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Should I buy two S19j Pro's for $3,700 USD and mine it for the next few years or just buy $3,700 worth of bitcoin (0.16 BTC) ?
My worry is that mining difficulty will keep going up and I will run out of time being profitable before I reach 0.16 BTC.
At the current difficulty of mining, it will take over 250 days to mine 0.16 BTC with two S19j Pro's (assuming electricity is free) but the difficulty will be WAY higher in the next 250 days...
I love the idea of mining because it allows me to dollar cost average into the market and there is no KYC involved.
My worry is that mining difficulty will keep going up and I will run out of time being profitable before I reach 0.16 BTC.
At the current difficulty of mining, it will take over 250 days to mine 0.16 BTC with two S19j Pro's (assuming electricity is free) but the difficulty will be WAY higher in the next 250 days...
I love the idea of mining because it allows me to dollar cost average into the market and there is no KYC involved.
Mining and buying cryptocurrencies in a bear market both have their own advantages and disadvantages. Here are some things to consider:
Mining:
Advantages:
If you have the technical expertise and equipment, mining can be a way to earn cryptocurrency without investing fiat currency.
You have the potential to earn more cryptocurrency than you would if you bought it outright, depending on the price and difficulty of mining.
Mining can also support the decentralization of the network, which is important for the long-term health and security of cryptocurrencies.
Disadvantages:
Mining can be expensive and time-consuming, especially if you need to buy or upgrade equipment.
The cost of electricity can be high, and may not be profitable in some areas.
Mining may not be as profitable in a bear market when the price of cryptocurrency is low.
Buying:
Advantages:
Buying cryptocurrency can be a simpler and more straightforward way to invest in the asset.
You can take advantage of price dips and potentially buy cryptocurrency at a lower price.
If you're investing for the long term, buying and holding may be a more passive and less time-consuming way to invest in cryptocurrency.
Disadvantages:
The price of cryptocurrency can be volatile and may fluctuate wildly in a bear market, which can be stressful for some investors.
There are often fees associated with buying and selling cryptocurrency, which can eat into your profits.
There is always the risk of losing your investment if the price of cryptocurrency drops significantly.
Ultimately, the decision to mine or buy cryptocurrency in a bear market depends on your individual circumstances and preferences. It's important to do your own research and assess the risks and potential rewards of each option before making any investment decisions.
Re: Reason why Bitcoin will always lead other cryptocurrency
Bitcoin is the first cryptocurrency that has totally revolutionized the financial world. Its use and acceptance go beyond borders and is being used by thousands of people around the world as a way to pay online, purchase products and services, and as a way to send money. All of these things are currently being done with fiat currency money backed by central banks. Bitcoin has much more value than just this - it can also be used to store value (e.g. your retirement funds) or an investment that makes you money in the future (e.g. stocks). This could make Bitcoin surpass other cryptocurrencies due to its inherent values of security, liquidity, volatility, inflationary risks and thus stability over time at a minimum rate of 5% per year since inception in 2009
Overall, Bitcoin provides a lot of additional value over other currencies. Firstly, it provides transparency and a history for each transaction, which is not possible with most altcoins. Secondly, it has an un-stoppable network effect: the more people use or know about Bitcoin, the more valuable it becomes! Thirdly, the lower supply of bitcoins means that higher prices are required to buy them and hold them. This creates scarcity and increases demand
Bitcoin is the original cryptocurrency. That alone gives it an advantage over other cryptocurrencies. Even if there are many other cryptocurrencies which have started following the footsteps of bitcoin, none of them are as successful as bitcoin was when it was released in 2009. The reason for this is the fact that Bitcoin is safe and secure and people trust it enough to use it just like they use dollars, euros or pounds.
Overall, Bitcoin provides a lot of additional value over other currencies. Firstly, it provides transparency and a history for each transaction, which is not possible with most altcoins. Secondly, it has an un-stoppable network effect: the more people use or know about Bitcoin, the more valuable it becomes! Thirdly, the lower supply of bitcoins means that higher prices are required to buy them and hold them. This creates scarcity and increases demand
Bitcoin is the original cryptocurrency. That alone gives it an advantage over other cryptocurrencies. Even if there are many other cryptocurrencies which have started following the footsteps of bitcoin, none of them are as successful as bitcoin was when it was released in 2009. The reason for this is the fact that Bitcoin is safe and secure and people trust it enough to use it just like they use dollars, euros or pounds.
Bitcoin has several characteristics that have helped it establish a strong foothold in the cryptocurrency market and make it a leading digital asset:
First-mover advantage: Bitcoin was the first cryptocurrency to gain mainstream attention and has been around the longest, giving it a significant advantage in terms of brand recognition and network effects.
Wide adoption: Bitcoin is currently the most widely adopted cryptocurrency, with the largest market capitalization, the most merchants accepting it as a form of payment, and the most established infrastructure, including exchanges and wallets.
Decentralization: Bitcoin is a decentralized cryptocurrency, meaning that it is not controlled by any central authority or government. This makes it resistant to censorship and interference, which is attractive to many users who value privacy and security.
Scarcity: Bitcoin has a limited supply of 21 million coins, which makes it a deflationary asset that becomes scarcer over time. This scarcity can drive demand and increase the value of the cryptocurrency.
Security: Bitcoin's blockchain technology provides a high level of security through cryptography and distributed ledger technology, making it difficult to hack or manipulate the system.
