Has Anyone Invested in Digital Currency (Bitcoin, etc.)

OneEyedDiva

Well-known Member
Location
New Jersey
There are several out there now Bitcoin (BTC), Litecoin, Ethereum, Monero and others as listed in the linked article. Digital currency also called Altcoins and cryptocurrency are extremely risky but can pay off big time. Bitcoin had a very bumpy history. In Oct 2009, BTC was selling for $5.02 per "coin". By May 2010, someone purchased pizzas with 10,000 BTC valued at only $25. For the early part of 2011, one BTC was selling for less than a dollar. By April 2013 BTC was selling for $181 and dropped again after that. At the end of 2013, one BTC sold for between $872 and $1,022. Along the way there were problems with regulation, hacking of accounts, the perception that it would be used for illegal deals and dealing with the exchanges on which they were sold. In the meantime, BTC began to fluctuate wildly. As of today, the coin is down from it's high in the $20,000 range to $15,973 for one and is being accepted as a respectable means of paying for goods and services by more and more retailers. BTC became publicly traded on the stock market this month. Today it's in the $13,000 to $16,000 range. Wish I had bought at least one when I first heard about it but was leery due to all the issues back then.

A couple of weeks ago, my son called and asked me if I knew anything about Litecoin. I didn't and researched it a bit. We decided to put a little money in Litecoin (LTC), the so called "silver" to Bitcoin's "gold" status. Purchase and selling times is said to be easier and quicker and unlike some coins, we didn't have to use part of a Bitcoin to purchase. For me, since it is so speculative, I invested about 1/2 of 1% of my portfolio worth. LTC started out in 2013 at $3.46 per coin. As of this morning it's $283.07: We are hoping that LTC does a quarter as well as BTC. One can purchase part of a "coin". Mathjack, I'd love to hear your opinion about digital currency as an investment and the growing cryptocurrency market.
http://cryptorials.io/best-cryptocurrency-investments-2018/
 

OneEyedDiva

Well-known Member
Location
New Jersey
People like me never hear about the run up of Bitcoin, gold, tulips, etc... until after the easy money has been made and the players are looking to unload.

I'll stick with my slow and steady approach to investing and maybe a lottery ticket or two.


I don't blame you Aunt Bea...cryptocurrency is not for the faint of heart. And certainly no one should "bet the farm" on them.
 

OneEyedDiva

Well-known Member
Location
New Jersey
I feel the same as Warren Buffet did when asked about investing in derivatives. He stated he wouldn't invest in something he really didn't understand...............

Back when Bitcoin was THEE cryptocurrency, I didn't understand it either. And I certainly feel the way Buffet feels. There wasn't as much out about it as there is now. So that's why I didn't get Bitcoin back then. I would never invest more than 1% of my holdings in cryptocurrency because it's too speculative, even though I'm a long term investor.
 

Lethe200

Senior Member
I'm with Buffett. I never aim for the highest possible return; I prefer diversification and a good balance of risk vs value.

After almost four decades of investing, I think the most important lesson to learn is not when you get into an investment - it's when to get OUT ​of it.
 

mathjak107

Senior Member
most people suck at timing . they do more self inflicted harm than markets do . they are far better served buying broad based funds and staying the course. 30 years as an investor has taught me it is not timing the markets but time in the markets that works well . if you have to worry about timing an exit that is a speculation and not an investment
 

Catlady

Well-known Member
Location
Southern AZ
I am aware this is a very old thread, end of 2017.

So, Diva, do you still own LTC? I see right now it's at $131.63.

I didn't want to buy Bitcoin itself because of the hoops you had to jump through, buying at an exchange like Coinbase, having to worry about leaving it there and hoping the site did not get hacked, or putting it in ''cold storage'' and worrying whether I would lose the ''key''. So, instead, in late 2017 and thereafter I bought shares in GBTC, which is like an ETF but only owns BTC. At one time I had lost 75% of the value of my shares but it's lately starting to recoup the value. I'm hoping to sell half my shares and get my money back and let the other half of my shares run until the end and leave as an inheritance to my family (if it doesn't go to -0- in the meantime).
 

treeguy64

Hari Om, y'all!
Location
Austin, TX.
The more I read up on bitcoin, the more it sounded like a very convoluted scam. Yeah, I know, it now is considered a legitimate currency, of sorts. Cool. Let others "invest" in it. I'll never be a bitcoin user/investor.
 

OneEyedDiva

Well-known Member
Location
New Jersey
I am aware this is a very old thread, end of 2017.

So, Diva, do you still own LTC? I see right now it's at $131.63.

