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# 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](https://www.reddit.com/r/CryptoCurrency/comments/98kxxb/i_keep_hearing_diversify_your_portfolio_but_can/#:~:text=diversification%20isn't%20to%20protect%20you%20from%20losses.%20it's%20there%20to%20allow%20you%20to%20catch%20the%20moons.))
  * 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](https://www.reddit.com/r/CryptoCurrency/comments/cmift1/how_do_you_diversify_your_portfolio/#:~:text=The%20SAFEST%20crypto%20to%20invest%20in%20is%20BTC))
* Diversification is for the moment you already got big money. ([source](https://www.reddit.com/r/CryptoCurrency/comments/cmift1/how_do_you_diversify_your_portfolio/#:~:text=Diversification%20is%20for%20the%20moment%20you%20already%20got%20big%20money.)) (others said similar things)

### Links

* [How do you diversify your portfolio? : CryptoCurrency](https://www.reddit.com/r/CryptoCurrency/comments/cmift1/how_do_you_diversify_your_portfolio/)

## Decentralized Exchanges

* 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

## Notes

* 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](https://www.reddit.com/r/ethereum/comments/l4298i/psa_to_newbies_coming_into_ethereum_and_bitcoin/#:~:text=The%20community%20consensus%20for%20long%20term%20holding%20is%20hardware%20wallets.%20The%20most%20popular%20ones%20are%20Ledger%20and%20Trezor%20which%20are%20both%20multi-coin%20wallets))
* 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](https://www.reddit.com/r/Bitcoin/comments/1uccfz/i_am_a_tax_attorney_here_are_my_answers_to_the/#:~:text=If%20you%20own%20bitcoins%20that%20have%20appreciated%20in%20value%2C%20you%20cannot%20use%20them%20to%20purchase%20goods%20or%20services%20without%20realizing%20gain), albeit from like 2013)
* Can claim losses for taxes ([source](https://www.reddit.com/r/Bitcoin/comments/1uccfz/i_am_a_tax_attorney_here_are_my_answers_to_the/#:~:text=%2320%3A%20What%20happens%20if%20end%20up%20with%20an%20overall%20loss%20\(instead%20of%20a%20gain\)%20from%20my%20bitcoins%3F%20First%2C%20remember%20that%20gains%20and%20losses%20are%20combined%20at%20the%20end%20of%20the%20year%20to%20reach%20the%20amount%20of%20your%20%E2%80%9Cnet%20gain.%E2%80%9D%20If%20you%20had%20more%20losses%20than%20gains%2C%20however%2C%20then%20you%20will%20end%20up%20with%20a%20%22net%20loss.%22%20Given%20the%20two%20large%20market%20crashes%20bitcoin%20suffered%20in%202013%2C%20it's%20possible%20that%20some%20of%20you%20will%20find%20yourself%20in%20this%20position.%20Net%20losses%20are%20deductible%20on%20your%20tax%20return%2C%20but%20there%20are%20some%20important%20limitations%20depending%20on%20whether%20they%20are%20characterized%20as%20%22capital%22%20or%20%22ordinary%22%20\(character%20is%20discussed%20above\).), albeit from like 2013)

## Links

* [How to Invest in Bitcoin Futures](https://www.investopedia.com/articles/investing/012215/how-invest-bitcoin-exchange-futures.asp)
* [PSA to Newbies coming into Ethereum and Bitcoin: Don’t buy from any exchange that doesn’t allow you to actually withdraw your coin : ethereum](https://www.reddit.com/r/ethereum/comments/l4298i/psa_to_newbies_coming_into_ethereum_and_bitcoin/)
* [Coinbase vs. Coinbase Pro: A Guided Example on Why You Should ALWAYS Use Coinbase Pro : CryptoCurrency](https://www.reddit.com/r/CryptoCurrency/comments/m5wqeu/coinbase_vs_coinbase_pro_a_guided_example_on_why/)
* [5 Easy Steps to Transfer from Coinbase to Ledger (2021)](https://privacypros.io/ledger/transfer-from-coinbase/)