$ Crypto questions from a crypto noob - Please explain crypto bros.

[Man at Arms]

Hey guys, I have a few questions I'm needing answers to. These might be trivial but scouting the net and all I've found is "buy this coin it makes money" without ever an intro or explanation as to how. So here are my questions, answer if you can, no retard schizo shit please.

1. How is a digital asset worth money? Blockchain isnt answer, as blockchain doesnt explain how it's worth money. Neither does finite, because I have a finite amount of product that is worth nothing.

2. Who promotes this other than celebrities and con-men?
3. Any real noteworthy people make real money from it?
4. How hard is the trading? Can I make cash just doing it casually? As in I go to wage slave, come home and sell for a few hours a day.
5. How does one start?
And finally
6. Which coin would be the best to start making cheese with?


Any help is appreciated, like I said I'm a coin/crypto noob and would like an avenue for side gig for cash. Thanks frens

 

[herefortheactualthreads]

1. its kinda like the stock market, the more ppl buy it, the worth will rise more. blockchain is just a buzzword which was used for NFTs.
2. scammers pretty much
3. nah just randoms who were lucky enough to invest in bitcoins back in the day.
4. if you let the bitcoin sit in your wallet maybe. other than that no, the hype train is done and its full of scam/ponzi-scheme coins
5. depending on where you live you gotta show your ID and find a website which gets you a wallet and has a trustworthy reputation for market exchanges. https://buybitcoinworldwide.com/ (the other answer would be: you don't.)
6. just give the money to me, you will at least know i will spend it on hookers and cocaine.

 

[JohnnyG]

TANSTAAFL: There Ain't No Such Thing As A Free Lunch

Yes there are individual traders who make money, and billion dollar shops with fleets of PhDs writing crazy trading algorithms, but it's always going to be either anecdotes/luck or chasing a moving target. If there were a system or technique that reliably made passive money, don't you think everyone with the resources to exploit it would do so until they had infinite money (or until it quit working)?

Best advice you're going to get for passive investing is the boring, stay-the-course Boglehead advice: invest money you don't need for years into diversified, low-cost index funds, and if you want to hold crypto, include it as part of a well-balanced breakfast, with your efforts going into advancing at work or finding a better job with more income to invest.

That's how boring middle-class wagies turn thousands into tens and then hundreds of thousands, and suddenly compounding interest becomes a lot less boring.

 

[The Repeated Meme]

. How is a digital asset worth money? Blockchain isnt answer, as blockchain doesnt explain how it's worth money.

If you're referring to Bitcoin, the value of Bitcoin comes from it's scarcity and the way it's generated. You can earn bitcoin by verifying transactions on the blockchain, this is called 'mining'. Bitcoin acts as both a currency and a way to send money, but it is also subject to market conditions, if too many people lose faith in bitcoin and sell, the price will drop significantly, which is why investing in bitcoin is very risky and not recommended.

If you really want to invest in bitcoin, I recommend waiting for a huge crash before you buy. The price is pretty high right now.

By the way in case you didn't know, NFTs are always a scam, avoid them at all costs.

 

[Man at Arms]

Really appreciate it guys. You've confirmed my suspicions. Mostly scammers doing scams.
Ive always thought crypto was a scam.

I think I'll stick with gold/silver

So another question what would you guys recommend for something like a nest egg to just invest and sit on?

Best option would be gold and jewels I'm guessing as those will be tangible forever, in theory right?

 

[The Repeated Meme]

Mostly scammers doing scams.

Pretty much but it does serve a purpose. For people like Null that have been (largely) debanked, it's a way to anonymously send and receive money. I made the mistake of investing in bitcoin a while back and the company holding my btc (hodlnaut) decided to fall for not one, but two crypto scams that bankrupted them (FTX and Luna). If I had my bitcoin on an exchange rather than what is essentially an investment firm, I could have made a fair bit of money just by holding onto it. I didn't realize at the time that they would be doing such risky investments, the only reason why I gave it to them is that it paid interest.

