Join Early Retirement Today
Reply
 
Thread Tools Search this Thread Display Modes
Adventures in Cryptocurrency
Old 01-27-2018, 05:36 PM   #1
Thinks s/he gets paid by the post
Onward's Avatar
 
Join Date: Jul 2009
Posts: 1,775
Adventures in Cryptocurrency

I wanted to post an update to my earlier post on my attempts at bitcoin, and I thought I'd start a new thread and maybe attract some other people's experiences.

Quote:
Originally Posted by Onward View Post
As an educational exercise I've been trying to buy a small fraction of a bitcoin for the past four days.

It's bizarre, and almost comical, how difficult it is to get a few overpriced bits assigned to me.

I've tried two exchanges (Coinbase and Coinmama) and some other thing that's not exactly an exchange (SIMPLEX). I still have nothing to show for it.

Some highlights along the way:

Coinbase decided I was not in a trusted country, and blocked all purchases until I could prove I lived in the U.S.

SIMPLEX cancelled my order at the last minute because, they said, the price of bitcoin had changed too much in the time it took them to verify my identity.

Coinmama made me submit a photo of myself holding my driver's license alongside a piece of paper with certain things written on it.

And still ... no bitcoin.

It's amazing to me that anybody has ever gotten through this process.
Update:

After 2.5 weeks and a crazy circus of hoops and obstacles, I am now the proud owner of 0.003866 bitcoins, purchased from the Coinbase exchange.

Current value is $44.17.

After hours and hours trying half a dozen different exchanges that never worked, I finally got through Coinbase's ID-verification hell, and bought $50 worth of coins via my credit card. Coinbase took a $2.19 fee. So I really got $47.81 worth of bitcoin.

I then transferred all my booty to my private wallet (which I'd set up beforehand), since online wallets aren't safe. Coinbase charged me (or rather, forced me to pay a miner) $5.00. So I ended up with $42.81 of bitcoin in my wallet.

It's already grown to $44.17.
__________________

__________________
And if I claim to be a wise man, it surely means that I don't know.
Onward is offline   Reply With Quote
Join the #1 Early Retirement and Financial Independence Forum Today - It's Totally Free!

Are you planning to be financially independent as early as possible so you can live life on your own terms? Discuss successful investing strategies, asset allocation models, tax strategies and other related topics in our online forum community. Our members range from young folks just starting their journey to financial independence, military retirees and even multimillionaires. No matter where you fit in you'll find that Early-Retirement.org is a great community to join. Best of all it's totally FREE!

You are currently viewing our boards as a guest so you have limited access to our community. Please take the time to register and you will gain a lot of great new features including; the ability to participate in discussions, network with our members, see fewer ads, upload photographs, create a retirement blog, send private messages and so much, much more!

Old 01-27-2018, 05:39 PM   #2
Moderator Emeritus
aja8888's Avatar
 
Join Date: Apr 2011
Location: The Woodlands, TX
Posts: 8,866
It seems like the "fee guys" are making all the money on bitcoins.
__________________

__________________
......."Everybody has a plan until they get punched in the face." -- philosopher Mike Tyson.
aja8888 is offline   Reply With Quote
Old 01-27-2018, 05:41 PM   #3
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
 
Join Date: May 2005
Posts: 14,758
Quote:
Originally Posted by aja8888 View Post
It seems like the "fee guys" are making all the money on bitcoins.

+1


Also, I saw on TV the other day that said they think that 10% of all bitcoin has been stolen from someone... Does not seem safe to me...
Texas Proud is offline   Reply With Quote
Old 01-27-2018, 05:44 PM   #4
Thinks s/he gets paid by the post
Onward's Avatar
 
Join Date: Jul 2009
Posts: 1,775
I'm trying to figure out how those fees scale up with larger purchases. I'm pretty sure the first one ($2.19 to Coinbase) does grow with transaction size.

I think the second one ($5 to miners) stays roughly fixed, regardless of transaction size.

I'm still a newbie, so I'm really not sure.
__________________
And if I claim to be a wise man, it surely means that I don't know.
Onward is offline   Reply With Quote
Old 01-27-2018, 05:45 PM   #5
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
REWahoo's Avatar
 
Join Date: Jun 2002
Location: Texas Hill Country
Posts: 44,335
Sounds like there are a lot of "adventures" in cryptocurrencies:

Quote:
A Japanese exchange has lost 58 billion yen ($530 million) in cryptocurrency because of hacking, according to Japanese media reports.