While there are many other cryptocurrencies with unique features and potential use cases, Bitcoin's combination of first-mover advantage, wide adoption, decentralization, scarcity, and security make it a strong contender to remain the leading cryptocurrency for the foreseeable future. However, the cryptocurrency market is highly dynamic and constantly evolving, so it is important to remain vigilant and adaptable to changes in the ecosystem.
I watch a popular breakfast show every morning and they always have a section where they talk about money matters. Yesterday, they talked about Crypto currencies and the guest mentioned several Ponzi schemes where Bitcoin was used as a payment option.
These Ponzi schemes collapsed and according to him ....many people lost money in Bitcoin. They have a WhatsApp group for the program and I immediately corrected that statement, because people did not lose money in Bitcoin.... they lost money in a Ponzi scheme that used Bitcoin as a payment option.
Now, this does not sound very important, but it actually are one of the most critical things that needs to be addressed. We should counter all of these misinformed people, with education on what Bitcoin is, because they lose money on Ponzi schemes and then they blame it on Bitcoin.
These Ponzi schemes collapsed and according to him ....many people lost money in Bitcoin. They have a WhatsApp group for the program and I immediately corrected that statement, because people did not lose money in Bitcoin.... they lost money in a Ponzi scheme that used Bitcoin as a payment option.
Now, this does not sound very important, but it actually are one of the most critical things that needs to be addressed. We should counter all of these misinformed people, with education on what Bitcoin is, because they lose money on Ponzi schemes and then they blame it on Bitcoin.
Bitcoin, the worlds first cryptocurrency, has been subject to numerous controversies and criticisms since its inception. One of the most common accusations levied against it is that it is a Ponzi scheme. While some people may believe this to be true, it is important to understand that Bitcoin is not a Ponzi scheme.
A Ponzi scheme is a fraudulent investment scheme that pays returns to earlier investors using the capital of newer investors, rather than from profits generated by legitimate business activities. The scheme relies on the continuous recruitment of new investors to keep the payouts coming. Eventually, the scheme collapses when new investors are no longer attracted, and the earlier investors lose their money.
Bitcoin, on the other hand, is a decentralized digital currency that operates on a peer-to-peer network. It does not rely on the recruitment of new investors to generate returns. Instead, the value of Bitcoin is determined by the supply and demand of the market. The price fluctuates based on a number of factors, including market sentiment, economic news, and geopolitical events.
While Bitcoin itself is not a Ponzi scheme, bad actors have used it to perpetrate Ponzi schemes and other forms of investment fraud. These scams often promise high returns in a short amount of time and require individuals to invest their Bitcoin or other cryptocurrencies. The returns are paid out to earlier investors using the capital of newer investors, much like a traditional Ponzi scheme.
These scams are usually disguised as legitimate investment opportunities, such as mining operations, trading bots, or cryptocurrency exchanges. They often rely on slick marketing materials and persuasive sales tactics to lure in unsuspecting victims.
It is important for individuals to exercise caution and do their due diligence before investing in any scheme, whether it involves Bitcoin or not. This includes researching the company, its founders, and its business model. It is also important to understand that high returns with little risk are usually too good to be true.
In conclusion, while Bitcoin is not a Ponzi scheme, it has been used as a tool by bad actors to perpetrate investment fraud. It is important for individuals to be aware of the risks involved in investing in any scheme and to exercise caution when considering any investment opportunity. By doing so, they can protect themselves from falling victim to Ponzi schemes and other forms of investment fraud.
I guess for someone to call him or her self a trader you need to control your emotions right, now after having that emotion in control and other basic things a trader should know you have all under control and still loss more then getting profit.
*What else is required for such a person to control,is it still his or her emotions or what next?
*And what will be your advice to a person in that position or state and what kind of trader are you going to call such a person?
*What else is required for such a person to control,is it still his or her emotions or what next?
*And what will be your advice to a person in that position or state and what kind of trader are you going to call such a person?
Controlling emotions is an essential part of being a successful trader, but it is not the only factor that determines success. There are several other skills and qualities that a trader must possess to be consistently profitable in the markets.
One important skill is risk management. A trader must have a solid understanding of how to manage risk, including position sizing, stop losses, and risk-to-reward ratios. Without proper risk management, even the most disciplined trader can quickly lose money in the markets.
Another important quality is discipline. A trader must have the discipline to follow their trading plan, even when faced with difficult market conditions or the temptation to deviate from their strategy. This means sticking to their trading rules and avoiding impulsive decisions based on emotions or external factors.
In addition to these skills and qualities, a successful trader must also have a deep understanding of the markets they are trading in, including technical and fundamental analysis, market trends, and economic indicators. They must also have the ability to adapt to changing market conditions and constantly learn and improve their trading strategies.
If a trader has all these skills and qualities and is still experiencing more losses than profits, they may need to reassess their strategy and make changes. This could involve backtesting their trading plan, refining their risk management approach, or seeking advice from a mentor or trading community.
In terms of what kind of trader to call such a person, it would depend on their approach to trading. If they are a long-term investor who is experiencing short-term losses, they may still be considered an investor. If they are actively trading the markets, they could be called a struggling trader. Regardless of their title, the important thing is for them to continue learning, growing, and adapting their approach to improve their chances of success in the markets.
I was writing this as a reply to someone else's topic and it got kind of lengthy, so I decided to make it into a topic instead.
