Think of blockchains as in internet computer, and for Proof of Stake blockchains, the staked assets act as the CPU, they process transactions and information on the blockchain, and validate them....generally. Every blockchains has different nuances, but that is the gist of it.
For Proof of Work, the "miners" perform that function, and in Proof of Stake, staked assets go into a kind of Escrow that serves as PoS versions of mining. Don't ask me about the technicals...I try, but haven't got my head wrapped around that yet.
As for Amp....I have $3 worth, got free from Coinbase. I never bought any more. Some folks really like it, and I know it's a strong contender for a big one...but beyond that, I never really looked into it.
On my personal sclae, I would put AMP as a "B" grade investment...a strong, speculative investment. I wouldn't make it one of my primary investments, that have the best chance of having longevity, which would be my "A" grade....but a "B" grade to me is the sort of thing I throw $100 at that I am willing to lose, but expecting it do well.
That's not a warning, or anything, I have a couple of "B" grade investments.....ADAX, ZIL and CELR. I think you need a couple of those if you want to get that 100X return.
That fact that AMP is on Coinbase is an indicator that it will be here for the long haul, too. An indicator, not a "sure thing"...I mean...they list Dogecoin which I hate....because a lot of people are going to lose a lot of money on Doge when it runs it's course....and it will be one more thing that gives Crypto a bad name. But, that is the exception to the rule, generally, getting listed on Coinbase is like the equivalent of getting listed on the Dow, or the S&P 500 in stocks....it means the coin has traction, and generally good funding and structure.
question from a newb. Can I sell and reinvest all profits back into the same crypto during a retreat and avoid taxes?
What about getting out of tokens at a loss? Can I use that to offset my gains?Not in America.
Every time you dump one crypto into another, or the same, it is considered a sale, followed by a purchase. So, if you do that on a centralized exchange that reports to the IRS, such as Coinbase, the government will know and want to tax you.
Theoretically, if you did it on a foreign exchange, or a decentralized exchange that reports to nobody, there is no way Uncle Sam would know. Like, if you exchange one crypto for another in your wallet, which connects to a decentralized exchange, not only would that be off the grid, so to speak, but you can also buy cryptos that are blocked in America, such as XRP. Theoretically.
But, if you are on Coinbase, and exchange your Bitcoin for Etherium, that gets reported as a sale of Bitcoin, and you pay capital gains on whatever profit you made, and then a purchase of Etherium. It's like selling one stock, and then buying another.
For the record, I ONLY buy stuff from Coinbase....it is the only exchange that I have tied to Paypal. If I want anything else, I just buy crypto X on Coinbase, and then send it to my wallet or another exchange, where I then flip it for what I actually want. Stellar (XLM) is the best way to do that, in my opinion, buy XLM on Coinbase, and send it to whatever exchange or wallet you want and exchange XLM for whatever it is you are trying to acquire.
Technically, that is a purchase, and a sale, and a purchase. But it's done in minutes, so there would be no capital gains on it, anyway.
On a complete whim I bought 11,700 Amp at just under 4 cents a few months ago. I figured it was a silly guess but I wanted one that looked legit and was cheap. Amp is/was that.
Now about that 100x return….
Two people at a kosher restaraunt, one asks if they have good calamari, and the other answers that bacon wrapped scallops are better!
That's how stupid this question and answer is. This is a terrifying combination of power and ignorance!
When one powerful person, who doesn't understand anything about what she wants power over, asks another powerful person, who wants power over crypto, and the answer demonstrates that he doesn't know anything about it, either....
One ignorant person asks about fees on decentralized exchanges, and the "expert witness", one upping the level of ignorance, answers user agreement!......."USER AGREEMENT!"
God Help America, we have to get these two out of the way and get people who at least have a minimum understanding of what the Hell they are talking about in charge!
We desperately need clarity and regulation in the crypto industry, but certainly not from pretenders like these people! Holy Crap! God Help us with these two leading the charge in Washington.
Totally new to the whole crypto thing. I mean I knew of bitcoin because of the deep web, but I was never able to actually obtain some and gave up.
Other than that I didn't know anything about it, and it seemed so daunting that I just ignored it. Before work today I decided to read this thread and I'm very glad I did, since it gave me a decent idea at least of how it works. I'll definitely will have to look into it more as I go, but it pushed me to invest 200 bucks.
Granted, I'm basically using that money as throw-away just to see how it works. Once I feel more confident I will try to invest more, but decided to go with an amount I can lose without feeling like I made a grave mistake.
Purchased ADA, Polygon, BNB and XLM
We'll see how it goes, but it's oddly exciting to finally be able to get into it without feeling completely ignorant about it, so thanks to this thread and the insightful posts.
As an absolute novice in this realm, I'm wondering why you are advocating for regulation of this sector? Regulation in what manner and to end?