The Coincheck exchange said on its website Friday that it had halted sales and withdrawals of the currency, which is called NEM. It later added that it had restricted dealings in most other cryptocurrencies too.
$530 million lost in hack of Japan cryptocurrency exchange
__________________
Numbers is hard

Charter resident of the lumpen slums of cyberspace

Retired in 2005 at age 58, no pension
REWahoo is offline   Reply With Quote
Old 01-27-2018, 06:04 PM   #6
Thinks s/he gets paid by the post
 
Join Date: May 2014
Location: Utrecht
Posts: 2,513
Quote:
Originally Posted by aja8888 View Post
It seems like the "fee guys" are making all the money on bitcoins.
Indeed. Coinbase had $1B in revenue last year reportedly. That's actual revenue, in actual dollars.

Sell the shovels, don't dig for you own gold.
Totoro is offline   Reply With Quote
Old 01-27-2018, 06:10 PM   #7
Thinks s/he gets paid by the post
Onward's Avatar
 
Join Date: Jul 2009
Posts: 1,775
Yeah, I wasn't too happy to start out with a 14% loss.

Maybe there's more efficient ways of buying, though?
__________________
And if I claim to be a wise man, it surely means that I don't know.
Onward is offline   Reply With Quote
Old 01-27-2018, 06:55 PM   #8
Thinks s/he gets paid by the post
NYEXPAT's Avatar
 
Join Date: Jul 2009
Location: Miraflores,Peru
Posts: 1,434
Onward, look to see if the Robinhood app is available in your state. You can buy without the fee's.
NYEXPAT is offline   Reply With Quote
Old 01-27-2018, 08:30 PM   #9
Thinks s/he gets paid by the post
Onward's Avatar
 
Join Date: Jul 2009
Posts: 1,775
Quote:
Originally Posted by NYEXPAT View Post
Onward, look to see if the Robinhood app is available in your state. You can buy without the fee's.
Tried to sign up, but they won't let me from Mexico. (Don't want to put a VPN on my phone.)

I will try again when I visit the U.S., or when they get their web-version up. (I have a VPN on my notebook.)

I have a feeling they are going to be bombarded with new sign-ups.

The whole point of this is to get educated about digital currencies (which IMO could well be in all our futures) and the technology behind them. I'm not really expecting to make $$.
__________________
And if I claim to be a wise man, it surely means that I don't know.
Onward is offline   Reply With Quote
Old 01-27-2018, 10:30 PM   #10
Thinks s/he gets paid by the post
NYEXPAT's Avatar
 
Join Date: Jul 2009
Location: Miraflores,Peru
Posts: 1,434
Quote:
Originally Posted by Onward View Post
Tried to sign up, but they won't let me from Mexico. (Don't want to put a VPN on my phone.)

I will try again when I visit the U.S., or when they get their web-version up. (I have a VPN on my notebook.)

I have a feeling they are going to be bombarded with new sign-ups.

The whole point of this is to get educated about digital currencies (which IMO could well be in all our futures) and the technology behind them. I'm not really expecting to make $$.
Did not know you were not US based. I am trying to get a handle on it as well. I am slowly moving money into Peru (there is only one bank that works with Paypal) they have a 10k transaction limit and a 1 1/2% fee. They are expected to bring crypto atm machines here in a few months but I understand they are buy only and we do not have banks here that will exchange for fiat yet. I am not interested in trading either and would love to see price stability and widescale adoption.
NYEXPAT is offline   Reply With Quote
Old 01-28-2018, 07:24 AM   #11
Full time employment: Posting here.
 
Join Date: Jul 2013
Posts: 525
Quote:
Originally Posted by Onward View Post
I'm trying to figure out how those fees scale up with larger purchases. I'm pretty sure the first one ($2.19 to Coinbase) does grow with transaction size.

I think the second one ($5 to miners) stays roughly fixed, regardless of transaction size.

I'm still a newbie, so I'm really not sure.
Exchanges will charge a fee for buying and selling. This, in my experience, has always been a percentage of the amount bought/sold. The percentage varies wildly; using a CC on coinbase will be one of the highest.

Transferring funds also incurs a fee, for the miners. This will occur whenever you transfer money from one address to another (wallet->wallet, wallet->exchange, exchange->wallet). In most cases, the amount of this fee is not related to the amount of the transfer.

There are some details I am leaving out, but that is it in a nutshell.
mrfeh is offline   Reply With Quote
Old 01-28-2018, 07:45 AM   #12
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
donheff's Avatar
 
Join Date: Feb 2006
Location: Washington, DC
Posts: 9,004
I read the other day that the Bitcoin Blockchain is so bogged down that unless you pay for priority processing transactions can take 6-8 hours to get certified in a block. With Bitcoin so volatile that is pretty darn scary - "Wait, I ordered 5 grams of cocaine and you only sent three. Oh, I see, the price dropped,"
__________________
Every man is, or hopes to be, an Idler. -- Samuel Johnson
donheff is online now   Reply With Quote
Old 01-28-2018, 09:04 AM   #13
Thinks s/he gets paid by the post
Onward's Avatar
 
Join Date: Jul 2009
Posts: 1,775
Yes, the transaction that sent the BTC from Coinbase to my wallet took 1.5 hrs to be confirmed. I didn't know it would take that long, and I was sweating a bit, because the BTC disappeared from my Coinbase account immediately.

