Frequently ASked QUestions

💰 INVESTING FREQUENTLY ASKED QUESTIONS​ 💰

The majority of people buy bitcoin on cryptocurrency exchanges. These are similar to stock exchanges, where buyers and sellers trade based on the going spot rate. For others looking to buy bitcoin, they prefer using a cryptocurrency broker. With a broker, you give them your money and they go find a seller to pair with on what’s known as an over-the-counter (OTC) market.

Our favourite brokers:

Whilst the most popular crypto-to-crypto exchange is Binance, it typically isn’t useful for newcomers looking to buy cryptocurrencies with their local fiat currency. For that, it really depends on your country of residence. In Australia, for instance, CoinSpot and Independent Reserve are very popular. But if you spoke to a non-Australian, it’s highly likely they’ll tell you they’ve never heard of these two exchanges.

There are many opinions floating around in relation to this question. This video and article by Alex on portfolio structure can help you better understand diversification in the context of cryptocurrencies.

Booking a consultation with Alex is how most people bypass the steep learning curve demanded by this asset class. He can education you on how to buy, store, sell, and trade cryptocurrencies, as well as assist you with your portfolio structure. Please note that Nugget’s News consulting services do not constitute financial advice—see our terms and conditions in the link below.

Indeed, trusts such as self-managed super funds (SMSFs) can gain exposure to cryptocurrencies. That is, assuming the associated trust deed permits it. Scroll down to ‘TAX & SUPER’ for more information. Pty Ltd companies can invest in cryptocurrencies, also. Please contact a qualified accountant to learn more details regarding this.

Nugget’s News has long collaborated with HiveEx and Caleb & Brown, who frequently deal with HNWIs looking to gain exposure to cryptocurrencies. Another company offering insurance is Independent Reserve.

✉️ WALLETS FREQUENTLY ASKED QUESTIONS ✉️

Not quite. It’s stored on the blockchain to which your cryptocurrency belongs (e.g., ether is stored on the Ethereum blockchain).
A wallet manages your private keys for you. These keys are needed in order for you to access the address holding your cryptocurrency.
Hot wallets refer to any cryptocurrency wallet connected to the internet, whereas cold wallets are those that are primarily kept offline (i.e., in ‘cold storage’). Convenience is the main reason people use hot wallets. They are, however, considered less secure than cold wallets.

Not necessarily. Access to your keys (and thus, cryptocurrency) can be restored if you know your backup seed phrase.

First up, you haven’t lost your private keys. Hardware wallets users will never see their private keys. You are likely referencing your backup seed phrase. If you lose this but still have your hardware wallet, you’re basically operating without a backup. Risky stuff! You should strongly consider temporarily sending your funds to an online wallet before resetting your hardware wallet. This will involve generating a new backup seed phrase.

Luckily for you, the Nugget’s News YouTube channel already has a detailed tutorial video with all you need to know.

Considered the ‘doorway to the Ethereum blockchain’, MEW – which stands for MyEtherWallet – allows users to manage their own funds without interacting with a centralised entity. Alex has done a video tutorial on MEW, check it out.

In most cases, yes. Owning multiple wallets is a way people de-risk if they aren’t comfortable having a debit or credit card linked to their only wallet.

📊 TRADING FREQUENTLY ASKED QUESTIONS​ 📊

Aside from Nugget’s Crypto Community members-only content, it’s recommended that you head to module #9 (‘Understanding Technical Charts’) of Nugget’s News’ beginner-friendly cryptocurrency course. If you are still wanting more, then TraderCobb.com and The Chart Guys are each more than capable of bolstering your ability to trade.

Before trading on BitMEX, it is strongly recommended you understand what trading on margin entails. Nugget’s Crypto Community members have an array of educational content on this.

There is no ‘best’ way to answer this. Ultimately, it depends on your personal investment goals. For more on this, head to Module #7 (Selecting Cryptocurrencies) in the beginner-friendly cryptocurrency course and/or watch this video by Alex on cryptocurrency portfolio structure.

