cryptocurrency forum (bitcoin and more)

[Chrish]

Putting in $1k in Bit and $1k in ETH.. Will be my first ever crypto investment

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[mentos]

Putting in $1k in Bit and $1k in ETH.. Will be my first ever crypto investment

I recommend not to make many trades. Crypto exchanges don't transfer transactions into TurboTax like stock brokerages do. So if you trade a lot then taxes become a nightmare.

 

[Chrish]

I recommend not to make many trades. Crypto exchanges don't transfer transactions into TurboTax like stock brokerages do. So if you trade a lot then taxes become a nightmare.

Yeah not planning on trading it. Just holding on it and see where it goes in a year. If it doubles or triples, I will just sell it and cash out.

 

[Chrish]

What made you decide you to buy them?

I would be lying if I say I am not tempted by a desire to become rich overnight.. So, you can say it’s probably greed.

Been reading about it on Reddit and come to realize one thing: 9 out of 10 crypto investors don’t understand what it truly is (myself included). Most people are just in for the quick buck. However, if you dive deeper, concept is pretty intriguing.

At this point I don’t “believe” or “not believe” in crypto. I am feeling neutral right now. Are people on Reddit who throw over 20% of their net worth in crypto imbeciles? Or will these people become millionaires and conservative investors will just wait on the sideline watching others make real money? Only time will tell!

 

[mentos]

Been reading about it on Reddit and come to realize one thing: 9 out of 10 crypto investors don’t understand what it truly is (myself included). Most people are just in for the quick buck. However, if you dive deeper, concept is pretty intriguing.

That's okay, 9 out of 10 investors don't know anything about the stocks they are buying either. Most retail investors are gambling.

 

[mentos]

That is true but buying a crypto is very different from buying a company with actual products and earnings

Many company's stocks don't have earnings or products either.

 

[owlegrad]

Many company's stocks don't have earnings or products either.

Many seems like a stretch to me. I suspect the vast majority of companies have earnings and products/services.

Not saying that there aren’t your occasional Nikolas and whatnot but that’s got to be a tiny, tiny fraction and hopefully the vast majority of “investors” know they are speculating when they purchase those stocks.

 

[Chrish]

There is nothing complicated about the stocks. Price is based on combination of actual company performance and perceived company potential/ future plans plus current overall state of market/ economy.

 

[mentos]

There is nothing complicated about the stocks. Price is based on combination of actual company performance and perceived company potential/ future plans plus current overall state of market/ economy.

It used to be that way, but you can't use logic anymore. Look at AMC, GME, all those ARKK stocks. One tweet or news article can make or break a stock price overnight. Tesla is up 10% today because of some random price target that an analyst made up. What is different about Tesla today than yesterday? Nothing. Stocks are supposed to go up 10% per year but Tesla routinely does it in a day.

So when a stock like PLTR peaked at 72bil, people were throwing out crazy price targets like $100/share which would have given it a valuation of over 200bil. If I simply asked "what does PLTR do besides data analytics, whatever that means?" No one could give me a good answer. They would just say things like "do your research" or "I can't believe you're an investor and don't know" then laugh at me. Basically the same response if I asked what does BTC do. I have friends who are software engineers at FANG companies and they certainly don't know what PLTR does. I took their word for it over pharmacists. I knew it was time to get out when PLTR would get a contract for a few hundred million, then its stock price would go up by over ten billion. Here we are a year later and it's back at IPO price.

 

[Chrish]

It used to be that way, but you can't use logic anymore. Look at AMC, GME, all those ARKK stocks. One tweet or news article can make or break a stock price overnight. Tesla is up 10% today because of some random price target that an analyst made up. What is different about Tesla today than yesterday? Nothing. Stocks are supposed to go up 10% per year but Tesla routinely does it in a day.