I think "confirmed" means "added to a transaction block that has been added to the blockchain that most participants recognize as valid." I am not sure about this.

Most people seem to say you should wait for multiple blocks to be added before you consider the transaction confirmed. That reduces the chances that the block containing your transaction will ever be invalidated.

An hour and half is slower than cash and cc's, but faster than ACH and wire transfers (in my experience).

Hmmmm.
__________________
And if I claim to be a wise man, it surely means that I don't know.
Onward is offline   Reply With Quote
Old 01-28-2018, 09:10 AM   #14
Full time employment: Posting here.
 
Join Date: Jul 2013
Posts: 525
Quote:
Originally Posted by Onward View Post
Yes, the transaction that sent the BTC from Coinbase to my wallet took 1.5 hrs to be confirmed. I didn't know it would take that long, and I was sweating a bit, because the BTC disappeared from my Coinbase account immediately.

I think "confirmed" means "added to a transaction block that has been added to the blockchain that most participants recognize as valid." I am not sure about this.

Most people seem to say you should wait for multiple blocks to be added before you consider the transaction confirmed. That reduces the chances that the block containing your transaction will ever be invalidated.

An hour and half is slower than cash and cc's, but faster than ACH and wire transfers (in my experience).

Hmmmm.
This is the (IMO) biggest problem w/ bitcoin at the moment - the high fees. The higher the demand for transaction processing, the higher the fee necessary to get the transaction confirmed. The more you pay, the quicker it gets processed.

Of course, there are other cryptos with tiny (sometimes even free) transactions, that occur very, very quickly.
mrfeh is offline   Reply With Quote
Old 02-05-2018, 06:40 PM   #15
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
 
Join Date: May 2005
Posts: 14,758
Saw that bitcoin was below $7,000 today...

Hope nobody here bought at over $15,000 and was hoping it was going up...


I still see it continuing to crash....
Texas Proud is offline   Reply With Quote
Old 02-05-2018, 06:53 PM   #16
Thinks s/he gets paid by the post
 
Join Date: Jun 2004
Location: Diablo Valley (SF Bay Area)
Posts: 1,365
Bubble
gayl is offline   Reply With Quote
Old 02-05-2018, 07:04 PM   #17
Recycles dryer sheets
 
Join Date: Jan 2014
Posts: 275
Bought some Bitcoin on way up around $14K then again at $19400 near the peak LOL. Playing with chump change just to enjoy the high volatility. Down 50% with all my crypo holdings so I definitely got my money's worth.

So what do I do now??
HOLD
Turboslacker is offline   Reply With Quote
Old 02-05-2018, 08:45 PM   #18
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
NW-Bound's Avatar
 
Join Date: Jul 2008
Posts: 22,107
With bitcoin, you do not HOLD. You HODL.

https://en.wikipedia.org/wiki/HODL
__________________
"Old age is the most unexpected of all things that can happen to a man" -- Leon Trotsky
NW-Bound is offline   Reply With Quote
Old 02-05-2018, 08:59 PM   #19
Recycles dryer sheets
 
Join Date: Dec 2009
Posts: 395
Quote:
Originally Posted by Turboslacker View Post
Bought some Bitcoin on way up around $14K then again at $19400 near the peak LOL. Playing with chump change just to enjoy the high volatility. Down 50% with all my crypo holdings so I definitely got my money's worth.

So what do I do now??
HOLD
What to do? Hold on. Hold on indeed.

zedd is offline   Reply With Quote
Old 02-05-2018, 10:17 PM   #20
Thinks s/he gets paid by the post
NYEXPAT's Avatar
 
Join Date: Jul 2009
Location: Miraflores,Peru
Posts: 1,434
I see the next support level they will be gunning for is $5450.
__________________

NYEXPAT is offline   Reply With Quote
Reply


Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
 
Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Similar Threads
Thread Thread Starter Forum Replies Last Post
Vitamin D adventures mickeyd Health and Early Retirement 14 04-26-2011 01:26 PM
more adventures in Operating Systems Ed_The_Gypsy Other topics 1 11-16-2008 06:39 PM
Retirees Have more Fun and Adventures! enterretirement Hi, I am... 4 06-13-2008 06:37 AM
"Adventures at sea": How not to do a helo transfer. Nords Other topics 11 10-12-2007 03:36 PM
Adventures in Elder Care TromboneAl Other topics 8 10-14-2006 05:42 PM

» Quick Links

 
All times are GMT -6. The time now is 02:27 PM.
 
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2018, vBulletin Solutions, Inc.