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Crypto school

WaterH

WaterH

Well-known member
Joined
May 20, 2020
Member Number
602
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3,134
Loc
North Florida
I think I know some stuff about crypto and how it works. I’m going to explain it here. I could be wrong and I would like anyone that knows better to correct me.

First, The Exchange, I have a account at a “exchange”. That exchange is basically a bank that you can buy or sell crypto. You have to show identification to open an account at a exchange just like a bank. As a bank, the feds can get a warrant and look at everything I do there. If I send crypto to a wallet from that exchange, the feds can see how much and to what wallet and date it goes by examining the exchanges records.

Second, the wallet. Wallets have addresses, but no identification. In fact, you don’t need any identification to open a wallet and you could turn over that wallet to someone else that you don’t even know. So if you send crypto from your exchange account to a wallet, the feds could “assume” that it is your wallet, but they couldn’t prove it. If you send crypto from your wallet to another, it really gets sticky. Could be another wallet you own or could be you are buying something or could be you are paying black mail. Since the wallet has no location attached to it, it is Nearly impossible for the feds to determine anything.

I think I have all this correct. Please comment if not.

Moving on to areas I’m not sure of, I have some questions.

Although the owners of wallets is not known, I’ve heard that anybody can look at any wallet and see it’s content and it’s whole transaction history If they have the address. Is this true? It would seem to me that the feds could watch a wallet and see where the money goes. If it goes back to an exchange, then they could find an owner of that account. This makes me wonder how a blackmailer keeps hidden. Of course, he could transfer the money through several wallets in different amounts to confuse the issue. Maybe he claims he was being paid a consulting fee by some unknown person (blackmailer) and they can’t prove him wrong. Or maybe he just buys stuff directly and never uses an exchange.

Could anyone shed some light on this?
 
Uhoh!!!!!
Sounds like you’re in some deep shit!!!!! What’d you do that someone is black mailing you????? Care to share?????
:flipoff2::flipoff2::flipoff2:
 
WaterH said:
Although the owners of wallets is not known, I’ve heard that anybody can look at any wallet and see it’s content and it’s whole transaction history If they have the address. Is this true?
Click to expand...
Yes. In theory, anyone can analyze every wallet in the chain and determine how much coin it owns.

Interesting aside... Wallet addresses are generated randomly. It's possible to generate a wallet address that's already in the chain, and then steal the money that's already owned by that wallet. It would be exactly like the person who owns the wallet gave you the private address.
 
Not all exchanges require an account. Some simply give you an account to transfer your coin on and transfer the coin back out. Also, some exchanges let you buy sell and trade while others are just open books for you to execute your own trades.

The identification for a wallet is the private key.

You can look at every wallet and every transaction ever performed.

They are anonymous but can be traced back to your ip address.
 
You didn’t make mention of DeFi platforms.

So a exchange that requires KYC will be compliant with the government.

DeFi platforms allow for asset swapping without the tracking that you make mention of.

I see you also are not aware of privacy coins like Monaro?
 
Gregj50!!!!! said:
Uhoh!!!!!
Sounds like you’re in some deep shit!!!!! What’d you do that someone is black mailing you????? Care to share?????
:flipoff2::flipoff2::flipoff2:
Click to expand...

Who says I’m not the blackmailer. Lol.

Provience said:
no idea

what is the exchanges cut for crypto to euro's or canadian dollars or whatever?
Click to expand...

Only ever exchanged US for Bit. Their cut was $74 for 5 grand.

CrustyJeep said:
Yes. In theory, anyone can analyze every wallet in the chain and determine how much coin it owns.

Interesting aside... Wallet addresses are generated randomly. It's possible to generate a wallet address that's already in the chain, and then steal the money that's already owned by that wallet. It would be exactly like the person who owns the wallet gave you the private address.
Click to expand...

Having the address only lets you put money in. You have to have the keys to get it out. I give my address to the exchange every time I transfer bit into it. They can’t get it out. So I don’t get what your saying.

Will12785 said:
Not all exchanges require an account. Some simply give you an account to transfer your coin on and transfer the coin back out. Also, some exchanges let you buy sell and trade while others are just open books for you to execute your own trades.

The identification for a wallet is the private key.

You can look at every wallet and every transaction ever performed.

They are anonymous but can be traced back to your ip address.
Click to expand...

I think there are exchanges where you can exchange one crypto for another without an account. But I don’t see how you would exchange US dollars either way without a bank. Please explain.

Mr Stubs said:
You didn’t make mention of DeFi platforms.

So a exchange that requires KYC will be compliant with the government.