So when a stock like PLTR peaked at 72bil, people were throwing out crazy price targets like $100/share which would have given it a valuation of over 200bil. If I simply asked "what does PLTR do besides data analytics, whatever that means?" No one could give me a good answer. They would just say things like "do your research" or "I can't believe you're an investor and don't know" then laugh at me. Basically the same response if I asked what does BTC do. I have friends who are software engineers at FANG companies and they certainly don't know what PLTR does. I took their word for it over pharmacists. I knew it was time to get out when PLTR would get a contract for a few hundred million, then its stock price would go up by over ten billion. Here we are a year later and it's back at IPO price.

What you mentioned is nothing new though. Stocks are always affected by speculation. Fed increases interest rate: stocks would go down. New Covid variant, stock goes down. Musk smokes a joint on the show, stock goes down etc. It’s always bit of gamble especially outside of Fortune 500.

In a long run though, investment into established mega-companies is likely to provide you with steady return. Of course that may not be the case with smaller volatile tech/ biotech stocks.

 

[mentos]

What you mentioned is nothing new though. Stocks are always affected by speculation. Fed increases interest rate: stocks would go down. New Covid variant, stock goes down. Musk smokes a joint on the show, stock goes down etc. It’s always bit of gamble especially outside of Fortune 500.

In a long run though, investment into established mega-companies is likely to provide you with steady return. Of course that may not be the case with smaller volatile tech/ biotech stocks.

BTC 442bil and ETH 193bil can be considered mega caps.

 

[WVUPharm2007]

What you mentioned is nothing new though. Stocks are always affected by speculation. Fed increases interest rate: stocks would go down. New Covid variant, stock goes down. Musk smokes a joint on the show, stock goes down etc. It’s always bit of gamble especially outside of Fortune 500.

In a long run though, investment into established mega-companies is likely to provide you with steady return. Of course that may not be the case with smaller volatile tech/ biotech stocks.

Small cap value actually outperforms everything over 20 plus year horizons.

 

[WVUPharm2007]

In low interest rate environment

Actually, they got some of their best returns in the high interest rate environments of the 70s and 80s.

8 lessons from 80 years of market history

More than 90% of your ultimate investment return depends on your choices of asset classes.

www.marketwatch.com

 

[baronzb]

ETH from sub 900 to over 1500 in a month, crazy.

its been going up since the owner finally got the block chain for contracts, etc. to function. how long do you see it going up?|

Until the stock market bottoms out and recovers, i don't see a mid-term positivity for this speculation asset class.

 

[mentos]

its been going up since the owner finally got the block chain for contracts, etc. to function. how long do you see it going up?|

Until the stock market bottoms out and recovers, i don't see a mid-term positivity for this speculation asset class.

No idea my crypto portfolio is down 54% 🤡 I don't anticipate breaking even for many years, if ever.

 

[Chrish]

BTC 442bil and ETH 193bil can be considered mega caps.

But they aren’t stocks..

 

[RXDOC1986]

It used to be that way, but you can't use logic anymore. Look at AMC, GME, all those ARKK stocks. One tweet or news article can make or break a stock price overnight. Tesla is up 10% today because of some random price target that an analyst made up. What is different about Tesla today than yesterday? Nothing. Stocks are supposed to go up 10% per year but Tesla routinely does it in a day.

So when a stock like PLTR peaked at 72bil, people were throwing out crazy price targets like $100/share which would have given it a valuation of over 200bil. If I simply asked "what does PLTR do besides data analytics, whatever that means?" No one could give me a good answer. They would just say things like "do your research" or "I can't believe you're an investor and don't know" then laugh at me. Basically the same response if I asked what does BTC do. I have friends who are software engineers at FANG companies and they certainly don't know what PLTR does. I took their word for it over pharmacists. I knew it was time to get out when PLTR would get a contract for a few hundred million, then its stock price would go up by over ten billion. Here we are a year later and it's back at IPO price.

