What will happen to the underlying assets, and therefore the value, of this fund if Coinbase gets hacked?
Coinbase Index Fund
321–330 of 346 posts
Re: Coinbase Index Fund
#322Earlier quoted context omitted.
I had the same problems with re-balancing my own portfolio and ended up creating a trading bot that automatically diversifies my investment portfolio across the top 20 coins by market cap (10% capped). It is heavily inspired by the crypto20 whitepaper. For anyone that is interested, you can find the project here: www.hodlbot.io I'm about 1-2 weeks from the MVP launch. Only the top 20 coins by market cap fund will be…
How are you planning to deal with the tax implications which arises due to buying and selling of coins? There is a certain benefit of using coinbase's (or any) crypto fund where you don't actually have to own the coins, and that is not having to deal with the tax nightmare situation that creates.
taxes? lol...it's crypto so YOLO
Re: Coinbase Index Fund
#323Earlier quoted context omitted.
This is a really clever idea, but as someone who's trying to stay as legal as I can with reporting my crypto transactions for taxes, this sounds like it could potentially be a nightmare to report (or possibly to pay taxes on), especially with the recent GOP addition to the tax reform law that made every cryptocurrency transaction, even a trade from currency to currency, a taxable event. I really wish I could just fre…
I've found that IRS requirement is really difficult to comply with. Does anyone have any tips for tracking trades?
I own no cryptocurrencies, and I have no idea why it is any more challenging to track than trading stocks, you buy at one price and sell at another.
What am I missing?
Re: Coinbase Index Fund
#324Earlier quoted context omitted.
This is a really clever idea, but as someone who's trying to stay as legal as I can with reporting my crypto transactions for taxes, this sounds like it could potentially be a nightmare to report (or possibly to pay taxes on), especially with the recent GOP addition to the tax reform law that made every cryptocurrency transaction, even a trade from currency to currency, a taxable event. I really wish I could just fre…
I've found that IRS requirement is really difficult to comply with. Does anyone have any tips for tracking trades?
Trading is taxed just like capital gains, and mining as income. For small investments with few trades, it's straightforward and you can likely use a free service. Beyond a certain threshold (like 200 trades), it's probably worth using something like https://bitcoin.tax/ or https://cointracking.info/ which will create your forms for you after you import (and painstakingly correct) trades, at a rather steep price ($120/mo) though cointracking has a lifetime buy for $380...
Re: Coinbase Index Fund
#325I have attempted to duplicate this index fund manually by purchasing the top 25 cryptocurrencies (market-cap weighted) over the past year or so. I'll say that it was hardly worth the enormous work involved, and these index funds cannot come soon enough to non-accredited investors. In some cases it's not possible to do perfectly alone: NEO has a minimum unit of 1 coin, and so if you wanted it to not be overweighted, y…
Binance lets you get NEO under 1 unit. and they workout the math so you a proper share of the gas as well.
even on cryptopia you can buy a fraction of NEO
Re: Coinbase Index Fund
#326Earlier quoted context omitted.
At the casino your risks are known, and well-defined. In blackjack with basic strategy your expected value is, what, 49%? Craps, it's similar. Just look it up. Nobody at the table playing, or even running the show, can manipulate the outcome except by changing the parameters of the game as posted in the (I assume) regulated odds boards. Investing in an unregulated market is absolutely nothing like that. Your outcome…
But don't they, even in Blackjack, use multiple card decks to kill the odds calculation unless you're Rain Man? Sorry, but if cryptocurrency is prone to manipulation and fraud (it is), casinos are tens times worse because not only do they do that, as the House must win as a business strategy, but they appeal to people who have addiction issues. I'm not against casinos but to defend them against cryptocurrency trading…
Multiple decks is better for card-counters, not worse.
Re: Coinbase Index Fund
#327Earlier quoted context omitted.
That's to make it difficult for a player to calculate the odds of a particular hand. The odds of the overall game are still pre-defined and regulated. My Average Joe brain is too small to calculate probability when there are a bunch of hands involved, much less one. It is, however, large enough to place bets on which cryptocoins might be more useful than others, based on a lot of data and current event news that I ha…
Consider the contrast between the two things you just said: * "place bets on which cryptocoins might be more useful than other" * "The Casino ALWAYS wins, in aggregate." In the former, you expect you have some better than even odds of winning money -- otherwise you wouldn't be doing it. In the latter you clearly understand that the odds are against you. See how different those are? We can argue about the ability to d…
Consider the contrast between the two things you just said:
"place bets on which cryptocoins might be more useful than other" "The Casino ALWAYS wins, in aggregate."
