Be ahead of the curve

[periopdoc]

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The most important thing in this space is to have good mentors. This is a mental game of patience and resolve. Having battle hardened advisors to help you through your first few dips is vital.

They are hard to find. Too many hype train types. At the risk of sounding like a shill, I'm going to share some learning resources that have proved invaluable to me.

All of these guys have both free and premium services. I'm subscribed to all three premium services.

First is Cultivate Crypto. Charlie has free daily YouTube content, going back several years, with excellent technical and fundamental analysis. Miguel joins up for the price predictions that tend to be pretty accurate. They do a quarterly course that runs about $900 (goes up $100 every quarter, I think). This is an intense, 2-week course, that will take you from knowing nothing about crypto to getting you up and running. It is a firehose of info with twice daily Zoom sessions that go 4 to 6 hours each. They are recorded for later review. The next course will be in September, which, not incidentally, is probably the last good time to buy in this bull market.

A lot of Charlie's technical analysis is based on the work of Bob Loukas, the originator of the 60 day BTC cycle theory. Bob and his team do multiple weekly streams, and Bob provides the overall picture in his "4-year journey" series. There is nothing quite like sitting back, listening to Bob's calm, soothing voice, when the rest of the crypto world is panicking. No one can help you step back, and look at the big picture, like Bob. His partner, BigCheds provides more of the trader's perspective.

Finally, there is Benjamin Cowen. Disciplined, mathematical, patient trading. His risk metrics are what I use to figure out the likelihood that my entry will pay off. You can choose your risk tolerance, then use his metrics to decide when it is a good idea for you to buy and sell. He posts a ton of free content on his YouTube, and his premium service just amps this up, and provides access to the real-time risk metric.

There are a few honorable mentions. Anorak for NFT content. Wasabi/ 3rd Wave TV for another technical overview. PlanC for on chain analysis. The Yield Labs crew for yield strategies.

I'll try to answer questions, as best I can, while I am still here, but I don't plan on sticking around for long. I'm in the endoscopy lab today, so typing between patients

 

[periopdoc]

2 questions

1. Why can't I use the cold storage on Coinbase? They guarantee its safety

2. How much money are you talking about for Crypto? $400K in today's Crypto values? $600K? I am referencing what you are "willing to lose."

Is Coinbase safe? Coinbase uses extensive security measures to protect your privacy and your crypto assets. Ninety-eight percent of customer funds are stored in offline cold storage, and the company maintains insurance to protect against loss.Jun 15, 2021

1 - The deeper you get into crypto, the less you will trust the exchanges. During times of high volatility, when you most want to get into or out of positions, they shut down. They will even wick the price, right around the time of the shut down, to run stops. They are evil. Period. During times of high demand, they can take days to move your crypto. There is a lot of suspicion that they don't have the reserves that they claim to. One of the primary purposes of crypto is self sovereignty, and storing assets on exchanges goes against this entirely.

2 - Willing to lose is up to you. If you make 400 plus per year, putting 100 in should be tolerable. If you have a retirement portfolio of 1 million, 100k won't kill you if you lose it all. Maybe you only have a retirement of 300k, and you are willing to risk 100k by putting it all in, and pulling 200k out after a 100k loss. Ultimately, a well balanced portfolio, weighted toward BTC and ETH, won't be problematic. Even if you lose all the money you invested in **** coins, your ETH and BTC will buoy your portfolio, if you hold for 3 years. I won't speak to what I specifically have in the market except to say that generational wealth is on the horizon. I have more in than I am willing to lose, but it's all house money now, and the market would have to drop a lot before I hit the "not willing to lose" threshold.

 

[partydoc]

1 - The deeper you get into crypto, the less you will trust the exchanges. During times of high volatility, when you most want to get into or out of positions, they shut down. They will even wick the price, right around the time of the shut down, to run stops. They are evil. Period. During times of high demand, they can take days to move your crypto. There is a lot of suspicion that they don't have the reserves that they claim to. One of the primary purposes of crypto is self sovereignty, and storing assets on exchanges goes against this entirely.

2 - Willing to lose is up to you. If you make 400 plus per year, putting 100 in should be tolerable. If you have a retirement portfolio of 1 million, 100k won't kill you if you lose it all. Maybe you only have a retirement of 300k, and you are willing to risk 100k by putting it all in, and pulling 200k out after a 100k loss. Ultimately, a well balanced portfolio, weighted toward BTC and ETH, won't be problematic. Even if you lose all the money you invested in **** coins, your ETH and BTC will buoy your portfolio, if you hold for 3 years. I won't speak to what I specifically have in the market except to say that generational wealth is on the horizon. I have more in than I am willing to lose, but it's all house money now, and the market would have to drop a lot before I hit the "not willing to lose" threshold.

What are your thoughts on GBTC and ETHE? I'm currently holding those in my Roth.

 

[periopdoc]

Great time to buy GBTC. It is still at a nice 8% discount to NAV. Even better if you can trade it into real BTC when it is back into premium territory.

I haven't looked into ETHE.

I hold real crypto in my 401k, not funds.