I have very limited knowledge of stocks and bonds, even less of Crypto. I have a financial planner that has invested my retirement money for the last 28 years. He knows my goal is to retire with a nice chunk of cash. I am not looking to get rich quick, I have instructed my FP to be extremely cautious and conservative with my hard earned money. I am happy with 9-10% return yearly with minimum risk. I wish I had extra money to gamble on the stock market, but I don't. The point is that stocks and more so, Crypto is one big Las Vegas type ride. Whoever says they have figured it out, and there is a formula, is lying to themselves. A very good example is TESLA, it's really not a car company, it's one big speculative, stock market trading outfit. They make less cars in one year than Ford makes pickup trucks in one month, yet their valuation is bigger than FORD or GM put together. Their cars are high technology but poor execution (body gaps, paint, interior) yet their stock keeps climbing. Do you know why Musk put a bid in to buy Twitter? Because that was the only way he could sell 10-20 billion $ worth of stocks without TESLA losing any market value. If any CEO sells off billions of his company stocks with no legitimate reason, the company stocks will tumble. The whole stock market is one huge scam, how it is manipulated by the rich.
No Crypto for me, I am just going to stay in my lane and make 9% a year and not retire broke.

 

[mentos]

I have very limited knowledge of stocks and bonds, even less of Crypto. I have a financial planner that has invested my retirement money for the last 28 years. He knows my goal is to retire with a nice chunk of cash. I am not looking to get rich quick, I have instructed my FP to be extremely cautious and conservative with my hard earned money. I am happy with 9-10% return yearly with minimum risk. I wish I had extra money to gamble on the stock market, but I don't. The point is that stocks and more so, Crypto is one big Las Vegas type ride. Whoever says they have figured it out, and there is a formula, is lying to themselves. A very good example is TESLA, it's really not a car company, it's one big speculative, stock market trading outfit. They make less cars in one year than Ford makes pickup trucks in one month, yet their valuation is bigger than FORD or GM put together. Their cars are high technology but poor execution (body gaps, paint, interior) yet their stock keeps climbing. Do you know why Musk put a bid in to buy Twitter? Because that was the only way he could sell 10-20 billion $ worth of stocks without TESLA losing any market value. If any CEO sells off billions of his company stocks with no legitimate reason, the company stocks will tumble. The whole stock market is one huge scam, how it is manipulated by the rich.
No Crypto for me, I am just going to stay in my lane and make 9% a year and not retire broke.

Are you on track for 9% this year?

 

[WVUPharm2007]

I have very limited knowledge of stocks and bonds, even less of Crypto. I have a financial planner that has invested my retirement money for the last 28 years. He knows my goal is to retire with a nice chunk of cash. I am not looking to get rich quick, I have instructed my FP to be extremely cautious and conservative with my hard earned money. I am happy with 9-10% return yearly with minimum risk. I wish I had extra money to gamble on the stock market, but I don't. The point is that stocks and more so, Crypto is one big Las Vegas type ride. Whoever says they have figured it out, and there is a formula, is lying to themselves. A very good example is TESLA, it's really not a car company, it's one big speculative, stock market trading outfit. They make less cars in one year than Ford makes pickup trucks in one month, yet their valuation is bigger than FORD or GM put together. Their cars are high technology but poor execution (body gaps, paint, interior) yet their stock keeps climbing. Do you know why Musk put a bid in to buy Twitter? Because that was the only way he could sell 10-20 billion $ worth of stocks without TESLA losing any market value. If any CEO sells off billions of his company stocks with no legitimate reason, the company stocks will tumble. The whole stock market is one huge scam, how it is manipulated by the rich.
No Crypto for me, I am just going to stay in my lane and make 9% a year and not retire broke.

That's what most of us do on here.

We just invest our retirement funds in cheap, broad index funds that average 8-10% in the average year.

That *is* the formula.

Then with extra fun money, some choose to gamble with it. I just buy more total stock market funds.

Though if that's all you're doing, just buying index funds, you've wasted a lot of money on a financial advisor. All they are doing is just buying some cheap total stock market funds like VTSAX and charging you for doing pretty much nothing.

