Jump to content

Menu

Cryptocurrency


Nemom
 Share

Recommended Posts

Anyone here buying or familiar with this?  My 17 year old would like to try investing.  I was in support of his trying it out until I found out he would need my ID and credit card information.  

 

I keep reading I will be giving up all my privacy and identity.  Yeah not really on board with that.  Now he is mad at me.

 

Thoughts??

  • Sad 1
Link to comment
Share on other sites

Is this like bitcoin? 

My son (26yo) has done well with trading in this. He gifted my other kids with $100 to learn how to invest in it. 

 

I think it's a bit like gambling--but if you know what you are doing, then go for it. 

 

I did ask him to make sure he takes money out from time to time so he can actually see a profit. He seems to be doing ok. 

 

I would maybe consider (in your case) dipping a toe in WITH him. Make it something you do together. 

 

I don't have privacy issues with it. 

  • Like 2
Link to comment
Share on other sites

How is he trying to invest in Bitcoin?  There are a number of ways of going about it and not all would require that you give that information.  There are even bitcoin ATM machines where you can go put cash in the machine to buy bitcoin--so no information has to be given.

 

Given that, there are ways that I would prefer someone start learning about investing than through bitcoin.

Link to comment
Share on other sites

My hubby is into investing in cryptocurrency.

 

In the beginning of December he bought $500 of Bitcoin for each of our daughters and cashed out just before Christmas-- for $900 each... not a bad investment for 3 weeks.

 

He has had bitcoin for about a year now-- and recently cashed out (and moved some to another currency).  He more than tripled his investment and now I can have the kitchen re-done!

 

I think the current 'hot' one is Ripple.

 

He watches them carefully...

 

 

 

 

 

  • Like 6
Link to comment
Share on other sites

Ds invested $10.  He made 17 cents when all was said and done.  (He did not invest in Bitcoin which has lost most of it's value recently.)

Whether you see the value haven risen or fallen recently depends on your time frame.  Bitcoin is currently worth about 3 times what it was worth 3 months ago and 2 time what it was worth 2 months ago.  

  • Like 4
Link to comment
Share on other sites

Bitcoin is just one type of cryptocurrency.  There are many other types.  He is not looking at investing in Bitcoin.

 

In response to previous poster, we are going to be doing this together.  I asked him to do the research and come back to me with a plan.  I then took his info and did a quick search myself.  My quick research is making me weary of this.  I don't have the time to babysit this with him.  He will need to be in charge but because of his age it needs to all be done in my name.

 

For those who have husbands who are doing this, can you ask them about a company called Coinbase please.  He is telling me the company is fine but I am seeing a lot of bad reviews online.  According to my son, we need to go through Coinbase to purchase the currency and then we would transfer it to an offline "wallet".  

 

ETA:  We are only looking at investing $100 to play around with and see what happens.  

Edited by Nemom
Link to comment
Share on other sites

From my kid that mines cryprocurency.Coinbase is perfectly trustworthy. The company is federally insured and worth over 1B dollars. It is considered the most noob friendly.

Then once they buy on there yes transfer to a secure wallet.

Link to comment
Share on other sites

I don't know much about cryptocurrencies, but my 22yo son who is a CS major has been dabbling in them for at least a year. I was sooo dubious, but he invested $500 back when Bitcoin was cheap (along with $500 in another cryptocurrency), cashed out some of it and made $1500 (so he has more than recouped his initial investment), and re-invested some of that. What he has is currently worth $7k (depending on what time it is, haha; it has wild swings!), at least on "paper." In fact, his senior honors project for his CS major has to do with cryptocurrencies, and he has/had a small business on the side helping others invest (which I thought was a smart move, kind of like the people who made money on the California Gold Rush not by panning for gold themselves, but by supplying the miners with food, clothes, equipment, etc.). I think his honors project has something to do with an app that tracks various cryptocurrencies (there are hundreds, if not thousands). 

 

I personally don't have any advice, b/c I'll stick with Vanguard, haha. (As I told my son, "if you can see the bandwagon, it's too late" -- but since he has made several thousand dollars, I had to eat my words.) But this thread is interesting!

 

ETA: So that's what Coinbase is! My son and I share a phone account, so these various apps mysteriously appear on my phone – Coinbase, Bitcoin Ticker, Bitfinex, Coin Ticker, etc. ... haha

Edited by Laura in CA
  • Like 3
Link to comment
Share on other sites

I applaud your son for his initiative. He has obviously done some research if he knows to put it in an offline wallet.

