Month: February 2018

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Bitcoin Crime – Don’t get scammed, and buy Bitcoin safely.

Bitcoin is fluctuating between $9300 and $11,000 USD per BTC today.   (give or take a few dollars).  For a real-time Bitcoin Price chart, take a look at Bitcoin Ticker.  Personally, I keep Coinbase or the GDAX open on my PC screen.


Steve Wozniak, Apple computer co-founder, got swindled out of 7 BTC by a con artist who used a credit card to buy the Bitcoin, then cancelled the credit card transaction after the Bitcoin transfer was made.  see the article on Forex Live.  This shows you that the bad guys are out there, and willing to screw anyone out of their Bitcoin.  Lesson learned?  Be extra careful when buying or selling Bitcoin.

While not as dramatic as the price running up to almost $20,000 per BTC, Wozniak’s loss of  his $5,000 invested in the Bitcoin (and the anticipated profit) is as real to him as any of us losing some cash.   It is also prompting some credit card companies to halt Bitcoin purchases using credit cards.


In the early days, you could meet someone at Starbucks and exchange cash for Bitcoin.  You would need to have a Bitcoin Wallet or the Coinbase App on your laptop or smartphone. Nowadays, with valuations so high, I would not feel comfortable carrying around large sums of cash on the street.  

If you are a newbie, I would recommend using a popular exchange (I use and refer Coinbase).  Exchanges may charge a fee, but operate in relative safety.  If you are nervous or wisely careful, read up on Buying and Selling Bitcoin.  There are some links in my blog, and you will need to educate yourself.  If you prefer to hold your Bitcoins yourself, there are lots of Bitcoin wallets, including Hardware Wallets, that hold your Bitcoin “off-line” in a disconnected piece of hardware.  You can buy Bitcoin wallets on Amazon with relative ease and safety.  The Bitcoin you buy separately.

Trezor (Black) Bitcoin Hardware Wallet Bundle With VUVIV Micro-USB Adapter, VUVIV USB-C Adapter for MacBook and Sakura Pigma Archival Ink Pen (4 items)Ledger Nano S Bitcoin Wallet Ethereum Crypto Altcoin Litecoin Ripple With MicroUSB Cable Lanyard & Zeox Stylus PenKeepKey: the Simple Cryptocurrency Hardware Wallet

Bitcoin Wallets on Amazon and EBay
 
Keep records of your transactions, don’t lose your hardware wallets or your passwords!  Keep them safe.  Make sure you are cautious and careful, especially when calculating fractional Bitcoin – it’s a concept that takes getting used to.  Here is an article on it from BTC Geek.

 

Bitcoin Trivia:

A Satoshi is the smallest fraction of a Bitcoin that can currently be sent: 0.00000001 BTC, that is, a hundredth of a millionth BTC. In the future, however, the protocol may be updated to allow further subdivisions, should they be needed. A Satoshi is 0.00000001 BTC and currently the smallest transaction unit.

In closing, take care to use a known exchange; avoid anonymous transfers through credit card transactions or Venmo (they are easily manipulated/cancelled), and learn as much about your  seller/buyer as possible, if there is a problem.
 
Enjoy the Bitcoin roller-coaster ride, and let’s go TO THE MOON!
 
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Bitcoin and the Dead Cat Bounce

The “Dead Cat Bounce”

“A dead cat bounce is a temporary recovery from a prolonged decline or a bear market that is followed by the continuation of the downtrend. The name “dead cat bounce” is based on the notion that even a dead cat will bounce if it falls far enough and fast enough..” – Investopedia

The powers that rule the financial markets, The FED, the SEC, the World Bank, etc., all have one thing in common – they view Bitcoin as “the enemy” (The enemy of the Banks).  While volatility rages in the Bitcoin price, any downturn – or upturn is regarded as proof that Bitcoin is a sham or fraud, like the “Dead Cat Bounce”.

Unfortunately for the large financial institutions, Bitcoin is far from dead.  In fact, it is making a recovery from recent lows.  Is the cat bouncing?  You Bet it is.  That sucker is going up and down like a yoyo.  Count on it.

History teaches us that it takes 20 years to convert a financial fad into a trend, and a trend into an institution.  Bitcoin started in 2009, and is a nine-year overnight success. The banks deride Bitcoin, but almost all of them are using the Blockchain technology (the underlying bitcoin technology) for developing low cost and stable transactions.  With apologies to the Bard, “Methinks the banks protest too much”.

While the cat is bouncing, you can 
1) Enjoy the show
2) Keep calm and HODL on
3) Buy on what looks like it may be a “low”, and sell some on what looks like a “high”  (Note: it is generally agreed that no one can “time” the market, but with this much volatility, moving 20% in the course of a week, it could be a worthwhile risk – but don’t “bet the Farm” – know how much you can afford to lose, and keep Maalox handy).

Enjoy the show, Hold your coin and enjoy the highs, while avoiding despair when the price plunges and the Fat Cats project the “End of Bitcoin”.

Bitcoin Obituaries – Bitcoin has died 253 times
Best of luck to you, and may your Bitcoin portfolio go TO THE MOON!

 

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Bitcoin Stable (for the moment)…Stock market due for a “correction” – are you thinking what I am thinking?

The recent Stock market correction was a wake up call.  Many of my buddies saw some of their holdings go down in value, as their heart rates went up.  As a good friend, I asked how they protect themselves from a dip in value (we remember the 2009 stock and real estate markets very well).