DeFi platforms allow for asset swapping without the tracking that you make mention of.

I see you also are not aware of privacy coins like Monaro?
Click to expand...

You are obviously over my head here. Could you school me?
 
WaterH said:
Who says I’m not the blackmailer. Lol.



Only ever exchanged US for Bit. Their cut was $74 for 5 grand.



Having the address only lets you put money in. You have to have the keys to get it out. I give my address to the exchange every time I transfer bit into it. They can’t get it out. So I don’t get what your saying.



I think there are exchanges where you can exchange one crypto for another without an account. But I don’t see how you would exchange US dollars either way without a bank. Please explain.

you would have to acquire ETH then put it on the exchange and trade it

You are obviously over my head here. Could you school me?
Click to expand...
 
I actually do have some ETH. I bought mostly Bit coin, but my friend said ETH is soon going to explode. I don’t know nothing about it, so I just got a couple grand for fun. (No explosion yet)

So what do I do with the ETH?
 
WaterH said:
Having the address only lets you put money in. You have to have the keys to get it out. I give my address to the exchange every time I transfer bit into it. They can’t get it out. So I don’t get what your saying.
Click to expand...
It isn't that simple. The public address is the public key. If you generate a public key that matches an existing address, you have also generated the private key that goes with it. Using that private key, you can sign transactions, which means you can steal the other person's money. It's straight forward public key crypto.

Now, what are the chances you will generate an existing key pair? Well, that depends on how many are already in use. The chances of generating any one of the existing key pairs is veeeeery low. Lower than the collective IQ of Florida :flipoff2:
 
Oh shit, just wait till you start learning about DeFi…

DeFi, decentralized finance.

Let’s see if I can explain this through text well enough.

So let’s start with with Sushi Swap. It is a DeFi platform that runs on the Ethereum blockchain. Eth is used as a payment to move a digital asset (DA) from a wallet to the exchange. The DA can be swapped to another DA on Sushi Swap via liquidity pools. Eth is once again used as a payment for the swap. Now you can remove your new DA and place it in your wallet.

Cliffs:

I wanted a DA called Effinity (EFI). It was not available on a centralized exchange. I moved a stable coin to Sushi and swapped it for EFI. Nothing is done for free, and payment was given in the form of Eth, because transactions were done on the Ethereum block chain.
 
CrustyJeep said:
It isn't that simple. The public address is the public key. If you generate a public key that matches an existing address, you have also generated the private key that goes with it. Using that private key, you can sign transactions, which means you can steal the other person's money. It's straight forward public key crypto.

Now, what are the chances you will generate an existing key pair? Well, that depends on how many are already in use. The chances of generating any one of the existing key pairs is veeeeery low. Lower than the collective IQ of Florida :flipoff2:
Click to expand...

So has this ever happened? Or is this something a one in qudzillion trillion kind of thing? It would seem to me if this were feasible, there would be Russian hackers generating addresses 24/7.

Mr Stubs said:
Oh shit, just wait till you start learning about DeFi…

DeFi, decentralized finance.

Let’s see if I can explain this through text well enough.

So let’s start with with Sushi Swap. It is a DeFi platform that runs on the Ethereum blockchain. Eth is used as a payment to move a digital asset (DA) from a wallet to the exchange. The DA can be swapped to another DA on Sushi Swap via liquidity pools. Eth is once again used as a payment for the swap. Now you can remove your new DA and place it in your wallet.

Cliffs:

I wanted a DA called Effinity (EFI). It was not available on a centralized exchange. I moved a stable coin to Sushi and swapped it for EFI. Nothing is done for free, and payment was given in the form of Eth, because transactions were done on the Ethereum block chain.
Click to expand...

It really sounds like you know your shit. When you say DA, is that just another crypto or are you talking about those digital paintings?

It also sounds like you are into major speculation. I’m not. I really just planed on buying Bitcoin and bought some ETH on a whim. I was thinking about converting the ETH to Bitcoin. Do you think it would be wise to hold on to it in case I want to do some of the shananagans you do?
 
I say DA as in digital assets.

Crypto assets, digital assets, whatever, are a much better term than crypto currency. So many of these assets have use cases that are not considered currency anymore.
 
WaterH said:
It really sounds like you know your shit. When you say DA, is that just another crypto or are you talking about those digital paintings?

It also sounds like you are into major speculation. I’m not. I really just planed on buying Bitcoin and bought some ETH on a whim. I was thinking about converting the ETH to Bitcoin. Do you think it would be wise to hold on to it in case I want to do some of the shananagans you do?
Click to expand...
I think that Eth is a good hold.