 

[JohnnyG]

Really appreciate it guys. You've confirmed my suspicions. Mostly scammers doing scams.
Ive always thought crypto was a scam.

I think I'll stick with gold/silver

So another question what would you guys recommend for something like a nest egg to just invest and sit on?

Best option would be gold and jewels I'm guessing as those will be tangible forever, in theory right?

I don't think Bitcoin or crypto are scams, I just think the idea that you're going to passively/easily trade it and make piles of money is as unrealistic as you doing that in any other asset class. Regarding precious metals, they're sound money that should hold their value, but they also don't pay a dividend/coupon and may not appreciate enough long term.

The consistent way to build a nest egg is to start investing whatever you can in tax advantaged accounts (401k, IRA/Roth IRA), in instruments that have a track record of outpacing inflation and aren't going to rob you on fees, which for most people means low-cost, total-market equity index funds. ITOT, VTI, SPTM are a few examples.

Increase your contribution every year, try to max out your 401k/IRA limits (and then repeat with standard brokerage accounts), don't invest anything you need access to, don't panic sell when the market dips, and keep the contributions on auto-pilot so you're buying cheap. Get promotions or job hop to make more money, and at every raise prioritize saving more before you find other crap to spend it on.

It's boring, not a secret or shortcut, and will take a while for the compounding to ramp up, but it's worked for millions of normal people. And that saying "the first million is the hardest" applies to every other amount.

 

[Man at Arms]

I don't think Bitcoin or crypto are scams, I just think the idea that you're going to passively/easily trade it and make piles of money is as unrealistic as you doing that in any other asset class. Regarding precious metals, they're sound money that should hold their value, but they also don't pay a dividend/coupon and may not appreciate enough long term.

The consistent way to build a nest egg is to start investing whatever you can in tax advantaged accounts (401k, IRA/Roth IRA), in instruments that have a track record of outpacing inflation and aren't going to rob you on fees, which for most people means low-cost, total-market equity index funds. ITOT, VTI, SPTM are a few examples.

Increase your contribution every year, try to max out your 401k/IRA limits (and then repeat with standard brokerage accounts), don't invest anything you need access to, don't panic sell when the market dips, and keep the contributions on auto-pilot so you're buying cheap. Get promotions or job hop to make more money, and at every raise prioritize saving more before you find other crap to spend it on.

It's boring, not a secret or shortcut, and will take a while for the compounding to ramp up, but it's worked for millions of normal people. And that saying "the first million is the hardest" applies to every other amount.

Right. But I'm not looking for quick cash, but another avenue for revenue to stream cash in with. Not even passively either. I've done some stock trading here and there but never messed with crypto as I have never saw a use for it other than making illegal purchases.


Just really asking questions to the bidness bros on how to go about investing as i trust randoms on the internet over an investment firm/hedge whose main goal if to rip me off. Appreciate the feedback. I've been doing what you explained already

 

[JohnnyG]

Right. But I'm not looking for quick cash, but another avenue for revenue to stream cash in with. Not even passively either. I've done some stock trading here and there but never messed with crypto as I have never saw a use for it other than making illegal purchases.

For most people, getting a promotion or hopping to another firm to get a raise are probably the most straightforward way to being able to save and invest more (keep the two separate btw, so you don't touch the latter). But that doesn't diversify you from dependence on your employer, and if you let your lifestyle inflate along with your paycheck, can be bad news if you lose the fancy job.

The "house hack", "let a tenant pay your mortgage" etc stuff is another path, but levering yourself into property that's at historic highs has its own risk, and rental income isn't passive unless you're giving a cut to a management firm (and you still have to find and keep tenants). Payoff is better when you have multiple units to spread the costs over, but of course that's hard to do from day one.

Another option is finding something adjacent to your job, that uses the same skills, client network, access to supplies, etc. Think about every motivated tradesman doing vanilla lighting installs or building decks for big corporate, who also has a photo album of custom work at the ready for homeowners who want a custom weekend project. Obviously depends on your career but could be anything from extra side cash to a fully fledged business.

