Bitcoin for Dummies. Quick Run Down. Buy, Sell, Store.

[beaverretriever]

Let me preface by saying anyone who is interested in buying or selling cyrptocurrency should do at their own risk. Don't spend money on what you can't risk losing.

I know there is a lot of people on these boards that have interest in cryptocurrency and I had a few min to give insight. There are a ton of videos on Youtube and such on how to buy, sell, store, etc, but it sometimes takes multiple vids to even get what the hell they are talking about.

I thought it might help to have a little run down coming from someone who recently got in to this wild market with little to know idea what we were doing. I am about as bright as a cave when it comes to computer stuff but it's actually pretty simple.

Keep in mind, I don't look at this as a long term investment, but a fun way to make a few bucks (or lose) here and there. You don't lose money until you cash out at less than you put in. So far we have been blessed to keep cashing out on high notes.

My wife does most of the trading because she is so much faster than I am at doing transactions.

So here you go.

1. First off, just because a Bitcoin is 17,000.00 a coin today doesn't mean you have to spend 17k to get in on the action. You can buy up to .0000001 of one coin (that is one millionth of a coin). This morning we started out with only 700.00 worth of bitcoin and have bought and sold numerous times and have netted about 650.00 in the past few hours. So we have almost doubled our 700.00 investment without having 10k plus in the volatile market.

2. Sign up on an exchange like Coinbase or GDAX. We prefer GDAX (owned by Coinbase) as they don't have charges for selling or buying if you only use "Limits" which I will get in to in just a min. This is where you can watch, buy and sell coins such as Bitcoin, Litecoin and Ethereum. You will see the term BERL a lot. This stands for the main coins being traded Bit, Ether, Ripple and Lite. https://www.gdax.com/trade/BTC-USD

3. Once signed up you want to make sure you have a safe storage for your coin (or keys to the coins) or Wallet as you will hear all the time. We use a cold storage that is OFFLINE. This is important because there is no way to hack it if it is sitting in your desk drawer. We use the Ledger Nano S (can be had for about 60.00 on amazon).

4. Once you are set up on an exchange you can connect a bank account to transfer funds to buy crypto. It does take 4 to 6 business days to transfer USD, so keep that in mind. Once the money shows up in your exchange you are ready to buy.

5. Limits Buying. This is how we buy and sell. You want to buy some Bitcoin. It is currently at let's say 10,000.00 a coin. You want to buy at 9900. You will set your Limit at 9900 then enter how much of that coin you want to buy ie. .5 of a 9900 coin. Soon as the price drops down to 9900 it will buy for you. Setting limits is good because there is no fee when using GDAX and trading is completely free.

5A. Limits Selling. This is exactly the same as buying. Set your selling limit, meaning when it hits a certain number your coin will automatically sell.

5B. Market. We don't use market because there will be charges. This means you just click a button when it hits the number you want to buy or sell at. The only time this is useful is if there is a severe drop and the exchange depth chart shows there are lots of buyers at higher numbers (getting to that).

6. How to watch the Exchange. The main two things you will want to watch is the Price and Depth charts.

6A. Price Chart. This is pretty simple. Shows what the current value of coin is. This is the exciting chart to watch however it doesn't give you all the info you really want.

6B. Depth Chart. I watch this a lot. It shows who is willing to buy and sell coin at certain prices. The orange or right side shows how much coin is available and what people are willing to sell for. The further to the right you get the higher the price people will let coin go and that is always the fattest side of the orange.

The green or left side shows how many and for how much people are willing to buy coin for. The further left of the chart you get the more people want to buy, but that is the least expensive people will pay for coin at that moment.

This chart can get confusing but after you watch it for a while it makes sense.

7. Making money with little money. Buy 500.00 worth of coin of your choice. Set a limit. Let's say 15500. Once you purchase, watch the chart. If you see it climbing, set a limit like 17000. Once it hits that mark, you coin will sell and you will make a few bucks! Easy as that!!!!

