I'm new & have a few questions

[Oscura]

Hello, I'm new on this forum, so I'll introduce myself first. Before I start I'd like to say that English isn't my first language, so if I make some spelling errors or such, please forgive me; I try to write as well as I can.

My name is Oscura, I'm 26 years old. I like anime, technology, alternative high fashion, video games, theoretical math, geometrical art (fractals) and futurism/transhumanist philosophy. I'm a progressive/liberal libertarian politically; I have conservative views in economics and extremely liberal/anarchist views on social issues; Some people may associate "libertarian" with republicians, tea party, or other crazies; I have nothing to do with these people, want to make that clear!

I've finished high school with a very good grade average, and enrolled in one of the best universities in my country. I majored in mathematics & computer science for my bachelor, finishing at age 21, but I haven't worked or studied for a few years because I've struggled with some personal issues (eating disorder and addiction.) - I picked myself back up at age 24, and went back to university to get my master's degree in statistics, which I obtained just 6 weeks ago! But now I'm at another crossroads; I'm all finished with education (I could try getting a spot for a Ph. D program, but I'm really fed up with school.) and I need to support myself. While there's plenty of work in my field, I honestly can't stand very "ordered" and "normal" environments; I really don't see myself sitting at an office in a bank, or working for a company like a wage slave.

Nor am I interested in the huge administrative mess and regulations of starting a regular company; Instead, I'm interested in getting into bitcoins/litecoins. I decided for this not only because the instability of the valuta, but also because of my libertarian philosophy and ideals. I really like the idea behind BTC, and I can see myself working with data, alone, from the comfort of my own appartment. Now, I know very well how to apply mathematical models, create models, preform data analysis and work with software; However, what I really lack is philosophy of economics and experience. Now according to the models I have right now, I should be able to run a decent profit (at least, statistically I have a reliable chance of doing so) - and while I've analyzed available data on BTC and LTC and, it kind of seems too good to be true to me.

What are the pitfalls to this sort of thing? Where does it go wrong, and why don't tons of mathematicians do this? I have vast knowledge of data analysis, statistics, computer science and math, but I have very little "real world experience" - what should I be careful of? I know common sense things such as not investing everything in one go, minimizing risks etc; But keep in mind that I've had little to no education in economy past high school. I know a lot of economy is applied math, but.. What tips/starting knowledge should I have before seriously comitting to this?

I'm sorry if my post is weird or rude; I hope it wasn't, and that what I said makes sense. I've always been a technology/numbers person, not a people person.

Friendly greetings,
Oscura

[1713935873]

1713935873

[1713935873]

1713935873

[1713935873]

1713935873

[dwdoc]

Cryptocurrency is too speculative a venture to make your primary carreer.  You should get a job with a decent wage in order to support yourself and consider investing small amounts in bitcoin related vehicles as a hobby. Work is not meant to be fun (although it can be rewarding and provide a sense of accomplishment)-that is why it is called work.

[Oscura]

Well, I do have some savings to pay for my student room for a while; I'm not a huge spender and I did some freelance work while getting my master's degree. I'd like to try working with this for a few months; Predicting fluctuations with my current knowledge would have been profitable enough to support myself the past 3 years if I had gotten into it back then; I mean, if I really get in a pinch I can always fall back on working a regular job - there's quite a bit of work in my field of study luckily, but I really want to try making it on my own. Failure is accepable, but I want to optimize my chances of succes before trying. I'm not looking for long-term security; If I make some money and have fun doing so the next months, than end up not being to support myself as well as predicted, it'll have been an interesting experiment

I mean, investment banking is exactly that, speculating. Remember also that I do have extensive knowledge of advanced data analysis methods, know how to apply mathematical insight to find patterns in huge amounts of data; That's always been my strength, seeing complex structures in systems where other people only see chaos. I really want to try making a living doing that; there are people who have gotten rich in BTC/LTC, and not all of those just got "lucky."