The intention of this topic is to help new buyers and sellers in the BitCoin community who are looking to meet up and trade locally. I've done a lot of local trades and sales over the years, so I'm hoping that my experiences can help beginners by giving them ideas on how to trade safely. For this purpose I've separated my advice into three sections: meeting for trades, advice for buying, and advice for selling.
I've tried to format everything in a clear and concise manner to make this topic more readable. I'm open to suggestions for edits and additions to help make this guide as useful as possible.
Hope this guide helps anyone looking to start trading locally!
Note: Some names/locations I mention are US based, so I apologize if they're irrelevant for your location. The theories behind this topic should be fine regardless of country.
Meeting:
There are three main things I look for in meeting places:
Public Location:
Public locations are like Local Trading 101: it is always better to meet in a public place. Scammers and muggers are a lot less likely to try anything with witnesses around. You can usually find these people early on by simply requesting a public meeting place: they want to meet their victims alone.
WiFi:
Places like McDonalds, Starbucks, Barnes & Noble, and many local coffee shops offer free WiFi access. A lot of hotels offer WiFi as well, but usually not for free or to non-customers. Bring a laptop or tablet with you if you have one so you can check transaction details and confirmations. Depending on what you're buying/selling/trading, having a computer to do some last second research on item values can never hurt if you're worried about getting the short end of the stick.
Security:
A location with security cameras adds an extra layer of security to a trade. If the other party does get away with stealing from or scamming you, you'll have physical evidence in a recording that can help the authorities track the offender down and bring him to justice. Security guards can help set your mind at ease if you're concerned that you might get mugged: muggers are a lot less likely to rob you if there's a guard with a gun a few yards away. A guard can easily step in and save you if a mugger does start attacking you.
My personal recommendation would be to meet at a mall, if there's one in your area. Malls have tons of security measures to help protect you as you make your trade, and many malls have WiFi access across the entire property: there's a good chance that one of the mall's stores has WiFi access even if the mall itself doesn't. Banks are a good choice too: banks have great security, and some bigger banks have WiFi access as well.
Buying:
There are three things I want to cover about buying in-person:
Reviewing Your Purchase:
For buying items, remember that there's a lot you can't tell about something just from pictures. Make sure to look the item over carefully and make sure everything is in working condition/described condition before you pay the seller. A seller who is unwilling or nervous about letting you check out an item may know something about the item he doesn't want you to find out. It's a good idea to meet during the day or in a well lit area so you can see everything clearly. Don't be afraid to ask questions if anything feels off and don't feel obligated to complete a sale you're uncomfortable with.
Paying with BitCoin:
One of the easiest ways to pay in BitCoin in person is with a mobile wallet app from a smartphone. Blockchain a mobile wallet app for Android and iOS. It's an online wallet, so I wouldn't recommend it for long-time storage: strictly transactions. Once I know how much I need to pay for an item I put that much in the wallet, and maybe 1 or 2 BTC more just in case there's a last second price change, and when I get home I immediately transfer any leftover funds to a more secure wallet. Blockchain works the same as any other client: enter the seller's payment address and the amount of BTC for the sale to send payment. Blockchain also has a QR scanner built in if the seller has a QR code address.
As a side note, I use an iPhone and Blockchain is, to my knowledge, the only wallet app for iOS without jailbreaking your phone. I have no knowledge about jailbreaking or Android apps for alternatives to Blockchain, but you can always do your research here on the forum or on the BitCoin wiki to find an app that works for you. You can also use your laptop, if you have it with you, to access your wallet and pay the seller. I recommend creating a brand new wallet for the transaction, especially if you're the paranoid type. Better safe than sorry, right?
Paying with Cash:
This section focuses on buying BitCoins. One of the more common OTC transactions is buying BitCoin with cash. If you're buying BTC, you need to give the seller a payment address to receive your funds. You can use your mobile wallet to receive the funds, which you can then transfer to a safer wallet when you get home, or you can write down or print out a wallet address for the seller to send the BTC to. If you do the latter method, make sure to confirm the transaction before you part ways: use a laptop to check your wallet and confirm the payment or have a trusted friend/family member monitor the wallet and contact you with confirmation of the funds.
Selling:
There are a few things to review for sellers:
Terms of the Sale or Trade:
If you and the buyer have agreed to the terms of the trade ahead of time (as in what is being sold and for what price), I recommend printing out a copy of the agreement or correspondence (emails, forum posts, etc.). I've had experiences where the buyer tries to change the deal at the last minute or claims that I agreed to a lower price for the sale. Printing out what you offered and he accepted will back you up and help you get the price you asked for. You can also take a picture of these correspondences with your phone or digital camera if you don't have a printer, or use a laptop/tablet to bring them up if WiFi access is available.
Accepting BitCoin Payment:
Write down or print your payment address and bring it with you: I also recommend having a QR code address printed for buyers who use mobile wallets. Make sure you have a way to confirm payment before you part ways with the buyer. Use a laptop/tablet to check on the transaction for confirmations as well as affirming that the buyer paid the correct amount. You could also have a trusted friend/family member monitor your wallet and contact you with confirmation if WiFi is unavailable. Mobile app wallets may be able to confirm transactions on the spot, negating the need for WiFi access and a computer if you have a 3G/4G phone: the Blockchain app I mentioned can do this for you.