 

[periopdoc]

611 million of user funds stolen from the Poly network today.

Not your keys, not your coins. Why would you trade your private keys for 7% yield?

It wasn't even a true hack. Either an inside job, or a stolen password.

Projects with admin keys, or oracles are bad, mmmkay?

 

[chessknt]

How are you meeting custodial requirements on your self directed Roth if you hold the crypto key?

 

[BLADEMDA]

611 million of user funds stolen from the Poly network today.

Not your keys, not your coins. Why would you trade your private keys for 7% yield?

It wasn't even a true hack. Either an inside job, or a stolen password.

Projects with admin keys, or oracles are bad, mmmkay?

How long have you been into Crypto? I’ve had my bitcoin for a few years now and have weathered ups and downs without selling any of it.

It sounds like you went heavily into crypto last year and are really doing well with it. Since I don’t sell my crypto I keep it locked in the vault at coinbase. I’m not going to move it until BTC hits $100k.

I’m looking to build a position in ETH so when the price drops to a good level shoot me a PM and I’ll buy. Based on the charts can I expect a dip to $2600 for ETH?

Finally, BTC is capped at 24 million and ETH is unlimited. Does that matter in where they ultimately settle in terms of price?

 

[periopdoc]

How are you meeting custodial requirements on your self directed Roth if you hold the crypto key?

It's a Roth 401k, not a Roth IRA. Custodian rules are different. My banks are custodians of cash on deposit. Once the cash is onboarded into crypto, or used to buy real estate, I'm the custodian.

I have a LLC that is separate from my main job. I run my anesthesia locums, event security, and beef cattle businesses through the LLC.

My 401k lies within the LLC, and has separate LLCs, 1 for crypto, and 1 for real estate, inside of it.

I put 58k annually into my corporate 401k then do an in-service rollover of those funds into the solo 401k in my LLC. I put an additional 58k annually, directly into my Solo 401k, from my LLC income.

When I convert funds to the Roth component, I obtain a 401k valuation, that reduces the basis of the conversion by 20% (I'm only taxed on 80k of every 100k that I convert to Roth funds)

I highly recommend this strategy for funding your retirement. You can escape the encumbrances of the corporate 401k, with its typically limited fund options.

When I'm nearing retirement, I will convert the whole thing into an IRA and Roth IRA structure as that provides more flexibility on the withdrawal end.

 

[chessknt]

It's a Roth 401k, not a Roth IRA. Custodian rules are different. My banks are custodians of cash on deposit. Once the cash is onboarded into crypto, or used to buy real estate, I'm the custodian.

I have a LLC that is separate from my main job. I run my anesthesia locums, event security, and beef cattle businesses through the LLC.

My 401k lies within the LLC, and has separate LLCs, 1 for crypto, and 1 for real estate, inside of it.

I put 58k annually into my corporate 401k then do an in-service rollover of those funds into the solo 401k in my LLC. I put an additional 58k annually, directly into my Solo 401k, from my LLC income.

When I convert funds to the Roth component, I obtain a 401k valuation, that reduces the basis of the conversion by 20% (I'm only taxed on 80k of every 100k that I convert to Roth funds)

I highly recommend this strategy for funding your retirement. You can escape the encumbrances of the corporate 401k, with its typically limited fund options.

When I'm nearing retirement, I will convert the whole thing into an IRA and Roth IRA structure as that provides more flexibility on the withdrawal end.

What bank let’s you convert your cash deposit to crypto in A 401k space? How do they track basis?

 

[periopdoc]

. I’m not going to move it until BTC hits $100k.

I’m looking to build a position in ETH so when the price drops to a good level shoot me a PM and I’ll buy. Based on the charts can I expect a dip to $2600 for ETH?

Finally, BTC is capped at 24 million and ETH is unlimited. Does that matter in where they ultimately settle in terms of price?

Get ready to move it this year, then. BTC has two possible paths right now. 10k in September, or 110k EOY. Keep in mind another 2x, beyond that is more likely than not, if we hit 110 by EOY. If we are going to hit 10k, we will know soon. It probably pumps to 50 to 55k first.

September will probably be the next good time to accumulate ETH. If we are on a trajectory to 110 BTC EOY, then anything under 3k ETH is a good buy. If we are on trajectory for 10k BTC, then ETH could drop under 1k.

If 10k BTC happens, we will have a year or so to accumulate both.

For all intents and purposes, the inflationary nature of ETH is unimportant.

Being said EIP 1559 begins the process of making ETH deflationary, and at times of high network activity, more coins will be burned than minted. When ETH 2.0 is fully implemented, ETH should be fully deflationary.

Next time I see a good ETH buy, I'll let you know.

 

[periopdoc]

What bank let’s you convert your cash deposit to crypto in A 401k space? How do they track basis?

When I'm ready to onboard, I wire the money into Kraken to convert to crypto. I use Titan Bank and Solera. They are crypto friendly, and don't give me hassles about wiring funds in and out of crypto exchanges.

