[Abbas]

Originally Posted by SmartCat

But there is nothing stopping someone from creating a "company" and listing it on the stock exchanges either. Theoretically, there can be a million listed stocks.

Stock are regulated and its not really easy to just create them. But token can be created by just anyone with a couple of computers and some knowledge with no regulation whatsoever.

Originally Posted by SmartCat

This is an Andy Warhol painting, and is priced at $10,000.

Attachment 2136819

You need to ask youself: would you pay $10,000 for this painting? If the answer is yes, go ahead and buy bitcoin. If no, do not buy bitcoin.

Bitcoin is a now a bit like Art, vintage Wine or classic cars. To 99.9% of the world, it is worthless. But for a few people, it is worth a lot of money. So if you are buying bitcoin now, you should be fairly sure that you will find a buyer for it in the future at a higher price.

NFT (Non fungible Token) takes this to another level of scam. Crazy what people are buying and selling these days.

[SmartCat]

Originally Posted by Abbas

Stock are not really easy to just create them. But token can be created by just anyone with a couple of computers and some knowledge

Looks like you have not heard about SPAC IPOs yet
https://www.investopedia.com/spacs-l...bubble-5105202

Special Purpose Acquisition Company is formed without a business plan for the purpose of buying up or merging with a private company. SPACs are still just a pile of publicly listed cash and a group of people looking to find a private company to buy and take public.

Awfully similar to crypto ICOs, eh?

Will 2020 Be Seen as the Year of the SPAC Bubble?
https://knowledge.wharton.upenn.edu/...r-spac-bubble/

[Bhargav7]

Originally Posted by SmartCat

Looks like you have not heard about SPAC IPOs yet
https://www.investopedia.com/spacs-l...bubble-5105202



Awfully similar to crypto ICOs, eh?

Will 2020 Be Seen as the Year of the SPAC Bubble?
https://knowledge.wharton.upenn.edu/...r-spac-bubble/

SPAC companies can go worthless if they end up making bad mergers/acquisitions. So the share price is largely dependant on the credibility of promoters. There is a chance that the money is used wisely and the market capitalization of the company may go up.

With Crypto, it is totally a different scenario. There is no underlying asset and the price seems to be driven by very few individuals and companies willing to speculate. Sooner or later, the new entrants will reduce and the last chain of people who bought the crypto for a price would lose out. The problem is that it is difficult to predict who will be the last in the chain.

That said, SPAC as well as crypto are both speculative assets and avoided at best. If you have money to burn, try the good old options and futures. You may still lose the money, but there is a chance that you may earn as well.

[Abbas]

Originally Posted by SmartCat

Looks like you have not heard about SPAC IPOs yet
https://www.investopedia.com/spacs-l...bubble-5105202

Originally Posted by Bhargav7

SPAC companies can go worthless if they end up making bad mergers/acquisitions. So the share price is largely dependant on the credibility of promoters. There is a chance that the money is used wisely and the market capitalization of the company may go up.

With Crypto, it is totally a different scenario. There is no underlying asset and the price seems to be driven by very few individuals and companies willing to speculate. Sooner or later, the new entrants will reduce and the last chain of people who bought the crypto for a price would lose out. The problem is that it is difficult to predict who will be the last in the chain.

I am well aware of what SPAC is and Bhargav7 has very well explained here. Just add on it, if SPAC`s fail to acquire a company, the fund collect is in a escrow and is returned to the shareholder. You can make an informed decision of either to buy into it or not once they have announced a merger.

However, the point i wanted to make is that listed companies are regulated whereas cryptos aren't. it's just a math algorithm.

[digitalnirvana]

This thread being bumped usually means the top is in. When everyone is talking about it, time to get out or be very cautious.

I hope that things go differently this time though!

Also anyone reading this, please do not go in blind. Take it from someone who lost huge amounts by not doing any research and throwing money away. Read, understand, and only then make a move. And always, only with sums you can afford to write off.

