BizWarriors Forum Is a Free Entrepreneur, Business and Start Up Forum

Connect With Other Entrepreneurs Online Today!
Dismiss Notice
Welcome to Our Community
Wanting to join the rest of our members? Feel free to sign up today.

Crypto currencies

Discussion in 'Investments' started by jona, Apr 8, 2016.

Share This Page

  1. jona

    jona Entrepreneur

    140
    59
    28
    I would like to hear some expert's opinions about buying bitcoin or similar crypto currencies as an investment. I know that mining, at least on a personal level, is dead, even if you go out and buy specialized hardware you will never get the cost back so the reasonable thing to do appears to buy the the coins directly.

    What used to be relegated to some dark corner of the internet now appears to be a very mainstream alternative to other forms of investing.

    I would also love to hear stories about business that started accepting bitcoins as payment.
     

  2. briannagodess

    briannagodess Entrepreneur

    188
    52
    28
    Hmmm... For me, buying bitcoins for investment purposes have its own risks. But to highlight why we should invest in bitcoins, here are some reasons:
    • BitPay provided a graph showing that business transactions using bitcoins went nowhere but UP during the last few years. From 2011 to 2015, you can see that it has the highest business transactions when it comes to bitcoins.
    • It's more secure and has the largest market capitalisation as compared to other cryptocurrencies.
    • Investors are seeing the potential of bitcoins and investing it in various stocks.
    For me, if I have the means and the money to do so, I'd invest in bitcoins. Of course, they are unregulated and they do fluctuate so often. But regardless, we cannot avoid the fact that they have risen from nothing to what they are now. Some even say that at this rate, bitcoins might overtake gold on its value simply because it has so many uses. We'll see though in time if that can really happen.

     
  3. Nikita

    Nikita Entrepreneur

    75
    17
    8
    I've been following the story of Bitcoin very early on in its life though I never really expected it to become as big as it is now, to be completely honest. I don't think it can replace traditional forms of completely because of the delay in each transaction, but it does serve as a good option to have and I do believe it is good enough as a backup at the very least. As an investment, I think it is somewhat a bit more stable now so it would probably be safer currently than in the past to put a good amount of money in, but just be sure to be vigilant in keeping your coins where you know you could access it and sell it easily as an exit plan for when you might need to, as the biggest exchange site has already closed down and took a lot of members' coins down with them in the process so it should be a lesson learned for everyone still involved.
     
  4. jona

    jona Entrepreneur

    140
    59
    28
    I see, I was thinking about the lines of investing some minuscule amounts of pocket money since some places allow you purchase for as low 25$ worth of coins or less, granted, it is like 0.00003 or something but since November 2015 the price of bitcoin had such an insane spike that it makes the thing look very attractive. Of course, the rule of thumb is to never invest more than you can afford to lose, but yet again I wonder if buying 100$ worth of something is even considered an investment at all.
     
  5. Biju

    Biju Entrepreneur

    41
    17
    8
    Really early on I bought 5 BTC for $30 each. Not too long after that their worth jumped to $400 and dropped to $250. I sold each one for around $250 and shortly after that it jumped to $1,000 per BTC for a period of time. I was so irritated that I sold at $250 and that is when I realized bitcoin is no better than the stock market. It's a complete gamble.
     
  6. Alaine

    Alaine Entrepreneur

    53
    13
    8
    Owing to the fact that their value is very volatile cryptocurrencies aren't a good investment. There are many people who lost money when they bought bitcoin when it's value was at $500. It's value dropped soon after. It will take a really long time before it climbs up to $500 but even then there's a possibility it could drop again. As there are no guarantees you can make money from bitcoin it's better IMHO to invest your money in something else that will actually make you some money.
     
  7. Biju

    Biju Entrepreneur

    41
    17
    8
    Trading Bitcoin is the only way to make any real profits with bitcoin. However, with that said, that method of currency trading is pain stakingly slow before you see any real profits. Not to mention you carry a lot of risks with it. Banks & other platforms like paypal are quick to side with the buyer in terms of chargebacks and could cause the seller a lot of trouble. It is not a viable business plan.
     
  8. jona

    jona Entrepreneur

    140
    59
    28
    No, I know this, if you want to make a living out of this the investment has to be huge and the risk of losing it all is way too much. I don't even know if you could consider investing in the traditional stock market a business plan, it is kind of a gamble if you decide to do it by yourself.

    I was thinking more around the lines of diversifying my investments just like it is a good idea to have some savings on a different currency like Euros.

