Bitcoin and Cryptocurrency Thread

[inori]

IOTA made some nice profits....

 

[Olorun22]

62 milly gone

What are you talking about it?

https://techcrunch.com/2017/12/06/nicehash-hack/?ncid=mobilenavtrend

 

[Cinco]

Upping. I sold some ETH and bought IOTA today

 

[black caesar]

The bitcoin is growing. I've made more off of it than stocks this year, but I'm still waiting for the bubble so I can short it.

 

[D. Morgan]

man i want to get in on this..but not sure where to start.. put me on game

Coinbase if you talking about bitcoin.

 

[D. Morgan]

The bitcoin is growing. I've made more off of it than stocks this year, but I'm still waiting for the bubble so I can short it.

Mind explaining what shorting a stock is and how its beneficial? In laymens terms if you can.

 

[black caesar]

The bitcoin is growing. I've made more off of it than stocks this year, but I'm still waiting for the bubble so I can short it.

Mind explaining what shorting a stock is and how its beneficial? In laymens terms if you can.

I got you fam.

Shorting a stock is basically when an investor borrows shares that he or she doesn't own and immediately sells them, hoping he or she can scoop them up later at a lower price, return them to the lender and pocket the difference.

Example: You believe the stock price of ABC is grossly overvalued and is going to crash sometime soon. You are so convinced of this, you decide you want to borrow those 10 shares and sell them with the hope that you can later repurchase them at a lower price, returning them to me, and pocketing the difference. Think of it like getting co-signment from a drug dealer. He fronts you $500 worth a drugs. You need to set your price point so that not only you can pay the $500 back, but have something for yourself.

Keep in mind if you borrow, and the stocks/shares doesn't fall in price, you will owe money to the brokerage firm. (The place where your trading account was created.) So if you borrowed against the stock and the price keeps rising, you're in trouble. This is why it's important to place stop loss orders. This means when the stock/share gets to a certain price point, the share gets sold.This can be used to minimize loss in the share.

 

[D. Morgan]

The bitcoin is growing. I've made more off of it than stocks this year, but I'm still waiting for the bubble so I can short it.

Mind explaining what shorting a stock is and how its beneficial? In laymens terms if you can.

I got you fam.

Shorting a stock is basically when an investor borrows shares that he or she doesn't own and immediately sells them, hoping he or she can scoop them up later at a lower price, return them to the lender and pocket the difference.

Example: You believe the stock price of ABC is grossly overvalued and is going to crash sometime soon. You are so convinced of this, you decide you want to borrow those 10 shares and sell them with the hope that you can later repurchase them at a lower price, returning them to me, and pocketing the difference. Think of it like getting co-signment from a drug dealer. He fronts you $500 worth a drugs. You need to set your price point so that not only you can pay the $500 back, but have something for yourself.

Keep in mind if you borrow, and the stocks/shares doesn't fall in price, you will owe money to the brokerage firm. (The place where your trading account was created.) So if you borrowed against the stock and the price keeps rising, you're in trouble. This is why it's important to place stop loss orders. This means when the stock/share gets to a certain price point, the share gets sold.This can be used to minimize loss in the share.

I really appreciate that info!!!

 

[Fosheezy]

Alright I had enough what’s the safest exchange to use to buy some bitcoin and what would be a good entry at this point it keep going up so much it almost feel like getting in now wouldn’t just be a guessing game.

 

[black caesar]

Here's an article about shorting Bitcoin:
https://coincentral.com/short-bitcoin/

Can you short Bitcoin?

Yes. Although not as prevalent as buying, there are a few different ways you can short Bitcoin:

Shorting Bitcoin on an exchange

Shorting Bitcoin CFDs

Bitcoin futures market

Shorting Bitcoin on an exchange

If you already have experience trading cryptocurrency, the most natural way for you to short Bitcoin is on a cryptocurrency exchange. Many of the major exchange such as GDAX and Kraken give you the option to short the coins on their platform.

Bitfinex and some other exchanges also have leverage trading. You can leverage your Bitcoin short (up to 5x on some exchanges) if you’re feeling particularly confident or risky.

Shorting Bitcoin CFDs

A CFD (Contract for Difference) is a contract between two parties that speculates on the price of an underlying asset – in this case, Bitcoin. These investment derivatives allow you to “bet” on the price of Bitcoin without having to actually purchase it.

Not all CFD platforms have Bitcoin shorting options. If this method seems well suited for you, you may want to check out AvaTrade, one of the most popular Bitcoin CFD websites.

Bitcoin futures market

Similar to a Bitcoin CFD, you can also short Bitcoin through a futures trade. To short Bitcoin with this method you need to sell a future contract for Bitcoin at a price that’s lower than it is currently.

Until recently, there weren’t many reputable trading platforms you could do this through. However, the Chicago Mercantile Exchange (CME), Nasdaq, and most recently CBOE all announced that they’re opening up Bitcoin futures trading early this December.

Is shorting Bitcoin risky?