8. Cashing out. Once you sell your coin for a profit, you can send right over to your bank account in real US dollars.

Good Luck!

 

[spectras only]

To me the whole cryptocurrency trading is like gambling, prone to get shut down by governments hence they have no benefits from it. Ride it as you like til it lasts.

Notice on Bitcoin, as translated by Perkins Coie: "Internet websites that provide bitcoin registration or transaction services should be sure to fulfill anti-money laundering obligations, identify user identities, request users to register with real names and provide information of names, identity card numbers, etc.... any clues related to using bitcoin for fraud, gambling, money laundering and other criminal activities should also be promptly reported to the police."

 

[beaverretriever]

To me the whole cryptocurrency trading is like gambling, prone to get shut down by governments hence they have no benefits from it. Ride it as you like til it lasts.

But it's not shut down yet. It's completely legal.

Real estate, stocks, classic cars. All a form of gambling. Any time you buy something whether it's tangible or not and hope that it goes up in value is always a gamble. However this isn't gambling. It is capitalism. Buy then resell. That's it.

However the difference is with cryptocurrency compared to going to Vegas and playing blackjack as you actually have some say in the outcome. Just by watching the exchange you get a pretty good idea of when to buy and sell. At least in the middle. We have never bought at the lowest nor have we sold at the highest. Just played the middle enough to make a few extra bucks without really doing much.

I don't need a stock broker (or knowledge of day trading), a realtor, a garage to store a classic car, nothing. A lap top and a few minutes a day and you can make money. Sounds like a scam but currently it isn't. I'm not becoming rich (although some are) but I am having fun and making a few extra bucks to buy Christmas presents this year!

 

[Racey]

To me the whole cryptocurrency trading is like gambling, prone to get shut down by governments hence they have no benefits from it. Ride it as you like til it lasts.

It cannot be shut down from a technical standpoint, period. just in case there is any confusion.

 

[spectras only]

It cannot be shut down from a technical standpoint, period. just in case there is any confusion.

It could get hacked by government, no?

 

[Mandelon]

But you are still just guessing what will happen? Educated guessing perhaps? The limits help keep any losses under control.

 

[beaverretriever]

But you are still just guessing what will happen? Educated guessing perhaps? The limits help keep any losses under control.

Yes that is true. But let me know of an investment that requires no guessing to make a profit on? The best stock market and real estate gurus in the world will NEVER know the exact outcome of every market. There is always a sliver of the unknown in any investment. Even the best investors have suffered losses due to incorrect market decisions based on guesses.

Hey, I am definitely not willing to throw my whole life savings at this. I am not willing to lose that much. So that tells you something. Nothing is a sure thing. This is fun and for a few bucks you can make a few bucks without much hassle as you can see from my How To.

 

[Mandelon]

I didn't mean that in a critical way.
I am certainly interested in this. And to know you are making money at it, that's great.

I liken it to real estate investment... when its going up, everyone looks like a genius. It's hard to go wrong when the market is up almost daily. Same with this...as long as buyers keep buying you can ride the float...

With stocks they go up because the business does well...or they pay dividends or whatever... But what makes Bitcoin or other cryptos go up? Is there an underlying fundamental? Or is it just "the bigger fool theory" like Dutch tulips or something?

 

[Waffles]

Yes that is true. But let me know of an investment that requires no guessing to make a profit on? The best stock market and real estate gurus in the world will NEVER know the exact outcome of every market. There is always a sliver of the unknown in any investment.

There is a reason, even the best go bankrupt. They all make mistakes.

Hey, I am definitely not willing to throw my whole life savings at this. I am not willing to lose that much. So that tells you something. Nothing is a sure thing. This is fun and for a few bucks you can make a few bucks without much hassle as you can see from my How To.

