Bitcoin/alts - do not leave on exchange.

24

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  • short_butt_sweet
    short_butt_sweet Posts: 333 Forumite
    markj113 wrote: »
    Part of crypto is complete control of your money, the benefits being you can spend as little or much as you wish without having to jump through hoops for the bank to transfer or withdraw any substantial sum.

    Flip side is you need to take security seriously and take responsibility.

    Long complex passwords not used across the web on numerous sites, 2FA enabled on all exchanges and a hardware wallet adds peace of mind for not a lot of money these days (have the nano ledger S myself)
    i see. the advantage of crypto is that you don't have to "jump through hoops" (follow standard procedures for bank transfers). except that you do have to jump through hoops (follow best practices for using crypto relatively safely).

    OTOH, a disadvantage of crypto is that if you are careful, but still get robbed, nobody will bail you out. whereas in the same situation with traditional banking, you almost certainly will get bailed out.

    "taking responsibility" is of course very empowering. so that clearly outweighs using crypto being far less safe than traditional banking.
    Also it goes without saying avoid the bitcoin doubler, get rich quick schemes and only participate in ICO's after some due dilligence and research.
    due diligence ... IMHO, when you're told you should do your diligence, you should instead run away, fast.

    most of us have no idea how to do DD properly. and are likely to over-estimate our own abilities to do it, as incompetent people generally do (a known psychological bias - i forget the term for it).
  • markj113
    markj113 Posts: 256 Forumite
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    I dont think there have been any cases of people using hardware wallets e.g. nano ledger or Trezor getting robbed. Technology is soon to address the weak link, exchanges where you can use a decentralised exchange utilising atomic swaps so you never lose control over your private keys (e.g. barterdex)



    Banks dont always bail you out, do something stupid and your not covered then you have bank bail ins such as the Cyprus example.


    You may have to jump through some hoops intially to get crypto up and running securely but you dont have to travel to an ever further bank branch as they keep closing them with a hand full of I.D to make a transaction.
  • coyrls
    coyrls Posts: 2,432 Forumite
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    markj113 wrote: »
    You may have to jump through some hoops intially to get crypto up and running securely but you dont have to travel to an ever further bank branch as they keep closing them with a hand full of I.D to make a transaction.
    What transaction? What can you actually buy with Bitcoin? I don't need to travel to a bank with a handful of ID to buy a loaf of bread for example.
  • Type_45
    Type_45 Posts: 1,723 Forumite
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    You can buy other coins with bitcoin.
  • markj113
    markj113 Posts: 256 Forumite
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    edited 8 November 2018 at 9:15AM
    coyrls wrote: »
    What transaction? What can you actually buy with Bitcoin? I don't need to travel to a bank with a handful of ID to buy a loaf of bread for example.

    You can use a mastercard linked your bitcoin holdings and spend them anywhere you like.

    I have had several issues making payments with online banking as the amount exceeded the limit, after a call to the bank they also couldnt do it over the phone and I had to go to a branch. I have a also had an issue where I gave 1 week notice to withdraw a sum of money, went to the branch with all the required I.Q and they still refused to give me my money and would only bank transfer it to the recipient. They seem to forget who's money they are holding.


    Type_45 wrote: »
    You can buy other coins with bitcoin.

    Another quote from an "expert" that has little to no knowledge on the subject and just regurgates what others have written previously.
  • Type_45
    Type_45 Posts: 1,723 Forumite
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    markj113 wrote: »



    Another quote from an "expert" that has little to no knowledge on the subject and just regurgates what others have written previously.


    'coyrls' asked what can be bought with Bitcoin. I answered their question. Bitcoin is the USD of crypto and is used to purchase other coins.


    I've been trading crypto for a year and know the process of buying Alt coins using Bitcoin. I don't need to regurgitate this fact from others as I have some experience.
  • markj113
    markj113 Posts: 256 Forumite
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    Apologies, I misread your comment.


    when coryls asked what can you buy with bitcoin and you answered "other coins" I read it that bitcoin can not be used to make purchases in the real world and can only be used to buy other crypto.
  • TomPucci85
    TomPucci85 Posts: 56 Forumite
    Bitcoin is being used fo a lot more than just other coins. Adoption is happening slowly, and I'm confident it'll be more predominant in a decade or so

    I've spent crypto at some stores in London, and donated it to charity personally. Plus just newly announced, by luxury watch brand Hublot is a new watch that can only be exclusively bought with Bitcoin - https://www.engadget.com/2018/11/07/hublot-bitcoin-watch

    I know it's not the most conventional of items, but it goes to show progress is being made in accepting it more widely
  • Type_45
    Type_45 Posts: 1,723 Forumite
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    My personal take is that most of the coins will fail, and a few will succeed. The challenge/gamble/guesswork therefore, is to happen to be holding a bunch of the coin which takes off. Similar to how people who bought 10+ Bitcoin for pennies back in the day found they were sitting on a fortune when the price of Bitcoin went up to $20K last year.


    I have some of the following: Bitcoin, Bitcoin Cash, Ethereum, Ethereum Classic, XRP, Strat, DGB, RCN.




    But if you ask 100 traders which coins they recommend you will get 100 different answers.
  • Malthusian
    Malthusian Posts: 10,936 Forumite
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    markj113 wrote: »
    You can use a mastercard linked your bitcoin holdings and spend them anywhere you like.

    In other words you can't spend your Bitcoin. You can pay Mastercard or a linked processor to convert your bitcoins into fiat, then spend your fiat.
    Type_45 wrote:
    Plus just newly announced, by luxury watch brand Hublot is a new watch that can only be exclusively bought with Bitcoin

    As the article says, the Hublot watch cannot be bought with Bitcoin or with anything else. They only made 210 and those 210 are already sold out. Having done their job of securing Hublot some cheap publicity.

    Bitcoin has been around for ten years and when you ask what you can buy with it outside Silk Road (actually buy with Bitcoin, not with fiat that you have converted Bitcoin into for a fee), you're told you could buy a limited edition watch for $25,000, except you can't because it's already sold out. Desperate.

    Why do you think Hublot have now stopped accepting Bitcoins? Why have they gone back to accepting boring old worthless fiat in exchange for their watches, when they could carry on accepting Bitcoins and watch them rocket in value?
    Similar to how people who bought 10+ Bitcoin for pennies back in the day found they were sitting on a fortune when the price of Bitcoin went up to $20K last year.
    Virtually nobody bought Bitcoin for pennies. That's why they were trading at pennies.

    There are more people who claim they bought Bitcoins for pennies than there were actual Bitcoins in existence at the time.
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