Also, you probably own a lot of Tesla because index funds are weighted and Tesla is a honkin lad.

 

[RXDOC1986]

That's what most of us do on here.

We just invest our retirement funds in cheap, broad index funds that average 8-10% in the average year.

That *is* the formula.

Then with extra fun money, some choose to gamble with it. I just buy more total stock market funds.

Though if that's all you're doing, just buying index funds, you've wasted a lot of money on a financial advisor. All they are doing is just buying some cheap total stock market funds like VTSAX and charging you for doing pretty much nothing.

Also, you probably own a lot of Tesla because index funds are weighted and Tesla is a honkin lad.

Oh, don't worry about me, my FP has done very well by me. He is worth every penny he has earned from my account. I haven't had a moment of concern about my investments in 30 years. AND I know that's what "most of us do here", I didn't say my system was revolutionary! BUT if you go back to the OP in 2017, his posts and the subsequent posts are all about timing the market, making big gains, gambling on obscure options, Crypto, etc......hence, my comments!
Didn't say TESLA was bad, just the absurdity of the whole thing and how average investors think they can gain the system.

 

[owlegrad]

Are you on track for 9% this year?

Obviously I can’t answer for him but considering his time span is the last 28 years I bet he *is* on track for an annualized return of 9% per year.

 

[mentos]

Obviously I can’t answer for him but considering his time span is the last 28 years I bet he *is* on track for an annualized return of 9% per year.

Isn't the average stock market return 10-10.5% for the past 30 years? Sounds like the FP takes 1-1.5%.

 

[WVUPharm2007]

I'm about to invest like $4 into the Mega Millions lottery. That sumbitch is up to $790 million.

 

[mentos]

I'm about to invest like $4 into the Mega Millions lottery. That sumbitch is up to $790 million.

You mean donate.

 

[owlegrad]

Isn't the average stock market return 10-10.5% for the past 30 years? Sounds like the FP takes 1-1.5%.

Not only does the FP take 1.5% but that client is happy - HAPPY - to pay it. We are in the wrong field my friend.

 

[mentos]

Can we still get 10% return when the money printing machine no longer works?

No idea I don't have a crystal ball. I was just looking at the past 30 years.

 

[RXDOC1986]

Not only does the FP take 1.5% but that client is happy - HAPPY - to pay it. We are in the wrong field my friend.

Yes, the poor FP has payments to make on his Mercedes and boat. I have to help out. Most of you guys are too young to remember - but what made me hand over my retirement to an FP was, back in 1998 I got a can't miss, too hot, stock tip on a little company called ENRON (ENE). I had about $120K in a self directed 401K with Schwab - put $60K in ENRON that tripled in value by 2001 before it vanished in the biggest scandal in stock market history. Investors lost $74 billion ( $120 billion in today $$) . Crypto market says hello!
Hence the FP!
Now the only thing I want worry about is my receding hairline and expanding waistline. No sleepless nights over Crypto or stocks and bonds movements.

 

[mentos]

Yes, the poor FP has payments to make on his Mercedes and boat. I have to help out. Most of you guys are too young to remember - but what made me hand over my retirement to an FP was, back in 1998 I got a can't miss, too hot, stock tip on a little company called ENRON (ENE). I had about $120K in a self directed 401K with Schwab - put $60K in ENRON that tripled in value by 2001 before it vanished in the biggest scandal in stock market history. Investors lost $74 billion ( $120 billion in today $$) . Crypto market says hello!
Hence the FP!
Now the only thing I want worry about is my receding hairline and expanding waistline. No sleepless nights over Crypto or stocks and bonds movements.

I know Enron from the movie "Fun with Dick and Jane."

LUNA was the crypto equivalent.

The Largest Market Cap Coin You Haven't Heard Of: LUNA | The Motley Fool

Terra could be the top performing alt coin in 2022, outperforming ADA, SOL, MATIC, and others.

www.fool.com

 

[WVUPharm2007]

You mean donate.

