Laval
Since Quadriga no longer does interac e-transfer, and I am just a simpleton with Tangerine, what would be the best way to invest for me?
Coinsqaure perhaps?
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clamsoop wrote:
Jul 12th, 2017 6:42 pm
Since Quadriga no longer does interac e-transfer, and I am just a simpleton with Tangerine, what would be the best way to invest for me?
Coinsqaure perhaps?
You don't need interac etransfer. You can use Tangerine free email money transfer.


Rod
Everything about my Investing and automated Trading strategies to boost your income: https://boostyourincome.ca
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clamsoop wrote:
Jul 12th, 2017 6:42 pm
Since Quadriga no longer does interac e-transfer, and I am just a simpleton with Tangerine, what would be the best way to invest for me?
Coinsqaure perhaps?
coinsquare is pretty good and they just revamped their web site. They are a little expensive when compared to Quadriga though
"Talent gets you in the door. Character keeps you in the room."
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Laval
rodbarc wrote:
Jul 12th, 2017 6:54 pm
You don't need interac etransfer. You can use Tangerine free email money transfer.


Rod
Ah, alright, I was thinking that was what was no longer accepted (https://www.quadrigacx.com/account-funding-withdrawal) (thinking email money transfer fit into the e-transfer window somehow, my confusion).

Can anyone confirm email money transfer is still good at Quadriga?

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