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Tech CEPS Bitcoin Mechanics Primer

Is the dark net the best way to measure a coins success? I mean it’s only one possible use for it
it was darknet crimminal group who hacked it and started selling the exploits and then fourms started to warn people about what was happening because the NSA got hold of it. Its no longer anonymous which was the point of monero plus the extra security to prove who you are buying monero and now this means its pretty bad.
 
it was darknet crimminal group who hacked it and started selling the exploits and then fourms started to warn people about what was happening because the NSA got hold of it. Its no longer anonymous which was the point of monero plus the extra security to prove who you are buying monero and now this means its pretty bad.

There's a lot of FUD on the darknet so what's posted there is not necessarily even close to truth.

That said, there are known deanonymization techniques that can be used against Monero, but the probability of those techniques uncovering useful evidence is so low that attacking the network has a high cost:benefit ratio.

The Monero network essentially functions as a mixer. Using the wallet software, users can adjust the amount of signatures in a transaction's mix set to further reduce the probability that an attack would unmask the provenance of a specific transaction. A user can also continue to mix the same amount of Monero by sending it through a series of wallets. The underlying concept for this is ring signatures, which is relatively simple to understand.

So to summarize - none of the known exploits are a silver bullet against Monero and if a new exploit does exist, it's not very likely to be a silver bullet either.

Ok yeah after looking into Proof of work vs stake I can see why work is likely a more popular option.

another question for you if you don’t mind. Let’s say I have some BTC in an electrum wallet but I didn’t follow all the best protocol when setting it up. Would creating a new paper wallet (the right way) remove some of the risks or am I still vulnerable since the coin is coming from a potentially (though not likely) exposed wallet?

If you're just using the paper wallet to proxy a set amount from an origin wallet to a recipient then anyone watching the transactions could say with high confidence that either you or the recipient likely controls the paper wallet, but if nobody can tie your identity to the paper wallet then it's just evidence and not proof.
 
@thujone

what's your thoughts on the best trading platforms?

since the price spiked the past couple weeks or so i've sold off some of the coins i had laying around lol. i used kraken for this as it was an account i already had made. but i know there are a lot of options to choose from
 
Keep you your crypto currency on your own private wallet, not a trading platform. If you don't own the private key you are "trusting" others to keep it safe. This is very seldom wise.

Otherwise platforms are pretty much equal. Don't store curreny on a trading platform for any significant length of time.
 
Keep you your crypto currency on your own private wallet, not a trading platform. If you don't own the private key you are "trusting" others to keep it safe. This is very seldom wise.

Otherwise platforms are pretty much equal. Don't store curreny on a trading platform for any significant length of time.
I wasn’t planning on it :)

perhaps I phrased it wrong but I had coins in a private wallet (electrum) and since I have no other use for them I have decided to try my hand at trading. So I’m using this platform solely for buying/selling not to to store any coins

I was just wondering about recommendations for trading platforms so that I can exchange to fiat
 
@thujone

what's your thoughts on the best trading platforms?

since the price spiked the past couple weeks or so i've sold off some of the coins i had laying around lol. i used kraken for this as it was an account i already had made. but i know there are a lot of options to choose from

Kraken has a good reputation, I'd stick with it for casual buying/selling.

Exchanges that comply with local financial regulations are most likely to be trustworthy.

As for which exchange offers the best trading platform, that is really more of a personal choice depending on your trading style. Some people need a mobile-friendly UI, day traders might instead want MetaTrader service, while algorithmic traders will prefer a feature rich API.
 
yeah I definitely wanna comply with any legal regulations

i definitely am interested in using my math chops if i can for day trading. I’m not expecting to make any crazy money but I had about $100 of coin that I’m gonna try to make a few extra bucks on. But im not quitting the day job anytime soon lol
 
Coinbase too. The fees are quite cheap. Smaller coin selection. But here, deposit your cash, move to coinbase pro and buy BTC there. Buying it straight up on coinbase is a market buy scam. It doesn't even line up with the current market prices. Only if you need BTC fast use that. Otherwise coinbase pro and limit buy it.