 

[Serin Spaghetti]

1. How is a digital asset worth money?

Not sure if this counts as schizo, but what is money if not just the value we see things as? Money is simply the value we humans put on things. You could make "Value" out of thin air, there are crypto's out there that do this everyday. Bitcoin being one of them, scarcity being one of the factors of Bitcoin. Simple supply and demand. But you could copy Bitcoin's, Proof of Waste mining, and just do it with Time instead (Instead we are so adamant on paying Electric Companies and GPU companies) to make passive income. Either way stocks are just people extracting value from other people, in essence just stealing from one another. There are company buy backs, where the company pumps their own stocks which is rather benevolent but rarely seen. And the Gov. money printer, just prints value out of thin air as well and some people don't question where that money comes from or care where the value comes from. As long as the Mexican can whip me up a burrito with my funny money I don't care.

2. Who promotes this other than celebrities and con-men?

Mostly grifters, if you are persuaded by Celebrities and silver tongued spinsters, it's usually cut and dry you are getting played. They are celebrities for a reason, they get paid off from the start and of course do their jobs and shill it. If a "Celebrity" really had good intentions they would need to take a major hit financially first or do a lot of research, before they would even consider it to most common folk from the start. But more than likely they get paid off and get some of their stock and then they dump it on your head in the stock market anyway, because they never really believe in the product. However this applies to both Crypto and Regular Finance.

3. Any real noteworthy people make real money from it?

Yes, and no. There are more losers than winners it's all random chance. Liquidity in crypto screws people over, stupid enough to invest in crypto scams. Because there isn't enough Liquidity in whatever crypto they invested in. The numbers on the screen might say you have a million dollars, but when you try to take them out you get 200k or someshit. There isn't enough "real" money to support that in that shitty crypto. But before you could even pullout that 200k you're more likely to get rugged because the creator of that crypto owns 99% of the supply. There might also be a possibility they can't pull out, because it IS a scam. However safe crypto like Bitcoin, ETH, Pulsechain, ect. have enough liquidity to provide that amount of pullout.

4. How hard is the trading? Can I make cash just doing it casually? As in I go to wage slave, come home and sell for a few hours a day.

Crypto trading is only for the top 0.001% only a very select few are good at it and even if you know how the ins and outs are, you will still lose some amount of money doing so. I cannot recommend trading in crypto because it is a literal lottery ticket. You can watch peoples wallets who have a lot of money in them and follow their moves or try to predict them on whether these people buy and sell, to either front run them or ride with them. These people are called Whale Watchers or Wallet Watchers. There are a new sort of traders who look at Liquidity Providers and see how many come in to provide and how many leave. This sorta dictates who is loyal to the crypto and how many people are willing to hold that crypto. So no I would say its not for casuals, you kinda have to be on it and select some decent crypto so you're not staring at your screen 24/7.

5. How does one start?

Well before KYC, you coulda just mined BTC and ya didn't have to do that. But times have changed and it's really expensive to mine Bitcoin, and since the halvening has past it's only going to be more expensive, plus it seems like the Gov. has taken intrest. So you kinda have to go through Centralized Exchanges, (Which you don't want to hold your money in them, because they are much like the bank) then from there you put them in your Crypto Wallet.

6. Which coin would be the best to start making cheese with?

Pulsechain since there is blood on the streets rn, buying bottoms are a good thing in crypto.

Blockchain isnt answer, as blockchain doesnt explain how it's worth money.

"Blockchain" to put it simply and for everyone to know how it works is a Excel Spread Sheet sending and receiving data. IDK who the fuck is telling you the blockchain is the value? Maybe they're saying whoever keeps the Excel Sheet honest, is what's creating its value. Because that's essentially what it is. If you play online video games with a trading system, its just that no need to get fancy and shit yknow.

98% scams 2% legit

 

[grand larsony]

1. How is a digital asset worth money? Blockchain isnt answer, as blockchain doesnt explain how it's worth money. Neither does finite, because I have a finite amount of product that is worth nothing.