Accepting Cash Payment:
The main concern with cash payment is counterfeit bills. Most banks and retail locations keep special markers at the registers that can show if a bill is real or counterfeit. Here's an example on Amazon. These markers are a cheap investment if you're worried about receiving counterfeit money. I've also found them at office supply stores like Office Depot and Staples for around $5-$15. Keep one in your pocket and mark the bills before you finish the sale. Make sure you explain to the buyer what you're doing so they don't freak out on you: I've had that happen before.
Other Forms of Payment:
The are two things to remember about alternative forms of payment: one; try to agree with the buyer ahead of time about the use of non-cash/non-BTC payments, and two; do your research on the payment method to make sure you know what you're getting and how it works (and how easily, if possible, it can be forged or reversed). This forum is full of warnings about certain payment methods for good reason. BitCoin purchases seem to be the bigger targets for chargeback fraud, so keep yourself educated when you're selling BTC in person.
There is one final warning I would like to give in this section: do not accept personal checks. One of the first in-person sales I ever did was for a personal check ($450), and I'm sure you can guess how that went simply by the way I've brought it up. Another check sale a few months after that one was paid for with a stolen checkbook and I had police show up at my house asking about the sale so they could find the guy. If you absolutely must accept a sale by check, I would recommend completing the sale at a bank so you can cash the check on the spot.
Other Tips:
This section is for good advice submitted by other posters. Thanks for your contributions!
The intention of this topic is to help new buyers and sellers in the BitCoin community who are looking to meet up and trade locally. I've done a lot of local trades and sales over the years, so I'm hoping that my experiences can help beginners by giving them ideas on how to trade safely. For this purpose I've separated my advice into three sections: meeting for trades, advice for buying, and advice for selling.
I've tried to format everything in a clear and concise manner to make this topic more readable. I'm open to suggestions for edits and additions to help make this guide as useful as possible.
Hope this guide helps anyone looking to start trading locally!
Note: Some names/locations I mention are US based, so I apologize if they're irrelevant for your location. The theories behind this topic should be fine regardless of country.
Meeting:
There are three main things I look for in meeting places:
- Public Location - Are there plenty of people around?
- WiFi Access - Is there free or cheap public WiFi access in the area?
- Security - Are there security cameras or security guards in the area?
Public Location:
Public locations are like Local Trading 101: it is always better to meet in a public place. Scammers and muggers are a lot less likely to try anything with witnesses around. You can usually find these people early on by simply requesting a public meeting place: they want to meet their victims alone.
WiFi:
Places like McDonalds, Starbucks, Barnes & Noble, and many local coffee shops offer free WiFi access. A lot of hotels offer WiFi as well, but usually not for free or to non-customers. Bring a laptop or tablet with you if you have one so you can check transaction details and confirmations. Depending on what you're buying/selling/trading, having a computer to do some last second research on item values can never hurt if you're worried about getting the short end of the stick.
Security:
A location with security cameras adds an extra layer of security to a trade. If the other party does get away with stealing from or scamming you, you'll have physical evidence in a recording that can help the authorities track the offender down and bring him to justice. Security guards can help set your mind at ease if you're concerned that you might get mugged: muggers are a lot less likely to rob you if there's a guard with a gun a few yards away. A guard can easily step in and save you if a mugger does start attacking you.
My personal recommendation would be to meet at a mall, if there's one in your area. Malls have tons of security measures to help protect you as you make your trade, and many malls have WiFi access across the entire property: there's a good chance that one of the mall's stores has WiFi access even if the mall itself doesn't. Banks are a good choice too: banks have great security, and some bigger banks have WiFi access as well.
Buying:
There are three things I want to cover about buying in-person:
- Reviewing Your Purchase
- Paying with BitCoin
- Paying with Cash
Reviewing Your Purchase:
For buying items, remember that there's a lot you can't tell about something just from pictures. Make sure to look the item over carefully and make sure everything is in working condition/described condition before you pay the seller. A seller who is unwilling or nervous about letting you check out an item may know something about the item he doesn't want you to find out. It's a good idea to meet during the day or in a well lit area so you can see everything clearly. Don't be afraid to ask questions if anything feels off and don't feel obligated to complete a sale you're uncomfortable with.
Paying with BitCoin:
One of the easiest ways to pay in BitCoin in person is with a mobile wallet app from a smartphone. Blockchain a mobile wallet app for Android and iOS. It's an online wallet, so I wouldn't recommend it for long-time storage: strictly transactions. Once I know how much I need to pay for an item I put that much in the wallet, and maybe 1 or 2 BTC more just in case there's a last second price change, and when I get home I immediately transfer any leftover funds to a more secure wallet. Blockchain works the same as any other client: enter the seller's payment address and the amount of BTC for the sale to send payment. Blockchain also has a QR scanner built in if the seller has a QR code address.
As a side note, I use an iPhone and Blockchain is, to my knowledge, the only wallet app for iOS without jailbreaking your phone. I have no knowledge about jailbreaking or Android apps for alternatives to Blockchain, but you can always do your research here on the forum or on the BitCoin wiki to find an app that works for you. You can also use your laptop, if you have it with you, to access your wallet and pay the seller. I recommend creating a brand new wallet for the transaction, especially if you're the paranoid type. Better safe than sorry, right?