LMAO what? How can you compare the ultimate Fiat currency of Bitcoin to anything you just listed? When it comes to investments, there is no guesswork. It's research one has to do on a specific entity to determine whether or not said entity is worth investing in. People didn't invest into Amazon, Google, apple because the guessed that those companies would succeed. They invested in those companies because they did their research on said companies and placed their faith in their hands to follow through.
The real estate market? The real estate market is dictated by numerous things. You're confusing an entity or commodity for a utility that was made out of thin air and has no intrinsic value or real world use.

 

[Waffles]

I didn't mean that in a critical way.
I am certainly interested in this. And to know you are making money at it, that's great.

I liken it to real estate investment... when its going up, everyone looks like a genius. It's hard to go wrong when the market is up almost daily. Same with this...as long as buyers keep buying you can ride the float...

With stocks they go up because the business does well...or they pay dividends or whatever... But what makes Bitcoin or other cryptos go up? Is there an underlying fundamental? Or is it just "the bigger fool theory" like Dutch tulips or something?

This is exactly tulip mania.

 

[Waffles]

Bitcoiners think this massive run-up means all holders will become very wealthy. Only early buyers will make out like bandits. The vast majority will hold on too long and lose a lot of real money.

This is not the behavior of a stable currency. It's a classic pump and dump or runaway inflation. Look at the '90s tech bubble, the 00's housing bubble, run-ups of illiquid small cap stocks, as well as many other bubbles. Look what happened to Venezuela, Zimbabwe, or other countries when their currencies became totally unstable.

Can't wait to watch all the suckers crying and whining when this finally pops and they face the fact there are no more suckers to buy their totally worthless holdings. Crypto-currency has zero chance of being accepted broadly as a real currency if it's this unstable.

Hard currency is valued by the government because they can print it and can regulate the economy with it. The gov makes it valuable to everyone else by requiring it to pay taxes and forcing businesses to accept it. The thing with btc is that everyone knows it isn't actually worth anything but everyone pretends that its worth something.

Don't get me wrong, I feel happy for the people who have made a ton of money, but lets not pretend that this is anything other than Tulip Mania.

 

[Racey]

It could get hacked by government, no?

Nope, the decentralized nature and sheer computing power makes that impossible from a practical standpoint.

 

[Racey]

utility that was made out of thin air and has no intrinsic value or real world use.

Except it has both intrinsic value as money:

In commodity money, intrinsic value can be partially or entirely due to the desirable features of the object as a medium of exchange and a store of value. Examples of such features include divisibility; easily and securely storable and transportable; scarcity; and difficulty to counterfeit. When objects come to be used as a medium of exchange they lower the high transaction costs associated with barter and other in-kind transactions.

And real world use as a rapid and secure means of value transfer between parties.

Bad argument.

 

[beaverretriever]

LMAO what? How can you compare the ultimate Fiat currency of Bitcoin to anything you just listed? When it comes to investments, there is no guesswork. It's research one has to do on a specific entity to determine whether or not said entity is worth investing in. People didn't invest into Amazon, Google, apple because the guessed that those companies would succeed. They invested in those companies because they did their research on said companies and placed their faith in their hands to follow through.
The real estate market? The real estate market is dictated by numerous things. You're confusing an entity or commodity for a utility that was made out of thin air.

Investment: the investing of money or capital in order to gain profitable returns,as interest, income, or appreciation in value. Any and all investments have some bit of speculation. As the definition states, investments are just a way to gain profit. There is and will never be any tie to tangible products being involved.

If speculation didn't exist in property, stocks, cars, gold, etc anyone with access to a basic computer would become rich. People "put their faith" in cryptocurrency just like Apple or Amazon because the see the need and want for it. There is no difference.

As for real estate you can do all the market research you want but it will always be a gamble just like anything else.