2. Who promotes this other than celebrities and con-men?
3. Any real noteworthy people make real money from it?
4. How hard is the trading? Can I make cash just doing it casually? As in I go to wage slave, come home and sell for a few hours a day.
5. How does one start?
And finally
6. Which coin would be the best to start making cheese with?

1. I'm kinda assuming you're referring to "real value" as opposed to just whatever market forces make something worth a certain price. In the same way that gold has physical properties which make it useful, though not necessarily to the point where it matches what people are willing to pay for it, cryptocurrency has properties that make it useful. Censorship resistance, fast transfer times, borderless nature, and pseudonymity make cryptocurrency useful for things that traditional financial tools aren't. The coins that are actually worth a shit will try to differentiate themselves by solving different real-world problems; monero, for instance, provides anonymity, which is something traditional online money transfer methods are basically incapable of providing.
2. Con men, bagholders, and true believers. The true believers are often misguided ("bitcoin will collapse the banking system!") but there's still a sizeable contingent of people who really believe in cryptocurrency's ability to solve real-world problems.
3. Just google it
4. If you're asking Kiwi Farms for advice on how to be a crypto day trader to escape from your day job then please, sincerely, do yourself a favor and only invest what you're willing to lose, because you're going to lose it all lol
5. See 3
6. See 4

 

[Man at Arms]

1. I'm kinda assuming you're referring to "real value" as opposed to just whatever market forces make something worth a certain price. In the same way that gold has physical properties which make it useful, though not necessarily to the point where it matches what people are willing to pay for it, cryptocurrency has properties that make it useful. Censorship resistance, fast transfer times, borderless nature, and pseudonymity make cryptocurrency useful for things that traditional financial tools aren't. The coins that are actually worth a shit will try to differentiate themselves by solving different real-world problems; monero, for instance, provides anonymity, which is something traditional online money transfer methods are basically incapable of providing.
2. Con men, bagholders, and true believers. The true believers are often misguided ("bitcoin will collapse the banking system!") but there's still a sizeable contingent of people who really believe in cryptocurrency's ability to solve real-world problems.
3. Just google it
4. If you're asking Kiwi Farms for advice on how to be a crypto day trader to escape from your day job then please, sincerely, do yourself a favor and only invest what you're willing to lose, because you're going to lose it all lol
5. See 3
6. See 4

Like I said, it's better to ask kiwis who are actually smart over a firm who will lie and siphon money. At least here I can tell whos a bullshitter autist and whos giving actual advice.


I appreciate everyone who has posted with information.

 

[Cornstarch Colonizer]

Like I said, it's better to ask kiwis who are actually smart over a firm who will lie and siphon money. At least here I can tell whos a bullshitter autist and whos giving actual advice.


I appreciate everyone who has posted with information.

Bitcoin has a leveraged short ETF. So, if you buy bitcoin you can cover your position using that with less capital, since that short position will double any movement bitcoin makes. The sign is $Biti.

My personal strategy is a 70/30 allocation until bitcoin jumps the first time after this halving, then to 50/50, then to 70/30 after the second big jump to cycle maturity.

I stop DCAing in either completely and let the correction play out, then i cash out my profits from my short position and put that into some less volitile ETFs.

 

[Man at Arms]

Bitcoin has a leveraged short ETF. So, if you buy bitcoin you can cover your position using that with less capital, since that short position will double any movement bitcoin makes. The sign is $Biti.

My personal strategy is a 70/30 allocation until bitcoin jumps the first time after this halving, then to 50/50, then to 70/30 after the second big jump to cycle maturity.

I stop DCAing in either completely and let the correction play out, then i cash out my profits from my short position and put that into some less volitile ETFs.

That makes a lot of sense. Play the short game even if it means you're only making a buck or 2 per transaction. Thanks bro.

The more info I get the better I can be at doing it. Once again appreciate the feedback

 

[Involuntary Celebrity]

blockchain is just a buzzword which was used for NFTs.