 

[mentos]

My current portfolio includes
ETH - BTC - CEL - SNX - AAVE - DOT - KSM - HEX - PLS (when it is released) - LINK - UNI - LTC - SRM

I'm considering adding some positions in FTT and SOL, and will buy equity in Celsius at their Round B equity offering.

No ADA? I'm surprised because a lot of smart crypto investors I know are ADA bulls. They believe in the superior technology to ETH and getting it right the first time vs all these updates. Does this go back to lack of adoption? If it ever overtakes ETH or coexists then it's still super cheap in comparison.

I plan to DCA a few hundred into ETH and ADA each paycheck and try to load up on the dips. Stake and chill.

 

[Z-Qualizer]

I onboard my taxable account into Coinbase Pro, and I use Kraken to onboard my Roth and traditional 401k funds. For some reason, it is just easier to use Kraken for corporate account, and Coinbase for personal account, onboarding. Kraken has made some improvements for personal accounts recently.

Once I have onboarded, I do almost all of my trades on DEXs like 1inch and Uniswap, but I don't trade much. I hate short-term cap gains tax. I do not leave anything on the exchanges, except for the DOT and KSM that I stake on Kraken. As we approach the end of the bull market, I will remove those coins as well. You simply cannot trust the exchanges to have the necessary liquidity during times of high demand. I have a large portion of my portfolio on deposit with Celsius, and in cold storage. My key phrases are split up and stored in multiple locations. You need to access three of the five different locations to recompile the keys.

Okay so, for your crypto-related investing you use...
1.) Coinbase Pro
2.) Kraken
3.) 1inch
4.) Uniswap
5.) Celsius

I'm sure this is "safe", but it also seems really inefficient? Does it need to be THIS complicated, or is there an "easier" way?

 

[Direct Laryngoscopy]

Wow, 1 year later this thread still has engagement. Solid! For me my interest is sound money so I only hold 2 coins.

I would say whatever your favorite coin to hold long term is,I would strongly (really strongly) suggest you learn to self custody through a “cold” wallet like a ledger or trezor, and not keep them on any exchange as that’s a claim to those coins not actual ownership (like your $$$ in a bank).

The US central Banks and treasury will not stop printing money (I understand it’s a credit based system but you understand the term), and I don’t trust them at all and I’ll leave it at that. Holding your digital assets is property rights where no intermediary is needed and you are sovereign. Something that I think will be very important this decade as the US dollar as the reserve currency status could possibly end. This should be the time Americans learn about what money is, how debt markets work and why holding your own digital assets is imperative.

 

[Shimmy8]

POD…so you don’t contribute anything to corporate 401k? Does your employer not offer some kind of match? Or are you solely locums?

 

[periopdoc]

Okay so, for your crypto-related investing you use...
1.) Coinbase Pro
2.) Kraken
3.) 1inch
4.) Uniswap
5.) Celsius

I'm sure this is "safe", but it also seems really inefficient? Does it need to be THIS complicated, or is there an "easier" way?

That is the simplified, quite efficient, version. Just need somewhere to buy currencies (Kraken, and CBP), somewhere to swap currencies (1inch and Uniswap), somewhere to earn interest (Celsius), and somewhere to securely store funds (Metamask, cold storage, etc).

The complex version includes

Fiat to Crypto exchanges - Kraken, Coinbase, Coinbase Pro, Dharma, Crypto, Gemini (I need more of these)

Wallets - Metamask (5 wallets for segregation of funds), Daedelus wallet, Bread wallet, Trust Wallet, Ledger, Trezor,

Crypto to Crypto Exchanges - Uniswap, 1inch, Sushi, Matcha, Loopring, Simple Swap, FTX, Binance, Kucoin

Custodial yield/ loans - Celsius, Compound, Uniswap LP, Terra (Really want to get into Yield when available in the US)

Non-custodial yield/ loans - AAVE, HEX staking, MakerDao


That's off the top of my head. There are some other LP farming type protocols I have played with, but there are only so many hours in the day.

Then consider I have 3 different primary accounts (Personal, 401k, Roth401k), with a lot of overlap in terms of which protocols I have funds allocated to. It can be pretty complex if you want to go that route.

 

[periopdoc]

No ADA? I'm surprised because a lot of smart crypto investors I know are ADA bulls. They believe in the superior technology to ETH and getting it right the first time vs all these updates. Does this go back to lack of adoption? If it ever overtakes ETH or coexists then it's still super cheap in comparison.

I plan to DCA a few hundred into ETH and ADA each paycheck and try to load up on the dips. Stake and chill.

I do have ADA, but it is a worthless protocol. Vaporware. Coding for it is a nightmare, so no wonder they don't have any projects. How long does it take to "get it right the first time?" How long will investors have patience? It has all of the functionality of Bitcoin with less than 1/2 of the First-Mover advantage of Ethereum. All it offers right now are empty promises.

The only reason to hold ADA is the price action. For whatever stupid reason, people still believe in it as a project, and it is one of the leading holders of value over the last year. My current position is only up 2x, though. The non-custodial 7% interest is nice, though.