Paying with Cash:
This section focuses on buying BitCoins. One of the more common OTC transactions is buying BitCoin with cash. If you're buying BTC, you need to give the seller a payment address to receive your funds. You can use your mobile wallet to receive the funds, which you can then transfer to a safer wallet when you get home, or you can write down or print out a wallet address for the seller to send the BTC to. If you do the latter method, make sure to confirm the transaction before you part ways: use a laptop to check your wallet and confirm the payment or have a trusted friend/family member monitor the wallet and contact you with confirmation of the funds.
Selling:
There are a few things to review for sellers:
- Terms of the Sale or Trade
- Accepting BitCoin Payment
- Accepting Cash Payment
- Other Forms of Payment
Terms of the Sale or Trade:
If you and the buyer have agreed to the terms of the trade ahead of time (as in what is being sold and for what price), I recommend printing out a copy of the agreement or correspondence (emails, forum posts, etc.). I've had experiences where the buyer tries to change the deal at the last minute or claims that I agreed to a lower price for the sale. Printing out what you offered and he accepted will back you up and help you get the price you asked for. You can also take a picture of these correspondences with your phone or digital camera if you don't have a printer, or use a laptop/tablet to bring them up if WiFi access is available.
Accepting BitCoin Payment:
Write down or print your payment address and bring it with you: I also recommend having a QR code address printed for buyers who use mobile wallets. Make sure you have a way to confirm payment before you part ways with the buyer. Use a laptop/tablet to check on the transaction for confirmations as well as affirming that the buyer paid the correct amount. You could also have a trusted friend/family member monitor your wallet and contact you with confirmation if WiFi is unavailable. Mobile app wallets may be able to confirm transactions on the spot, negating the need for WiFi access and a computer if you have a 3G/4G phone: the Blockchain app I mentioned can do this for you.
Accepting Cash Payment:
The main concern with cash payment is counterfeit bills. Most banks and retail locations keep special markers at the registers that can show if a bill is real or counterfeit. Here's an example on Amazon. These markers are a cheap investment if you're worried about receiving counterfeit money. I've also found them at office supply stores like Office Depot and Staples for around $5-$15. Keep one in your pocket and mark the bills before you finish the sale. Make sure you explain to the buyer what you're doing so they don't freak out on you: I've had that happen before.
Other Forms of Payment:
The are two things to remember about alternative forms of payment: one; try to agree with the buyer ahead of time about the use of non-cash/non-BTC payments, and two; do your research on the payment method to make sure you know what you're getting and how it works (and how easily, if possible, it can be forged or reversed). This forum is full of warnings about certain payment methods for good reason. BitCoin purchases seem to be the bigger targets for chargeback fraud, so keep yourself educated when you're selling BTC in person.
There is one final warning I would like to give in this section: do not accept personal checks. One of the first in-person sales I ever did was for a personal check ($450), and I'm sure you can guess how that went simply by the way I've brought it up. Another check sale a few months after that one was paid for with a stolen checkbook and I had police show up at my house asking about the sale so they could find the guy. If you absolutely must accept a sale by check, I would recommend completing the sale at a bank so you can cash the check on the spot.
Other Tips:
This section is for good advice submitted by other posters. Thanks for your contributions!
- Make sure to specify your expectations in advance. Confirm the time and place of meeting and make sure that both parties have everything on hand to complete the sale or trade. ~ Stephen Gornick
- Strength in numbers: bringing along a second person can be an excellent source of additional security and protection. ~ Vernon715
Local and in-person transactions of cryptocurrencies may seem like a convenient and easy way to buy or sell digital assets, but there are significant risks involved that should not be overlooked.
One of the biggest risks of local transactions is the lack of regulation and oversight. Unlike online transactions, there is no intermediary or escrow service to ensure that both parties follow through on their end of the deal. This makes local transactions highly susceptible to fraud and scams, as there is no way to guarantee that the seller will deliver the cryptocurrency after receiving payment.
Another risk of local transactions is the potential for theft and physical harm. Meeting with strangers to exchange large sums of money and digital assets in person can put individuals at risk of robbery, assault, or even kidnapping. Criminals have been known to target crypto traders who they believe have large amounts of digital assets in their possession.
In addition to these physical risks, local transactions also pose cybersecurity risks. When meeting with a stranger to conduct a transaction, it is important to ensure that both parties are using secure devices and networks. Hackers and cybercriminals can easily intercept the transaction and steal the cryptocurrency or gain access to personal and financial information.
Finally, local transactions can also have legal implications. Depending on the jurisdiction, buying or selling cryptocurrencies may be subject to different regulations or even outright illegal. This can put individuals at risk of legal penalties, fines, or even imprisonment.
In conclusion, local and in-person transactions of cryptocurrencies are not without risks. While they may seem convenient, individuals should exercise caution and take steps to protect themselves from fraud, theft, physical harm, and cybersecurity threats. One way to mitigate these risks is to use reputable and regulated exchanges that offer secure and transparent trading services. Alternatively, individuals can consider using peer-to-peer exchanges that offer escrow services or other security measures to protect both parties. Ultimately, it is important to do thorough research and exercise caution when engaging in local transactions of cryptocurrencies.
What is KYC ?
Know your customer (KYC) refers to due diligence activities that financial institutions and other regulated companies must perform to ascertain relevant information from their clients for the purpose of doing business with them. The term is also used to refer to the bank regulation which governs these activities. Know Your Customer processes are also employed by companies of all sizes for the purpose of ensuring their proposed agents', consultants' or distributors' anti-bribery compliance. Banks, insurers and export credit agencies are increasingly demanding that customers provide detailed anti-corruption due diligence information, to verify their probity and integrity.
