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Now Using 4 Centralized Exchanges

binance.jpg

There are several coins I've been wanting to buy small amounts of but they weren't listed on Binance so I never made the investments. I've probably had a Bittrex account for over a year but when I found out it required KYC I just abandoned it. Only just recently have I completed KYC and bought a tiny bit of the following coins:

  • GRC (GridCoin)
  • DGB (DigiByte)
  • AEON
  • GBYTE (ByteBall / Obyte)
  • DBC (DeepBrainChain)
  • GRIN

In total, I spent less than $200 on these investments. However, when you look at the market caps $200 is actually quite a lot to be risking.

The market cap of DigiByte is $147M. Therefore, it would only cost $147 to own a millionth of it.

Coin Market Cap
GRC $1.1M
DGB $147M
AEON $12M
GBYTE $22M
DBC $9M
GRIN $64M

For $1 you could own a millionth of GridCoin, a Golem-like project that attempts to turn the proof-of-work algorithm into computing tasks that actually have value. I call it proof-of-work 2.0. Coins like this essentially create a worldwide distributed super computer that allow one to loan their computer resources to accomplish a valuable task, or allow users to rent the super computer to accomplish said tasks. This creates a decentralized free-market super-computer.

DeepBrainChain does the same thing, except it is targeting AI. I've done a little research on the project, and I can tell you that the act of decentralizing AI to multiple computers is no trivial task. The project could easily flop, but simply spouting the buzzword of AI is sure to bring in a new wave of bag holders during the next altcoin season.

Aeon and Grin are both privacy coins. I know literally nothing about Aeon. It was recommended to me by a friend. However, seeing as it only costs $12 to own a millionth of it, I'm game.

https://cdn.steemitimages.com/DQmRSK4R9VnTLFu593NDZ6iB6atWmnzkHZseN7m4p4SjCsA/grin.png

Grin is a privacy coin that implements a new technology called MimbleWimble. Using this tech, addresses aren't even stored on the blockchain. Of all my investments, this is one I'm mad about not getting sooner. I knew I wanted this coin months ago and it recently doubled in value. No matter.

There is another MimbleWimble coin called Beam. I figure I only need one and chose Grin for the stupidest reason:

The Grin Icon is a smiley face.

This is the kind of stupid shit that a lot of people are going to make investment decisions on. It's the exact reason why no one should count out projects like Dogecoin or Monacoin.

I want to buy the doggie!
I want to buy the kitty! I want the smiley face!

Seriously though, never underestimate the power of visual stimuli. If you thought the last altcoin bull run was insane... just wait for the next one.

GBYTE

Many of us know a bit about ByteBall/Obyte (rebranded). They airdropped Steem users based on reputation. It was quite the disaster. Also, the other half of that airdrop is about to be unlocked this month. More on that some other time. GBYTE is a project with a DAG instead of a blockchain. It also has smart contracts and a privacy coin. It could really go places if it picks up momentum. (Future tokens from @drugwars are also currently stored there).

https://cdn.steemitimages.com/DQmPoJJLy7RfgUEqEqSht8giD6B7kQ6YDtDnpdnKX25NkLV/digibyte-icon.jpg

DigiByte

This team has made several technologies that other projects use. One such technology is DigiShield, which allows proof-of-work coins to retarget the difficulty of mining after every block, avoiding situations where it's very hard to mine a block when hashrate drops due to no longer being profitable.

Many people view projects like this as ones that have no value because other blockchains are "stealing" their technology and undermining the value of the original product. This is not how open source code works. Teams who make valuable tech that is plug and play elsewhere will get support from the open source community. Just ask the Lightning-Network.

I've also heard they they are a gamer community and I'm a gamer... but i haven't looked into it.

KuCoin

I had to use KuCoin exchange to get the Grin and DeepBrainChain. KuCoin is the only one out of four that has those coins. KuCoin started out as the poor-man's Binance, but now that Binance is bending the knee to KYC regulations I think KuCoin may be the goto exchange for pseudonymous transactions.

Coinbase

The easiest way for me to turn USD into crypto. Highly regulated and practically bought out by Goldman-Sachs. Still, they have free withdrawals which is nice.

Binance

I still believe they are the best exchange in the world. Even when they got hacked no one even flinched and all funds were #safu. I think this says a lot considering the localization issues of having to convert everything into the English language. They also have the most coin pairings and good security. Binance kinda feels like Amazon. They are always setting the pace for everyone else.

Bittrex

For me this exchange had the highest learning curve. The interface was not intuitive to me and I had to look up how to deposit coins on it with a tutorial. They don't have a lot of coin pairings. Despite all it's flaws, I still kinda like it. It has a certain simplicity to it once you get used to it.

Decentralization

Obviously keeping your money on an exchange is centralized and your coins are at risk. Not your keys, not your crypto. However, keeping no money on exchanges is also a mistake. If you centralize all your holdings/keys to your computer/phone/hardware-wallet/physical-paper you are still centralizing your money to one location. I would say everyone should have 1% of their holdings on exchanges just in case, unless you have an amazing security setup. Obviously most people don't.

Conclusion

Decentralize your holdings. Don't overextend your investments. If you think a project might go x10000 don't go all in on it like a greedy goblin. These micro-cap coins are extremely risky and you can own a relatively huge portion of them without having to risk any kind of significant amount of money.

Beware of exit scams... beware of regulations and the law... due diligence... yada yada yada... Preaching to the choir.


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Now Using 4 Centralized Exchanges was published on and last updated on 07 Jul 2019.