 

[Z-Qualizer]

That is the simplified, quite efficient, version. Just need somewhere to buy currencies (Kraken, and CBP), somewhere to swap currencies (1inch and Uniswap), somewhere to earn interest (Celsius), and somewhere to securely store funds (Metamask, cold storage, etc).

Thanks for the response. I’m obviously new at crypto investing. I’ve been using the crypto.com app, which does most of what you listed above, except for the cold storage.

The only thing I don’t like about it, is it doesn’t play well with my bank (I get hit with fees on both ends).

I’ve been trying to decide if I want to open a new crypto friendly bank account, or make things more complicated.

 

[periopdoc]

POD…so you don’t contribute anything to corporate 401k? Does your employer not offer some kind of match? Or are you solely locums?

It is somewhat semantics. I'm a partner, not an employee, so all employer and employee contributions to my corporate 401k come out of my earnings. I make a full (58k for 2021) contribution into my corporate 401k every year, and roll over as much as I can into my Solo 401k. I also put 25% of my LLC income (up to the max contribution limit) into my Solo 401k. If I can top 232k income in my LLC this year, that is an additional 58k into my Solo 401k.

 

[Direct Laryngoscopy]

I do have ADA, but it is a worthless protocol. Vaporware. Coding for it is a nightmare, so no wonder they don't have any projects. How long does it take to "get it right the first time?" How long will investors have patience? It has all of the functionality of Bitcoin with less than 1/2 of the First-Mover advantage of Ethereum. All it offers right now are empty promises.

The only reason to hold ADA is the price action. For whatever stupid reason, people still believe in it as a project, and it is one of the leading holders of value over the last year. My current position is only up 2x, though. The non-custodial 7% interest is nice, though.

You know the names. How long you been in the crypto game?

 

[periopdoc]

The only thing I don’t like about it, is it doesn’t play well with my bank (I get hit with fees on both ends).

I’ve been trying to decide if I want to open a new crypto friendly bank account, or make things more complicated.

Fees are just the nature of the game in money, and even more so in crypto. Even moving money from bank to bank comes with fees, unless you can ACH it. It can be stunning to look at the amount one pays out in fees every year, which is a good argument for just buying and holding. Ultimately, the gains are high enough that the fees don't matter, but they do hurt.

You would be better served by looking at other crypto projects, and why you may not want to hold your crypto on Crypto.com, than getting another bank. Coinbase Pro has free transfers from the bank to their system, and is probably the cheapest onboarding vehicle in the US. You still pay the fee to convert your fiat into crypto, but there isn't a fee for transferring the fiat to CBP.

I maintain a separate fiat account specifically for this function. I don't like the idea of Coinbase having the ability to reach into my checking account to withdraw funds. So, the account that I have tied into Coinbase carries a minimum balance, and I just transfer fiat into it when I need to onboard

 

[Z-Qualizer]

Fees are just the nature of the game in money, and even more so in crypto. Even moving money from bank to bank comes with fees, unless you can ACH it. It can be stunning to look at the amount one pays out in fees every year, which is a good argument for just buying and holding. Ultimately, the gains are high enough that the fees don't matter, but they do hurt.

You would be better served by looking at other crypto projects, and why you may not want to hold your crypto on Crypto.com, than getting another bank. Coinbase Pro has free transfers from the bank to their system, and is probably the cheapest onboarding vehicle in the US. You still pay the fee to convert your fiat into crypto, but there isn't a fee for transferring the fiat to CBP.

I maintain a separate fiat account specifically for this function. I don't like the idea of Coinbase having the ability to reach into my checking account to withdraw funds. So, the account that I have tied into Coinbase carries a minimum balance, and I just transfer fiat into it when I need to onboard

I thought that might be the case with the fees. Prior to investing in crypto, I traded stocks exclusively on Robinhood, so I got accustomed to having little to no fees 😂

You definitely gave me some things to think about. I am going to research some other platforms and methods for crypto investing.

Thanks again!!

 

[BLADEMDA]

Wow, 1 year later this thread still has engagement. Solid! For me my interest is sound money so I only hold 2 coins.

I would say whatever your favorite coin to hold long term is,I would strongly (really strongly) suggest you learn to self custody through a “cold” wallet like a ledger or trezor, and not keep them on any exchange as that’s a claim to those coins not actual ownership (like your $$$ in a bank).

The US central Banks and treasury will not stop printing money (I understand it’s a credit based system but you understand the term), and I don’t trust them at all and I’ll leave it at that. Holding your digital assets is property rights where no intermediary is needed and you are sovereign. Something that I think will be very important this decade as the US dollar as the reserve currency status could possibly end. This should be the time Americans learn about what money is, how debt markets work and why holding your own digital assets is imperative.

I hold a lot of money in USA banks. I trust the system and so far it has worked out. Coinbase is a BEAST in terms of valuation and I seriously doubt they will steal money from my ACH attached Bank account. I also trust their VAULT system as they go out of business if my coins evaporate/disappear.

Crypto investors are the type that don't trust institutions or governments. I get that fact. But for me, I pay Coinbase/Coinbase PRO and I sleep easily at night knowing my coins are in their vault. I also acknowledge that true crypto believers would NEVER trust anyone with their coins.