When asked how I do it, my plan was both simple and works for me.  Everybody has a different situation.  Motley Fool has an article on “stocks to buy during a market crash“.  I imagine some people put cash  under their mattress.  Here is what I do;:
First, DON’T PANIC.  Panic makes you buy high and sell low.  Ask your friends who invest, take a shot of whiskey, don’t be “quick on the trigger”. THE MARKETS ARE CYCLICAL.  Ups and downs are expected, and can be profitable.  Wait a day or two and see what happens when the smoke clears.
Second, review your diversity strategy – consider a small investment in a Gold fund or physical gold.  (Disclaimer, I own a Gamco Gold fund and some gold collectable coins).  Gold, and silver, in my observation, holds or increases it’s value when the markets have an “unsteady” moment.  I also own some Bond funds and Bonds, but they don’t throw off a large dividend.  Bonds are usually very stable through their term, so I am comfortable owning some.  Bonds are not a large part of my holdings.  I also have some Bitcoin (I have other articles on this blog that show you hoe to get some).  Bitcoin is unstable, but putting a “few bucks” into a fractional amount of Bitcoin is both a hedge on it’s future or a gamble.  Don’t bet the farm on Bitcoin, and if you do buy some, hold it – the volatility is real, as is “panic selling”.
Third, take a deep breath!  Do you own a home (most peoples greatest asset)?  Do you have artwork, a coin or stamp collection, a car?  All these assets (if not mortgaged to the hilt) are part of your net worth.  If all you own are stocks and the market crashes, you can see a market drop eroding a large percentage of your assets in days.
So now you know what I am thinking.  It’s not “All Bitcoin, all the time!” It’s about being smart with your own pile of assets and investments and money that you need to make “bigger”.  Pulling some profit out of the market, and buying Bitcoin is part of a strategy to get into cryptocurrency, and it is a wild ride, as it goes up and down with regularity!  So don’t “bet the farm”, spread your money around (stock market, bitcoin, collectible things, gold, etc.) and hopefully, over time, you will watch it grow into a nice nest egg.  Remember, it does take time – investing is not like a winning instant lottery ticket – it’s like a winding road, with ups and downs.
Your financial journey should be more than money.  Money can buy things that make you happy.  I own an antique slot machine.  It was not cheap, but my “one-armed bandit” is fun and anyone that visits can’t resist putting some change in it.  It is also worth more than what I paid for it, and my heirs will either sell it or keep it, based on what they like.  Or I can sell it or “trade up” based on my feelings about this machine.  It’s picture is below.  I enjoy showing it off, and feel like I own a casino!  (I am also thinking of some way it can pay out in Bitcoin; still working on that).
Now you have seen my real strategy – Take some stock market profit off the table, and diversify with Bitcoin and collectibles. Also run this by your financial advisor – don’t just take my word for it; like I said, this works for me – you need to find what will work for you!
Thank you for reading my blog, and feel free to share!  Best of luck with Bitcoin and all your investments!
Disclaimer: This answer is offered as opinion and is not a recommendation on investing. Please consult knowledgeable advisors and professionals you trust when seeking investment advice. I currently own BTCS, and just exited a position in RIOT. I also own some Bitcoin and Litecoin, and the other assets mentioned.
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Do you think Bitcoin belongs in a portfolio for diversification?

Cryptocurrency is like penny stocks in the 1990’s. There is risk, meaning you can lose your investment, and there is potential for reward, meaning you can make big money.  Think of bitcoin in December of 2017, when it reached a high of almost $20,000 per BTC!

Cryptocurrencies do not have a long history, and have a lot of  volatility (at the present time). I would consider the investment across a few cryptocurrencies or several Blockchain companies (as example: BTCS, BLOK, RIOT, BCCN – These are publicly traded) as a watchable trade or small investment, not a diversification move.

If you do consider Cryptocurrency as a diversification move, please don’t commit more than a small percentage of your assets to this emerging asset class – and certainly not more than you are willing to lose.

Cryptocurrency is starting to emerge as an “Asset Class”, but it is not there yet.  The old adage is “Bulls make money, Bears make money, Pigs get slaughtered” – and my addition, “Missionaries get eaten”.  Don’t be the first missionary in this asset class; take a slow and measured approach.

Don’t just take my opinion:

How to Start a Crypto Portfolio – Robert Leshner – Medium – Medium

Should your portfolio include bitcoin? Yes, but just a 2% position, says analyst – Marketwatch

Bitcoin: Mastering Bitcoin For Beginners: How You Can Make Insane Money Investing and Trading in Bitcoin (Bitcoin Mining, Bitcoin trading, Cryptocurrency, Blockchain, Wallet & Business)

Best of luck to you, and may your portfolio go TO THE MOON!

 

Bitcoin Watch – Men’s Wrist Watch – Classic Black Leather | Bitcoin Gift | Bitcoin and Ethereum Coin – Crypto to the Moon

If you enjoyed this blog, please feel free to share and send some bitcoin in appreciation to my Bitcoin Address:

15EzAW7wfyqHD8pj6hS1dUCaLeLxW8uMbn
If you need a Bitcoin wallet, try Coinbase.

Disclaimer: This answer is offered as opinion and is not a recommendation on investing. Please consult knowledgeable advisors and professionals you trust when seeking investment advice. I currently own BTCS, I also own some Bitcoin and Litecoin.