[ValarMorghulis]

Peter Thiel calls bitcoin ‘a Chinese financial weapon’

“I do wonder whether at this point, Bitcoin should also be thought [of] in part as a Chinese financial weapon against the U.S.," Thiel said during an appearance at a virtual event held for members of the Richard Nixon Foundation. “It threatens fiat money, but it especially threatens the U.S. dollar." He added: “[If] China’s long Bitcoin, perhaps from a geopolitical perspective, the U.S. should be asking some tougher questions about exactly how that works."

Link here

[Abbas]

Just FYI, 70 % of the mining takes place in China.

Think about it, how does an exchange determine a price if there is no underlying asset? Just by buying and selling? How do you know if that is actually taking place or not?

So tomorrow, the exchange decides that the price of 1 BTC is now 100,000 USD. So be it, who is to question?

And the argument that its in limited supply is just crap. 1 BTC is actually a 100 million split (Satoshis)

In a way, china actually controls the pricing and one day they are going to drain the Americans out. Financial Covid

[Bhargav7]

Originally Posted by Abbas

Just FYI, 70 % of the mining takes place in China.

Apparently, a Japanese guy created a mathematical equation, Chinese guys are mining the coins and ultimately selling them to companies and individuals in the USA.

Can we say that Americans are being swindled by Asians?

[kedar3223]

As someone who is starting with investing, I've decided to invest a small portion into cryptocurrency. Will be mostly treating this as a high risk high rewards avenue. Is there any cryptocurrency exchange that is recommended? Looking for a platform that is stable and has minimal charges for transactions. Options I've come across are wazirx, binance, coinswitch, coinbase, coindcx, zebpay and unocoin. Any recommendations?

Another query i had is wrt wallets. Is it safe to keep the cryptos in the exchange platform or do i need to transfer it to a wallet? If one needs to transfer to wallet, which wallet is recommended and does choice of exchange depend on the wallet being used and transfer charges if any?

[SmartCat]

Originally Posted by kedar3223

As someone who is starting with investing, I've decided to invest a small portion into cryptocurrency. Will be mostly treating this as a high risk high rewards avenue.

Just started investing? OK good luck!

Is there any cryptocurrency exchange that is recommended? Looking for a platform that is stable and has minimal charges for transactions. Options I've come across are wazirx, binance, coinswitch, coinbase, coindcx, zebpay and unocoin. Any recommendations?

Wazirx has become quite visible here in India - hosting conferences, their executives giving interviews on CNBC TV18 etc

Coinbase is the largest crypto exchange in the world. They just came out with an IPO and is valued at $80 billion or so
https://www.wsj.com/articles/coinbas...ut-11618421619

Coinbase India page:
https://www.coinbase.com/places/india

Apparently, they store cryptos assets in "secure offline storage".

[kedar3223]

Originally Posted by SmartCat

Just started investing? OK good luck!

Too late? Not a good time?

Originally Posted by SmartCat

Wazirx has become quite visible here in India - hosting conferences, their executives giving interviews on CNBC TV18 etc

Coinbase is the largest crypto exchange in the world. They just came out with an IPO and is valued at $80 billion or so
https://www.wsj.com/articles/coinbas...ut-11618421619

Coinbase India page:
https://www.coinbase.com/places/india

Apparently, they store cryptos assets in "secure offline storage".

Will look into the fees of these 2 platforms in detail.

[Samurai]

Originally Posted by kedar3223

Too late? Not a good time?

Depends on where you live. If you are living India, this is a good time to close the crypto trading account and get your money out before it becomes impossible.

https://www.bloombergquint.com/busin...-impending-ban

If you are living abroad, then it is a great time to participate in this most craziest gamble/bubble world has ever seen. Only invest money you can afford to lose.

I would not recommend any of the illegal methods explained in the article.

[Rehaan]

Originally Posted by kedar3223

Is there any cryptocurrency exchange that is recommended? Looking for a platform that is stable and has minimal charges for transactions. Options I've come across are wazirx, binance, coinswitch, coinbase, coindcx, zebpay and unocoin. Any recommendations?

You will need to use an Indian exchange as an INR on-ramp.

