The Bitcoin (crypto) Beginner's Guide

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SilverDoge
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Re: The Bitcoin (crypto) Beginner's Guide

Postby SilverDoge » Sun Sep 24, 2017

Risk Tolerance and objectives.

Part of this post is copied from my post in a different thread, but it is relevant here:

Before getting into crypto you need to decide what you are trying to do. It seems like an easy question but it really isn't. Some people want to maximize their profits (in dollars, gold, or bitcoin) and exit positions when they deem they gained the most value. Other people want to profit, but also support the crypto community. Others like profits but more so want to release the bankster and government grip on finance and see crypto as the means of doing it. And still others are working on a single project and devote their energy to that one thing and hope it is a success, and they will profit in wealth and happiness after that success. Finally others could see the price of bitcoin crash to $10 for whatever reason (outlawed by all governments simultaneously and the top 3 major exchanges all hacked on same day) and they still wouldn't sell no matter what, on principle.

I find that at times, I am all of these people. But each persona has different goals and different trading strategies that conflict with one another. So unless you are fully in one camp (which may shift over time), I find that it helps to have percentages of funds set aside for your differing strategies/persona. This will allow you to hold a coin like Qtum which has been negatively effected by the China restrictions, without panic selling or stressing out because other coins have appreciated during that same time span. But it also allows you to swing trade coins too (if desired) because you aren't just married to one position or project.

What you don't want to do is stress over your positions while watching other coins moon and feel like you missed out. There are nearly 1,000 different coins. One is going to spike seemingly every day, so you could feel bad about your 20% gain when that other coin went up 200%. Don't fall into that trap. One needs a strong mental game to keep a level head in this space. Stick to your strategy and objectives without letting the markets dictate an emotional trade. And it probably doesn't need to be said (perhaps?) but when the market has a strong dip, that isn't the time to panic if you are bullish on crypto - that is the time to buy!

Here is a sample list of coins based on level of risk tolerance one needs in order to have a position in them (and tolerance in crypto is much higher than average tolerance):

Tolerance : Coin
low : Bitcoin
fairly low : Ethereum
low-ish : NEM, Monero, LTC, Dash
Moderate : NEO, PIVX, EDG, QRL, Stratis, KMD, BAT
high-ish : ARK, Qtum, Waves, WGR, XTZ, EOS
fairly high : HYP
High AF : ICOs

I stole this snapshot from a guy on the DBET slack who posted it as a crypto portfolio breakdown. It is pretty solid. He bases it on market cap size instead of risk, and I can get on board with that as well.
Crypto Folio.png
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SilverDoge
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Re: The Bitcoin (crypto) Beginner's Guide

Postby SilverDoge » Sun Sep 24, 2017

Terminology explained.

We often use the terms smart contracts or APIs when talking about crypto or different crypto projects or interfaces. But what is a smart contract and what is a real life application of such a contract? And how do APIs work? These two videos break it down:



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Bucketeer
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Re: The Bitcoin (crypto) Beginner's Guide

Postby Bucketeer » Mon Oct 02, 2017

Coindesk: Nobody understands Bitcoin, that's ok.

https://www.coindesk.com/nobody-understands-bitcoin-thats-ok/
Gentlemen prefer Engelhard.

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SilverDoge
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Re: The Bitcoin (crypto) Beginner's Guide

Postby SilverDoge » Wed Oct 04, 2017

Bucketeer wrote:Coindesk: Nobody understands Bitcoin, that's ok.

https://www.coindesk.com/nobody-understands-bitcoin-thats-ok/


Nice link. There is an even better one for beginners that is embedded within that article:

https://lopp.net/bitcoin.html

The amount of information out there for those who want to truly go down the rabbit hole is staggering.
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Bucketeer
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Re: The Bitcoin (crypto) Beginner's Guide

Postby Bucketeer » Thu Oct 05, 2017

Udemy is an online source of knowledge and training for very reasonable prices ($10-25 per course). This is the link to the courses they offer in Bitcoin and Crypto-currency trading.

https://www.udemy.com/courses/search/?q=bitcoin%20trading&src=sac&kw=bitcoin

Coinigy offers a very professional technical analysis platform for $15 per month. Smart traders use TA for entry and exit points for a position, in addition to fundamental macro analysis.

https://www.coinigy.com/features/
Gentlemen prefer Engelhard.

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CaptainW
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Re: The Bitcoin (crypto) Beginner's Guide

Postby CaptainW » Fri Oct 06, 2017

Great thread Travis!

So I've just received my Ledger Nano S. But I'm clueless as to how to use it. Has it been discussed somewhere on BS how to transfer from MEW to the Ledger? If not, do you have a good link for me to use as a guide. Can ICO's be downloaded to the Ledger? Or perhaps a better question is, what isn't compatible with the Ledger? Can tokens be put on Ledger from exchanges or just MEW?
A lot of questions as usual. Thanks in advance.

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gramcracker
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Re: The Bitcoin (crypto) Beginner's Guide

Postby gramcracker » Fri Oct 06, 2017

CaptainW wrote:Great thread Travis!

