Live data from Hacker News

Coinbase Index Fund

blog.coinbase.com

331–340 of 346 posts

Re: Coinbase Index Fund

#331

Earlier 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 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…

Right - it seems we agree on that and probably when I wrote:

Even if you don't believe in the underlying security, you can attempt to ride those waves using technology provided to you by GDAX or Bittrex or whatever - the entire order book is laid out for you to learn and think about, and speculate on. That's easier to parse than odds for .. a blackjack hand? Even a roulette wheel probability play requires some basic training in probability.

You read that as, the odds are easier to parse for crypto. That's not what I was saying, even if I worded it poorly such that it could be taken like that. It's just not an apples to apples comparison, since with a card game you can construct a mathematical model of probability around it. You can't do that so easily with many other types of speculation and investment (let's suspend argument about THAT distinction for a moment).

But my point all along is that it doesn't matter; investments can be assessed non-mathematically by following non-mathematical sources of data and making predictions. History, politics, law change and it's extremely difficult to ascribe statistics to every possible outcome, at least for almost everyone. Otherwise, there would be no market at all for the vast majority of 'investments' / 'speculations'. Only mathematicians could be involved. Now, there are people that make a living out of creating statistical models around stock movements, but that doesn't mean that every other person alive who doesn't and still pursues purchases of stocks is doing so with more risk than throwing all their chips on Black 26. And it is the same with cryptocurrency.

To circle back to the original point, yes, I feel it's rather hypocritical that casino games are open for business for the little guy, but when the little guy uses a web app with a UI with order book details to try to play the cryptocurrency market, a tool of the type really mainly known primarily on stock trading floors until recently, suddenly the little guy needs the law to step out in front to protect him from himself.

Re: Coinbase Index Fund

#332
post #318

Earlier quoted context omitted.

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?

One big factor: traditional brokerage/investment accounts provide records of all stock transactions, including the cost basis and precise gain or loss. This typically comes via the 1099-B. It's straightforward to report and file taxes in this manner (relatively speaking).

Even the more legitimate exchanges in the US (ex: Coinbase) aren't currently providing these types of records. You may be able to export a list of trades, but often cost basis is missing. Or if, for example, you've moved coins through various exchanges, or traded one coin for another coin (say BTC to ETH), before converting back to fiat currency, it's very difficult to figure out how to report everything. There's no 1099-B.

Re: Coinbase Index Fund

#333

Earlier 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…

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…

We keep a log of transaction records. We can easily add a feature for users to export this as a CSV. Better yet in the future, I'd love to work with a user who is knowledgeable about this process to build a reporting feature.

Re: Coinbase Index Fund

#334
post #297

Earlier 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…

The referral link doesn't seem to work for me either. Maybe you want to add the referral link in the confirmation email as well? I lost my referral link after closing the tab on signup, forcing me to signup again :o Looking forward to it! If only I wasn't 15k in line :D

I fixed it! Yes I will add it in the e-mail. Thanks for the heads up :)

Re: Coinbase Index Fund

#335

I 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…

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…

I think it's a great idea and signed up for the beta. Just curious though - given the Binance hack today that seemed to only affect people who had given out their trade API keys, how will you ensure that people trust your bot?

Re: Coinbase Index Fund

#336
post #325
post #188

Earlier quoted context omitted.

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

You won't be able to withdraw anything other than round numbers to a proper NEO wallet. When the 'coins' are in the exchange they can slice it up however they want because they aren't actually transacting on the blockchain every time you buy and sell, just using their internal database.

Re: Coinbase Index Fund

#337
post #208

I 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…

If you want to buy this Coinbase index fund, just do this: 1. Log into Coinbase 2. Buy [BTC, ETH, BCC, LTC] with [62%, 27%, 7%, 4%] weights 3. Check back in one year and rebalance That's it! As an added bonus, you just avoided 2% fees and can "redeem" anytime.

This is assuming that you can trust the market capitalisation values. I'd bet that far more BCH is in lost wallets than LTC because it started as a a BTC fork.

Re: Coinbase Index Fund

#338
post #295

Earlier quoted context omitted.

LTC was just surpassed by BCH in transaction volume. It's creator peaced out two months ago. Dunno if an unused payment channel means more than stuff like that.

peaced out? Like dead, unconscious, or just left? (is it just me or is HN becoming more unreadable due to increased usage of slang?)

(I have been here 4 more years, so your aside doesn't withstand basic reasoning. I would also caution you that it walks the line of HN policy)

Re: Coinbase Index Fund

#339

If anyone's interested in a similar concept, Iconomi does a number of managed funds. I don't believe any are actual indexes (BLX comes closest with market cap weighted - https://www.iconomi.net/dashboard/#/daa/BLX ) but they do cover a number of different crypto spaces. Also Crypto20 does an index of the top 20: https://crypto20.com/en/

Yes, much more interesting than the Coinbase 4-coin-index, for me at least.

I have a small amount in one of their DAAs, and as a customer, I really enjoy the transparency in their communication. They do regular Reddit AMA's (https://www.reddit.com/r/ICONOMI/), financial reports on Medium (https://medium.com/iconominet), and simply make me feel like there are real and motivated humans behind. Quite rare in crypto.

Re: Coinbase Index Fund

#340
post #324
post #318

Earlier quoted context omitted.

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…

Is mining income taxed before conversion to USD? What price would you be expected to use?
Post reply on HN