ABC Manufacturing is opening up in your town and house prices are going to soar because of the housing shortage for new workers. Next week ABC is found to be dumping toxic chemicals in the lake and 10,000 people lose their jobs and the market drops out because everyone leaves town. BUT WAIT A SECOND; you did your market research right...? You saw ABC was coming in to your town, you saw workers and families needed places to live. Heck this is real research you did. No guessing that house prices would go up. You saw the market was short on homes and due to the shortage prices would go up and you were right. Yet, you did guess and speculate. You were for sure nothing could ever happen to make the market take a dump; however it did and it does and things change because all investors are guessing and hoping just that little bit nothing goes wrong and goes their way.

Do all the research you want but in life there are no guarantees. There is always that hope and the guess and gamble your investment is bullet proof. Every investment requires a sliver of speculation.

 

[nameisbond]

There is a few junior small cap mining companies getting into backing bitcoin, etc. with their gold claims. Similar how it was done during the gold rush in places like Deadwood. Back in the 1800's if you had a proven claim, you could open a bank backed by your claim. With no backing a lot of the bitcoin exchanges have scammed people out of $100's of millions. Gold collapsed in the 1800's due to several wars including the civil war and Napoleon in Europe. The Dutch did a tulip bulb as a new currency similar to bitcoin today. Google Tulip mania and the Delusion of crowds. That will save me typing why I don't like bitcoins.................................................. But I'll buy a junior mining stock looking to back their bitcoins with their gold!!!!!!

 

[Waffles]

Except it has both intrinsic value as money:



And real world use as a rapid and secure means of value transfer between parties.

Bad argument.

Bitcoin isn't even being used for it's intended purpose anymore. This bubble is proof of it. Tell me how much you've mined to date compared to how much you've pumped into it? You're pumping USD into a system that was trying to model itself differently than USD just to cash out in USD....yea makes perfect sense. Lmao

 

[beaverretriever]

With stocks they go up because the business does well...or they pay dividends or whatever... But what makes Bitcoin or other cryptos go up? Is there an underlying fundamental? Or is it just "the bigger fool theory" like Dutch tulips or something?

Don't worry I didn't take anything to heart. We are just having a conversation and I love it. I am new to all this, but the basic idea behind investments is simple but breaking that code to make money at it is a little different. haha!

Stocks go up because people believe in the product being offered (many times product they have no clue about or have even seen). People buy more stock because whatever that company is selling they like whether it is tangible yet or not. Many times it's just an idea. ie Apple announces a new iphone; people buy more stock in hopes and speculation the new iphone will be hit.

When a pharma company announces they have may have broken a code for a cure for cancer (nothing tangible yet, except for a news blurb from Druggy's Pharma on CNN), stocks shoot up. Buyers see the blurb, get excited and tell ol Bill their stock broker to buy!

Bitcoin goes up for numerous reasons. The main reason is FOMO or fear of missing out. Not the best reason to buy, but a reason. Others buy because they believe in the idea as a REAL currency they can use in the future.

When the internet came out, there were more naysayers than believers.

 

[BingerFang]

http://www.zerohedge.com/news/2017-12-07/what-money-yes-were-talking-about-bitcoin

 

[beaverretriever]

http://www.zerohedge.com/news/2017-12-07/what-money-yes-were-talking-about-bitcoin

Good article. The naysayers will always come back with "yeah, but the gov and gold back the USD".

Since 1971, U.S. citizens have been able to utilize Federal Reserve Notes as the only form of money that for the first time had no currency with any gold or silver backing. This is where you get the saying that U.S. dollars are backed by the “full faith and credit” of theU.S. Government.

So basically Bitcoin has about as much backing as the US Dollar. hahaha!

I think people are taking this whole thing way too seriously. Like I stated to others, I have a very small investment in this whole thing. It is fun and easy. Who hates easy money? I know I make it sound easier than it is, but as investments go, it doesn't get any easier.

 

[shintoooo]

Wait till I buy some. Usually, as soon as I buy something, the stock collapses and the company goes bankrupt.

 

[beaverretriever]

Wait till I buy some. Usually, as soon as I buy something, the stock collapses and the company goes bankrupt.

Just let me know. haha.

No, don't feel bad. That is usually the case for most people including myself. That is why they have the term 1%er. Because most of us are 99%ers.

