Crypto-Currency speculation and trading is highly profitable

Maybe even more then regular stock trading.
I myself don't stock trade but i've read about it and i just got into Crypto-Currency 1 week ago.
( Since i heard some promising things going on )
So I buyed some bitcoin and etheruem and the price just kept going up and up. I thought bitcoin was kinda shitty so i converted it to ether. Did make some huge profit of like 25-38% something like my 21 dollars worth of ether turned into 28 dollars. then i took that ether and converted it into Lisk another cryptocurrency and of the time of my writing this, my 180 lisk's dollar value is rising above 35 and more. I just don't get it.
Now why the hell would anyone bother working in a normal job when they can make all this money effortlessly without trying.

 

stability and social norms, i'd imagine

 

Money breeds money papa

 

People work normal jobs because that is stable income. While you can profit on investments like that, there is risk. Just like it went up 25% in a short time, it can also go down 25% in a short time.

 

legal gambling is all it is

 

You know what's even doper than crypto currencies? Casinos. You know what's even more baller than your life savings? Double your life savings. All you have to do is find that game with the ball and the spinning wheel and bet the sum total of your worldly goods on black.

Don't bet on red. Only noobs bet on red. Plus Wesley Snipes said to always bet on black and he wouldn't lie to you. Remember kids, Wesley Snipes went to jail for your sins. Your sins and tax evasion. So pay your taxes. But not on your new casino winnings. F that noise the govt doesn't need to know you're rich now.

And after you've gone swimming through your money, scrooge McDuck style, and you're lying in your bed surfing the web on your new baller mobile phone you just bought, you might read online about how the damn commies of the world want to raise taxes on rich people, like you, because they need hand outs and what not. You go ahead and reply to those a holes that they need to pull themselves up by the bootstraps and work hard like you did and then maybe they could afford to buy their own cheeseburgers instead of stealing yours.

This plan is so dope I'm thinking about starting a business to help people with retirement planning. 'Bet it All on Black Retirement Planning LLC.'. We 100% guarantee to double any money invested with us 48% of the time.

On the off chance you lose money following this advice you probably need to accept the hard truth that your life savings didn't amount to jack squat in the first place and maybe you need to pull yourself up by the bootstraps and work more harder in the future.

 

As others have said, it's high-risk investment. Apparently also with low regulation, with it being without shares and all. One can have fun with stuff like this, but to be self-sufficient you usually have to take untenable risks.

 

lisk doesn't = money. money = money. let me know when you've actually made money.

 

You jumped into a volatile ocean of speculative trading on a small upswing and then made a huge assumption. There is high risk trading in the market already, two examples being options and penny stocks.

Regardless, if you make enough to make it worthwhile Uncle Sam will want a slice. With some sorts of crypto currency it's fairly easy to hide the income but that's only as long as someone doesn't try hard to figure it out.

And if you are going to make a living on short term gains you can only effectively keep a very small percentage because a) you have to pay very high amounts of taxes and b) you have to build a replenishment fund for when RNG puts the stick to you.

Typically leaves you with about 6% to keep. It's not that glamorous.

Compare that with the 8-14% my mutual funds have made on average since 2009, with much less risk, principle guaranteed in some cases, has taken very little of my time etc etc.

The answer to your question is because the risk of losing everything is almost equal to the risk of gaining something. You could have better odds as a skilled black jack player.

 

Also, we should call this virtual currency, not crypto currency. Crypto means hidden or secret in this context and that is completely false. It's not tracked or regulated but that doesn't mean any real money (re: Ragik) you get from it won't still be considered income.

And I chose virtual as a prefix because it's simply not real. The primary reason is that it's not backed by gold. If one of these exchange portals shut down, you'd lose 100% of whatever you have stored there because no banking laws would be there to protect you. In fact, the sites could simply take all your play money away from you if they chose and you have no recourse, see the third definition.

Crypto sounds like a marketing word to help you feel as if gains can be hidden or that you are gaining access to... as you said... free money.

Any time someone wants you to trade real money for pixels, you need to see this as entertainment, not investment. And as long as someone a) sees this virtual currency trading as entertainment and b) are truthfully willing to lose everything, then, by all means, they should continue.

What worries me though, in your case, is the fact that your brain was not grounded enough to answer the questions in your first post. To be perfectly honest, you should stay away from this. You'll get took, I can almost guarantee it.

 

I have yet to hear of anyone actually benefiting from virtual currency in any real financial way (except the developers of bitcoin I guess). point me to an old person who has cashed in on their virtual currency investment. rather I see it as chips you win at a casino. who are we kidding. you aren't leaving that casino until all those chips have been lost again.

 

I have a few co-workers that did the Bitcoin datamining early on, then kept their bitcoins for a few years and made a huge profit. I don't know anyone that has speculated on the market successfully. What many people fail to keep in mind is that when the value of something you own goes up or down, that doesn't mean you're making money. The money is only made or lost when you make the choice to sell. The better you can predict the market, the more profitable you will be.

 

Back when I was in banking I'd see old people spend all their money buying Iraqi Dinar. I felt so bad for them. They were completely fooled by it. They 100% believed it. Was very sad.

 

As baskitkase put so eloquently, your answer is in the question. There's a reason why that's not a thing. In a very unlikely scenario you could argue it's "because people don't know about it".

However, news always spreads. Especially if it's worth a lot of money. If you are making money way too easily, ref flags should be popping up. Real life or online.

 

So USD is a virtual currency? Jokes aside what most people have said is pretty much accurate, short term gains high risk etc.

 

one good solar flare and were all broke anyway.

 

Not all of it, but yes. For USD and most major currencies there is more currency than physical bills and coins. Fractional reserve lending systems and banks being a money multiplier and all. It's a bit complicated to explain in full detail but...

A lot of "money" is merely data in a given bank's computer.


(And that's not even getting into derivatives and investment banking.)

 

I believe he was referring to the backing of currency by gold.

 

No currency is 100% gold backed but the point is that there is some tangible structure that provides legitimacy to the currency.

 

Iirc gav works for a bank