Crypto and Your 2c Understanding of It (1 Viewer)

[Life'sHard]

Can someone run me through how different coins vary and what makes them differentiate from others.

 

[jimmysmith560]

I think that with cryptocurrency, one of the biggest differences is the value of each. They range from the most expensive one being Bitcoin (around $51000 as of today) to cheap ones like Reserve Rights (about 4 cents). Different people view prices differently and may buy different coins according to a particular strategy which they believe will allow them to capitalise on a particular opportunity.

 

[Life'sHard]

What differentiates them from others? For the ASX sharemarkets, different companies have different business operations and hence differentiates them from other sectors. Is this similar to crypto?

 

[jimmysmith560]

What differentiates them from others? For the ASX sharemarkets, different companies have different business operations and hence differentiates them from other sectors. Is this similar to crypto?

Are you asking in terms of an HSC subject or just in general?

I don't think differences relating to industry/sector exist with cryptocurrency. For example, if you're purchasing a digital currency, the differences between the specific one you purchased and another one would mainly be its value and growth projections (if any) as well as relevant trends. Cryptocurrency can be used to complete transactions as well as for investment/trade purposes. Digital currencies don't conduct business operations like a regular business entity does.

 

[dighead]

The coins are highly correlated with BTC in price. If BTC tanks, the general market tanks. If BTC pumps, the general market pumps.

Crypto is essentially just speculation and gambling. I wouldn't recommend looking at real world use cases of the coins since there's virtually zero use cases of the coins: 99.9% of the trading volume and the price is based on speculation rather than utility. As a result, the prices are completely detached from reality. For example, Dogecoin has a market cap of $54B, which is bigger than the market cap of Ford. Unlike the stock market, there are no fundamentals in the price of crypto.

This means that the price of crypto can be predicted to some degree as the market is heavily trend-dependent. I trade crypto, but I acknowledge that there's no utility, and I'm fairly certain that one day, this bubble will collapse like no other asset class in history. However, until that time, I do believe there's money to be made. If you get into crypto, my advice is to treat it as gambling, and not to buy coins because of their technology. Regardless of their technology is good or not, it does not justify their insane valuations. Get in, make some money, and get out. Don't hodl a coin just because those prepubescent folks on crypto subreddit told you to do so. Don't believe people when they say they're in it for the tech. They're delusional: everyone's in it for the money.

My advice on picking coins: Wear a blindfold and throw some darts at a board. That'll be as good as, if not better than, basing your decisions on the utility of the coins. I generally just trade with bitcoin. I'm trading with leverage, and the other coins don't have enough liquidity for my liking. However, if you want astronomical gains and monumental risk, then the shittier the coin, the better.

 

[Life'sHard]

The coins are highly correlated with BTC in price. If BTC tanks, the general market tanks. If BTC pumps, the general market pumps.

Crypto is essentially just speculation and gambling. I wouldn't recommend looking at real world use cases of the coins since there's virtually zero use cases of the coins: 99.9% of the trading volume and the price is based on speculation rather than utility. As a result, the prices are completely detached from reality. For example, Dogecoin has a market cap of $54B, which is bigger than the market cap of Ford. Unlike the stock market, there are no fundamentals in the price of crypto.

This means that the price of crypto can be predicted to some degree as the market is heavily trend-dependent. I trade crypto, but I acknowledge that there's no utility, and I'm fairly certain that one day, this bubble will collapse like no other asset class in history. However, until that time, I do believe there's money to be made. If you get into crypto, my advice is to treat it as gambling, and not to buy coins because of their technology. Regardless of their technology is good or not, it does not justify their insane valuations. Get in, make some money, and get out. Don't hodl a coin just because those prepubescent folks on crypto subreddit told you to do so. Don't believe people when they say they're in it for the tech. They're delusional: everyone's in it for the money.

I intend to do so hahaha. The money making part. Just seen a lot of my mates get into it and I just want to know what I'm getting my self into if I do enter.

 

[Life'sHard]

So why even trade these coins? Why do they even exist? If not for the money making part, what's the point.

