Author Topic: Anyone bought BitCoin?  (Read 1996 times)

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Online jimbocz

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Anyone bought BitCoin?
« Reply #15 on: November 27, 2017, 03:32:34 PM »
I think I just paid £8 for  my coffee then! 

Assuming I even put any money on the wallet I gave him, I either put nothing or way too much.  Not sure which. 

So far I have invested £10 and got a coffee and an almond croissant and .000247 of a BitCoin left.
« Last Edit: November 27, 2017, 03:37:06 PM by jimbocz »

Offline camoscato

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Re: Anyone bought BitCoin?
« Reply #16 on: November 29, 2017, 06:08:44 AM »
Seriously, why would you have to be a seriously good trader when all anyone has to do is buy the stuff and then hold on to it.  The current best advice is to do just that.

I guess I can see the argument for collapsible, but it's been around for a long time.  What would change?

I bought a house for $100,000 in 1999. I didn't pay attention to house prices again until 2004 when it had gone up to $300,000. I remember thinking, "Holy crap! If I hold onto this thing it'll just keep going up forever and someday I'll be a millionaire!" Then the bubble burst in 2008. I am not a millionaire.  :)

https://splinternews.com/hey-idiots-youre-gonna-lose-all-your-money-on-bitcoin-1820805131

Offline Ben1989

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Re: Anyone bought BitCoin?
« Reply #17 on: November 29, 2017, 08:27:35 AM »
Why don't you just use forex with enough leverage to trade bitcoin? You don't have to set up a bitcoin wallet etc, you're just trading it's 'stock'.

That way you can prevent any huge losses
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Online jimbocz

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Re: Anyone bought BitCoin?
« Reply #18 on: November 29, 2017, 11:06:41 AM »
I bought a house for $100,000 in 1999. I didn't pay attention to house prices again until 2004 when it had gone up to $300,000. I remember thinking, "Holy crap! If I hold onto this thing it'll just keep going up forever and someday I'll be a millionaire!" Then the bubble burst in 2008. I am not a millionaire.  :)

https://splinternews.com/hey-idiots-youre-gonna-lose-all-your-money-on-bitcoin-1820805131
But you would have been a millionaire if you had bought 5 houses and sold before the crash.  And if you held on to the house it's still worth more than £100k. But what does all that have to do with BitCoin?  Yes, house prices go up and down.  If anything, the analogy makes no sense since you can live in a house and it's value is unlikely to go to zero, both of which are not true about BitCoin.

And that article was amusing!

Online jimbocz

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Re: Anyone bought BitCoin?
« Reply #19 on: November 29, 2017, 11:08:11 AM »
Why don't you just use forex with enough leverage to trade bitcoin? You don't have to set up a bitcoin wallet etc, you're just trading it's 'stock'.

That way you can prevent any huge losses

Can you explain that a bit?  How would much losses be limited?

Online jimbocz

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Re: Anyone bought BitCoin?
« Reply #20 on: November 29, 2017, 11:16:43 AM »
Just FYI in case anyone cares:
I bought €180 in BitCoin and £20 in Ethereum just to see what will happen.  That's an amount I can afford to lose.  I know it could be monumentally stupid to buy at $10,000, possibly the peak of a ridiculous bubble.  I plan to hold for years, check the price on my phone every 10 minutes and brag like crazy if I ever earn anything. 

Now all you guys need to buy as well to support me! 

Offline camoscato

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Re: Anyone bought BitCoin?
« Reply #21 on: November 29, 2017, 11:37:09 AM »
But ... if you had bought 5 houses and sold before the crash. 

A personal trainer friend of mine says "If 'if's and 'but's were candy and nuts, every day'd be Christmas."  :)

  And if you held on to the house it's still worth more than £100k. But what does all that have to do with BitCoin?  Yes, house prices go up and down.  If anything, the analogy makes no sense since you can live in a house and it's value is unlikely to go to zero, both of which are not true about BitCoin.

Sorry, I wasn't trying to hold a seminar on the intricacies of 21st century finance. It was more a response to your original post about how "it just goes up."

Online jimbocz

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Anyone bought BitCoin?
« Reply #22 on: November 29, 2017, 11:43:25 AM »
A personal trainer friend of mine says "If 'if's and 'but's were candy and nuts, every day'd be Christmas."  :)

Sorry, I wasn't trying to hold a seminar on the intricacies of 21st century finance. It was more a response to your original post about how "it just goes up."
I accept your apology, now go buy some BitCoin to make it up to me.  If I'm going to make some money off this small investment, you guys need to get moving.
« Last Edit: November 29, 2017, 11:46:36 AM by jimbocz »

Offline Ben1989

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Re: Anyone bought BitCoin?
« Reply #23 on: November 29, 2017, 11:55:03 AM »
Can you explain that a bit?  How would much losses be limited?