I keep up with the news and I am careful where I put my Crytpto. That means I don't bother with the 5% or 6% interest on my crypto leaving it exposed.
Maybe, if I ever exceed 7 figures with my Crypto I'll get a wallet of my own but I doubt it.

Once the BIG BOYS like Schwab, Fidelity, Vanguard, E-Trade, etc finally allow crypto they will secure my coins safely for me and guarantee against theft just as they do with all my money now.

The Man Who Lost $265 Million | The Motley Fool

Many years ago Stefan Thomas was paid 7,002 bitcoins, and now he can't find his password.

www.fool.com

At least $611 million stolen in massive cross-chain hack

Cross-chain protocol Poly Network has been hacked for $611 million. The team is calling for exchanges to block the stolen funds.

www.theblockcrypto.com

 

[BLADEMDA]

https://specials-images.forbesimg.com/imageserve/60fb1c98143da1514b118149/960x0.jpg?fit=scale

https://specials-images.forbesimg.com/imageserve/60fb1c98143da1514b118149/960x0.jpg?fit=scale

 

[BLADEMDA]

WisdomTree Physical Bitcoin (BTCW.SW) Stock Price, News, Quote & History - Yahoo Finance

Find the latest WisdomTree Physical Bitcoin (BTCW.SW) stock quote, history, news and other vital information to help you with your stock trading and investing.

ca.finance.yahoo.com

 

[chessknt]

I hold a lot of money in USA banks. I trust the system and so far it has worked out. Coinbase is a BEAST in terms of valuation and I seriously doubt they will steal money from my ACH attached Bank account. I also trust their VAULT system as they go out of business if my coins evaporate/disappear.

Crypto investors are the type that don't trust institutions or governments. I get that fact. But for me, I pay Coinbase/Coinbase PRO and I sleep easily at night knowing my coins are in their vault. I also acknowledge that true crypto believers would NEVER trust anyone with their coins.

I keep up with the news and I am careful where I put my Crytpto. That means I don't bother with the 5% or 6% interest on my crypto leaving it exposed.
Maybe, if I ever exceed 7 figures with my Crypto I'll get a wallet of my own but I doubt it.

Once the BIG BOYS like Schwab, Fidelity, Vanguard, E-Trade, etc finally allow crypto they will secure my coins safely for me and guarantee against theft just as they do with all my money now.

The Man Who Lost $265 Million | The Motley Fool

Many years ago Stefan Thomas was paid 7,002 bitcoins, and now he can't find his password.

www.fool.com

At least $611 million stolen in massive cross-chain hack

Cross-chain protocol Poly Network has been hacked for $611 million. The team is calling for exchanges to block the stolen funds.

www.theblockcrypto.com

You might have missed it but his point was that there is suspicion because of how the exchanges shut down or have huge price whips to trigger stops that the 'cold storage' might be a ruse and that your bitcoins might actually be on loan somewhere and not actually in their possession. Think of it like a hidden madoff maneuver--it is all good as long as everyone is liquid but if there is a huge call then everyone finds out that they actually got scammed.

How do you actually know your crypto is there? At least if a US bank defaults the government has you backed up to 250k. Similarly securities are regulated by the SEC so you arent going to have your assets loaned out without your knowledge. That guarantee isnt there for crypto. Similarly theft is irreversible and untraceable for this asset class so if the money is stolen it is 100% gone forever.

 

[BLADEMDA]

You might have missed it but his point was that there is suspicion because of how the exchanges shut down or have huge price whips to trigger stops that the 'cold storage' might be a ruse and that your bitcoins might actually be on loan somewhere and not actually in their possession. Think of it like a hidden madoff maneuver--it is all good as long as everyone is liquid but if there is a huge call then everyone finds out that they actually got scammed.

How do you actually know your crypto is there? At least if a US bank defaults the government has you backed up to 250k. Similarly securities are regulated by the SEC so you arent going to have your assets loaned out without your knowledge. That guarantee isnt there for crypto. Similarly theft is irreversible and untraceable for this asset class so if the money is stolen it is 100% gone forever.

Because companies, in general, want to earn the trust of their consumers. For financial companies like Coinbase their biggest selling point is security and guarantee against theft. I know you are skeptical but I am less so as Coinbase wants to grow to become the biggest player or be bought out by one of the big players.

My brokerage companies will make me whole if they are breached regardless of the $250K limit. They are too big to do otherwise and Coinbase wants to be in that league.