Never used kraken, however heard they had options which would be cool.

But yeah, hard to trade crypto. Way too volatile and 24/7. Keeping too much will kill your stress and major coinflips with overload BTC. Too many bots too.
 
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Intraday price movements can be very random. It has a very wolves n sheep dynamic. Experienced traders understand the psychological pitfalls and use that knowledge to "scalp" points off inexperienced traders making mistakes.

FX exchanges were forced by regulatory bodies to disclose the odds of success since so many people were losing their shirts, and IIRC it came out that something like 90%+ of intraday traders lose money while only <10% consistently make profit.
 
I would imagine these days.

The new years from 2017 to 2018 was the best time in alts. Wake up and some crap coin on hitbtc did 1000x. The ripple and TRX pop.

Only time I saw real gains like I do in stocks. Then again its options. Will have to check out kraken and see what I can do with a couple hundred. In and out trades since won't sleep if even holding $100 in alts haha.
 
Crypto trading does seem very toxic. I’ve been trying to do research but it’s all just get rich quick schemes, never anything purely educational
 
May have been mentioned but how it works.

Only 1 coin has a fiat value. That is BTC. If BTC goes to zero ALL coins go to zero. Alts are valued in sats. Satoshis. When jumping into alts, you want to come back with more sats. If you spend more sats than you came back with, you lost the trade. Of couse BTC rises and falls, so the sats are worth more which rises the alt price (but not really since alts never valued in fiat).

Now sure you can buy eth with dollars. They are just doing the conversion on the backend.

If BTC goes to a million (yeah right) even shit alts at 1 sat will have insane value when looked at fiat. But its still 1 sat.

Thats the basic to understand. BTC is the overload. Most shit is scalped with autotraders now. When BTC dumps, so will alts. When BTC goes up and holds, alts will flourish, then come back down when BTC falls. Because alts again are really worthless and idea is to get sats so more BTC.

And BTC generally follows the markets. Its liked to s&p mostly. Markets hitting highs and BTC hitting highs. Markets falling and BTC falling. Also follows other a bit too. 2020 been weird.

So buy some BTC. Jump into an alt and try to come back with more sats is what you do. Consider transaction feeds. 1% / 1% are hard fees to trade on. Some exchanges charge even more.

(or just buy an autotrader and scalp like lots do)

Also there are pump groups (they find weak walls on shit alts, slowly preload so they get rich, grab a group on discord and they pump it hard). Someone always eats the bag here, though. Run your own to get paid.

Also signal groups. Lots join and buy a coin and try to hit 1st, 2nd, and 3rd targets, etc. Sometimes works, sometimes doesn't.

But research coins and know which ones pop. Buy them at low levels.

Really its not worth it when compared to stocks. Gets stressful when trapped in an alt and have to take the lose. Rather just gamble options and win or lose. Not much money in crypto without massive capital and good luck.
 
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It seems like normal stocks may be the better choice haha

the theory of decentralized currency really speaks to me but it might just be that, a theory.

do you have any recommended reading for someone interested in beginning to invest? Preferably something taking more of an analytical/mathematical approach?
 
Yeah totally. A few got lucky and got btc for pennies and held for years. Even people that bought for 3k 2 years ago and held all this time 6x their money. There are only small chances in crypto and in stocks there are tons daily. Also no BTC overload in stocks, they are all isolated. Futures control these.


Looking like red day today. Lets see what happens at pre market. I think sell off.

Outside of that there is the buy and hold forever approach. Find good stocks you believe in and buy and hold them. Standard faang. But blue chip stocks at all time highs now. Stuff like airplanes, cruises, and casino, etc did not recover. Would imagine buying some airlines today could be really good profits in 10 years.

