Current Events > Currently in the process of procuring Dogecoin for the first time (cryptonoob)

(+) Yeah! (+)

I am opening up an account on Robinhood to make my purchase BUT I'm still hazy on what the "exchange" is and how I can one day turn these coins into profit.

If anyone doesn't mind giving me a little investment advice, I'd like to put $1000 into either Dogecoin or Etherium split any which way. I intend to hold for the long term hoping for huge investment turn around but I have little knowledge on how to get cash back from my investment. Seems like it's super easy to take cash out of your bank account and throw it at crypto but it's harder for me to find info, that's laymen enough for me to understand, about exchanging crypto. Thanks for the help!

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Define huge? A million? Doubt it with $1K.

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H0LD_Austin_Era posted...

Define huge? A million? Doubt it with $1K.

What? No, like 200k wtf. And 1k is starting investment. You're fucking beyond helpful.

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Can I get a serious answer please?

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you can ask in the crypto general

personally i'm not sure what you're asking. 'exchange' is basically just what they call the platform. it's a crypto exchange because you can buy and sell crypto.

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MedeaLysistrata posted...

you can ask in the crypto general

personally i'm not sure what you're asking. 'exchange' is basically just what they call the platform. it's a crypto exchange because you can buy and sell crypto.

That's the terminology some "helpful" website used when describing the cash out process. Can you exchange on robinhood or do you need a different platform to exchange? And if so, what's the most trusted one atm?

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ImAMarvel posted...

Did I fuck up by not buying dogecoin like a week ago? >_>

Yeah, it shot up from 37 cents to 65. Now even I'M looking at this shit. Right NOW it's sitting at 60 cents and I'm thinking about buying now.

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weekoldhotdog posted...

That's the terminology some "helpful" website used when describing the cash out process. Can you exchange on robinhood or do you need a different platform to exchange? And if so, what's the most trusted one atm?

robinhood is for exchanges like buying and selling, you might also need a wallet like metamask but i'm not sure because i don't know robinhood and whether it has that.

reminds me though, i want to get set up on binance but i hate having to give photo id.

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I'm waiting till Saturday, CE claims it'll take a dip den
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MedeaLysistrata posted...

robinhood is for exchanges like buying and selling, you might also need a wallet like metamask but i'm not sure because i don't know robinhood and whether it has that.

Ok so ROBINHOOD is the exchange and I'm missing the wallet? THANK YOU. Question about wallets:

Safe to keep on the exchange unless it gets hacked, right? so next step is to keep in a wallet. However; for the integrity of keeping up with this password for like 1-8 years I'll need to keep it on more than just this one computer (incase the computer fails). How about one of them hardware wallets? Are those any good and at what point is it worth investing in one?

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V-E-G-Y- posted...

I'm waiting till Saturday, CE claims it'll take a dip den

I was expecting it to go over the moon saturday with musk on SNL BUT who knows if it will come back to earth or stay up after that. I said the same thing at 27-35 cents, VEGY, and it still didn't come down.

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Robinhood allows minor crypto purchasing.

its more so for main line stock trading. You cant take doge or Bitcoin and exchange for other crypto through Robinhood.

if you make money on the investment you will have to pay taxes on anything withdrawn.

whereas on an exchange like binance or voyager you can invest in many cryptos and the best part about actual exchanges is you can take something like doge and use it as an exchange for something like ethereum or Bitcoin. Avoiding any capital gains because youre not withdrawing any profits yet.

so lets say you invested $100 in doge and are up $500. You can take those profits and move them into a different currency and diversify that way without worrying about capital gains until you take out.

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Can you move your doge from Robinhood to binance? or is this like steam and epic and your currency on each platform is unique?

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weekoldhotdog posted...

Can you move from Robinhood to binance? or is this like steam and epic and your currency on each platform is unique?

no, Robinhood doesnt have a crypto wallet system. Youd have to withdraw the cash and then buy into another exchange or platform.

if you had a crypto wallet you can take your cryptos from lets say binance and move them to voyager or Coinbase or whatever exchange you want to go to.

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chrono625 posted...

Robinhood allows minor crypto purchasing.

its more so for main line stock trading. You cant take doge or Bitcoin and exchange for other crypto through Robinhood.

if you make money on the investment you will have to pay taxes on anything withdrawn.

whereas on an exchange like binance or voyager you can invest in many cryptos and the best part about actual exchanges is you can take something like doge and use it as an exchange for something like ethereum or Bitcoin. Avoiding any capital gains because youre not withdrawing any profits yet.

so lets say you invested $100 in doge and are up $500. You can take those profits and move them into a different currency and diversify that way without worrying about capital gains until you take out.

No. Exchanges are taxable events and subject to capital gains according to the cost basis at the time of exchange.

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chrono625 posted...

no, Robinhood doesnt have a crypto wallet system. Youd have to withdraw the cash and then buy into another exchange or platform.

if you had a crypto wallet you can take your cryptos from lets say binance and move them to voyager or Coinbase or whatever exchange you want to go to.