    Remember, until not so long ago, everybody was ready to tell you that real state was sensible investment, and then 2008 came.
     
  9. jona

    jona Entrepreneur

    140
    59
    28
    This is ignored by most people, but initialy Apple had a third co founder. The guy's name is Ronald Wayne. He owned 10% of the company but decided to bail out for about 800$. That 10% is worth about 35 billion dollars now. A few years later the guy sold the original contract signed by Jobs and Wozniak about his involvement in Apple for 500$, that same contract was auctioned about 30 years later for almost 2 million dollars. So, there is that, don't feel bad if you failed to sell some bitcoins :)
     
  10. Biju

    Biju Entrepreneur

    41
    17
    8
    Did you see that on Reddit? I know I did! hehe! As for diversifying money, yes. You don't want all your eggs in one basket.
     
  11. jona

    jona Entrepreneur

    140
    59
    28
    No, I read it on the amazing Walter Isaacson biography of Steve Jobs, I am not a big fan of Jobs but that was one amazing book specially since this guy Isaacson really knows how to write. It is a fascinating piece of history that any entrepreneur should read regardless of how much they like or dislike Jobs or Apple. I can't recommend that book enough, I urge everybody interesting in forming a company to read it.
     
  12. CheckTheNumbers

    CheckTheNumbers Entrepreneur

    38
    9
    8
    Bitcoin and crypto is a dangerous game for people that don't understand it. If you haven't got a strong grasp, steer clear or it will always feel like you're losing. It is painfully easy to profit off of bitcoin investments but you need to be about it, can't just put 1 foot in the water or you're better off elsewhere.
     
  13. Danem

    Danem Entrepreneur

    6
    4
    1
    This. Every day I read articles and posts about the newest crypto-currency, and people getting hyped up about them. It's exciting because, well, it's still something relatively new and everyone's still in love with how bitcoin shot up.

    As with anything, you need to research and read about what you're going into before making any investment. It's too bad people are just jumping in uninformed with crypto-currencies. Unfortunately some people read success stories of crypto-currencies and think they can recreate the whole thing easily without too much effort.
     
  14. Biju

    Biju Entrepreneur

    41
    17
    8
    Ah, that makes sense. That exact piece of information was on the front page of Reddit the other day. Hence, why I asked. Guess it was just a coincidence!
     
  15. 111kg

    111kg Entrepreneur

    164
    58
    28
    I just started trading Bitcoin on the forex market and after a while, I can assure your that Bitcoin trading is way more difficult than the other popular currencies, mainly because it tends to not repect any of the trading patterns. At this point, I wouldn't consider investing large amounts of money, but I would watch for the drops and then buy a couple of BTCs.
     
  16. Biju

    Biju Entrepreneur

    41
    17
    8
    Yep. You need to be able to trade in large volumes and move your BTC inventory quickly. Keeping BTC around as a long term investment with lots of money is going to end poorly.
     
  17. setupdisc

    setupdisc Moderator Entrepreneur

    294
    79
    28
    Initially, the bitcoin bubble for profiting off of mining (and a few years later investing) were between 2010 to 2014. You can still make money from it, but you would have to wager a lot and watch BTC-E and other trading markets like a hawk to do it now. If you're in the US, your best way of obtaining and selling bitcoin is going to be through Coinbase. It isn't slow if you are able to link a credit card to it - it is instant and in your account within minutes to seconds because they're able to front you the amount if you secure it with a credit card. If you're using something else of a third party provider or just have a bank account with no other way to protect their investment to you to make bitcoin transfers instant, you'd have to wait a day still. If you're transfering money to or from the investment markets, it takes about an hour to update everything on the blockchain. Normally they can front about $1,000 of bitcoin to you. It would still come out of your bank account instead of your credit card, but it would have the bitcoin instantly while the transfer request to debit your bank account would still take the usual few days. They don't charge your credit card at all unless there are insufficient funds in your bank account to make the purchase after those few days. If there is, they'll charge up to the amount that you requested on your card which must first be verified with them so they know it will go through. They're good and legitimate and have been around for almost a decade now, but they are in business and don't want to lose $500 or $1,000 on a user trying to get free bitcoin, so if a person wants it faster and right away, that's how they make it possible and protect themselves at the same time.