 

[copterzach]

Wait till I buy some. Usually, as soon as I buy something, the stock collapses and the company goes bankrupt.

Exactly. What are the tax implications on this fake money?


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[530RL]

Exactly. What are the tax implications on this fake money?


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No different than any other trade of an asset.

That is why the IRS is going after those who have traded yet not disclosed those transactions on their returns.

 

[Racey]

Bitcoin isn't even being used for it's intended purpose anymore. This bubble is proof of it. Tell me how much you've mined to date compared to how much you've pumped into it? You're pumping USD into a system that was trying to model itself differently than USD just to cash out in USD....yea makes perfect sense. Lmao

Your posts lead me to believe that you have never used it, and don't actually understand what it is or how it works.... Which is totally fine, but don't preach as an expert on it if that's the case. It is still being used daily for it's intended purpose, millions of dollars of commerce being conducted with it, and growing daily, (separate from the currency trading/investing aspect).

Crypto is in it's infancy of adoption, it will be the future of money though. Might not be Bitcoin itself, but it will be a form based on it.

 

[Mandelon]

The idea was this was an alternative currency, you could use it to pay bills, or transfer to others for services or (insert nefarious purpose here).

But with the value going up hourly it seems, who is going to spend it?... I'm not gonna give you $500 in bitcoin because tomorrow that's gonna be $700 of bitcoin in my account. So it appears to me that it's own popularity will render it useless as for what it was intended...

Great to chase on its way up... but I would imagine this valuation is temporary. So ride it while you can and more power to ya, brother. I hope you make a mint!

 

[Mandelon]

And then.... which one is next? That's what we want to know!

 

[Waffles]

Good article. The naysayers will always come back with "yeah, but the gov and gold back the USD".

Since 1971, U.S. citizens have been able to utilize Federal Reserve Notes as the only form of money that for the first time had no currency with any gold or silver backing. This is where you get the saying that U.S. dollars are backed by the “full faith and credit” of theU.S. Government.

So basically Bitcoin has about as much backing as the US Dollar. hahaha!

I think people are taking this whole thing way too seriously. Like I stated to others, I have a very small investment in this whole thing. It is fun and easy. Who hates easy money? I know I make it sound easier than it is, but as investments go, it doesn't get any easier.

The USD is backed by oil lol
Not gold but a commodity none the less.
No one is arguing about the technology behind block chain or making easy money. My argument is you're placing value on something that is valueless by dumping "Fiat" money into it, calling it for what it isn't .....money, just to pull you're "fiat" money back out of it. If BTC is so valuable, why not hold on to it instead of cashing out? Lmao

Then, youre shilling the shit out of this on a boating forum by starting threads you know nothing about. Comparing block chain to gold [emoji23] This is akin to Dave and the whole Kodi fiasco lmao. Peddling people shit to those that didn't know shit.

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[Waffles]

Your posts lead me to believe that you have never used it, and don't actually understand what it is or how it works.... Which is totally fine, but don't preach as an expert on it if that's the case. It is still being used daily for it's intended purpose, millions of dollars of commerce being conducted with it, and growing daily, (separate from the currency trading/investing aspect).

Crypto is in it's infancy of adoption, it will be the future of money though. Might not be Bitcoin itself, but it will be a form based on it.

I've known about BTC for a while now and understand the concept of P2P transactions. I'm not questioning the technology behind block chain as I think it's an awesome thing and also do believe it's the future. I'm questioning the pump and dump that's currently happening right now.

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[Racey]

I've known about BTC for a while now and understand the concept of P2P transactions. I'm not questioning the technology behind block chain as I think it's an awesome thing and also do believe it's the future. I'm questioning the pump and dump that's currently happening right now.

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This is just an adoption wave, it's not a 'pump and dump', it will correct again no doubt, but i've seen this same thing happen at $5, $30, $100, $1000, $2000, etc, etc, etc, Each time it's a wave of more adoption, it corrects, but it keeps climbing because more and more commerce and consumers use it daily. It's not going away any time soon.