You can also split up a few etf (s&p, nasdaq, some bonds to hedge, maybe a world market stock, some gold, some silver, some oil lol. And just wait). Generally how 401k are setup. Lookup any investing company that makes ETF's and they all have lots of sample portfolios.

Day trading and investing is very different.

I am almost convinced we are in for the shits, though come a few months. This whole rally in 2020 been fake. Trumps doing. But who knows. You can always sell your shit immediately is how I look at it.

Then there is straight options which are pure gambling. You bet up or down. Its gets deeper if you own 100(x) shares and make your own contracts.

There is a book called the psychology of trading. Its an ebook on youtube. Old school, but listen to him if you want to trade (not invest)
 
Thanks for all the write up bro I appreciate it. I’ll definitely have to educate myself some more before laying down any money but you’re right that airlines would be a logical choice.

I know a lot of people believe in Bitcoin as a long term store of value. How do you feel about that idea? It makes sense to me that as long as the internet exists there will be people who consider it valuable but perhaps I’m missing something
 
I don't. Well, at near 19k again. I don't see much upside. Not enough to be worth it. I think the government will come after it. I could be totally wrong, but its risky. When BTC moves, it moves hard. So even if you did buy $100 of btc today, it will most likely be worse in a few months unless BTC keeps going up. But for BTC to go up, the USA market generally does. If shit hits the fan, BTC will fall hard again sub 10k easy. Now you just 50% of your money.

The problem with BTC it doesn't have much use. For Darknet is all. Could not imagine checking out at jewel and having to wait for 3 confirmations lol.

Gold is a true store of value. Even paper gold. Its going to stay generally the same. It moved nice in 2020 too.

The future of stocks and btc and just about everything is up in the air now :)
 
@thegreenhand

What I would recommend is to install robinhood. Toss $100 in there and play around. There is no commission charges there which go a long way. The only part with them is they only open premarket 30 minutes before market so you get last picks. Its really good though for buy and holding. You will learn quick.

Then get on a real broker like ibkr. You get access as soon as pre market opens so you get 1st picks. Commission fees can hurt, though if you make lots of trades.

Understand the basics like support and resistance. As you certainly don't want to buy right at the top of resistance. You want to buy right at support, or if resistance broke (and its a confirmed break which becomes the next level of support). Or if a stock took a huge dump, it will always have a bounce. One of my biggest trades was after warren buffet dumped all his airlines. It bounced hard and scored 800% in 2 days on options. Understand how candles work. Its all very analytical (with some guessing / praying lol)

After trading for a bit it really all starts to make a lot of sense. Any lame brain can make money in the market, just takes lots of patience and keeping your eye on the news. And not making silly trades.

I like ER gambles. 4 times a year each stock reports their earnings. These are when big moves happen.

Open Interest which is the amount of open contracts. The more the means big moves are coming.

IV - What the math says on how much volatility will come.

And if you like math, you will love options. All the greeks need to be known (outside this scope lol).

Its fun stuff. But also really stressful if you are gambling money that you really cannot afford to lose. Or if you take hard losses, it will be in your nature to try and recover the losses which can only send you deeper. I never lose a penny of my own money. However did lose nearly 75% of my profits from 2019 / 2020 march shorting (was up huge) in april. I refused to believe the market could keep going up. Took my profits left and been doing just the odd trade here or there. Once trump is out, and Biden comes I think the market will be more fair. Impossible to trade in a market that goes straight the fuck up. But they have to burn the dollar to do this. DXY (dollar index) just fell under 92. Not so good, they don't have much more to burn so see very little upside from here in the indexes. But trump has defied my predictions since day 1 that bastard! Cannot wait until he is gone.

EDIT: Oh, get up on stocktwits. You need the community as well to see whats being said. And news rolls through there 1st. And dude on youtube called claytrades. I learned a ton from him on TA and fast scalping.

Good luck on your stock journeys. Crypto is much BS and immature next to stocks. No comparison. No regulation. All inside trading. Fake stable coins like tether / real usd / true usd which are just coins made up, produced and then used to buy BTC. The true marketcap of BTC is not even close to what it claims. Most BTC owned is on margin / bought with produced stable coins.
 