Who has to enforce KYC ?
Know your customer (KYC) falls under the responsability of each financial institution and/or regulated company.
The regulations require these entities to adopt KYC procedures. It assists them in knowing / understanding the customers and their financial dealings better to monitor their transactions for identification and prevention of suspicious transactions.
KYC Recommendations
KYC controls typically include the following:
- Collection and analysis of basic identity information (referred to in US regulations and practice a "Customer Identification Program" or CIP)
- Name matching against lists of known parties (such as "politically exposed person" or PEP)
- Determination of the customer's risk in terms of propensity to commit money laundering, terrorist finance, or identity theft
- Creation of an expectation of a customer's transactional behavior
- Monitoring of a customer's transactions against their expected behaviour and recorded profile as well as that of the customer's peers
KYC Jurisdiction and Locality
KYC regulations are local, and differ from country to country. Jurisdiction is also, on a coutry to country basis.
To know more about your specific country, visit: http://kycmap.com
KYC and Bitcoin Exchanges
Stricter KYC policies:
Bitstamp https://www.bitstamp.net/privacy-policy/
Bitfinex https://www.bitfinex.com/pages/tos or refer inquiries to compliance@bitfinex.com
BTCChina (only since new PBOC guidance, Dec 2013) (link?)
Cavirtex https://www.cavirtex.com/faq
Coinbase https://coinbase.com/legal/privacy
Kraken https://www.kraken.com/legal/verification (their General Counsel, Constance Choi is a well known specialist in the Regulatory and Compliance field)
Cryptonit https://cryptonit.net/regulations
Loose or non-existant KYC policies:
BTC-e (??)
Crypsty (??)
LocalBitcoin (p2p based, limited KYC?)
What is AML?
Standing for "Anti-money Laundering", it is a set of procedures, laws or regulations designed to stop the practice of generating income through illegal actions. In most cases money launderers hide their actions through a series of steps that make it look like money coming from illegal or unethical sources was earned legitimately.
Who has to enforce AML?
In response to mounting concern over money laundering, the Financial Action Task Force on Money Laundering (FATF) was established by the G-7 Summit that was held in Paris in 1989.
The Task Force was given the responsibility of examining money laundering techniques and trends, reviewing the action which had already been taken at a national or international level, and setting out the measures that still needed to be taken to combat money laundering. In April 1990, less than one year after its creation, the FATF issued a report containing a set of Forty Recommendations, which provide a comprehensive plan of action needed to fight against money laundering.
The FATF calls upon all countries to take the necessary steps to bring their national systems for combating money laundering and terrorism financing into compliance with the new FATF Recommendations, and to effectively implement these measures.
Again, as in the case of KYC, financial institutions and/or regulated companies are responsible for the implementation of internal AML policies.
AML Jurisdiction and Locality
AML regulations are also local, and differ from country to country. Some countries choose a top-down approach, inheriting much of their AML policies from the FATF, while others go for a bottom-up approach and then have to reconcile both policies. Extreme countries where such reconciliation is impossible (generally due to Government unwillingness) are excluded from the FATF membership, with the corollary of increased complications to access the international markets and financing.
For a full list of FATF members, visit: http://en.wikipedia.org/wiki/Financial_Action_Task_Force_on_Money_Laundering
AML and Bitcoin Exchanges
Currently in compliance:
Bitstamp https://www.bitstamp.net/aml-policy/
Bitfinex https://www.bitfinex.com/pages/tos or refer inquiries to compliance@bitfinex.com
Cavirtex https://www.cavirtex.com/why_virtex#proactively_working
Coinbase https://coinbase.com/legal/privacy
Kraken https://www.kraken.com/legal/aml (their General Counsel, Constance Choi is a well known specialist in the Regulatory and Compliance field)
Cryptonit https://cryptonit.net/regulations
Unknown status:
BTCChina (unclear since new PBOC guidance, Dec 2013) (are they financial institutions?)
BTC-e https://btc-e.com/page/1
LocalBitcoin (p2p based, limited or no AML?)
WARNING:
Assume that restrictions for any Bitcoin to National Currency exchange may become more restrictive at any time in the future. Many exchanges in the past have restricted currency deposits or withdrawals proactively as BitStamp has, without any explicit order from a government agency to do so at the time. Others like BTCChina have in response to concerns made even the ability to continue to login to their platform contingent on supplying further identifying information. In the past surprise changes to AML/KYC requirements have lead users of exchanges to have their access to deposited funds substantially delayed while complying with new requirements or even lost access to their deposited funds completely if they could not comply with the new requirements. Changing AML/KYC exchange enacted AML/KYC requirements have affected users of all major exchanges that handle both Bitcoin and National currency. People who continue using such exchanges should prepare for the contingency that their exchange of choice will change their AML/KYC requirements in the future.
Know your customer (KYC) refers to due diligence activities that financial institutions and other regulated companies must perform to ascertain relevant information from their clients for the purpose of doing business with them. The term is also used to refer to the bank regulation which governs these activities. Know Your Customer processes are also employed by companies of all sizes for the purpose of ensuring their proposed agents', consultants' or distributors' anti-bribery compliance. Banks, insurers and export credit agencies are increasingly demanding that customers provide detailed anti-corruption due diligence information, to verify their probity and integrity.