 

[beaverretriever]

The USD is backed by oil lol
Not gold but a commodity none the less.
No one is arguing about the technology behind block chain or making easy money. My argument is you're placing value on something that is valueless by dumping "Fiat" money into it, calling it for what it isn't .....money, just to pull you're "fiat" money back out of it. If BTC is so valuable, why not hold on to it instead of cashing out? Lmao

Then, youre shilling the shit out of this on a boating forum by starting threads you know nothing about. Comparing block chain to gold [emoji23] This is akin to Dave and the whole Kodi fiasco lmao. Peddling people shit to those that didn't know shit.

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If you don't like it, don't invest. There are plenty on here that have questions and I'm sure they might find it interesting. This is the open forum to discuss non boat related topics; is it not? I appreciate any insight others can add as well. It's an exciting venture for a lot of people and it can be confusing. I'm no pro at this, but if I can save someone a hassle of losing money in such a radically volatile environment because of a stupid newbie mistake that's a good thing.

Hardly "Shilling" and "Peddling" as you put it, considering most if not all the writing I have done in this thread is just replying to your post of comparisons of investments. You make it sound as I have something to gain from informing people of the basics of dealing with Bitcoin and other cryptocurrencies. I am not the founder of Bitcoin or backing up cryptocurrency like it was my own invention or some MLM scam. Exactly the opposite; just a regular joe enjoying some fun in a crazy market. There is a lot of info out there and I am just trying to make it simple. If people are willing to place a value on something that is intangible and can make a buck off of it, so be it. That is up to them.

"If BTC is so valuable, why not hold on to it instead of cashing out? Lmao".

Just because something has value doesn't mean the market won't trend up and down causing fluctuations in merit worth . Taking advantage of the huge swings Bitcoin offers me to bank some advancement. You said it yourself, it's a joke and you can't wait until it takes a dump. Just because I invest a little in it doesn't mean I believe in it as a long term just as you do. Pulling some net income from the exchange guarantees I can play tomorrow. Investments aren't worth a thing until you cash out.

Have a great evening!

 

[pronstar]

Nothing has inherent value.
Nothing.

It's as good - or as bad - an investment as anything else.




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[beaverretriever]

The USD is backed by oil lol
Not gold but a commodity none the less.

Only if OPEC continues to believe the US dollar has value will it be worth anything. Technically there is no commodity backing the US currency like I hinted at before. Since there is some agreement out there that certain transactions are specified to take place in dollars, such as the purchase of oil makes the USD have worth. There is no such thing as intrinsic value for anything, be it dollars, oil, or gold. Something is only worth what someone is willing to pay for it; and as long as folks are willing to pay for oil in US currency then only will it retain it's value.

 

[Waffles]

Only if OPEC continues to believe the US dollar has value will it be worth anything. Technically there is no commodity backing the US currency like I hinted at before. Since there is some agreement out there that certain transactions are specified to take place in dollars, such as the purchase of oil makes the USD have worth. There is no such thing as intrinsic value for anything, be it dollars, oil, or gold. Something is only worth what someone is willing to pay for it; and as long as folks are willing to pay for oil in US currency then only will it retain it's value.

You're trolling me now aren't you? Lol

 

[GRADS]

Went out for dinner and drinks last night, came home and ended up getting really fucked up.

Didn't get out of bed until 1 PM. Barely had enough energy today to take a shower. Did absolutely nothing today.

Made $300 today on very minimal investment in Bitcoin. How was your work day?

 

[coolchange]

the way I see it Bitcoin has no intrinsic value or perceived intrinsic value if that makes more sense, its value is in its utility. pretty much like PayPal as a means to transfer funds. Exccept Paypal transfers dollars
I don't see that it has any value as money.
as a transfer of value its volatility makes it basically worthless by the speculative movement.
I'm certainly not going to sell my boat and take $50,000 worth of bitcoin on the thought that in a year when I want to buy another boat I'm still going to have $50,000 to make a new purchase.

what I really want to know is Can you short Bitcoin?