I've used Coinbase. It was fine. I was freaked out about all the personal information required, too. If you use a credit card, you will need to check your online statement to see Coinbase charges for $1.XX. The last two charges will be entered into CB to verify that it's your card. The charges will disappear off your statement after a few days and never actually be charged. Good luck!

Link to comment
Share on other sites

From my kid that mines cryprocurency.Coinbase is perfectly trustworthy. The company is federally insured and worth over 1B dollars. It is considered the most noob friendly.

Then once they buy on there yes transfer to a secure wallet.

I don't think that Coinbase is federally insured.  Coinbase has an insurance policy that provides protection if its computer system is hacked; this insurance does not protect you if your own personal wallet is hacked.  Currency of U.S. citizens held with Coinbase is deposited in FDIC insured institutions with pass-through protection up to $250,000 to individuals.  This would mean that if you have 1000 US dollars in an account (not $1000 wroth of bitcoin) and Coinbase has deposited that money in Bank X, and Bank X fails, you will not lose your $1000.  

Edited by jdahlquist
  • Like 2
Link to comment
Share on other sites

My hubby is into investing in cryptocurrency.

 

In the beginning of December he bought $500 of Bitcoin for each of our daughters and cashed out just before Christmas-- for $900 each... not a bad investment for 3 weeks.

 

He has had bitcoin for about a year now-- and recently cashed out (and moved some to another currency).  He more than tripled his investment and now I can have the kitchen re-done!

 

I think the current 'hot' one is Ripple.

 

He watches them carefully...

 

Holy smokes

 

Was that this year? 

Edited by mommyoffive
Link to comment
Share on other sites

I had Bitcoin in 2010... Lost the wallet with a hard drive crash. Don't be me :-p

I think crypto currency is a decent investment if you are going to sit on it OR cash out at a set gain point. You really need to learn how to handle it though and don't leave it on the exchange site or un-backed up. I wouldn't put in any money you couldn't afford to lose, and I'd diversify over some of the larger currencies. There are some really interesting things going on right now.

  • Like 2
Link to comment
Share on other sites

OP,

Coinbase is fine. People who like crypto currency can often be more concerned than the average person about privacy. So, if lots of them are having Coinbase, you’re fine.

 

Seventeen is a hard age because they’re ready to do adult things but need to be that “magic†age of 18 before they’re allowed. I’d let him do it. It wil let you see what he’s doing. It could be a fun hobby for both of you.

 

My 19 year old son has gotten me interested. We gave him some money to invest for us in August and it’s quadrupled since then. This is a bubble and a rare opportunity. Never invest more than you can afford to lose. If it goes up, you can always take out the principal and play with the rest. Go for it!

  • Like 3
Link to comment
Share on other sites

Bitcoin is just one type of cryptocurrency.  There are many other types.  He is not looking at investing in Bitcoin.

 

In response to previous poster, we are going to be doing this together.  I asked him to do the research and come back to me with a plan.  I then took his info and did a quick search myself.  My quick research is making me weary of this.  I don't have the time to babysit this with him.  He will need to be in charge but because of his age it needs to all be done in my name.

 

For those who have husbands who are doing this, can you ask them about a company called Coinbase please.  He is telling me the company is fine but I am seeing a lot of bad reviews online.  According to my son, we need to go through Coinbase to purchase the currency and then we would transfer it to an offline "wallet".  

 

ETA:  We are only looking at investing $100 to play around with and see what happens.  

 

Coinbase is fine but their fees are high and investing a small amount like that will make it a bit more difficult to turn a profit under their fee structure.

 

We are not in any currency at the moment after selling BTC, LTC, ETH, and Ripple recently.  I would like to have the ETH and LTC back right now. *sigh*

  • Like 1
Link to comment
Share on other sites

I don't think that Coinbase is federally insured.  Coinbase has an insurance policy that provides protection if its computer system is hacked; this insurance does not protect you if your own personal wallet is hacked.  Currency of U.S. citizens held with Coinbase is deposited in FDIC insured institutions with pass-through protection up to $250,000 to individuals.  This would mean that if you have 1000 US dollars in an account (not $1000 wroth of bitcoin) and Coinbase has deposited that money in Bank X, and Bank X fails, you will not lose your $1000.  

