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Few newbie questions for you guys

  • 27-12-2020 4:32pm
    #1
    Registered Users Posts: 475 ✭✭ baalad
    Registered User


    Hope everyone is well and had a great Christmas first off ;-)

    So i was close to taking a punt on this whole crypto thing about 3 years ago but i felt super confused and i just could not invest in something knowing i was clueless about the ins and outs of how it works and so forth.

    Fast forward to recent times and i get into a conversation with it about a friend of mine and although i could not grasp a lot of what he was saying. His enthusiasm and excitement for this was insane. He also showed me his portfolio and showed me that he has made around 4,000 euro over the past 6 months (granted he has invested a good few thousand)

    I am keen to jump on the bandwagon for 2 reasons. 1 - I want to be a millionaire lol Ok well maybe not a millionaire but who doesn't want to make some money? and 2 - I think it could be an interesting hobby to be a part of!

    Few questions i have as of now are as follows......

    1, I plan to be in this long term (maybe anywhere between 2 - 5 years) depending on gains if any at all. Iam guessing my best bet is to buy and hold regardless of any dips in the market? Is there any advice on learning how to make smart investments and choose choose the right coins to invest in and so forth? I plan to invest around 500 - 600 euro for now and leave it sit for a bit so for that reason Bitcoin does not seem like a wise investment as i don't think it will give me a good return at such a small investment.

    2, How does capital gains tax work? Im of the understanding that you pay tax on any profit you make if and when you cash in. Theoretically if i only made a profit of around 200 - 300 euro and after tax i would be possibly loosing money not gaining right? Any tips with regards to go about cashing out and how do you go about selling your investment anyhow? Do you look for buyers? Do they come to you? Or do you simply sell back to an exchange?

    3, Iam looking at keeping my crypto in one of the free available wallets right now such as Coinbase, Exodos etc Exodos looks to be the most user friendly and clean interface so may give it a go but how safe is this? I know hardware wallets are safer but they also cost a good few quid and can be easily lost etc Have any wallets like Coinbase, Exodos etc ever been hacked before??

    4, Lastly, What is the biggest factor in determining wether a coin goes up or down in value? There seems to be so many different types of coin and it appears as if its somewhat easy to just randomly create new ones. I would have thought this would drive the cost of other coins down if the market is flooded with far too many different type of coins.

    Apologies if any of the above or stupid questions or if they have already been asked. I just felt it was easiest to just ask them here in one thread and hopefully someone will be able to explain in simple terms so i do not have to go off and spend hours on google figuring things out haha

    Im a complete novice to this as you can tell so i will not be investing until i educate myself a little more and feel a little more confident that i know what i am doing. I thought by now the banks would have come in with there own crypto and took over the market. Cannot believe all these years later and Bitcoin is still the king but what do i know!

    Appreciate any advice / anyone that takes the time to respond to me!


Comments

  • Registered Users Posts: 24 ✭✭✭ Lexio7
    Registered User


    That’s a lot info / speculation you are after, which no one person will give the same answer.

    1. Why do you think bitcoin is not a wise investment. What are basing this on? You are go against what the majority of the market think is a good investment, including institutional investors.

    2. Speak to an accountant

    3. My opinion is never keep coins on an exchange: “not your keys, not your coins”. There are lots of good free Walters out there, including the one you mentioned. Once you have a significant amount of money invested use a hardware wallet.

    4. You need to do research on coins. You can’t just make a coin and expect it to explode in value. If a coin is successful the market cap will grow over time. Think of different coins like companies / projects. The are created to serve a purpose. Please don’t make the mistake of assuming a coin priced at 1c will eventually be the same price as bitcoin


  • Registered Users Posts: 475 ✭✭ baalad
    Registered User


    Lexio7 wrote: »
    That’s a lot info / speculation you are after, which no one person will give the same answer.

    1. Why do you think bitcoin is not a wise investment. What are basing this on? You are go against what the majority of the market think is a good investment, including institutional investors.

    2. Speak to an accountant

    3. My opinion is never keep coins on an exchange: “not your keys, not your coins”. There are lots of good free Walters out there, including the one you mentioned. Once you have a significant amount of money invested use a hardware wallet.

    4. You need to do research on coins. You can’t just make a coin and expect it to explode in value. If a coin is successful the market cap will grow over time. Think of different coins like companies / projects. The are created to serve a purpose. Please don’t make the mistake of assuming a coin priced at 1c will eventually be the same price as bitcoin

    Cheers for the reply Lexio.

    In point no'4 you said not to expect coins that are worth 1c now to reach bitcoin levels. I would be inclined to agree with you , however; why is that not possible?

    Wasn't Bitcoin once worth extremely little ?

    Easier said then done of course but my intent is to research the various coins and choose one i think may be the next "bitcoin" in terms of market growth and throw a few quid into it that i can afford to lose. Then i just sit back and leave it sit for a duration of time, maybe 2 - 5 years and hope for the best!

    Has anyone in this country ever actually made big money from crypto? Theres apparently someone that had 59m worth of Bitcoin but they lost the codes to access it! Imagine! haha


  • Registered Users Posts: 2,649 ✭✭✭ Whelo79
    Registered User


    baalad wrote: »
    Cheers for the reply Lexio.

    In point no'4 you said not to expect coins that are worth 1c now to reach bitcoin levels. I would be inclined to agree with you , however; why is that not possible?

    Wasn't Bitcoin once worth extremely little ?

    Easier said then done of course but my intent is to research the various coins and choose one i think may be the next "bitcoin" in terms of market growth and throw a few quid into it that i can afford to lose. Then i just sit back and leave it sit for a duration of time, maybe 2 - 5 years and hope for the best!

    Has anyone in this country ever actually made big money from crypto? Theres apparently someone that had 59m worth of Bitcoin but they lost the codes to access it! Imagine! haha

    It's to do with the scarcity/supply. Bitcoin will only ever have a maximum of 21 million coins in circulation (with God knows how many of those already lost). Some projects currently have 50m, 100m, 500m, 1Bn+ coins as part of their total supply. The reason for this is generally as there use case is different.


  • Registered Users Posts: 24 ✭✭✭ Lexio7
    Registered User


    baalad wrote: »
    Cheers for the reply Lexio.

    In point no'4 you said not to expect coins that are worth 1c now to reach bitcoin levels. I would be inclined to agree with you , however; why is that not possible?

    Wasn't Bitcoin once worth extremely little ?

    Easier said then done of course but my intent is to research the various coins and choose one i think may be the next "bitcoin" in terms of market growth and throw a few quid into it that i can afford to lose. Then i just sit back and leave it sit for a duration of time, maybe 2 - 5 years and hope for the best!

    Has anyone in this country ever actually made big money from crypto? Theres apparently someone that had 59m worth of Bitcoin but they lost the codes to access it! Imagine! haha

    It’s not that a coin cannot go higher than bitcoin just take a look at yearn.finance it hit a price of just over $40k per coin at one point. A key driver is the supply of coins. The max supply of coins is 30,000 for yearn.finance.

    Coins priced at say 1c generally have a large max supply of coins. Just take a look at Ripple for example.

    You are correct bitcoin was priced very low in the early days. But the price was reflected based on the value people placed on it at the time.

    If history tells us anything bitcoin may be dethroned by something else. You only have to look at MySpace, Yahoo and so on.


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