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@thegreenhand

What I would recommend is to install robinhood. Toss $100 in there and play around. There is no commission charges there which go a long way. The only part with them is they only open premarket 30 minutes before market so you get last picks. Its really good though for buy and holding. You will learn quick.

Then get on a real broker like ibkr. You get access as soon as pre market opens so you get 1st picks. Commission fees can hurt, though if you make lots of trades.

Understand the basics like support and resistance. As you certainly don't want to buy right at the top of resistance. You want to buy right at support, or if resistance broke (and its a confirmed break which becomes the next level of support). Or if a stock took a huge dump, it will always have a bounce. One of my biggest trades was after warren buffet dumped all his airlines. It bounced hard and scored 800% in 2 days on options. Understand how candles work. Its all very analytical (with some guessing / praying lol)

After trading for a bit it really all starts to make a lot of sense. Any lame brain can make money in the market, just takes lots of patience and keeping your eye on the news. And not making silly trades.

I like ER gambles. 4 times a year each stock reports their earnings. These are when big moves happen.

Open Interest which is the amount of open contracts. The more the means big moves are coming.

IV - What the math says on how much volatility will come.

And if you like math, you will love options. All the greeks need to be known (outside this scope lol).

Its fun stuff. But also really stressful if you are gambling money that you really cannot afford to lose. Or if you take hard losses, it will be in your nature to try and recover the losses which can only send you deeper. I never lose a penny of my own money. However did lose nearly 75% of my profits from 2019 / 2020 march shorting (was up huge) in april. I refused to believe the market could keep going up. Took my profits left and been doing just the odd trade here or there. Once trump is out, and Biden comes I think the market will be more fair. Impossible to trade in a market that goes straight the fuck up. But they have to burn the dollar to do this. DXY (dollar index) just fell under 92. Not so good, they don't have much more to burn so see very little upside from here in the indexes. But trump has defied my predictions since day 1 that bastard! Cannot wait until he is gone.

EDIT: Oh, get up on stocktwits. You need the community as well to see whats being said. And news rolls through there 1st. And dude on youtube called claytrades. I learned a ton from him on TA and fast scalping.

Good luck on your stock journeys. Crypto is much BS and immature next to stocks. No comparison. No regulation. All inside trading. Fake stable coins like tether / real usd / true usd which are just coins made up, produced and then used to buy BTC. The true marketcap of BTC is not even close to what it claims. Most BTC owned is on margin / bought with produced stable coins.
I have about $1500 to play around with from my lifelong savings account (don’t worry I’m still keeping most of my money safe in savings lol)

after doing some reading / talking to my savvy mother I think I’m gonna put about $1000 into a Roth ETF. Hers has been doing extremely well and the fees are very minimal. That’ll be my long term assets and I’ll just forget about it until I’m old lol - but still adding to it when I hve the funds

then the rest I’m gonna use for shorter term trading. I appreciate all the help my man, you’ve given me a lot to think and learn about. I’ll definitely check out stocktwits for more focused discussion. Sorry @thujone for clogging up your thread!

oh and at some point in the future you may get a PM or two from me haha @TheInvisibleStoner
 
No worries, guys :) It's all finance anyway... there are even Bitcoin futures now, we might end up with governments running their own nodes. I know for a while that AMD was running a mining farm at the regional HQ, it would be fit right into our cyberpunk future if multinational corporations circulated their own cryptocurrencies.

Lightning network have 4 Vulnerabilities.
bitcoin is unexploitable right now by the ability to restoring the snapshot of the blockchain before the attack.
https://www.coindesk.com/bitcoin-lightning-network-vulnerabilities-not-exploited-yet

interesting... i haven't heard of this, doesn't surprise me though. Exchanges are mostly the ones using LN so far, since they do other security checks first it's probably assumed the transactions going through LN are already somewhat trusted.
 
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