 

Correct on all points.

Link to comment
Share on other sites

OP, what is your concern regarding providing your ID and credit card information?  Do you view this as different than providing your credit card information when making other purchases?  Or, is it because your son will have access to that information that you are hesitant?  If you were opening other types of investment accounts (a savings account at a bank, a stock trading account at a brokerage firm) you would need to provide ID and social security number.  

 

if you have concerns about the credit card, you could see about opening a small checking account and providing that banking information for that specific account; I think Coinbase will allow you to use a checking account rather than a credit card.

Link to comment
Share on other sites

OP, what is your concern regarding providing your ID and credit card information?  Do you view this as different than providing your credit card information when making other purchases?  Or, is it because your son will have access to that information that you are hesitant?  If you were opening other types of investment accounts (a savings account at a bank, a stock trading account at a brokerage firm) you would need to provide ID and social security number.  

 

if you have concerns about the credit card, you could see about opening a small checking account and providing that banking information for that specific account; I think Coinbase will allow you to use a checking account rather than a credit card.

 

I'm not concerned about giving the info to my son.  

Link to comment
Share on other sites

  • 1 year later...

I think the technology is here to stay but the current currencies may not be.

The IRS is cracking down on money earned in crypto trading, which is why you need to supply private information to open an account. I read some article speculating the SEC might regulate it soon too.

We invested in several different currencies last year.  We used coinbase.com, put in an amount of money we can afford to lose, and check on it periodically.  It's extremely volatile, and frankly if a kid wanted to get into trading it I would design an entire investing course for them.  Chances of losing everything in any sort of day trading is extremely high.  Chances of selling during the right bubble and it not turning into gambling are minimal, no matter what he's seen on reddit. If the kid wants to do this and can demonstrate deep understanding of how investments work and make a convincing argument that it would be better than simply putting into a no fee mutual fund then I might allow it.  Note: there is likely NO evidence a child can find that putting in crypto would be a better bet than in an index fund.

Unless he has a time machine and can go back 15 years.  In which case he can contact me and I'll give him the original contact info re bitcoin.  At the time a friend invested heavily, I was given the opportunity but thought "fraud" and "pyramid scheme" and declined. I should have thrown $50 at it. I'd be sitting on a beach in the tropics right now.

Link to comment
Share on other sites

  • 2 months later...

My son made a bunch and then lost even more on paper with Bitcoin. I’m another Vanguard person, and I don’t approve 😄. Like all high risk investing, some people will do well and you’ll hear their stories. More will not make or lose much, and more will lose a lot (even some of those who did well at first.) They usually aren’t as willing to share their stories.

My son has learned a hard lesson that some people get lucky with these things, and most don’t, especially over the long haul. “Knowing what you are doing” might help a little, but not much in such a risky investment, and hearing that just gives a false sense of control to those who think they “know what they are doing”. IMO 😄. It might be fun to use a small amount of money you wouldn’t miss to play with, but young people especially seem to underestimate the likelihood of losing it when they are hearing all the success stories.

  • Like 3
Link to comment
Share on other sites

It would be a good thing for him to spend hours investigating the possible pros, and the cons, of this. Is it "investing" as some think, or is it truly sticking your neck out as you would do in a casino in Las Vegas, or is it worse than a casino in Las Vegas?  Is he aware of the cyrptocurrency thing that went out of business a few months ago, when the owner of it died and he was the only person who knew the password?   I forget how many millions of dollars were lost by "investors" in that particular arrangement. Look before you leap is a good idea here. IMO you should NOT share your credit card information or anything else with him, if he does go ahead with this. Good luck to him!

Link to comment
Share on other sites

  • 1 month later...
  • 11 months later...

Hey, Nemom. If your son wants to start investing, let him do it. I started mining when I was 23 years old and now I'm working on myself, which is very great, but I want you to remember that you should know that cryptocurrency is a serious thing and he should know this. Also, I advise your son to use special sites which are making transactions online anonymously, so that to prevent any bad consequences. You can try using this one that's the best bitcoin mixer for you. I've been using it for 4 months and I've never had any problems with it, so I suppose that you won't have any issues too.

Edited by ythlness
Link to comment
Share on other sites

  • 2 years later...

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

 Share

×
×
  • Create New...