Retarded.
Blockchains are simply a form of distributed ledger (which could record anything). Simply put, it's a chain of chunks of data that cryptographically identify their sequence/validity so that they can exist as a public record without any central authority, which in turn makes them useful for consensus-based zero-trust systems like a cryptocurrency.

Bitcoin was based on a blockchain before art NFTs existed, and they'll be very important in the future for digital contract records (which art NFTs make use of, but that's not the extent of either digital contracts or nonfungible tokens), even outside of the context of cryptocurrency/tokens specifically.

None of this has much to do with OP's questions, that was just a very dumb turd of a statement to leave sitting there.

1. How is a digital asset worth money?

The number in your bank account is digital, how is regular currency worth money? In principle it's because there's an authority that guarantees it has value, in practice it's because people believe and trade with it on its market value.
Crypto does away with the central authority part with a variety of distributed systems depending on which one you're talking about, that's the "crypto" part of the name. The supply and demand part you can see for yourself and it's exactly that. Different systems (coins/whatever) have different methods of regulating supply, but for the most part they don't really matter to you unless you're a miner/network participant.

Every startup coin should be considered a scam until proven otherwise especially if they're just rebranded clone of an existing network, and shit like the art NFT fad was a derivative bubble rather than a technology in itself. But the actual technology behind crypto is robust (and pretty interesting) and does what it says it does.
If you want to be informed I'd suggest simply reading the whitepapers (ie of whatever network you're interested in, and whatever they're derived from, until you get back to the original bitcoin paper) so you can tell the difference between what's real and what's bullshit fluffery. Otherwise stick to established networks (probably you're fine with whatever coins Null has addresses for at the bottom of this page) so you don't have to think, or yeah gold or whatever, I don't really care.

 

[Man at Arms]

@Involuntary Celebrity

All you've explained in the word salad is that crypto is digital. I have a bank account yes, but my cash isn't digital. No banks are going to let you take cash out and give them Bitcoin.

Bitcoin has no backing either, it's strictly digital and can be manipulated with simple emp mechanisms. That's what I'm referring to.
Digital assets have no value to anyone other than the person who has them. Hence why nfts are bullshit.
It still makes 0 sense that people find value in small bits of data that do nothing but sit.

Why don't we just use something that's scarce already instead of creating a faux system that can be manipulated by the person in charge.

Still all im seeing here is that it's mostly a scam and not worth my time.

 

[Involuntary Celebrity]

Why don't we just use something that's scarce already instead of creating a faux system that can be manipulated by the person in charge.

There is no person in charge. That's what a distributed, consensus-based, zero-trust system means.
None of that was word salad, you just don't know what words mean.

I definitely recommend you go with your gut and stay away from crypto, in your case.

 

[Man at Arms]

There is no person in charge. That's what a distributed, consensus-based, zero-trust system means.
None of that was word salad, you just don't know what words mean.

I definitely recommend you go with your gut and stay away from crypto, in your case.

Most of what you said is in fact word salad dude.
You said my cash is digital. It's not.
You claim there's no person in charge. Of course there is, Elon musk owns Bitcoin from what I understand.

I know what crypto is, you didn't answer the question but started spitting shit that doesn't pertain to the question aka word salad. I know why people think it's worth something.


But just because homie says "hey I got this and it's worth this much" doesn't mean it is. Only retards bought into the crypto scheme.
I was looking for advice on the scene, not some nonsense that I already knew.

Before trying to say someone doesn't understand words, you should learn how to read context clues and answer questions. If not, don't post.

 

[Involuntary Celebrity]

You claim there's no person in charge. Of course there is, Elon musk owns Bitcoin from what I understand.

Alright, nobody's that dumb. Whose gimmick sock is this?

 

[herefortheactualthreads]

Retarded.

i never heard the word blockchain until it was mentioned alot during the NFT scam boom.

None of this has much to do with OP's questions, that was just a very dumb turd of a statement to leave sitting there.

cry more nigger, he wrote the quote below and i tried to help.

Blockchain isnt answer, as blockchain doesnt explain how it's worth money.