So I've just received my Ledger Nano S. But I'm clueless as to how to use it. Has it been discussed somewhere on BS how to transfer from MEW to the Ledger? If not, do you have a good link for me to use as a guide. Can ICO's be downloaded to the Ledger? Or perhaps a better question is, what isn't compatible with the Ledger? Can tokens be put on Ledger from exchanges or just MEW?
A lot of questions as usual. Thanks in advance.


I hesitate to advise, being a tech dunce, but I did attempt this yesterday to secure EVX tokens on my ledger. Not successful since EVX ICO tokens were still not released. Other tokens supported on MEW can be stored on your ledger nano S. The trick is you need to enable browser support on your ledger. This tutorial helped me. https://www.youtube.com/watch?v=PwWr9RT0nN4 Start at the 9:19 mark.

You must disable browser support to use your ledger normally. While I disabled browser support once done with MEW connection I was only able to return to normal function by disconnecting USB, then reconnecting to use normal ledger apps.

There is additional info available via help/knowledge base on your ledger but I found the tutorial more helpful.
Ledger help article here: https://ledger.zendesk.com/hc/en-us/articles/115005161945

I did use the chrome browser to access my MEW as well. Good luck.
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Silversummit
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Re: The Bitcoin (crypto) Beginner's Guide

Postby Silversummit » Fri Oct 06, 2017

CaptainW wrote:Great thread Travis!

So I've just received my Ledger Nano S. But I'm clueless as to how to use it. Has it been discussed somewhere on BS how to transfer from MEW to the Ledger? If not, do you have a good link for me to use as a guide. Can ICO's be downloaded to the Ledger? Or perhaps a better question is, what isn't compatible with the Ledger? Can tokens be put on Ledger from exchanges or just MEW?
A lot of questions as usual. Thanks in advance.


https://m.youtube.com/watch?v=PwWr9RT0nN4

I found this video pretty useful, hopefully it'll help you out.

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SilverDoge
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Re: The Bitcoin (crypto) Beginner's Guide

Postby SilverDoge » Sun Oct 22, 2017

I often hear the question, what problem does crypto actually solve? Besides the obvious issue of bitcoin giving us a trustless, permissionless, decentralized, international, currency there are many other facets to crypto that are being overlooked by people only focusing on this one feature of blockchain technology. As Andreas likes to say, money is just the first application.

Here is a list of 30 different industries where blockchain technology can present a solution and potentially disrupt industries: https://www.cbinsights.com/research/industries-disrupted-blockchain/

Another question I used to hear was how much bitcoin should a person acquire to start out? I used to say start by getting 1 whole bitcoin (or 1,000 mBits). There will only ever be 21 million and some of that population is already lost forever. By having a whole bitcoin a person could be in a unique position that many around the world will not be able to ever achieve. Unfortunately that might be out of the realm of possible for many now that we are over $5k in USD terms. So my new advice is to try to get at least 100 mBits (0.1 BTC) to start as a goal. Perhaps in another 3 years, that advice will have to change to 10 mBits? ;)
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SilverDoge
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Re: The Bitcoin (crypto) Beginner's Guide

Postby SilverDoge » Sat Nov 18, 2017

Sometimes I will hear the objection that a very small number of people control all the bitcoin. This argument is made because there are a large number of bitcoin wallet addresses with minimal bitcoin balances. But it isn't even a good argument in the first place. Bitcoin is a currency. Anyone can acquire it by offering 1) a good, service, or alternate currency in exchange for bitcoin by someone who has it, 2) trading fiat currency on an exchange, 3) mining it yourself. Can you think of a better way to have or distribute a free and voluntary currency?

A better question might be, if you were inventing a currency from scratch, how would you initially distribute it as fair as possible? If the answer is to simply give every citizen an equal amount, then that currency would fail - unless of course you are mandating its use by force (government). People need to value it by giving something up in order to get it. We know this is true from a human nature perspective, we value things we've earned with our time, money, intelligence, and work. So the large holders are the people who saw something that might have value one day if it garnered any sort of mainstream adoption. They took their goods, services, fiat currency, or computer mining power and put their "money where their mouth was" at a high risk and opportunity cost. By the way, gold works similarly here. I can go choose to personally mine it if I want too, but good luck with that.

All that being said, what is this "terrible" distribution of bitcoin that we hear about? See the link here, or the picture below: https://bitinfocharts.com/top-100-richest-bitcoin-addresses.html
So what can we make of this? Over 50% of bitcoin is stored in wallet sizes between 1 - 1,000 BTC, with the largest group between 10-100 BTC at 26%. Now, is it possible that 10 rich guys are simply breaking up all their wallet addresses to be smaller sized? Sure. We can't know (which is good). The bitcoin haters always point to the number of addresses between 0 - .001 BTC. So what. You know what it costs to create a wallet and store zero bitcoin in it? Nothing. Anyone can do it. Somebody could create 10,000 wallet addresses, and it proves nothing. You need to look at where the actual coins exist, not at the addresses. And it is of note that almost 12% of bitcoin is held in wallets of 10 BTC or less. Considering how new bitcoin is, and how adoption is nowhere near fully mainstream, I would call that fairly decent. Especially if you were trying to compare it to the USD, where the distribution is probably more in the hands of the richest 1%. Just over 3 million BTC are held in wallets over 10,000 BTC in size. That is under 20%.

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