In the former, you expect you have some better than even odds of winning money -- otherwise you wouldn't be doing it. In the latter you clearly understand that the odds are against you. See how different those are?
We can argue about the ability to day-trade the cryptocurrency market, but it's hard to argue that the odds there are more clearly defined than in a casino. The reason there's a moving market is because we don't all agree on those odds.
Hold on a second. I never argued that the odds are more clearly defined. How in the world can you calculate political odds, legal odds, and other odds? Can you calculate odds on a commodities trade like oil? What happens if a war breaks out between Iran and Israel? If a new technology takes hold? All of these things are another way in which odds can't be calculated as cleanly as, say, a Blackjack hand.
That many in the HN crowd consistently compare stocks and now cryptocurrency to casinos, and pad their argumentation that casinos are the same or better with an underlayment of probability calculation -- that shows the inherent mathematical bias of folks in tech. For how can one ascribe odds to purely human factors? Here's a probability prediction: chances of this comment being voted down > 50%.
Re: Coinbase Index Fund
#328Earlier quoted context omitted.
I had the same problems with re-balancing my own portfolio and ended up creating a trading bot that automatically diversifies my investment portfolio across the top 20 coins by market cap (10% capped). It is heavily inspired by the crypto20 whitepaper. For anyone that is interested, you can find the project here: www.hodlbot.io I'm about 1-2 weeks from the MVP launch. Only the top 20 coins by market cap fund will be…
Sounds great. Given that in stock market investing you are better off on average with passively managed tracker funds, there does seem to be a big gap in the market for a crypto asset equivalent. Having a crypto equivalent of an ETF as single tokens representing e.g. CMC100 would bring a whole host of challenges, e.g. regulatory, security, ease of manipulation (it is relatively easy for whales to temporarily get coin…
is this list of crypto Index Funds complete? https://en.bitcoinwiki.org/wiki/Index_Fund
Re: Coinbase Index Fund
#329Earlier quoted context omitted.
The HN community has fairly high net worth on average, I wouldn’t be surprised if a good amount here were accredited.
My guess is that there are a lot of young people on HN who may have negative net worths - just got out of college a couple of years ago and still paying off student loans. Probably more of those here than there are millionaires.
Doubt it. For one, HN is a global community and in many other countries the problem of college leaving you with crippling debt isn’t as big as what you see in America. And second, the largest demographic in HN by far are straight white males, who often come from middle class families with high earning incomes, enough to pay for education on top of whatever scholarships are earned. Aside from that, many have been in the tech industry for years or even decades earning six figure salaries. Assuming they keep decent savings invested or have had a few big wins it’s easy to see how this crowd can have some big pockets. And then there’s a sizable amount of outliers: cryptocurrency millionaires, founders of acquired companies, early stage employees post IPO or even current founders of multi-million dollar companies, maybe even a billionaire or two.
Re: Coinbase Index Fund
#330Earlier quoted context omitted.
Consider the contrast between the two things you just said: * "place bets on which cryptocoins might be more useful than other" * "The Casino ALWAYS wins, in aggregate." In the former, you expect you have some better than even odds of winning money -- otherwise you wouldn't be doing it. In the latter you clearly understand that the odds are against you. See how different those are? We can argue about the ability to d…
Consider the contrast between the two things you just said: "place bets on which cryptocoins might be more useful than other" "The Casino ALWAYS wins, in aggregate." In the former, you expect you have some better than even odds of winning money -- otherwise you wouldn't be doing it. In the latter you clearly understand that the odds are against you. See how different those are? We can argue about the ability to day-t…
You specifically said "That's easier to parse than odds for .. a blackjack hand?" Presumably what one is parsing when making a speculative trade is the odds of a positive outcome.
(You don't need to parse a blackjack hand, btw. The odds are pre-calculated and easy to look up[0]. But I was talking about the overall odds of playing, anyway, which is usually about a 0.5% house advantage per hand.)
Note: I'm not arguing that casino odds are better or worse than the odds of a crypto trade. Just that they're better defined, which you seem to agree with me on.