 

[DILLIGAF]

I would think you can short it but dont know that for a fact.

Who knows the answer here?

 

[lbhsbz]

Went out for dinner and drinks last night, came home and ended up getting really fucked up.

Didn't get out of bed until 1 PM. Barely had enough energy today to take a shower. Did absolutely nothing today.

Made $300 today on very minimal investment in Bitcoin. How was your work day?

I only made $200 on the single share of GBTC I bought yesterday morning.

 

[beaverretriever]

I would think you can short it but dont know that for a fact.

Who knows the answer here?

I believe you can through margin trading. However everything I have read states any kind of short is supposedly riskier than buying and selling the coin itself.

 

[beaverretriever]

Again, keep in mind this thread is for dummies. It's getting way too smart in here.

 

[Classic Daycruiser]

Again, keep in mind this thread is for dummies. It's getting way too smart in here.

OK, so I setup an account, and fund it with US dollars. Then what?

Do I buy and sell Bitcoins like currency trading?
When I sell, how does the bitcoin convert back to US dollars?
Who keeps track of the transactions?
What type of paper trail, between my Bitcoin account and the federal government exists.
Taxes???

 

[Rondog4405]

Went out for dinner and drinks last night, came home and ended up getting really fucked up.

Didn't get out of bed until 1 PM. Barely had enough energy today to take a shower. Did absolutely nothing today.

Made $300 today on very minimal investment in Bitcoin. How was your work day?

Curious... How much did u have to invest to net that?

 

[coolchange]

Problem is it will take days to transfer funds. The very thing Bitcoin is supposed to solve.

 

[WhatExit?]

You guys thinking about buying or buying into Bitcoin would be well advised to not buy into all the hype until you're sure you understand the significant risk and volatility of this thing. Be prepared to lose it all because the bottom could fall out at any time.

 

[H20 Toie]

if you have them sell duh

 

[Waffles]

OK, so I setup an account, and fund it with US dollars. Then what?

Do I buy and sell Bitcoins like currency trading?
When I sell, how does the bitcoin convert back to US dollars?
Who keeps track of the transactions?
What type of paper trail, between my Bitcoin account and the federal government exists.
Taxes???

Yes

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[Waffles]

Nothing has inherent value.
Nothing.

It's as good - or as bad - an investment as anything else.




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Wrong but ok

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[beaverretriever]

OK, so I setup an account, and fund it with US dollars. Then what?

Do I buy and sell Bitcoins like currency trading?
When I sell, how does the bitcoin convert back to US dollars?
Who keeps track of the transactions?
What type of paper trail, between my Bitcoin account and the federal government exists.
Taxes???

Do I buy and sell Bitcoins like currency trading? You buy and sell coin on an exchange of your choice.

When I sell, how does the bitcoin convert back to US dollars? There is a USD balance and a BTC balance. Once you sell, it converts instantly to USD. When you want to cash out, you transfer or withdraw right to your bank account. Literally exactly the same as your PayPal account.

Who keeps track of the transactions? Everyone. Everyone can see every transaction ever made. Bitcoin has a distributed ledger that anyone can see where the coin has changed hands at any time. This is one of the reasons it makes it hard to counterfeit.

What type of paper trail, between my Bitcoin account and the federal government exists. Currently this seems to be a grey area. There is plenty of ledgers for your own use through the various exchanges in case someone comes knocking at the door.

Taxes? Another grey area of sorts. However a quick google search turned up 100s of articles that say you will pay tax. If the gov wants a piece they will get it. Just keep good records and there is nothing to worry about.

 

[hallett21]

Wrong but ok

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So other than life what has inherent value?

 

[pronstar]

Wrong but ok

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Do tell...



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[WhatExit?]

Bitcoin for Dummies

There may be truth in that