Who has to enforce KYC ?
Know your customer (KYC) falls under the responsability of each financial institution and/or regulated company.
The regulations require these entities to adopt KYC procedures. It assists them in knowing / understanding the customers and their financial dealings better to monitor their transactions for identification and prevention of suspicious transactions.
KYC Recommendations
KYC controls typically include the following:
- Collection and analysis of basic identity information (referred to in US regulations and practice a "Customer Identification Program" or CIP)
- Name matching against lists of known parties (such as "politically exposed person" or PEP)
- Determination of the customer's risk in terms of propensity to commit money laundering, terrorist finance, or identity theft
- Creation of an expectation of a customer's transactional behavior
- Monitoring of a customer's transactions against their expected behaviour and recorded profile as well as that of the customer's peers
KYC Jurisdiction and Locality
KYC regulations are local, and differ from country to country. Jurisdiction is also, on a coutry to country basis.
To know more about your specific country, visit: http://kycmap.com
KYC and Bitcoin Exchanges
Stricter KYC policies:
Bitstamp https://www.bitstamp.net/privacy-policy/
Bitfinex https://www.bitfinex.com/pages/tos or refer inquiries to compliance@bitfinex.com
BTCChina (only since new PBOC guidance, Dec 2013) (link?)
Cavirtex https://www.cavirtex.com/faq
Coinbase https://coinbase.com/legal/privacy
Kraken https://www.kraken.com/legal/verification (their General Counsel, Constance Choi is a well known specialist in the Regulatory and Compliance field)
Cryptonit https://cryptonit.net/regulations
Loose or non-existant KYC policies:
BTC-e (??)
Crypsty (??)
LocalBitcoin (p2p based, limited KYC?)
What is AML?
Standing for "Anti-money Laundering", it is a set of procedures, laws or regulations designed to stop the practice of generating income through illegal actions. In most cases money launderers hide their actions through a series of steps that make it look like money coming from illegal or unethical sources was earned legitimately.
Who has to enforce AML?
In response to mounting concern over money laundering, the Financial Action Task Force on Money Laundering (FATF) was established by the G-7 Summit that was held in Paris in 1989.
The Task Force was given the responsibility of examining money laundering techniques and trends, reviewing the action which had already been taken at a national or international level, and setting out the measures that still needed to be taken to combat money laundering. In April 1990, less than one year after its creation, the FATF issued a report containing a set of Forty Recommendations, which provide a comprehensive plan of action needed to fight against money laundering.
The FATF calls upon all countries to take the necessary steps to bring their national systems for combating money laundering and terrorism financing into compliance with the new FATF Recommendations, and to effectively implement these measures.
Again, as in the case of KYC, financial institutions and/or regulated companies are responsible for the implementation of internal AML policies.
AML Jurisdiction and Locality
AML regulations are also local, and differ from country to country. Some countries choose a top-down approach, inheriting much of their AML policies from the FATF, while others go for a bottom-up approach and then have to reconcile both policies. Extreme countries where such reconciliation is impossible (generally due to Government unwillingness) are excluded from the FATF membership, with the corollary of increased complications to access the international markets and financing.
For a full list of FATF members, visit: http://en.wikipedia.org/wiki/Financial_Action_Task_Force_on_Money_Laundering
AML and Bitcoin Exchanges
Currently in compliance:
Bitstamp https://www.bitstamp.net/aml-policy/
Bitfinex https://www.bitfinex.com/pages/tos or refer inquiries to compliance@bitfinex.com
Cavirtex https://www.cavirtex.com/why_virtex#proactively_working
Coinbase https://coinbase.com/legal/privacy
Kraken https://www.kraken.com/legal/aml (their General Counsel, Constance Choi is a well known specialist in the Regulatory and Compliance field)
Cryptonit https://cryptonit.net/regulations
Unknown status:
BTCChina (unclear since new PBOC guidance, Dec 2013) (are they financial institutions?)
BTC-e https://btc-e.com/page/1
LocalBitcoin (p2p based, limited or no AML?)
WARNING:
Assume that restrictions for any Bitcoin to National Currency exchange may become more restrictive at any time in the future. Many exchanges in the past have restricted currency deposits or withdrawals proactively as BitStamp has, without any explicit order from a government agency to do so at the time. Others like BTCChina have in response to concerns made even the ability to continue to login to their platform contingent on supplying further identifying information. In the past surprise changes to AML/KYC requirements have lead users of exchanges to have their access to deposited funds substantially delayed while complying with new requirements or even lost access to their deposited funds completely if they could not comply with the new requirements. Changing AML/KYC exchange enacted AML/KYC requirements have affected users of all major exchanges that handle both Bitcoin and National currency. People who continue using such exchanges should prepare for the contingency that their exchange of choice will change their AML/KYC requirements in the future.
As the popularity of cryptocurrencies continues to grow, so too do the demands for greater regulation, and one of the key components of this is the Know Your Customer (KYC) process. KYC is a set of rules designed to prevent money laundering, terrorism financing, and other illegal activities. While it may seem like a necessary step to ensure the integrity of the cryptocurrency ecosystem, the reality is that KYC is bad for crypto and Bitcoin, and it fundamentally undermines the freedom and decentralization that are at the heart of this technology.
