Crypto Novice, Offline storage?


#1

Hi, im completely new to cryptos, wanting to buy something low key with promise, cant afford bitcoin, have looked at Maidsafe coin, but to purchase I have to buy through Bitcoin first, I dont like this idea, so has put me off. I mean if I did buy this way and then want to sell in the future and Bitcoin had plummeted does this mean I can potentially lose heaps on my Maidsafe coins. And what is offline storage?


#2

I’d like to make a few points:

  • you can buy fractions of Bitcoins, so if you are saying that you can’t afford to buy a whole Bitcoin, that shouldn’t really be a worry. The limiting factor in affording bitcoins is the transaction fees actually, which are currently around $1-2. So buying $10 worth for example will be impacted heavily by these fees.
  • any crypto investment is volatile and risky, so you could lose money on MAIDsafe coins, just as you could on any other investment
  • while the MAIDsafe coins, being Omni tokens, live on top of the Bitcoin blockchain, analysis has shown them to be relatively uncorrelated with Bitcoin and other cryptos (MaidSafeCoin (MAID) - Price & Trading topic)

Offline storage means storing your private keys in such a way that they aren’t accessible from the internet. By doing that, they aren’t susceptible to theft due to hacking. Examples of offline storage include air gapped computers, paper wallets, and hardware wallets.


#3

You would be technically right, but you are forgetting one detail: What does price represent?
The price represents the trust on a project.
If bitcoins prices were driven all the way to zero, means that people’s confidence on Bitcoin is being eroded.
On the othe hand MaidSafe’s project is completely independent from bitcoins and blockchains in general, and the prices you see reflected in BTC in the exchanges it is what investors are considering to be the fair market value. If the trust on MaidSafe’s project is not violated, regardless of the price of BTC in USD, the price of MAID will adapt itself to keep the same value that people believe it is worth.

To make it clear, let’s make an example:

  1. Let’s say that BTC prices suddenly fall 50% in USD.
  2. It doesn’t justify a 50% decrease of MAID’s value (there is nothing wrong with MAID itself), therefore it is expected to MAID prices to proportionally increase in 50% it’s value in BTC.

It may not exactly be the same ratio, but it will be pretty close to it.
The good thing is that if you invested on an undervalued project (such as MAID), you will keep increasing your BTC holdings (when prices gets actualized) AND get hedged at the same time on BTC’s fluctuations.

That was my hypothesis when I started this journey, and so far I’ve been right.

So in the unlikely event of BTC prices going to absolute zero, as long as the fundamentals of MAID remain strong, it’s value will still hold maybe directly in USD or under some other dominant cryptocurrency as a new standard pairing.


#4

I really am grateful for both your inputs here, ( paper wallets, Hardware
wallets ) are new terminology’s to me, however I did just google them. I
feel like Dorothy in the Wizard of Oz, were not in Kansas now Toto.


#5

I can send you 10 Maidsafecoin, if you make a Omniwallet.org and enable two factor authentication (so no need to go through the hassle). If you want more you’ll need to buy through bitcoin :stuck_out_tongue:

For now you’ll have to wait, my exchange of choice Bittrex is doing wallet maintenance for a whole week already :confounded:

Absolutely not investment advice, but there are a few SAFE Network projects that might fit this description

Project decorum
SAFE-FS
Project n99
NVO Decentralized Exchange

Always do your own research in this space, these puppies will take time before they start running.


#6

If I understand what you’re meaning is here, the answer is no, you wouldn’t lose out. If you buy bitcoin when it’s worth a lot and immediately use it to buy MaidSafCoins, you can then forget about the value of bitcoin. If the value of bitcoin then plummets and you want to sell your MaidSafeCoins for bitcoin, you would just end up with a lot more bitcoin than you’d originally bought.

I’ll go through a possible scenario. For simplicity I’m making certain assumptions. Firstly, assume that MaidSafeCoin’s value remains the same relative to US dollars (this is important to understand). I’m also imagining there are no exchange or transaction fees. Then this is what could happen:

  1. You start with $500.
  2. Bitcoins cost $2000 each, so you use your $500 to buy 0.25 bitcoin.
  3. You immediately use your 0.25 bitcoin to buy MaidSafeCoins. Say MaidSafeCoins are worth $0.40 each. You get 1250 MaidSafeCoins (which is $500 worth).
  4. You wait a year over which time the value of one bitcoin relative to the dollar has plummeted all the way down to $20.
  5. You want to sell your MaidSafeCoins, which are still worth $0.40 each.
  6. You sell your 1250 MaidSafeCoins and get 25 bitcoins for them ($500 worth of bitcoin).
  7. You sell your 25 bitcoins and get $500 for them.

Of course, what we hope would actually happen is that MaidSafeCoin’s value would in this time have risen in relation to both bitcoin and the dollar!:slight_smile:

I’m not sure whether or not I understood your train of thought properly, Does it sound like I’ve addressed your concern?


#7

Being on the SafeNetwork forum we are obviously going to have a lot of bias toward MAID.
That said take your time… when I started, I bought so much crap purely to have something without knowing what it was that I bought.
It’s a minefield, take it slow, read, watch, read, listen, read some more observe some more then start to consider what you want to invest in.
There are good times to buy and bad… regardless of what it is.


#8

Thankyou, I havent bought anything yet, but I like Maids price, so probably will buy some, just learning the process ATM, of how to purchase etc, then I will have a go, just getting my head around it.


#9

@shazz are there other investments that you can tell us you think about?