Hey. It's a 1 in 300 million chance.

 

[WVUPharm2007]

Yes, the poor FP has payments to make on his Mercedes and boat. I have to help out. Most of you guys are too young to remember - but what made me hand over my retirement to an FP was, back in 1998 I got a can't miss, too hot, stock tip on a little company called ENRON (ENE). I had about $120K in a self directed 401K with Schwab - put $60K in ENRON that tripled in value by 2001 before it vanished in the biggest scandal in stock market history. Investors lost $74 billion ( $120 billion in today $$) . Crypto market says hello!
Hence the FP!
Now the only thing I want worry about is my receding hairline and expanding waistline. No sleepless nights over Crypto or stocks and bonds movements.

Yeah...ok, maybe YOU need a financial planner then. lol.

 

[owlegrad]

I should say that I am not as anti-FP as some here. Sometimes you want someone with expertise to give you advice on financial products, which accounts are best for your situation, insurance, and such. There is nothing wrong with that.

But it’s also pretty easy to just invest in target date funds and skip the fees. Most FP only expertise is sales anyway.

 

[Chrish]

I have a friend who laughs at the concept of NOT having a fp. He firmly believes it should be left to a specialist and he can’t manage his own wealth. I have stopped wasting my breath on him..

 

[mentos]

It's good when someone knows they need one. Plenty of folks think they're financial experts and manage their money poorly while giving terrible advice to others. I have a friend who doesn't contribute to 401k, Roth or HSA and told everyone to buy annuity instead. I asked him how his annuity plan was going, he said he dropped it because he couldn't afford the fees. Still hasn't opened a 401k. He also recommends to lease cars instead of buying them.

 

[WVUPharm2007]

It is not that hard for pharmacists. We only make $120-160 k a year.

- max out your 401 k and Roth IRA (backdoor)
- buy a house
- buy your company shares via ESPP if you can sell them right away.

That is it. You don’t have any more money to invest. The end.

I do. I have a lot left over.

My only major expense is $1500 a month for my mortgage, though. Own my cars. No other debt. Just regular bills and the mortgage.

 

[Dr Meow]

At the advice of others - figured we would move this specific topic to another thread - please no bashing the process or saying it is stupid - we know your feelings - it is obviously a gamble.

I have a little bit of money is FUN, IOTA, XRP, NEO, TRX, in addition to the three big ones. My questions to start discussion - obviously not all of these will gain widespread adoption. I plan on hoping one will hit the exponential rise and then figure out when to sell.

Iota - anyone thing it hit its main peak? (shot up to $5 - likely slow going - or will hit the exponential rise?)

I see from your selection that you're a bagholder from older times.
whoops didn't realize this thread is very old.

 

[WVUPharm2007]

Do you still have any student loans?

Been paid off.

 

[Dred Pirate]

I see from your selection that you're a bagholder from older times.
whoops didn't realize this thread is very old.

haha - ya very old- I sold all of my BTC shortley after Musk bought a bunch, I got out at the right time, I got lucky!

 

[Chrish]

I have a good friend who is very high up in the computer science field, everyone has an opinion but he knows a lot of the key players in this space and urged me to not invest in crypto. Says there are about 4 likely scenarios where this ends catastrophically, was enough of a warning for me to not dabble in it. Ultimately people will do as they wish, not looking to talk anyone out of their own opinions on investment/speculation but this is the personal stance I've made on crypto.

Following someone’s advice rarely ends well when it comes to finance. Study on your own and decide what’s best for you based on your tolerance.

This forum has been useless for past four years for me but it has tremendously helped me when I was a) preparing for pharmacy interviews and b) I found investment thread and learned about bogglehead investment philosophy. Then I did my own research and formed by own investment philosophy and modified it based on new experiences (stopped contributing to total international and started doing exclusively total us for example.)

 

[Chrish]

Had I discovered boglehead way of investing right when I graduated, my net worth would have been good 200k higher than what it is now. Oh well.. I will at least teach my kids.