MY Crypto is in cold storage in their vault. They would be sued out of existence if they loaned out my Crypto and the owners found out about it. The asset is traceable on Coinbase as I have my purchases downloaded as well as on the Coinbase site. Coinbase will need to report any sales I make to the IRS,

 

[BLADEMDA]

How can I keep my Bitcoins safe? 08

Coinbase Vault: a way between combining security with The majority of one’s coins should be held in cold storage. However, managing a cold wallet is not always easy for the average consumer. Coinbase has created the „Vault“ which is a secure cold storage solution for the average bitcoin user. Unlike traditional cold storage, Vaults don’t require users to generate paper wallets, store them safely, manage private keys and backups. More advanced users may scoff at the thought of a third party controlling one’s private keys, but the Vault was designed with the average user in mind. Go to www.coinbase.com and log-in to your account

Withdrawals are time delayed with notifications delivered to your phones and emails. Once a withdrawal is initiated, the Vault owner can cancel the withdrawal within a 48 hour window. This intentional delay makes up for the fact that normal Bitcoin transactions are instant and irreversible. So even if an unauthorised person somehow gets access to the Vault, the Vault owner has a 2-day safety net to cancel the withdrawal, change passwords, and take any other necessary actions. You may choose a „group vault“ with multiple withdrawal approvers for increased security

On any transaction, coinbase will send an e-mail to both email addresses - if specified - which you have to confirm by pressing on the links. In summary, Coinbase Vault is more of a savings account than a typical wallet, and it has many security features. Along with SSL encryption, the account password, and two-step verification from regular wallets, Vaults can have multiple cosigners for withdrawals and require verification from two email addresses

 

[BLADEMDA]

You might have missed it but his point was that there is suspicion because of how the exchanges shut down or have huge price whips to trigger stops that the 'cold storage' might be a ruse and that your bitcoins might actually be on loan somewhere and not actually in their possession. Think of it like a hidden madoff maneuver--it is all good as long as everyone is liquid but if there is a huge call then everyone finds out that they actually got scammed.

How do you actually know your crypto is there? At least if a US bank defaults the government has you backed up to 250k. Similarly securities are regulated by the SEC so you arent going to have your assets loaned out without your knowledge. That guarantee isnt there for crypto. Similarly theft is irreversible and untraceable for this asset class so if the money is stolen it is 100% gone forever.

I fully understand your points. A digital wallet is the best approach but the VAULT is pretty good for those simpletons like me. Maybe, I will get help on setting up a digital wallet once my crypto holdings approach 7 figures.

Is Coinbase Safe In 2020? - Reviews - Altcoin Buzz

Eight years after its start, leading cryptocurrency exchange Coinbase is facing a burning question. Is Coinbase safe to trade crypto in 2020?

www.altcoinbuzz.io

 

[Z-Qualizer]

I hold a lot of money in USA banks. I trust the system and so far it has worked out. Coinbase is a BEAST in terms of valuation and I seriously doubt they will steal money from my ACH attached Bank account. I also trust their VAULT system as they go out of business if my coins evaporate/disappear.

Crypto investors are the type that don't trust institutions or governments. I get that fact. But for me, I pay Coinbase/Coinbase PRO and I sleep easily at night knowing my coins are in their vault. I also acknowledge that true crypto believers would NEVER trust anyone with their coins.

So basically, you ACH transfer fiat currency between your US bank and coinbase (pro?) accounts, and use the latter as a one-stop-shop to buy, sell, and hold your crypto? Am I missing anything? That’s exactly the kind of streamlined system I’m looking for.

May I ask which US bank you’re using? My bank refuses to ACH or wire transfer to the crypto.com app. I’d hate to switch over to coinbase and have the same issue. Like I said in a previous post, I may have to switch banks too, if they are uniquely crypto un-friendly.

 

[periopdoc]

So basically, you ACH transfer fiat currency between your US bank and coinbase (pro?) accounts, and use the latter as a one-stop-shop to buy, sell, and hold your crypto? Am I missing anything? That’s exactly the kind of streamlined system I’m looking for.

May I ask which US bank you’re using? My bank refuses to ACH or wire transfer to the crypto.com app. I’d hate to switch over to coinbase and have the same issue. Like I said in a previous post, I may have to switch banks too, if they are uniquely crypto un-friendly.

You can use Coinbase or Coinbase Pro (with its cheaper fees) in the manner you describe. If your portfolio is under 7 figures, you may not care about the security risk of having your coins held by an exchange.

I use Wells Fargo. It takes me all of five minutes to log in, transfer funds from my primary account to my crypto checking account, log into Coinbase, and buy ETH with those funds.

I highly recommend a good course to learn crypto. We are in the last third of the bull market, and you don’t want to be buying after Sept. A metric **** TON of people are going to get annihilated in the next year. They are going to FOMO in when the market is peaking, instead of waiting for the inevitable 80% dip.

 

[BLADEMDA]

POD, are you a long term believer in crypto like ETH or Bitcoin? Do you just trade and plan on selling it all next year ? You state this is the final 1/3 of the bull market so please clarify.

 

[mentos]

I do have ADA, but it is a worthless protocol. Vaporware. Coding for it is a nightmare, so no wonder they don't have any projects. How long does it take to "get it right the first time?" How long will investors have patience? It has all of the functionality of Bitcoin with less than 1/2 of the First-Mover advantage of Ethereum. All it offers right now are empty promises.

The only reason to hold ADA is the price action. For whatever stupid reason, people still believe in it as a project, and it is one of the leading holders of value over the last year. My current position is only up 2x, though. The non-custodial 7% interest is nice, though.