Can't recommend one in particular (have used Unocoin & Zebpay), they are all equally average. Expect things to take a little longer than you imagine, especially when you're in a rush to buy a dip.

Originally Posted by kedar3223

Another query i had is wrt wallets. Is it safe to keep the cryptos in the exchange platform or do i need to transfer it to a wallet?

When your coins are on an exchange, they aren't really yours. "Not your keys, not your coins" is the saying.

That said, it's a somewhat of a similar analogy to your money being in a bank - there's risk involved there too.

One thing i would definitely avoid is leaving coins on an Indian exchange (especially due to the legal uncertainties ahead).

If you're trading, you have no choice but to keep it on an exchange. (Binance would be the top recco).

Also, the advantage of keeping coins on an exchange is that you could set a stop-limit order, so if the price does drop below a certain point, it automatically sells your BTC to USDT -- which is stable & safe. This option didn't exist in 2017, and that's why it was so much crazier/scarier.


If you're HODLing long-term, keep them in a wallet (eg. exodus). Follow the instructions perfectly - don't cut corners or leave things for later, and TAKE CARE OF YOUR SEED PHRASE.


If you're planning to buy in, the current correction is an excellent time (BTC just dropped from 64k to 51k - and might drop a bit further in the coming days/week).

[kedar3223]

Originally Posted by Samurai

Depends on where you live. If you are living India, this is a good time to close the crypto trading account and get your money out before it becomes impossible.

https://www.bloombergquint.com/busin...-impending-ban

If you are living abroad, then it is a great time to participate in this most craziest gamble/bubble world has ever seen. Only invest money you can afford to lose.

I would not recommend any of the illegal methods explained in the article.

I am aware of the risk involved interms of the government banning cryptocurrency. But I'm willing to risk a small portion of investment towards it.

Originally Posted by Rehaan

You will need to use an Indian exchange as an INR on-ramp.

Can't recommend one in particular (have used Unocoin & Zebpay), they are all equally average. Expect things to take a little longer than you imagine, especially when you're in a rush to buy a dip.

...
...

Thank you. This helps wrt my wallet query. I think i will go ahead with either wazirx, binance or coinbase as these seem to the more popular options. Will initially keep the investment to a minimum and keep the coins on exchange till the government clears its stance on the matter.


OT, can anyone please help me out with this https://www.team-bhp.com/forum/shift...ml#post5045867 (Do you play the stock market)

[camitesh]

Originally Posted by kedar3223

I think i will go ahead with either wazirx, binance or coinbase as these seem to the more popular options. Will initially keep the investment to a minimum and keep the coins on exchange till the government clears its stance on the matter.

I suggest to go with the combination of WazirX and Binance. WazirX is one of the big names in Indian context while Binance is topmost global cryptocurrency exchange. Wazirx was acquired by Binance two years back so there is good correlation between them for free wallet fund transfers etc. for the time being. Both these platforms will require basic online KYC done and then you are good to go. Transfer INR from your registered bank account (needed during your verification) to your Wazirx wallet and buy common coins like bitcoin, ethereum, usdt etc. which can be transferred freely to your Binance account once you link it with Wazirx. Binance being a global platform will have more trade volumes and arguably safer like someone explained earlier.

Some quick tips which may or may not be relevant but here you go anyway:
1. Use Google or similar authenticator besides usual e-mail/mobile OTP and strong password on any platform you choose
2. Read up the basics of how different cryptocurrency work, their history, security, acceptability as an alternative etc.
3 Don't just go with the flow and invest based on tips. Follow point 2 before you jump into a particular currency
4. Invest only that you can afford to loose considering its a high risk high reward zone and our regulations are still a grey area although things are likely to improve IMO
5. Like all other investments, dont put all your eggs in one basket. Diversify with well established and new currencies based on your risk appetite
6. Don't jump to margin trading before you learn the basics. Platforms like Binance etc. are heavily advertising on interest free margin trading which is a huge slippery slope if you don't know what you are doing
7. Cryptocurrency markets are open 24*7 365 days so one may get addicted to looking at the positions all the time and sacrifice on personal time.

Good luck