Firstly, KYC goes against the very essence of cryptocurrencies, which is to provide an alternative financial system that is decentralized, anonymous, and operates independently of government control. With KYC, individuals are required to provide personal identification documents and other sensitive information, which not only violates their privacy but also opens them up to the risk of identity theft and fraud.
Furthermore, KYC creates a significant barrier to entry for individuals who may not have access to traditional banking services, such as those in developing countries or people without official identification documents. This not only restricts access to cryptocurrencies but also reinforces the existing inequalities and power structures that cryptocurrencies are designed to disrupt.
Additionally, KYC processes are often implemented inconsistently and in a way that disproportionately affects smaller businesses and individuals. This creates a competitive disadvantage for smaller players in the industry and stifles innovation, while larger companies can more easily absorb the costs and resources required for compliance.
Finally, KYC creates a single point of failure in the system. If centralized exchanges are required to implement KYC, this gives hackers and other bad actors a clear target for their attacks. This undermines the fundamental security of the blockchain network and puts the entire system at risk.
In conclusion, KYC is bad for crypto and Bitcoin. While it may seem like a necessary measure to prevent illegal activities, it fundamentally undermines the freedom, decentralization, and equality that cryptocurrencies are designed to provide. Instead of imposing strict KYC regulations, the cryptocurrency industry should focus on developing innovative and decentralized solutions that provide greater security and privacy for all users, regardless of their background or financial status.
I haven't seen anybody post about what would be my biggest worry if I were trying out alternative block chains. I realize this may be perceived as "Gavin is FUD'ding anything that isn't bitcoin!" (FUD == Fear, Uncertainty and Doubt) But I think some of you might be forgetting some basic computer security fundamentals in the excitement to be early adopters.
When I first heard about bitcoin, my questions were:
1) Can it possibly work (do the ideas for how it works make sense)?
2) Is it a scam?
3) If it is not a scam, could it open my computer up to viruses/trojans if I run it?
I answered those questions by:
1) Reading and understanding Satoshi's whitepaper. Then thinking about it for a day or two and reading it again.
2) Finding out everything I could about the project. I read every forum thread here (there were probably under a hundred threads back then) and read Satoshi's initial postings on the crypto mailing list.
3) Downloaded and skimmed the source code to see if it looked vulnerable to buffer overflow or other remotely exploitable attacks.
If I were going to experiment with an alternative block-chain, I'd go through the same process again. But I'm an old conservative fuddy-duddy.
If you want to take a risk on a brand-new alternative block-chain, I'd strongly suggest that you:
1) Run the software in a virtual machine or on a machine that doesn't contain anything valuable.
2) Don't invest more money or time than you can afford to lose.
3) Use a different passphrase at every exchange site.
When I first heard about bitcoin, my questions were:
1) Can it possibly work (do the ideas for how it works make sense)?
2) Is it a scam?
3) If it is not a scam, could it open my computer up to viruses/trojans if I run it?
I answered those questions by:
1) Reading and understanding Satoshi's whitepaper. Then thinking about it for a day or two and reading it again.
2) Finding out everything I could about the project. I read every forum thread here (there were probably under a hundred threads back then) and read Satoshi's initial postings on the crypto mailing list.
3) Downloaded and skimmed the source code to see if it looked vulnerable to buffer overflow or other remotely exploitable attacks.
If I were going to experiment with an alternative block-chain, I'd go through the same process again. But I'm an old conservative fuddy-duddy.
If you want to take a risk on a brand-new alternative block-chain, I'd strongly suggest that you:
1) Run the software in a virtual machine or on a machine that doesn't contain anything valuable.
2) Don't invest more money or time than you can afford to lose.
3) Use a different passphrase at every exchange site.
people should also consider that using their ERC20 compatible addresses on a new EVM-like chain, they always might have the risk for replay attacks, considering the private key is same on both chains, so if you have ethereum for example and you use same address on another new evm fork chain, you have the risk the recipient of a transaction in this chain, to also replay and steal your ETH on parent chain!
I have some USDT and USDC in my portfolio that I'd want to stake in a "De-Fi" dApp without worrying about it in a long time. There are liquidity pools in Uniswap with attractive stake rates, but there's also Compound.Finance with its lending services. Both of these platforms are built on the ETH blockchain, so gas fees would be astronomically high. I've read about some platforms being compatible with Polygon (MATIC), but I'd have yet to see if it's worth the shot (especially in terms of security/reliability).
Do you know the safest way to stake stablecoins without breaking the bank? Also, do you think it's worth it? Or should I consider other options? Any suggestions and/or recommendations would be greatly appreciated. Thanks in advance.
Do you know the safest way to stake stablecoins without breaking the bank? Also, do you think it's worth it? Or should I consider other options? Any suggestions and/or recommendations would be greatly appreciated. Thanks in advance.
you should consider that staking yields on a stablecoin, express a form of interest and as you may already know, the higher the interest rates, the higher the risk to lose capital...
considering the current market momentum, all fiat and stablecoins, seem to go fast to big devaluation and gas fees would be your last problem, maybe best option for now, would be to buy and stake ETH or hold BTC, gold etc....
Considering the collaterals USDC has, it isnt supposed to happen (a depeg), but at the moment, your worries should be that all fiat will burst and lose value, as we are leading to a global recession and fiat devaluation, which means, even if you got money in stablecoins, whatever its name and safety is, they will also lose value.
BTC and gold sounds the safest place now
BTC and gold sounds the safest place now