Cryptocurrency

Diversification

Some go all BTC, some mix BTC/ETH
A lot of people recommend researching and finding project you believe in
Some people say diversification is more about getting one that goes viral, as opposed to protecting against losses (source)
- Many people say 65-85% in BTC, and say you don't need to diversify (or maybe shouldn't) to reduce risk
The SAFEST crypto to invest in is BTC (source)
Diversification is for the moment you already got big money. (source) (others said similar things)

Lower liquidity
No KYC (maybe no taxes then -- centralized exchanges do KYC, and report things to IRS)
More privacy -- they don't take your data
Maybe a little more sketchy -- since people don't have to verify identity (? unconfirmed/checked)
Pay mining fees

The community consensus for long term holding is hardware wallets. The most popular ones are Ledger and Trezor which are both multi-coin wallets (source)
In order to buy crypto, you need to use an exchange (e.g. Coinbase, Binance)
- These exchanges provide security, 2FA, a place to trade crypto
- Then, they charge you a fee
- Also saw some online peer-to-peer exchanges I didn't look much into
Some exchanges lock you in, which many people say is just like banks again (except less robust)
If you own bitcoins that have appreciated in value, you cannot use them to purchase goods or services without realizing gain (source, albeit from like 2013)
Can claim losses for taxes (source, albeit from like 2013)

Last updated 3 years ago