Australian (ASX) Stock Market Forum

Is cryptocurrency the greatest market bubble of all time?

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Garpal Gumnut said:
I feel like a colour blind onlooker during the great Tulip bubble.

I just wish that Crypto would crash quickly to free up money for young investors to get involved in value markets.

gg
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I actually see a place for it, have spent the last week researching and familiarising with the platforms and sending crypto around here and there, and knowing you're a bit of a Gold / Silver guy I was pleased to find Ainslie Bullion's AGS and AUS tokens (exchangable for physical too !) on the blockchain as tokens.

I kind of agree to your points down atthe meme coins level and the likes, but stable coins (like the AGS / AUS ones) and the main players which have been around and are well regarded as mainstays, totally different

Here's my research notes written for a couple of pure beginner relatives, the whole layers / levels of Trading Platform through to Hot Wallet and Cold Wallet and physical security over pass-phrases is all kinds of interesting (not sure how many participants are diligent in that regards though ?

anyway, (NOT ADVICE) here's the shared research and thoughts ....

Researching Crypto and Security Considerations

Researching Crypto – BTC ETH XRP SHIB AGS AUS

Overview:

Many people hold their entire crypto exposure in accounts offered by Crypto Exchange platforms such as:
• CoinSpot -https://www.coinspot.com.au/join/REFKP4P5P
• CoinBase -https://coinbase.com/join/VS2N0Q?src=referral-link
• Binance

The issue being, that these exchanges operate under a custodial model of ownership, meaning that your account balance with these platforms is essentially like a bank account where it is merely a “promise” to pay you your amount of a given crypto coin at a point in time when you go to withdraw or send it somewhere.

Recently (Nov/Dec 2022) a high profile failure and fraud at the platform FTX led to almost all customers losing their entitlement to their crypto holdings as they simply didn't exist anymore, and hence counterparty risk had reared its head.

This is a great intro video to crypto -


Private (Non-Custodial) Wallets:

Private wallets are quite similar to the ASX CHESS sponsored holding or HIN, with one major difference being that you are the only party outside of the distributed blockchain workings who has access to your private wallet pass-phrase key (password).

Private wallets can be either:
• HOT wallet – connected to the internet via an app that facilitates transacting with the blockchain
• COLD wallet – stored onto a purpose designed and secure device only connected to the internet when being transacted

Initially CoinBase was used via the CoinBase Wallet app to create the private wallets, but also the Exodus app suite looks good for a pure non-custodial hot wallet approach

For cold wallets, some brands include Ledger, Trezor and SafePal :
• https://shop.ledger.com/
• https://trezor.io/
• https://store.safepal.com/

You can get started with some free bitcoin for simply opening an account, with these referral code links:
CoinSpot -https://www.coinspot.com.au/join/REFKP4P5P
CoinBase – https://coinbase.com/join/VS2N0Q?src=referral-link

Pass Phrase:

!! Lose your pass-phrase and you’ll have lost access to you crypto account and the coins within it !!

There is no centralised helpdesk, so retaining and secure storage of the pass-phrase itself is of utmost importance. Anyone who has your pass-phrase can connect to your Private Wallet very simply and transfer your crypto out.

this template might help to ensure important information is kept in a safe place, but please only even hand write these details and store them in a safe and secure place.

you can of course have as many crypto wallets as you desire, so as long as you're organised and have a saft storage place, no doubt you'll adapt the below suggestion to suit (except the 12 word pass-phrase !!)

{Wallet Reference} Setup as at yyyy-mm-dd hh:mm

FirstName LastName ({wallet name / reference}):

These are the 12 recovery words the Blockchain said to keep
word1 word2 word3 word4 word5 word6 word7 word8 word9 word10 word11 word12

for App reference only: Unlock code:{PIN Code} as of yyyy-mm-dd

Exodus / Trust live balances with pass-phrase on FirstName LastName phone (yyyy-mm-dd)
Exodus / Trust live balances with pass-phrase on FirstName LastName tablet (yyyy-mm-dd)
Exodus / Trust live balances with pass-phrase on FirstName LastName laptop (yyyy-mm-dd)
Exodus / Trust live balances with pass-phrase on FirstName LastName computer (yyyy-mm-dd)

We hope you get off to a real head start and enjoy the research we've shared.

another way to view this and other content is over here – https://www.buymeacoffee.com/xclusifInsights/posts

my personal preference out of all that landed me on Exodus as a Hot Wallet because it has the "Portfolio" feature which is like different sections / purposes within your wallet

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The NAB is posting the following on the online banking poertal
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it is an interesting position to take.
on one level, they can be applauded for trying to help on issues of people being scammed.
But then one might ask, Who are the banks to ascertain where users send their money?
Especially if that same bank creates its own crypto products, and then prevents people transferring real money to the "competitors".

Mick
 
mullokintyre said:
But then one might ask, Who are the banks to ascertain where users send their money?
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I dare say the banks would prefer not to be fussed about where people send their money. It's just that people who are scammed have an annoying habit of blaming the bank - i.e., they expect full reimbursement for their naivete. Crypto scams are a thing.
 
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