Excuse me if you know most of what I'm about to say. So with forex (foreign exchange) you basically buy currency with the expectation that it will increase in value, then you sell it for more.

So if you bought £100 worth of USD at a rate of 1.30 you would receive $130. The value of the dollar goes up to $1.32 and you sell it back to pounds and you've profited roughly £1.50. But, there are margins involved which are effectively the brokers charge so you would hardly make any money.

So that means is that you effectively need to invest a lot more money to get a profit that's actually beneficial. So if you put in £10,000 at the same rates that profit goes to £150. But, that's a lot of money to put up to get a measly £150.

So what brokers offer is leverage. What they do is effectively lend you money to invest with. So say your broker offered you a leverage of 50:1, they will lend you 50 times more than your investment. So if you went back to your original investment of £100, they would lend you 50x more so you're actually trading with £5,000 for just £100. So you get the profit of a £5,000 trade. But you also get the losses of a £5,000 trade. Leverage is good as it opens up the whole market with a little amount of money if used correctly.

Going back to Bitcoin. Most platforms have 'stop loss' controls that you set on them so basically if the currency hit a certain drop it would automatically sell and stop you making a monumental loss. But keep in mind that trades go up and down so you need to allow breathing space.

I trade with forex every day :)

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Offline Ben1989

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Re: Anyone bought BitCoin?
« Reply #24 on: November 29, 2017, 12:01:10 PM »
The trouble with Bitcoin is that because it isn't centralised it could literally implode without warning and with the price being $10,000 per bitcoin it's a big risk.

But it could carry on going up and you make an unbelievable profit. With only one third of bitcoins being left to mine logic says that the price will go up as it's mainly driven by how much energy it takes to mine the remaining bitcoins. As soon as bitcoins approach the 21million bitcoins limit, however, I see the price plummeting.

But it's just a ridiculously volatile market, probably the most volatile in the world so I would say only invest what you don't mind losing with bitcoin
« Last Edit: November 29, 2017, 12:04:31 PM by Ben1989 »
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Online jimbocz

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Re: Anyone bought BitCoin?
« Reply #25 on: November 29, 2017, 12:40:03 PM »
Thanks Ben, that's a great explanation. 

I'm with you on the suddenly going down to zero possibility and that's the reason I won't put anything more than play money in.

Offline jfkimberly

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Re: Anyone bought BitCoin?
« Reply #26 on: November 29, 2017, 12:44:40 PM »
Going back to Bitcoin. Most platforms have 'stop loss' controls that you set on them so basically if the currency hit a certain drop it would automatically sell and stop you making a monumental loss. But keep in mind that trades go up and down so you need to allow breathing space.

I trade with forex every day :)

There's no guarantee of protection, even with stop/loss controls in place.  Remember two years ago when this happened?  Markets moved too fast and there was no liquidity for investors' trades to close.  I think, given the volatility of Bitcoin, it could ne like that when it goes.  I wouldn't trade Bitcoin on margin.
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Offline Ben1989

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Re: Anyone bought BitCoin?
« Reply #27 on: November 29, 2017, 01:14:25 PM »
There's no guarantee of protection, even with stop/loss controls in place.  Remember two years ago when this happened?  Markets moved too fast and there was no liquidity for investors' trades to close.  I think, given the volatility of Bitcoin, it could ne like that when it goes.  I wouldn't trade Bitcoin on margin.

Yes that is correct. If the markets move to fast the stop losses won't be able to stop it and quite frankly, as you say, that could happen with bitcoin.

Bitcoin could collapse or it could become stable as other cryptocurrencies start emerging where bitcoin becomes the 'base' cryptocurrency. Too volatile for me personally but maybe I'm just a wuss ha
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Offline jfkimberly

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Re: Anyone bought BitCoin?
« Reply #28 on: November 29, 2017, 01:54:59 PM »
Yes that is correct. If the markets move to fast the stop losses won't be able to stop it and quite frankly, as you say, that could happen with bitcoin.

Bitcoin could collapse or it could become stable as other cryptocurrencies start emerging where bitcoin becomes the 'base' cryptocurrency. Too volatile for me personally but maybe I'm just a wuss ha

I wouldn't say "wuss".  I would say "prudent."

Of course, you could always just convert some cash to BC and keep it in your wallet while you wait to see what it does next.  Not leveraged, just a straight currency conversion.
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Online jimbocz

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Re: Anyone bought BitCoin?
« Reply #29 on: November 29, 2017, 02:16:16 PM »
I'm up €12 just since this morning!   This investing thing is easy!

Dennis, if you don't mind, tell me more about how you trade currency.  Do you obsessively follow the news to try to guess what's happening?