I didn't want to buy Bitcoin itself because of the hoops you had to jump through, buying at an exchange like Coinbase, having to worry about leaving it there and hoping the site did not get hacked, or putting it in ''cold storage'' and worrying whether I would lose the ''key''. So, instead, in late 2017 and thereafter I bought shares in GBTC, which is like an ETF but only owns BTC. At one time I had lost 75% of the value of my shares but it's lately starting to recoup the value. I'm hoping to sell half my shares and get my money back and let the other half of my shares run until the end and leave as an inheritance to my family (if it doesn't go to -0- in the meantime).
Yes I do PVC and it's about 67% lower than when I purchased. But I'm not looking to do anything with it anyway unless it doubles or more, then maybe I'll take it all out. In fact it's in my son's account because I had him make the purchase for me after I had a problem with verification on Coinbase. Right now I'm viewing LTC as just a minute part of my son's inheritance when I "kick it". I couldn't believe the mall near me just installed a machine specifically for Bitcoin trading. Also Facebook is getting into the crypto currency market. It will be called Libra and I have no intention of buying.
 

Trade

Well-known Member
I've got about 1/2 of my savings invested in 6 month federally insured certificates of deposit that are earning a whopping 2.2 %. That's as reckless as I want to get.
 

Lethe200

Senior Member
I lost interest in crypto-currencies after I found out they are being increasingly used to launder criminal profits. Global law enforcement agencies are also worried how easily exchanges can be used for funding terrorist groups.

Currently most losses are caused by theft:

"....In 2018, hackers steal $1.7 billion worth of cryptocurrency, according to a new report from CipherTrace. A separate report, from Chainalysis, this week says $1 billion of that was stolen by just two highly sophisticated groups of criminals. "
- CNBC, Crime plagues cryptocurrencies
 
As someone said, this is an old thread... but I'm bumping it up again. I just started buying in virtual in December, and I intend to continue buying some each month for the next two years or so.... I see so many negative comments here.

I haven't seen anyone in doing taxes that had complaints about their gains... that and I have had to take numerous courses in virtual currency to handle taxes.

The IRS did a remarkable presentation (is was for continuing education for tax preparers) two years ago. It is a long video, but you would understand how it all works.

https://www.irsvideos.gov/Business/Resources/UnderstandingBasicsVirtualCurrency
 

OneEyedDiva

Well-known Member
Location
New Jersey
As someone said, this is an old thread... but I'm bumping it up again. I just started buying in virtual in December, and I intend to continue buying some each month for the next two years or so.... I see so many negative comments here.

I haven't seen anyone in doing taxes that had complaints about their gains... that and I have had to take numerous courses in virtual currency to handle taxes.

The IRS did a remarkable presentation (is was for continuing education for tax preparers) two years ago. It is a long video, but you would understand how it all works.

https://www.irsvideos.gov/Business/Resources/UnderstandingBasicsVirtualCurrency
Just curious Ellen Marie. Which crypto did you buy? Do you plan on continuing to purchase the same one or will you vary your purchases. Litecoin still hasn't gone up to the price I paid for it but it's more than tripled what it was at the end of the 1st quarter last year. I still seriously wish I'd bought a few bitcoins when I first started reading about it!
 
Just curious Ellen Marie. Which crypto did you buy? Do you plan on continuing to purchase the same one or will you vary your purchases. Litecoin still hasn't gone up to the price I paid for it but it's more than tripled what it was at the end of the 1st quarter last year. I still seriously wish I'd bought a few bitcoins when I first started reading about
Litecoin is still a good bet, and I'm buying in.... it forked off Bitcoin. I bought into several, but Litecoin was my favorite when I started looking. I wish I had bought a few hundred coins when bitcoin was 4/$1. lol When I first started looking at virtual, two years ago, there were 1500 coins.... today over 4000. I bought some Ripple before I saw the SEC lawsuit against them. The price plummeted. But, I'm not selling. I have to remember, virtual coins are global. No one cares outside the US that the SEC filed suit against Ripple... they are still buying worldwide. Japan, Australia, and Europe still like Ripple, Americans are bailing out. I'm holding on and adding to, until 2023 when so many of these coins are going to fork.
 
For everyone else, virtual is here to stay and it will continue to make progress in all markets. When the US dollars isn't the world basis, when inflation hits, remember cryptocurrencies.
 

WaskaleeWabbit

New Member
Location
Canada
2017 it went up to 18k and then dropped like a stone for 3 years, apparently there were some big players pumping it up for their own good. Bitcoin is a HUGE PIA to buy stuff with and even to cash out esp in Canada. the only place in Canada that would cash it out was a SCAM and everyone lost all their money when the owner died with the password to everyone's digital currency.
Now that Bitcoin is up again everyone is talking about it again....

I can't easily cash it out to regular currency , i can't buy jack squat with it, But i can buy Greyscale Bitcoin ETF, or Bitcoin fund... which i did last month and it's up 100%.. i can get in and get out and i don't lose my shirt.

i also used to buy litecoin and other altcoins... there's all these secret wallets with 2 stage authenticators and keychains... lose one of those and you lose everything, so NO THANKS !!! not to mention tax implications of doing digital currency trading... you know some people ride the markets and highs and lows of the hype and trade bitcoins for various altcoins and back to bitcoins for profit... like money markets... you are responsible for tracking all your trades and paying all your taxes.
 

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