  • Again, this depends entirely on the reason you’re exposed to the cryptocurrency asset class in the first place. Long-term investors, for instance, do not overly care for the ‘right’ entry and exit price level. On the other hand, this is of utmost important to day traders. Alex has covered this extensively for members through his educational series of videos.

You sure can. Ainslie Wealth is the business we recommend you use when it comes to transferring between precious metals and cryptocurrencies. They provide Nugget’s News follwers with a discount, too!

🧠 LEARNING FREQUENTLY ASKED QUESTIONS 🧠

Always start with the project’s website and, if available, its whitepaper, which should detail the specifics of the solution being developed by its team. Interviews with, and keynotes by, project founders tend to be highly informative, also.

For Bitcoin, Jameson Lopp’s website is incredible. If Ethereum has piqued your interest, you can’t go wrong with EthHub. Check out Awesome-MakerDAO for anything related to Maker and the Dai stablecoin. As for Polkadot, this stickied post from the r/dot subreddit is quality. For a Cardano-related resource hub, try Cardano Wiki.

These two websites are brilliant: Cryptology ePrint Archive and arVix (Cryptography and Security). For Bitcoin- and Ethereum-specific material, go to Bitcoin Forum (Development & Technical Discussion) and Ethereum Research, respectively.

🎓 TEACHING FREQUENTLY ASKED QUESTIONS 🎓

We’d been seeing this problem come up a lot. And so, we built the following free education course: The Ultimate Beginners Guide to Bitcoin & Cryptocurrency. Share the link with those who are curious about crypto!

The fact that Bitcoin is a first-of-its-kind, non-physical invention makes things very tough when it comes to teaching people about it. Humans learn best with analogies. For that reason, describing bitcoin as “digital gold” has become popular. It does, however, ignore bitcoin’s medium-of-exchange use case.

NCC Perks

Simply head to the ‘Partners & Affiliates’ tab on our website to learn everything you need about the members-only discounts you’re entitled to. Whether it’s regarding brokers, trading courses, tax, superannuation, or precious metals, we’ve aligned with some of the best to help you extract even more value out of your membership.

🎬 VIDEO FREQUENTLY ASKED QUESTIONS​ 🎬

In early 2019, the Nugget’s News YouTube channel uploaded a special 33-minute video titled ‘Australia – A Coming Financial Crisis?’. In it, Alex extensively breaks down Australia’s shifting economic climate; interpreting various statistics and calling upon the experienced insight of the likes of Roger Montgomery and Martin North.

📝 TAX & SUPER FREQUENTLY ASKED QUESTIONS 📝

Best to directly reference the Australian Taxation Office (ATO) on this one. They have a web page dedicated to the tax treatment of cryptocurrencies.

Yes, Alex has uploaded several interviews with tax professionals in an effort to communicate the latest developments from the ATO. Here is his most recent one from June 2019.

A popular choice among the NCC is Crypto Tax Australia, another Nugget’s News partner that offers a discount to members.

Popular apps for this purpose include CoinTracking, BearTax, CoinTracker, and TokenTax.

The team over at New Brighton Capital, without a doubt. They’ve been working with, and providing discounts for, NCC members for quite some time.

📰 MORE NUGGET’S NEWS 📰

The heart and soul of Nugget’s News is the Nugget’s Crypto Community (NCC). The NCC is a crypto-crazed group full of insight, support, education, and knowledge. It has all the tools you need to become a successful cryptocurrency investor and trader.

The Nugget’s Weekly Digest is a low-cost newsletter that keeps you informed of important crypto news, market and sentiment movements, key upcoming dates, and more. The digest is delivered weekly to your inbox and is free for NCC members. Nugget’s News also offers a free mailing list as well as 1-on-1 consulting, which is available to people—irrespective of their level of knowledge—who wish to leverage Alex’s years of experience and deep understanding of cryptocurrency portfolio structure and management. And of course, it’d be remiss of us not to mention the Nugget’s News YouTube channel—which is where Nugget’s News was born! Subscribe and enjoy roughly five videos a week. More of an audio person? Then the Nugget’s News Crypto Podcast is for you.

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