posted on May, 26 2016 @ 10:58 AM
Run away. Run so very far away!
I've been dealing with Crypto Currencies for the last 5 years. If you got into the game early, you could have made tons of money, considering you
held on to your coins, and unlike many people... Kept them OUT OF exchanges and in an offline wallet.
The problems today are a plenty:
- Many exchanges and online wallets are stealing bitcoins from it's users. (Mt Gox - Cryptsy - Gatecoin - etc)
Some are even claiming they were hacked but either way, any coins you had stored on these sites were withheld and are now no longer available to it's
user base. You're never supposed to store your coins on such sites. You're supposed to put them in an offline wallet and hope your system never gets
hacked in the process by someone looking for bitcoins and other currencies. This does happen!
The problem is... To play the market by trading coins (it's a lot like the stock market) for other coins or simply exchanging for real money, you
will often need to transfer these coins to an online exchange (think Bank!). As mentioned above... there are serious potential problems with this.
Even if you keep your coins in an offline wallet, to trade or cash in your coins, you have to use an exchange so you're taking a risk in hopes that
the exchange is secure and or legit. Even if they've been legit for so long, they can often turn bad! Mt Gox - Cryptsy - Gatecoin - and others, were
legit exchanges at one time. Then suddenly it was all... "Sorry guys... we got hacked so all of your coins are POOF". Meanwhile, the owners walk
away with millions worth of your money. Since it's not a legit form of currency, there isn't much the courts will do to help you. When they can, you
still have to prove that someone stole your fake money and that they weren't hacked, even if they hacked themselves. It's a big steaming pile of
Another problem. Even if you don't play the market, you're likely going to have to upgrade your offline wallet, which as it's happened before, you
have a chance of downloading a version that has been infiltrated by Trojans built to steal your coins. Wallets must be updated now and then to keep
up with coin exchanges, changes to the coins and other reasons.
And yet another problem... Your currencies can = nothing. Sure, one day you can have X amount of coins that are worth .10 cents each, or 1$ each and
a couple hours later it can be worth 0.00000010 cents. Oh yeah... Currencies crash too, meaning one day they might be worth farming/buying/trading
and then all of a sudden, they crash to equal nothing at all and people stop farming and trading. ...as in, they just vanish from the market and
never to be revived again.
In my last 5 years, I've experienced many of these issues. I've traded and stored coins that were going up, up, up... then failed and dropped off the
exchanges I was on. I've traded into coins that were so low in cost one day and shot up to wonderful amounts the next... then a week later dropped
down to less than what I had bought them for and never revived. Though, it's possible that in a year they might shoot back up, considering the
currency is still around.
Worst of all.... and sadly.... I've had every coin I've accumulated over the years stolen from me, thanks to Cryptsy. Cryptsy was supposed to be a
real stand up exchange. "Supposedly" they were hacked while upgrading a particular coin one day and suddenly months later, all of their bitcoins were
gone. Now.... The owner of the exchange came out of it with a beautiful built nice home and all kinds of other goodies, while he had zero means to
pay back the people who lost ALL of their coins on his exchange.
Again... people say... Keep your coins offline, but many like me play with the coin market and our coins HAVE to be on an exchange to do this. So the
risk I took was an ultimate fail because of a very well established and known trustworthy exchange gone bad.
All of my Bitcoins, my Dodge coins, my Moon coins, and many others vanished into thin air. It's a risky market! It's not worth the investment.
Like someone already mentioned here... Why bother? Most of the coins are horded by only a few people, most of which got into the game at the start.
It's like investing into Big Banks. You're just feeding the monster.
Farming is pointless less you have thousands of dollars to invest in multi rack processors/servers. Even then, you only get fractions unless you farm
coins that no one's heard of or no one cares about. It's like playing the stock market by buying penny stocks. They may or may not make it, and most
of the time, they simply wont make it. It's a pure gamble. In the end, you'll end up spending more money on electricity than you will making money
by farming/mining currencies.
You're simply better off playing blackjack for $$. Besides... with all of the stealing and hacking going on, I'm thinking it's only a matter of time
before this wave of currency is either shut down permanently by the government (it is in some counties) or some new form takes place that completely
makes this current line of currencies obsolete. Think Big Banks....
Good luck though....!