You're up way more now.

 

[<(^_^)>]

I fully understand your points. A digital wallet is the best approach but the VAULT is pretty good for those simpletons like me. Maybe, I will get help on setting up a digital wallet once my crypto holdings approach 7 figures.

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This is a very sensible approach. Far more of my friends have lost their crypto over the years on cold storage (where ostensibly it was safe from exchanges) than people that lost their $ in the exchange itself…with the rather notable exception of mt gox…. Either way, coinbase is no mt gox and while popular it was clearly an amateur effort. Ideally you would hold your coins yourself, but that is only a good idea if you are willing to set up contingencies, secure offsite backups etc.

If you are new to crypto and don’t have much $ (under 6 figures) I wouldn’t worry about holding coins on reputable exchanges such as coinbase. As you said if you end up with a lot more, securing it yourself can be very satisfying and more in the “spirit” of crypto.

 

[periopdoc]

POD, are you a long term believer in crypto like ETH or Bitcoin? Do you just trade and plan on selling it all next year ? You state this is the final 1/3 of the bull market so please clarify.

I'm a long term believer. I don't really trade around a lot. The people who make the most money in crypto are the people who time their buys, and plan their sells. Save up. Buy on the 80% dips. Don't get shaken out, and take original principle out after the first 2x to 3x. Let the rest ride, and start taking profit around 10x. Never sell your entire bag.

I have a bag of BTC, ETH, DOT, and soon PLS that I will never sell. I just keep adding to it with profits. The other coins come and go, but there are a few candidates to add to the never sell bag.

The SOL I mentioned has done well,

 

[periopdoc]

In terms of the bull market cycle, it likely would have ended mid-winter if we hadn't had this spring/summer dip. That dip lengthens the bull window into next summer, and allows for higher numbers to be hit before the next bear market. In terms of where to buy ETH, I used to say anything under 1k. Then it was anything under 2k (the 1700 dip was an absolute gift if you got it). Now, it is probably anything under 3k, There is a chance we see a nice dip to scoop up in Sept. That will likely be the last chance for this market. We will see 11k to 20k before the end of the bull market, so does it really matter if your basis is 2k or 3k? It might if you get shaken out by a dip, and don't hold through. It would suck to miss out on a 6x because you were hoping for a 10x. Early in the bull market, it is better to hold out for a 10x, but this late, you have to take what you can get.

If you are younger, you can always wait and start building positions in the next bear market.

 

[periopdoc]

For my end-of-bull market plan. I will probably sell 80% of the coins that have 10X'd or more. Anything that couldn't manage a 10x will get sold entirely. I'll probably sell 60% of my BTC, ETH, and DOT. PLS is unique, and I may hold the majority of it.

I likely won't sell anything that is not in long-term capital gains territory.

 

[periopdoc]

Final thought for today. There is no wash sales rule in crypto. If you are holding onto a position with a nice, short-term loss, sell it and rebuy it immediately to lock in the loss for taxes. The losses I realized during the last dip give me some cushion to start laddering out of the market with some of the buys that won't make it to long-term gains before the end of the bull market.

 

[chessknt]

Final thought for today. There is no wash sales rule in crypto. If you are holding onto a position with a nice, short-term loss, sell it and rebuy it immediately to lock in the loss for taxes. The losses I realized during the last dip give me some cushion to start laddering out of the market with some of the buys that won't make it to long-term gains before the end of the bull market.

You actually plan to pay taxes on crypto gains? I thought the whole point of crypto for Americans in the first place was to make tax evasion accessible to the masses… just convert your bitcoins to ether to moneto or whatever and cash out in a bank in the caymans. Impossible for defunded irs to ever figure out wtf is going on.

 

[dhb]

For my end-of-bull market plan. I will probably sell 80% of the coins that have 10X'd or more

What will you do with all that cash?

 

[Z-Qualizer]

You actually plan to pay taxes on crypto gains? I thought the whole point of crypto for Americans in the first place was to make tax evasion accessible to the masses… just convert your bitcoins to ether to moneto or whatever and cash out in a bank in the caymans. Impossible for defunded irs to ever figure out wtf is going on.

Eh I don’t think it’s that easy… you can lock in gains and *delay* paying taxes by converting to another coin, but it’s tough to avoid taxes completely.

Your “cash out in a bank in the caymans” is a catch-22. As soon as you “cash out…” any reputable platform is going to report your gains to the IRS. A non-reputable, off-shore crypto platform might not, but are you really going to trust that platform with your assets?

 

[anonperson]

Google News

Comprehensive up-to-date news coverage, aggregated from sources all over the world by Google News.

news.google.com

I expect more companies to follow

 

[anonperson]

In terms of the bull market cycle, it likely would have ended mid-winter if we hadn't had this spring/summer dip. That dip lengthens the bull window into next summer, and allows for higher numbers to be hit before the next bear market. In terms of where to buy ETH, I used to say anything under 1k. Then it was anything under 2k (the 1700 dip was an absolute gift if you got it). Now, it is probably anything under 3k, There is a chance we see a nice dip to scoop up in Sept. That will likely be the last chance for this market. We will see 11k to 20k before the end of the bull market, so does it really matter if your basis is 2k or 3k? It might if you get shaken out by a dip, and don't hold through. It would suck to miss out on a 6x because you were hoping for a 10x. Early in the bull market, it is better to hold out for a 10x, but this late, you have to take what you can get.