Here is a pic of Ethereums market cap. This gives a idea on how large the working eco system is inside Ethereum. Eth is used inside the system to make it work and also has deflationary mechanisms set in the code.

8377E541-917D-4DBA-A93F-0E9ED09D1F15.jpeg
 
DuckTape said:
Right now it pretty much is, but quantum computing may change that soon.
Click to expand...

I get that. I’ve always said that bit coin will continue to raise in value unless it gets hacked.

As I understand it, thousands of “miners” control bitcoin. Those miners own a lot of the bit coin, so they don’t want it to lose value. Those miners also are techy’s. So they should be on top of any threats to the system.

I don’t think it’s fool proof, but gold is not fool proof either. You have to put money somewhere. I like the ability to pop up in another country and have money. (Since this one might be going down the tubes)
 
WaterH said:
Im not sure I would call them scams, but I’m in your court. Still, it doesn’t hurt to understand that stuff Mr. Stubs is talking about.
Click to expand...
Stubs and I have gone back and forth a couple times about the legitimacy of alt coins (coins other than btc/eth). At the end of the day ask yourself this. Other than a fancy website amd "white papers" what are they offering and does it require their own currency to function? Imagine your steal supplier only took payment in "steal bucks". Whats the point? And who do they have value to?
 
Will12785 said:
Stubs and I have gone back and forth a couple times about the legitimacy of alt coins (coins other than btc/eth). At the end of the day ask yourself this. Other than a fancy website amd "white papers" what are they offering and does it require their own currency to function? Imagine your steal supplier only took payment in "steal bucks". Whats the point? And who do they have value to?
Click to expand...
Absolutely.

I like to look at a lot of this stuff as venture capital. People like myself never had opportunities to do this in the last tech boom.
 
Will12785 said:
They are anonymous but can be traced back to your ip address.
Click to expand...

This might sound really stupid in this day and age, but I don’t completely understand IP address. Is the IP address to my iPad or is it my router? If I go to a restaurant that has free WiFI and send something, will the IP address still identify my iPad?
 
WaterH said:
This might sound really stupid in this day and age, but I don’t completely understand IP address. Is the IP address to my iPad or is it my router? If I go to a restaurant that has free WiFI and send something, will the IP address still identify my iPad?
Click to expand...
Most likely no, it will be the IP address assigned to the router. But the router does know your IP address (because it assigned it to your iPad), and also your hardware address. I'm not sure how feasible it would be to obtain that information from the router (depends on the router and who wants the info, and why), but at least while you're in the restaurant, that information exists. You iPad probly randomizes its hardware address, in which case it would be essentially impossible to track anything down to that particular device.

BitCoin does not store IP addresses in its blockchain. I'm not sure about others, but I really don't see a reason to store them - they take up space, don't contribute anything useful to the transaction record, and as discussed above, probly aren't even directly traceable to a device anyway. So finding the IP address of a particular transaction is usually going to be quite difficult to begin with.

If you're a high-level criminal or Jeff Bezos, someone may put in the effort to track your money. Nobody gives the tiniest fuck about you or your money.
 
Mr Stubs said:
Time to get a VPN.

I did and feel better about what I do online. Definitely helps with spam shit also.
Click to expand...
I’ve heard of this and even did a little research. But it sounds like a hassle. Of course, I thought buying bit coin was going to be a hassle and it turned out not to be that bad.

You are obviously more computer literate than me. Did you find it easy?
 
WaterH said:
I’ve heard of this and even did a little research. But it sounds like a hassle. Of course, I thought buying bit coin was going to be a hassle and it turned out not to be that bad.

You are obviously more computer literate than me. Did you find it easy?
Click to expand...
Lol…

“More computer literate”

If you told that to anyone who knows me they would all laugh their ass off at you. I’m dumber than a bucket of shit when it comes to this stuff. My saving grace is my tenacity and ability to learn.

And yes, finding a VPN and installing one is very easy. First thing first is hit the Utube and learn about what they are. Then find one to purchase. I use Surfshark.
 
The exchange is definitely like a bank, and they keep track of everything you do there. I found this out firsthand when I opened an account to trade some Bitcoin. I was surprised at how similar the process was to a traditional bank, including the ID checks.

As for wallets, you're right! They’re a bit of a mystery since there’s no personal info attached. I once sent some crypto from my exchange to a wallet, and it felt like I was sending money into a black box. I started using figment.io for Solana staking, and it was eye-opening to see how transparent the blockchain can be. Anyone with the wallet address can see the transaction history, which is kind of wild.
 
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