Thank you very much. I think this combined with other responses has solved my dilemma. Thank you to everyone who took the time to educate me on my financial decision.

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archedsoul posted...

No. Exchanges are taxable events and subject to capital gains according to the cost basis at the time of exchange.

are you sure within crypto exchanges you have to report capital gains on strictly exchanges of currencies? Because afaik and to my understanding until you actually withdraw you dont have to report. So within a crypto exchange if youre taking $300 of doge and moving it to say, lite coin. Youre not paying any short term or long term gains until you actually cash out.

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chrono625 posted...

are you sure within crypto exchanges you have to report capital gains on strictly exchanges of currencies? Because afaik and to my understanding until you actually withdraw you dont have to report. So within a crypto exchange if youre taking $300 of doge and moving it to say, lite coin. Youre not paying any short term or long term gains until you actually cash out.

That changed 4 years ago. Exchanges are taxable events.

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archedsoul posted...

That changed 4 years ago. Exchanges are taxable events.

thank you for the information. Doesnt seem right to have to pay taxes on crypto currency until you physically cash out. But I guess as more and more industries accept crypto as payment this was expected to happen.

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weekoldhotdog posted...

Ok so ROBINHOOD is the exchange and I'm missing the wallet? THANK YOU. Question about wallets:

Safe to keep on the exchange unless it gets hacked, right? so next step is to keep in a wallet. However; for the integrity of keeping up with this password for like 1-8 years I'll need to keep it on more than just this one computer (incase the computer fails). How about one of them hardware wallets? Are those any good and at what point is it worth investing in one?

as long as you have the password to it you're fine.

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weekoldhotdog posted...

Can you move your doge from Robinhood to binance? or is this like steam and epic and your currency on each platform is unique?

I imagine you connect your wallet to robinhood accounts and all the coin stays in the wallet. robinhood just lets you buy and sell aka add/take to/from wallet

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MedeaLysistrata posted...

as long as you have the password to it you're fine.

The dogewallet that I picked up originally (not sure if all wallets are like this) gave me some 20 digit password to remember for my exchange. This was just me fucking around and seeing what's what so I deleted that program, but fuck me. Keeping up with a 20 digit password full of random letters and shit has me intimidated these days. I'd have to put it in my lock box to be sure that it's good haha (and maybe a safety deposit box)

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weekoldhotdog posted...

The dogewallet that I picked up originally (not sure if all wallets are like this) gave me some 20 digit password to remember for my exchange. This was just me fucking around and seeing what's what so I deleted that program, but fuck me. Keeping up with a 20 digit password full of random letters and shit has me intimidated these days. I'd have to put it in my lock box to be sure that it's good haha (and maybe a safety deposit box)

that's called a seed phrase and you need to keep it edit: oh i though you said twenty word password

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You won't be able to "use" doge like a currency if you don't go through a crpyto wallet.

Robinhood allows buying and selling of crypto, but in essence, it's like trading it like a "stock."

Once you get your RH account going, you deposit cash into the account and then can make a purchase. You can place market orders or limit buys. The former is buying at current market rate, so the price may be off by a small margin to what you agree to buy because it changes dynamically and until the order executes, it may fluctuate slightly. This effect is exaggerated during periods of high volatility, for example.

The latter is setting a max price you'll buy it at. Benefit is you'll pay that amount if it executes, the downside is it may not execute if you set it too low and the price is rising.

Likewise with selling you have market sells and limit sells. The former will sell at current price, but again, you may see a different final amount sold depending on how it changes during the time period of the transaction. And the limit sell is a minimum price you'll sell. This is good to set a "price target" that you'd be comfortable selling and don't have to constantly monitor. If it crosses the threshold, it'll automatically sell for you. Say you want to sell all your doge at 0.95, it'll execute then and not a moment before. Downside, of course, is if it never reaches that price it will never sell.

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weekoldhotdog posted...

I was expecting it to go over the moon saturday with musk on SNL BUT who knows if it will come back to earth or stay up after that. I said the same thing at 27-35 cents, VEGY, and it still didn't come down.

Oh shit, i might buy some den
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so i deposited money from my bank account and bought some doge, how would I sell it or transfer it to my wallet or something? Robinhood isn't being helpful as it tells me to look on the "details" page on Doge coin, but there isn't one

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You can sell easy enough, after your purchase goes through.

You cannot transfer it to a wallet on RH, only buy and sell.

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Robot2600 posted...

You can sell easy enough, after your purchase goes through.

Ohhh ok ok. thats all I wanna do really, just buy it, and then sell it later, thanks robot

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Get ready for Robinhood to go down when you want to cash out your gains.

Put 900 of it in Doge. If it crashes out the other 100 in. Wait.

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Another noob question if you guys don't mind - is any crypto wallet better than another to start with?