If you are younger, you can always wait and start building positions in the next bear market.

I'm early in my career so I don't have as much disposable cash to use after maxing 401k, ira, etc. I have just dollar cost averaged for the last several months into Bitcoin and Ethereum mainly (some chainlink and uniswap). This has worked out okay.

Due to the recent jump in ETH price, I have held off on any additional investment for now and am building cash reserves.

How significant of a price drop are you expecting in September?

At this time, I am basically buy and hold.

 

[periopdoc]

I prefer to use fully legal tax minimization and avoidance strategies to illegal tax evasion strategies, so I keep the majority of my crypto in a Roth 401k. I will never have to pay taxes on the gains. Staying completely legal opens the most doors to me.

Crypto is more traceable than any other currency or asset. Washing through Monero may work, assuming it isn't a NSA project, but ultimately you have to pull that money into fiat, and the tax man will get you there.

OTC and P2P can help, but unless you are willing to work with the kinds of people that have access to millions in off-the-books cash, you are kind of screwed.

 

[periopdoc]

What will you do with all that cash?

Buy a new boat. Buy a new truck. Pay off my student loans and house.

Reduce my hours at work. Focus on BJJ. Pull my teen out of school, and travel to ski and surf spots around the world whenever we want.

Roll the majority back into BTC, ETH, DOT, and other promising projects during the depths of the bear market.

 

[mentos]

I would caution anyone new to crypto about buying in now unless you're willing to hold for 3-4 years and can stomach being down over 50%. I think it's still risky and don't consider anything below 3k a good price for ETH. It was 1700 less than a month ago, where was all this euphoria back then? No one was telling you to buy last month, they were scared that it would drop to 1000-1200. Here we are 3.5 weeks later and all of a sudden, ETH will go 6-10x from here by next year? Doesn't seem realistic IMO. I don't think anyone can make a prediction like that, no one knows.

If you look at the history of crypto, every dead cat bounce was about a 60% increase from the dip, which is about where we are now. This could be a dead cat bounce or it could still be a bull cycle, but no one can predict that. Just something to consider.

For what it's worth, I have 23 staked ETH at an average of about 2830 that I can't sell. I don't feel good about my entry, I was caught up in the euphoria back in May and this kinda feels similar. The ones who are most bullish all bought in below 1k, so of course they will be cheerleaders for a bull cycle. I personally won't buy anymore unless it's below 1800 again.

Just my 2 cents.

Also, you should definitely pay taxes on crypto gains especially if you use an American exchange.

 

[mostwanted]

PLS ,

Can you share some info on PLS?

 

[Z-Qualizer]

Can you share some info on PLS?

I’m interested in this also… I tried to find some info on it, but I’m not sure I found the right one?

 

[periopdoc]

Oof. I wouldn't stake ETH. Way too many unknowns, and many other ways to earn yield. Too late now, though.

Where was I during the dip? Backing the truck up. $1700 was an absolute gift, but my ETH bag is full at sub 1k, and I wanted things with higher risk and returns. SOL, SRM, and Luna were my biggest plays on the dip. Could the market have gone down from there? Certainly. Could it still still drop below the summer lows? Certainly, but the probability grows smaller every day. Less than 10% at this point. The bears really need to make a move if they are going to win here.

If I had $100k to put into ETH, would I put it all in at sub $3k? No. I would put $33k in, and wait to average in at the next dip, with the understanding that there is no guarantee that the next dip will take us below $3k. I agree, if you aren't in this for at least 3-4 years, or more, you shouldn't be playing it. Too many people in crypto have way too short of a time frame. 80% dips are common. Still, the fact remains, no one who held their BTC for 3 years has lost money.

Bears and bulls both agree that we are at the inflection point in the decision of whether this rally is a bull trap, or a continuation of the bull market. If the bear thesis of a bull trap is right, we will have to see a heavy dump into this week's close. A close below $42k ish would pretty much confirm the bull trap, but the bears are running out of time.. Tomorrow is the mid-point of the 60-day cycle, and the dip of the last few days is very healthy, going into day 30. It sets us up nicely for a right translated cycle that would send us to all-time highs before year's end, after the Sept dip, of course.

There are no certainties in any investment. There are only probabilities and time. The fractal to 10k BTC and 1k ETH is still in play. If it plays out, it just sets up for an earlier start to the next bull market. It could stink to be stuck in a losing position for a year or so, but as long as you hold through, you don't lose.

 

[Mman]

I would caution anyone new to crypto about buying in now unless you're willing to hold for 3-4 years and can stomach being down over 50%

You shouldn't own stocks unless you are OK with them dropping over 50%.

Crypto? 🤣🤣🤣🤣🤣 You should be OK with it dropping over 80%.