Yes. When you buy “long” on an asset, the maximum amount that you can lose is what you’ve invested because an asset can’t be worth less than $0.

When you short an asset, you can lose all your money if the asset continues to rise.

With Bitcoin sometimes doubling in price before any significant pullback, shorting it could be a risky endeavor. That being said, there’s plenty of people who’ve made a significant amount of money through short selling and making investments that seem to go against the grain.

 

[black caesar]

The bitcoin is growing. I've made more off of it than stocks this year, but I'm still waiting for the bubble so I can short it.

Mind explaining what shorting a stock is and how its beneficial? In laymens terms if you can.

I got you fam.

Shorting a stock is basically when an investor borrows shares that he or she doesn't own and immediately sells them, hoping he or she can scoop them up later at a lower price, return them to the lender and pocket the difference.

Example: You believe the stock price of ABC is grossly overvalued and is going to crash sometime soon. You are so convinced of this, you decide you want to borrow those 10 shares and sell them with the hope that you can later repurchase them at a lower price, returning them to me, and pocketing the difference. Think of it like getting co-signment from a drug dealer. He fronts you $500 worth a drugs. You need to set your price point so that not only you can pay the $500 back, but have something for yourself.

Keep in mind if you borrow, and the stocks/shares doesn't fall in price, you will owe money to the brokerage firm. (The place where your trading account was created.) So if you borrowed against the stock and the price keeps rising, you're in trouble. This is why it's important to place stop loss orders. This means when the stock/share gets to a certain price point, the share gets sold.This can be used to minimize loss in the share.

I really appreciate that info!!!

No problem. Just keep in mind that it's risky.

 

[Olorun22]

Alright I had enough what’s the safest exchange to use to buy some bitcoin and what would be a good entry at this point it keep going up so much it almost feel like getting in now wouldn’t just be a guessing game.

coinbase

 

[LUClEN]

be careful with coinbase. I have no persnal experience with them

but the rumour mill informs me that they send info to IRS

Be careful with this tax shit

iirc these technically count as capital earnings

 

[inori]

be careful with coinbase. I have no persnal experience with them

but the rumour mill informs me that they send info to IRS

Be careful with this tax shit

iirc these technically count as capital earnings

Word, that's exactly why I posed this question on the last page. With peoples interest in crypto gaining more traction and popularity.. the IRS is gonna want their cut for sure

Any of yall familiar with how the US taxes profits made on cryptocurrencies? I know it's a bit grey and nothing really solidified at the moment but I wanna make sure i'm covered if and when I decide to cash out.

Started messing with crypto earlier this year... gonna hold what I have for at least a year and revisit the situation after that.

 

[LUClEN]

I know local bitcoins is a pretty anonymous way to unload btc. Friend of mine has used it. Meet up w/ buyer at a mcdonalds, grab a coffee, they shoot you the cash, you finalize the transaction from mobile, then you go your separate ways.

 

[black caesar]

be careful with coinbase. I have no persnal experience with them

but the rumour mill informs me that they send info to IRS

Be careful with this tax shit

iirc these technically count as capital earnings

Always set money aside to pay taxes.

For all of ya'll this ain't no hustle. Pay your taxes.

 

[Fosheezy]

I don’t mind paying tax bill personally, but let’s be real there’s a bunch of stuff I don’t pay taxes on and I’m cool with that too

 

[D. Morgan]

The bitcoin is growing. I've made more off of it than stocks this year, but I'm still waiting for the bubble so I can short it.

Mind explaining what shorting a stock is and how its beneficial? In laymens terms if you can.

I got you fam.

Shorting a stock is basically when an investor borrows shares that he or she doesn't own and immediately sells them, hoping he or she can scoop them up later at a lower price, return them to the lender and pocket the difference.

Example: You believe the stock price of ABC is grossly overvalued and is going to crash sometime soon. You are so convinced of this, you decide you want to borrow those 10 shares and sell them with the hope that you can later repurchase them at a lower price, returning them to me, and pocketing the difference. Think of it like getting co-signment from a drug dealer. He fronts you $500 worth a drugs. You need to set your price point so that not only you can pay the $500 back, but have something for yourself.

Keep in mind if you borrow, and the stocks/shares doesn't fall in price, you will owe money to the brokerage firm. (The place where your trading account was created.) So if you borrowed against the stock and the price keeps rising, you're in trouble. This is why it's important to place stop loss orders. This means when the stock/share gets to a certain price point, the share gets sold.This can be used to minimize loss in the share.

I really appreciate that info!!!

No problem. Just keep in mind that it's risky.

Most definitely will. Not trying that for a while. I just reached finally owning stock for a year this month. So I'm still a novice when it comes to this arena of dealing with money.

I'm just chasing knowledge and info about while at the same time shooting my shot at different investments.

 

[Cinco]

Bought 13 LiteCoin in November for $1k

 

[inori]

Bought 13 LiteCoin in November for $1k

Respect.. but I wouldn't go around telling folks how much you have.. just from a security standpoint