    While bitcoin itself can move quickly, other alternative coins based on the bitcoin design and a blockchain of its own like Litecoin, Darkcoin, Peercoin, and others which are not yet center stage can still be benefitted from. The complexity of finding new coins for them with minings isn't as high as it is with bitcoin, so you don't have to subdivide the portions of what can be found between pools or fractions for new discoveries that add to the financial pool of BTC. Those alternatives coins do not move that much either compared to bitcoin, but are easy to track and watch for changes if you want to sit on something for a while and only sell when it moves. Another great exchange besides BTC-E is Kraken, which like BTC-E, covers all different types of cryptocurrencies and gives you free wallets for each of them with the exchange. You can easily convert your bitcoin into other currencies right on the exchange itself after transferring in, and then convert it back to bitcoin for easy transfer to your own personal wallet be it on coinbase, coinhaku if in asia, or anywhere else.

    In the US, the IRS tries to claim ownership over bitcoin as property if they are made aware of it, if it's of a substantial amount, and if it is held past a certain period of time as a type of property rather than a form of currency or currency exchange. There are no other fees associated with it except low trading fees on the exchange, and less than 1% when sending to or from your bank account with a company like Coinbase. You can avoid that fee completely if you just want to manage your own bitcoin wallet or server externally, and then transfer your bitcoin to a visa card through Shift-Visa or another means to where you can use it electronically or transfer it to another currency later for online or offline use. You can also keep it in cold-storage, just like cash, and if the value on it goes up, you can make money just off of the arbitrage by reintroducing it once again to the blockchain. Some people have made money that way. I did unintentionally not realizing I still had $10 left on a bitcoin wallet I exported from an old server years ago. When I reintroduced it to the blockchain and added it back to a new server, the value of the bitcoin had gone up to twice as much, and I had nearly doubled it with $20 I could withdraw to Coinbase, and then to my bank account. So just putting that on a flash drive and then adding it back made me $10 by rediscovering it at the right time again. :)

    There's several different ways to make money with Bitcoin. Another way beyond the traditional mining or investing approach is to be able to become the intermediary for businesses wanting or needing someone who can process bitcoin for them. If you learn it well and get the system down for both transaction process and protection, then you can give them a way to do local and online bitcoin transactions that normally wouldn't be possible unless they paid a high price for it. If you can do it for them but provide it for less than the large financial companies do and with more features, then you'll be able to have their business, make money from that, and save them money in the process if they are a small or medium business trying to get in on the action. You can extend their ability to do business in that currency or internationally while not having to be railroaded by corporations who charge entirely too much for the same that you could do for them instead. So there is that, too.

    Yet another way to make money from it is to provide a service to where you are able to exchange bitcoin for cash as long as you can verify it, and then find a buyer or seller for it to pair it to. There are many people who use bitcoin that do not always have access to a bank account or even to a paypal account, but they have to pay steep fees to get it converted, or have to wait for a while to find someone to buy it from them if they are doing it through a site called localbitcoins. If you provide them with a better alternative for faster pay and immediate conversion after you verify that it is good, you can become a type of broker for it. As long as you can watch and make sure that the percentage of change up or down is always covered by your fees to convert it, you'll always be able to make money at this if you are able to sell as quickly as you buy it from someone else, while using your advantages of having access to paypal, bank accounts, credit, or other things that people possessing bitcoin and are willing to sell to you may not have but will need you for in business.

    If you have a way to convert bitcoin directly to a type of check card, that would be huge too. That is actually something I am looking for myself, and at the moment the only thing I've found was Shift Visa which is good, but I would like something more advanced with plenty of locations as an alternative like Capital One, Chase Liquid (good at all Chase locations), or Bank of America ATMs. If it were that universal and without the high fees of Shift, you'd make a fortune on that alone.

    Beyond arbitrage and investing, there's at least a dozen more ways to make money from bitcoin and other cryptocurrencies that are still emerging. Heck, even dogecoin is now worth millions as an alternative coin and intially started out just as a fun poke at bitcoin itself! You can do a lot with all of this, be it bitcoin or anything else you want to get into, as long as you're willing to do the research further and put in the work for it. When I was doing it, I did, and it paid off well. You still can, but you have to be flexible and adaptive to where it is now. Where it is now is not where it was 5 years ago, or even a year ago. If you want to make money with it, you have to see what is going on with it and what the next step is with it for where it is going. Be aboard that train if you're looking to make money with it. :) Check out coindesk and preev to know where bitcoin is at, but don't neglect litecoin or the others because they may present you with an opportunity when you least expect it to and be where the money is that you're seeking today.
     
    T J Tutor likes this.

Share This Page

Loading...
Similar Threads - Crypto currencies Forum Date
Cryptocurrency Experience? Investments Nov 11, 2015
Cryptocurrency Experience Investments Oct 9, 2014