Using only one cryptocurrency would be really bad, because they are all different and solve different problems. However using one real currency, is better. Dollar is pretty much a universal currency already. I think many smaller countries with bad economies would rather use dollar than their country's currency which often has insane inflation.

ICO's are very risky and many end up failing. Its perfectly fine to just hold (or better yet HODL) BTC and ETH.

If you want to take it up a notch, explore some established altcoins. Learn about their technology, about their market behavior. Read news about them. You are more than welcome to use my website for the latest prices and news: https://ccowl.com

You can then invest into the altcoins you like or you can trade them. Some use daytrading (swingtrading) to make / or lose quick bucks. But it takes time, and many make as much money, but with less hassle by smart investing.

Finally, the most risky thing out there is ICOs. You really need to learn about established cryptocoins and the history of similar ICOs before investing in them. But a smart investment into ICO can quadripple your money in no time. But it can also lose all your money.

Probably not. If the deal looks too good to be true - it isn't real. Many ICO's are scams, so be careful out there.

I would still use it. Not sure how the government can really find out you are using bitcoin unless you walk around screaming about it. They could block the exchanges, but you can use proxy or VPN to go around it.

You cannot retract BTC and you cannot really trace it if the thief knows what he is doing. Sorry for the bad news.

I am a daytrader and I love it =)

I use Bittrex. They have solid quick system, everything is flying, but transaction cost is expensive for a day trader (0.25%). They give no discounts for large volumes. That's my biggest problem with them.

I also use Poloniex, they give a discount for large volume. Their system is flying, except for a few times when it's not =) Also, they've been getting a lot of bad rep lately. But I like trade there, as they have big volume for many of my favorite coins.

I used to like Bitfinex, they have the best fee system, best UI, but they lack volume in my favorite coins and are pulling out of the US =(

If you are a daytrader, you should totally use my website for the latest news and price directions: https://ccowl.com/
I built it for myself and I love using it.

If you really believe in something and are truly passionate about it - then do it even if there is competition. Many people do something for the quick buck, but if they are not 100% passionate about it - they will fail on their own or they will be easy to beat.

What happens when you want to move your 1000 satoshi from one wallet to another? Don't you still have to pay 0.00100000 BTC transaction fee?

Most people buy their first bitcoin with Coinbase or Gemini or some other way that links your bank account to your first wallet. This is easily tracked by the government as those services have to give US government all purchase information. Then exchanges will soon be forced to give US government information on all users. Fidelity, Scottrade, eTrade, they all comply with US government.

If you think this is a bad thing, then let me ask you this. Why do you think that paying taxes is a bad thing? Don't you want to build roads, provide schools for your kids, bomb innocent children in countries far far away?

In United States you have to pay tax on your bitcoin earnings when purchase services or products using Bitcoin. Chances are - you won't get in trouble if you don't. But all of your accounts (coinbase, exchanges) are being tracked. And sooner or later all that data will be in the hands of IRS. When this happens, they can retroactively fine you for not paying taxes.

This is US only, but your local governments may do the same. Original poster is in US, so it's fair to use US as an example.

That's a tough question. My understanding is not perfect, so check my statements and don't quote me.

* I will use the word "Bitcoin" but it applies to all crypto coins.

When to pay tax?
In USA you are only supposed to pay taxes when you pay for something in Bitcoins or cash out your Bitcoins into your bank account or USD. So technically, if you keep your bitcoins in your wallet or exchange - you don't pay tax until you cash out or use it.

I cashed out. How do I pay tax?
You should pay at the end of year when you file your taxes.

How much is the tax?
It's taxed as short-term or long-term capital gain. If you just buy Bitcoins or altcoins and HODL for over a year - you pay long term capital gain tax. That's about 15%.

If you trade actively, then its short term. Which is 25-35% depending on your income bracket, plus your state tax which is 0-5% depending on your state.

You only pay for gains. So if you bought Bitcoin for $2,000 and sold it for $4,500; then you are taxed for $2,500. If you actually lost money on your trades, you file capital loss and you get some money back in the form of tax deduction.

What forms do I need?
You need to fill out Schedule D (Form 1040) form, where you would include every single transaction. Not sure how it's supposed to work, since I have over 100,000 transactions this year =/ But there are some bitcoin tax tools, if you just google for it. Those will surely come in handy.

Good luck! Please correct me if I'm wrong on any of these.

I think overall crypto will overtake gold and partially replace the stock market (which will move into crypto world). However I doubt that bitcoin will be able to pull it off by itself. Bitcoin is too easily replaced by other altcoins.

I currently use bitcoins and altcoin income to make more crypto. And lately I've been putting it into my website (hosting, tools).

First of all, I like UI of Bitfinex the most. My favorite overall exchange is Bittrex, and I am still using Poloniex every day and its great. I've deposited and withdrew over $20,000 and traded for millions of USD. Not a problem. Except for when it was down for 3 days. That was not cool.

As for their company, they recently moved to a new building and hired more people. Doubt they will be going away any time soon. Finally, they cannot just take your money and disappear. They are regulated by US laws.

Man, it's always hard to find a domain name because of people like you 

Sometimes it helps to look at your portfolio using USD instead of BTC. Usually then it looks more green when BTC is spiking and altcoins are falling =)

Here is a link of all exchanges trading STORJ: https://coinmarketcap.com/assets/storj/#markets

I'd go with Bittrex as it's a well established exchange with massive volumes on other coins.

When your bitcoin income consistently pays your bills and leaves you enough to save - then quit your job and focus even more on bitcoin.

12 days ago I added an altcoin market index (called it OWL50). It's value is a sum of top 50 altcoin market caps. It doesn't include the bitcoin.
Go to my website: https://ccowl.com/coins/OWL50 and click on the "MONTH" view.

You will see that on August 19th, altcoins overtook the bitcoin and they keep rising.

So yeah... altcoins have been rising for the last two weeks and they show no sign on slowing down.

I'll be disappointed if it only hits $5k. I expect it to be volatile in November, but in December it will hit all time high. That number could be anywhere between $5k and $10k.