Tuesday, October 29, 2019

Types of Crypto exchanges

Many of you are probably wondering why I chose to use Coinbase in my last post, and the reasons are numerous. First, it is one of the very few exchanges that let you easily purchase small amounts of Bitcoin with a debit card. Second, we both have the potential to earn bitcoin if you use it.  Thirdly, Coinbase is easy to use and has a great UI as well as abundant liquidity (when you want to buy or sell there are plenty of folks willing and able to do so). Most of these are because Coinbase is one of the longest-running centralized exchanges for cryptocurrency.

So what is a Centralized Exchange (CEX)? A CEX is an exchange where the data moves through a central hub. This doesn't mean servers can't be colocated or have an off-site backup, merely that there is one primary repository of data.  The CEX will be beholden to the regulations of its host country as well. Thus CEX generally are more regulated, trusted due to regulation(s), requires KYC (know your customer - proof of ID) and usually have higher liquidity, but in theory, are less secure.

The other type of exchange is a Decentralized or Distributed Exchange (DEX). A DEX works on a distributed network, and because the exchange doesn't exist in any one country can operate without KYC. Many Crypto purists have been seeking the perfect DEX since day 1. The distributed network also means less chance of compromised data. There have been several attempts at a highly liquid DEX but so far adoption hasn't been high enough to make switching worthwhile for most.

You also have Crypto only exchanges, which require you the consumer, to have crypto assets that you then trade for other cryptocurrencies. Some of these have a high number of trading pairs while others offer only a limited number of pairings. BTC-ETH and ETH-BTC are the two highest volume pairs I can think of off the top of my head. Most exchanges tend to be crypto-only, and all DEX that I am aware of are.

Set up an exchange account and buy Bitcoin

Today I will walk you through the easiest way to purchase Crypto... I even took screenshots along the way. The first link will get us both $10 worth of Bitcoin once you have purchased or sold $100 on Coinbase. The second will get you to Coinbase with no bonus for either of us.

If you are like me you do virtually everything via your phone and there is no reason to buy crypto any differently. So let's start by going to my Link or the Non-affiliate link: Coinbase.com

Fill out the basics and create a strong Password

Open your email and click the link

                                 A code will be sent to your phone after inputting your number

                              Due to AML (Anti Money Laundering), this is required information
Next, determine your source of funds

For sheer ease of use I personally went with a Debit card, but notice, in order to sell, you need to connect a bank account. You can add that at any time.
Once you have connected funding...

Click on Bitcoin, then click on Buy. Enter your Dollar amount then Preview Buy and review your purchase. Finally, click Buy Now.

Congrats, you have just completed your first cryptocurrency transaction, and now own a few Satoshis worth of Bitcoin. (a Satoshi is .00000001 Bitcoin and is the smallest purchasable unit of Bitcoin available.

Wednesday, October 23, 2019

BTC price is down, should I buy?

 The price for Bitcoin has been on a bit of a downturn of late, and many are probably wondering if this is indicative of a long term slide or just a minor dip before BTC goes to the moon. I personally think it may drop a bit more, maybe as low as $6100, but will then rebound stronger than ever. Most of the price correction IMO stems from FUD (Fear Uncertainty and Doubt) related to many of the big backers of Libra pulling out. For me, however, this is yet another sign that a decentralized finance (DeFi) option such as Bitcoin, Monero, ZCash etc are seen as a threat by the US Federal government.
 For those of you not seriously into Finance, there are several key indicators that the U.S. Dollar is in trouble. First, the Federal Reserve just keeps printing money. Just a few weeks ago they added nearly $300 Billion back into the economy. Sounds like a good thing right? Wrong. That money will only lead to inflation, and who wants more of that? Well, the federal reserve does because that, in turn, makes our exports cheaper... except every other governmental bank is doing the same thing for the same reason. This is the root cause of numerous nations now lending at negative interest rates. How the heck is that even possible. It shouldn't be.

So because of all this financial craziness, I see crypto as a nice hedge bet against runaway inflation. I will be purchasing another small amount of BTC this week and may buy into  Ripple (XRP) or add to my favorite little altcoin Chainlink (LINK) position. What should you do? Without knowing your financial standing, risk tolerance, spousal trust level, etc. I can not give you a good answer. I will just say this. In an ideal investment, you buy low sell high. IF I am right and the price of BTC is on the way down a bit lower, then you may be better served by waiting if on the other hand, you start to see signs of BTC climbing rapidly, will you have missed out on a great price?

Let me know what you think.

Intro to Tiptoe into Crypto

Why would you write a blog about buying only $25 worth of bitcoin? Isn't there enough information available on the internet already? The short answer is there is a whole lot of info available, AND figuring out where to start is still difficult. I myself just got into crypto-currency,. I did my due diligence and after several days of research and contacting a lifelong friend who had been involved in Bitcoin for several years finally bought my first $50 in bitcoin and shortly thereafter purchased my first altcoin. I will gladly show you what I have learned in the next weeks so you can reap the rewards of investing in the crypto economy. 
Before we go any further, I want to get in front of any legal issues. First, there will be links contained herein, that are affiliate links. In other words, by clicking on them I may receive compensation. Secondly, I am not an investment advisor and this blogDOES NOT constitute investment advice, but rather contains my experience and views. Bitcoin and other Cryptocurrencies are inherently volatile, so please do your own due diligence before investing (especially altcoins).
What good will investing only $25 do, you might ask? Ideally, this would not be a one-time occurrence. I personally have multiple weekly and monthly investments in order to take advantage of dollar-cost averaging. Also, I have a wife and kid, so putting more than 20-50 bucks at a time into any one investment isn't the best option for my personal checkbook ledger. Having a fairly average income I assume many of you are in that same boat but want to get involved in this new market. So I personally invest $25 a month into BTC (Bitcoin) and $10 into an altcoin.
That being said, I have heard multiple people predict BTC pricing of $50K plus by the end of 2020.  (once again this is no guarantee and BTC could bottom out, although I find that extremely unlikely) If you buy today, as of this moment BTC is selling for $7503 so your $25 today could turn into $150 or more very easily, even if you only make a single buy.