Crypto Currency Trading Platforms
- Thread starter richardg
- Start date
matthewr
spɹɐʍʞɔɐq spɹoɔǝɹ ɹnoʎ sʎɐld
paulfromcamden
Baffled
paulfromcamden
Baffled
The reason why.
Dollar over same period
Bitcoin loses half it's value because USD rises 10%?
(edit: just realised I'm not sure what that chart is against? GBPUSD?)
And stablecoins pegged to the dollar?
Tony L
Administrator
A lot of Trump’s far-right/fascist conspiracy theorist base are very heavily dug-in to crypto, so, err, LOL. I suspect the Musk/Twitter/Tesla thing has some gravitational pull too, though it really isn’t my area of knowledge at all.
PS I remember Bitcoin being introduced as a concept but I thought it was pretty bonkers and was too much the tight ass to want to leave my computer on, so didn’t get involved at all. I was certainly aware of it at the stage I could probably have made some proper money if I wasn’t so dumb/cautious!
PS I remember Bitcoin being introduced as a concept but I thought it was pretty bonkers and was too much the tight ass to want to leave my computer on, so didn’t get involved at all. I was certainly aware of it at the stage I could probably have made some proper money if I wasn’t so dumb/cautious!
paulfromcamden
Baffled
@matt j I think the point is that it brings into question the stability of crypto - stablecoins shouldn't fall off a cliff like that - and a lot of the claims that have been made for crypto like it being a hedge against inflation, the basis of a new financial system etc.
Other asset classes will exhibit volatility but haven't had the same claims made about them.
I'm not trying to score points - the only reason I don't own crypto is that I've been too lazy to get around to setting up an account to drip feed!
Other asset classes will exhibit volatility but haven't had the same claims made about them.
I'm not trying to score points - the only reason I don't own crypto is that I've been too lazy to get around to setting up an account to drip feed!
As with anything you put your money into you need to do the research. Plenty of people were warning about LUNA/UST because it's not backed by physical assets, it was an algorithm stable coin. It was open to attack and that is just what happened.
Same way as investing in some ropey tech start up can lose you all your money.
paulfromcamden
Baffled
But if the whole point of an algorithmic stablecoin is that it's pegged to a currency - but it can collapse in some circumstances - what use is it?
I can't use it to speculate on crypto trillions and I don't want to accept it in exchange for my goods if it might become worthless overnight. Seems like a fundamentally flawed asset class.
UST offered 20% yields that is why people used it, and also why it was doomed to fail when the market eventually turned bearish because it was open to attack. The same way that the Gamestop run was aimed to wreck a load of big shorts in the market.
As with everything finance, you need to do your own research. Whether it is crypto or stocks.
As with everything finance, you need to do your own research. Whether it is crypto or stocks.
paulfromcamden
Baffled
I didn't know that - that's hilarious. So effectively a bit like a current account by an unregulated start-up bank that offered 20% interest?
https://www.businessinsider.com/anc...in-deposit-high-yield-crypto-2022-3?r=US&IR=T
There's a lot about crypto most critics don't know, they just wade in every time it makes the news. Most of the news articles from the mainstream media can't even get the basic facts of the situation right, never mind any sort of critical analysis. It's like getting your covid info from Trump.
paulfromcamden
Baffled
Matt - read my posts upthread.
Environmental considerations aside, I don't have any problem with folk speculating on crypto so long as they understand it's a volatile asset class and manage their exposure accordingly.
I'm not trying to score points - the only reason I don't own crypto is that I've been too lazy to get around to setting up an account to drip feed!
I don't have a downer per se on crypto - just observing that it appears to have a few problematic characteristics - something you could equally say of most asset classes.
Amber Audio
This is the Day
Due Diligence. Don’t gamble/invest/buy Crypto with money you can’t afford to lose (throw down a deep hole).
Crypto is unregulated and basically the wild west.
Savings Accounts are offering what - 1.5% max? Someone offers you 20% APY and then it all goes to rat shit and folk are surprised and sensationalist headlines ensue.
If you’re interested in Crypto loads of good advice is out there among all the scams and bull, you can do well with patience and some reading/learning and also minimise the risk to a degree. Not a bad time to look into choosing an Exchange and working out a modest DCA schedule imho.
Crypto is unregulated and basically the wild west.
Savings Accounts are offering what - 1.5% max? Someone offers you 20% APY and then it all goes to rat shit and folk are surprised and sensationalist headlines ensue.
If you’re interested in Crypto loads of good advice is out there among all the scams and bull, you can do well with patience and some reading/learning and also minimise the risk to a degree. Not a bad time to look into choosing an Exchange and working out a modest DCA schedule imho.
Gingerbeard
Ayup Me Duck
Indeed, I know a number of people that are making very good returns on leveraging. I just don’t have the time to do that, so have only speculated on a hodl basis, which clearly isn’t paying off at the moment, but then I’m not looking to pull out.
What we have to remember is that crypto is still in its infancy and there will be huge volatility. Personally, I still think it has a future and will rebound from this major dip.
A brave man would be heavily buying at the minute
I wasn't having a go, Paul, just pointing out that all financial markets have their risk and crypto is no different to anything else in that respect. I absolutely agree that people with little understanding shouldn't be putting any money in, at least money they're not willing to lose, without doing some proper research but then I'd say that about any investment not just crypto.
Unfortunately the higher risk/reward elements of any market attract the gamblers, there are certainly areas of crypto to be very wary about but these are the same people who'd lose it on the horses, cards, dogs, football etc. so there is little to prevent it, if someone is going to play the game then so be it.
paulfromcamden
Baffled
No worries - just being clear that I wasn't having a go either
Totally agree that all assets have some level of risk - even cash carries the risk of a reduced value in real terms over time.
I'm not convinced however that crypto is no different to other assets. It's less regulated, because it's relatively new there's not much data on market correlation and it appears to be more volatile than (most) other assets. I like @Amber Audio's wild west analogy.
I also think there's a difference (in theory at least when markets aren't overbought) between becoming a shareholder of a well run profitable company and speculating on the possibility of a crypto asset increasing in value.
That's not to say crypto doesn't have it's place in a portfolio - just that (as we all seem to be agreeing) it should ideally be an amount you can see go to zero without suffering too much.