 

[Dred Pirate]

Had I discovered boglehead way of investing right when I graduated, my net worth would have been good 200k higher than what it is now. Oh well.. I will at least teach my kids.

+1 to the bogglehead style - too many people overthink investing - I have a little funny money I have played with, I have won some and lost some - but the time you really need to put into investing (and a little luck) generally just doesn't make sense- index funds all the way

 

[mentos]

Did you create a new account just to post this?

It's called a spam bot.

 

[mentos]

Had I discovered boglehead way of investing right when I graduated, my net worth would have been good 200k higher than what it is now. Oh well.. I will at least teach my kids.

I already knew about Bogleheads before this forum. I bought index funds, never looked at stocks, and was happy as a clam. Then I got into buying individual stocks and crypto scams and now my net worth is 200k less than it should be.

 

[mentos]

That discord group got you

I have no one to blame but myself. But yeah I drank the Kool aid.

 

[mentos]

$200 k is a lot of money. That is like 3 years of work (after tax). Of course you made the decision but let’s be real….you also got pressured. That is how crypto bros do it. They need others to buy for their crypto to go up. There is no earning report, no dividend, no real product…..just the promise that someone else will pay a higher price for your crypto.

I'm just exaggerating but I am down a lot. And I was including meme stocks + crypto together. Should have just indexed.

 

[RXDOC1986]

Getting your money back sounds like a myth in crypto but there are specialists out there who makes this possible. I've worked in finance for almost 2 decades and getting scammed on the crypto space was the most devastating time for me . Thanks to an old friend who contacted a crypto recovery agency who helped him recover his lost funds at the beginning of his retirement and I'm so excited that my funds were recovered as well. Thanks again for your help, Jerry. His email: ''Jerryfixesit @ Cyberservices . Com''. This is the least way of showing my gratitude.

Hey Oliver - Can your "friend" get me out of the timeshare I bought? Would really appreciate it!

 

[Chrish]

I already knew about Bogleheads before this forum. I bought index funds, never looked at stocks, and was happy as a clam. Then I got into buying individual stocks and crypto scams and now my net worth is 200k less than it should be.

I am sorry to hear that bro. Didn’t realize you were that deep (haven’t kept up with reading these forums) . Hopefully it will bounce back.

I would say I have around 10k which I would classify as a risky asset (if you remove Tesla this number becomes 3-4k.). Yes I like to gamble but it’s a low number and won’t affect me much if it becomes zero.

I still have not insignificant money into total international that I regularly contributed to for first two-three years which really hasn’t turned much profit. I know I should be looking at 20 year horizon with index but performance of international doesn’t really inspire any confidence. I often wonder whether I should just sell all of it and put it into total US?

 

[WVUPharm2007]

I already knew about Bogleheads before this forum. I bought index funds, never looked at stocks, and was happy as a clam. Then I got into buying individual stocks and crypto scams and now my net worth is 200k less than it should be.

Mikey tried to warn you.

 

[mentos]

I am sorry to hear that bro. Didn’t realize you were that deep (haven’t kept up with reading these forums) . Hopefully it will bounce back.

I would say I have around 10k which I would classify as a risky asset (if you remove Tesla this number becomes 3-4k.). Yes I like to gamble but it’s a low number and won’t affect me much if it becomes zero.

I still have not insignificant money into total international that I regularly contributed to for first two-three years which really hasn’t turned much profit. I know I should be looking at 20 year horizon with index but performance of international doesn’t really inspire any confidence. I often wonder whether I should just sell all of it and put it into total US?

It was a bad joke, I'm not down that much but still a lot, maybe 40k at the moment.

I also stopped contributing to international. Just went 100% total market fund for simplicity.

 

[Noemata]

ETH Beacon chain merge September 16, 2022

 

[mentos]

ETH Beacon chain merge September 16, 2022

I think people will sell the news around that time.