Am I counting on getting rich, or even being able to make a living? No. But I'd like to experiment with it. I've never really had "security" - I'm used to living from month to month, no point in growing up now, it's never worked for me in the past 

[b!z]

Don't put all of your eggs in one basket. If you're as smart as you claim to be, you should know that. Life is not a TV show. If you do something stupid, nobody is going to care.

[Oscura]

Don't put all of your eggs in one basket. If you're as smart as you claim to be, you should know that. Life is not a TV show. If you do something stupid, nobody is going to care.

Obviously I know that.. But I'm not saying I'm smart, I'm saying I'm well educated in math. I can easily work with models like TRIX or William %R, as well as integrating various models and creating systems of data analysis. That's as far as my knowledge goes; What else should I educate myself in?

[b!z]

Don't put all of your eggs in one basket. If you're as smart as you claim to be, you should know that. Life is not a TV show. If you do something stupid, nobody is going to care.

Obviously I know that.. But I'm not saying I'm smart, I'm saying I'm well educated in math. I can easily work with models like TRIX or William %R, as well as integrating various models and creating systems of data analysis. That's as far as my knowledge goes; What else should I educate myself in?

Since you asked, here is a list of Bitcoin's weaknesses: https://en.bitcoin.it/wiki/Weaknesses
Attacks that bring down the network (51% for example) are very unlikely.

Bitcoin's value can be considered "too good to be true" and you are taking a risk by buying BTC. Don't spend your life savings on buying BTC in the hope that it will be worth $1000, because it probably won't.

[Oscura]

Thanks for the link! That's the kind of things I'm interested in. And well obviously, no way I'd invest everything at once..

[bittymitty]

Hey Oscura,

The main thing to worry about is fraud and security of your coins.  The Crypto-currency market is pretty unpredictable I would recommend getting involved with some cheap alt coins if you want to keep the initial outlay low.  However Bitcoin is the most prevalent but will cost you more to get involved.  

If you do work out a formula to make tons of BTC let me know

[b!z]

Hey Oscura,

The main thing to worry about is fraud and security of your coins.  The Crypto-currency market is pretty unpredictable I would recommend getting involved with some cheap alt coins if you want to keep the initial outlay low.  However Bitcoin is the most prevalent but will cost you more to get involved. 

If you do work out a formula to make tons of BTC let me know

The 'formula' is super martingale, you're welcome.

[saif313]

I am also waiting for a formula which give too much bitcoins in short term

[b!z]

I am also waiting for a formula which give too much bitcoins in short term

Super martingale. http://www.fortunepalace.co.uk/supermartingale.html
Works great if you have an infinite bankroll.

[saif313]

I am also waiting for a formula which give too much bitcoins in short term

Super martingale. http://www.fortunepalace.co.uk/supermartingale.html
Works great if you have an infinite bankroll.

what is this and what need to do there please some explain is this gambling site or what ??

[greyhawk]

My name is Oscura, I'm 26 years old.

[...]

I have very little "real world experience"

Fix this.

[b!z]

My name is Oscura, I'm 26 years old.

[...]

I have very little "real world experience"

Fix this.

maybe he spends all his time on the computer :-)

[greyhawk]

My name is Oscura, I'm 26 years old.

[...]

I have very little "real world experience"

Fix this.

maybe he spends all his time on the computer :-)

Should be fixed. 

[b!z]

My name is Oscura, I'm 26 years old.

[...]

I have very little "real world experience"

Fix this.

maybe he spends all his time on the computer :-)

Should be fixed. 

He hasn't logged in for a week, so I guess he is fixing it. ;-)

[marcovaldo]

Should be fixed.  

Maybe it can't, if he is disabled, and can't move or something.

[greyhawk]

Should be fixed.  

Maybe it can't, if he is disabled, and can't move or something.

Or worse

http://www.youtube.com/watch?v=qXPmtf4udRE

[Oscura]

What I meant was that I never actually did any investing before...

[b!z]

What I meant was that I never actually did any investing before...

Did you gain any real world experience yet?