 

[dighead]

I intend to do so hahaha. The money making part. Just seen a lot of my mates get into it and I just want to know what I'm getting my self into if I do enter.

Yeh, though we've probably just finished a bull market. You might've seen your friends make money during a bull market, and its hard to not FOMO in. Keep in mind that everyone acts like a genius and a financial advisor during a bull market, so take everything they say with a grain of salt. You could pick any coin in the last year and you would've made money. I would personally wait until BTC does a bigger correction.

For transparency, I don't directly trade crypto. I have a trading bot that does it for me. Takes all the emotion out of it, which to me is super important. Greed and fear are the biggest killers in this space.

 

[dighead]

So why even trade these coins? Why do they even exist? If not for the money making part, what's the point.

I can see applications for some coins out there. The technology behind some of them are pretty solid. However, whether they actually solve any problems remains to be seen: most coins seem to be a solution in search of a problem. Regardless, even if they did have a use case, no coin in existence can possibly justify their insane valuations. As a result, when you buy a coin, just buy because you're gambling that it'll go up, not because the tech is good. The mentality of the crypto space is based on the greater fool theory: you're just betting that someone is willing to buy it off you in the future at a higher price.

 

[Life'sHard]

I see articles like "This currency plants trees" or "This currency helps fishes". Is this bs lol?

 

[dighead]

I was planning on entering the share market but the paperwork seems a little heavy, so may enter after year 12. Crypto just seems more accessible so that's why im looking into it.

Yeh I agree, and it's also why I first got into the space. Almost no barrier to entry, and fairly straightforward to learn.

 

[Life'sHard]

Right now all I'm getting from crypto is pump and dump lol. Invest. Get your money. And dip out before it tanks. Rinse and repeat.

 

[dighead]

That's a pretty accurate description for most of the low cap coins lol. BTC is probably still a pump and dump, but the time scales are much larger. If you're looking to actually invest, I'd recommend going into stocks. If you just have a bit of money you want to play with to make short term trades, then crypto is a good choice.

 

[queenb_3]

My advice on picking coins: Wear a blindfold and throw some darts at a board. That'll be as good as, if not better than, basing your decisions on the utility of the coins. I generally just trade with bitcoin. I'm trading with leverage, and the other coins don't have enough liquidity for my liking. However, if you want astronomical gains and monumental risk, then the shittier the coin, the better.

Just generally, do you have any specific recommendations for investments?

 

[dighead]

Just generally, do you have any specific recommendations for investments?

Nah, I don't have any experience in investing whatsoever. I just roll dice in the crypto markets lol.

 

[jimmysmith560]

Just generally, do you have any specific recommendations for investments?

In terms of companies to invest in or amounts?

 

[queenb_3]

In terms of companies to invest in or amounts?

I was referring to companies, but I don't mind amounts too.

 

[jimmysmith560]

I was referring to companies, but I don't mind amounts too.

In terms of amounts, I believe you should probably start investing in low amounts until you develop a thorough understanding and become able to master your investments. Then, you can start investing more to maximise returns.

A few days ago, Netlfix was doing okay (they aren't today), but their projected performance doesn't look promising, neither does that of the tech giants (Apple, Samsung).

Woolworths seems like a good investment option since their projected performance is looking pretty good. This might be a good starting point for you.

There's also Mercedes Benz's parent company, Daimler AG. Their projected performance also indicates you might be in for good returns

 

[queenb_3]

In terms of amounts, I believe you should probably start investing in low amounts until you develop a thorough understanding and become able to master your investments. Then, you can start investing more to maximise returns.

A few days ago, Netlfix was doing okay (they aren't today), but their projected performance doesn't look promising, neither does that of the tech giants (Apple, Samsung).

Woolworths seems like a good investment option since their projected performance is looking pretty good. This might be a good starting point for you.

There's also Mercedes Benz's parent company, Daimler AG. Their projected performance also indicates you might be in for good returns

Thanks heaps!

Mercedes did you say? Well looks like I’m going with them

 

[jimmysmith560]

Thanks heaps!

Mercedes did you say? Well looks like I’m going with them

No worries! Hey wait for me!