Bitcoin-Explain to me how to buy these things (1 Viewer)

[Captain Cranks]

How are you guys managing 30+% short term capital gains tax on these frequent trades. Just a cost of doing business that you factor in?

It's my understanding that the IRS lets you choose the 'inventory' method by which the buys and sells are determined.  One alternative is the HIFO method by which you match the highest priced purchase against the sale.  Since I've got plenty of higher price purchases, many of my current sales, even though they're selling at a profit to what I just bought them at last weekend, will be booked as short term losses.  That leaves me to carry my lower priced purchases forward which I can delay selling until they're considered long term.  

Hopefully someone can set me straight if my understanding is wrong.

 

[amnesiac]

It's my understanding that the IRS lets you choose the 'inventory' method by which the buys and sells are determined.  One alternative is the HIFO method by which you match the highest priced purchase against the sale.  Since I've got plenty of higher price purchases, many of my current sales, even though they're selling at a profit to what I just bought them at last weekend, will be booked as short term losses.  That leaves me to carry my lower priced purchases forward which I can delay selling until they're considered long term.  

Hopefully someone can set me straight if my understanding is wrong.

I would consult with a tax professional if you haven't yet done so.

It looks like there are specific identification documentation requirements if you want to go HIFO vs. FIFO.

Apparently there is software that can keep track of all of it for you as well.

If you already know all of this, please forgive me, I'm very new in this space.

I plan on holding everything long term, so I haven't looked into it that closely.

 

[brun]

I would consult with a tax professional if you haven't yet done so.

It looks like there are specific identification documentation requirements if you want to go HIFO vs. FIFO.

Apparently there is software that can keep track of all of it for you as well.

If you already know all of this, please forgive me, I'm very new in this space.

I plan on holding everything long term, so I haven't looked into it that closely.

I just started using Coin Tracker when I did my taxes this year and found it helpful. I am using the free version which will handle 5 wallets-exchanges max. Seemed easy enough to use. There are probably plenty others out there also.

 

[Captain Cranks]

I would consult with a tax professional if you haven't yet done so.

It looks like there are specific identification documentation requirements if you want to go HIFO vs. FIFO.

Apparently there is software that can keep track of all of it for you as well.

If you already know all of this, please forgive me, I'm very new in this space.

I plan on holding everything long term, so I haven't looked into it that closely.

Here's the article I am using to get my information.  Ultimately I'll need to use some software to aggregate everything since I've got buys, sells, and transfers across multiple accounts that would be a nightmare to track.

Crypto tax explained

 

[Captain Cranks]

The spring is coiling.  Which way does it break?  We should know soon. 

 

[eoMMan]

What are some good podcasts on crypto?

 

[The Ref]

What are some good podcasts on crypto?

Anything @Prestonpysh is absolute gold (or BTC, as it was)

 

[The Ref]

So I’ll be “that nerd”.  I have a ticket and plan to attend the Bitcoin conference next week in Miami.

who wants to touch me

 

[eoMMan]

So I’ll be “that nerd”.  I have a ticket and plan to attend the Bitcoin conference next week in Miami.

who wants to touch me

Wynwood is a pretty cool section of Miami. Definitely check out Wynwood Walls while you are there.

 

[beer 30]

That was an interesting day 

 

[ex-ghost]

That was an interesting day 

Best part? The day continues! Crypto never sleeps!

 

[Chaos Commish]

What are some good podcasts on crypto?

again, no one answers...

I mentioned George and Dan a few days ago. 

Coindesk does a professional job with many options.

ledgerstatus

bankless

lex

orange pill

pomp

 

[eoMMan]

again, no one answers...

I mentioned George and Dan a few days ago. 

Coindesk does a professional job with many options.

ledgerstatus

bankless

lex

orange pill

pomp

I'm also gonna check out Laura Shin's crypto podcast, Unchained. Another one called Crypto 101 as well.

It's amazing how negative some of the bigger, personal finance podcasts are towards crypto. There's a recent episode of ChooseFi that was just filled with misinformation and negative comments. I at least tip my hat to Joshua Sheats at Radical Personal Finance to apologizing for not recommending bitcoin over the past several years. :rantover:

 

[jon_mx]

I'm also gonna check out Laura Shin's crypto podcast, Unchained. Another one called Crypto 101 as well.

It's amazing how negative some of the bigger, personal finance podcasts are towards crypto. There's a recent episode of ChooseFi that was just filled with misinformation and negative comments. I at least tip my hat to Joshua Sheats at Radical Personal Finance to apologizing for not recommending bitcoin over the past several years. :rantover:

Crypto is for people who can handle volatility.  In the last 30 days my account has gone from 44k to 75k to 29k to 52k and back to 44k.  People giving personal finance advice should not be recommending crypto to the person trying to build a base retirement account.  It is for that 10-15% of your portfolio you want to gamble with.  I believe Bitcoin will be at $1 million one day, but that may be 10 or 20 years down the road.  Maybe people in their 20's to 40's it should be part of their investment strategy, but for people in their 60's maybe not.  

 

[Captain Cranks]

Crypto is for people who can handle volatility.  In the last 30 days my account has gone from 44k to 75k to 29k to 52k and back to 44k.  People giving personal finance advice should not be recommending crypto to the person trying to build a base retirement account.  It is for that 10-15% of your portfolio you want to gamble with.  I believe Bitcoin will be at $1 million one day, but that may be 10 or 20 years down the road.  Maybe people in their 20's to 40's it should be part of their investment strategy, but for people in their 60's maybe not.  

Excluding the best performing, non-correlated asset would be a huge mistake for anyone's portfolio.  If you're in your 60s or 70s, you're still young enough to handle crypto's volatility for at least 1-2% of your portfolio, especially when a disproportionate amount of your portfolio is likely in negative yielding bonds and stocks that can't keep up with the expanding money supply.  If you're in cash and bonds right now, you're basically guaranteed a negative real return.  

 

[2Young2BBald]

Crypto is for people who can handle volatility.  In the last 30 days my account has gone from 44k to 75k to 29k to 52k and back to 44k.  People giving personal finance advice should not be recommending crypto to the person trying to build a base retirement account.  It is for that 10-15% of your portfolio you want to gamble with.  I believe Bitcoin will be at $1 million one day, but that may be 10 or 20 years down the road.  Maybe people in their 20's to 40's it should be part of their investment strategy, but for people in their 60's maybe not.  

To this point, I am in my early 50s and wanted to be "in" crypto without "owning" crypto.   Over the past 10 days, I've purchased shares in 5 crypto based ETFs (4 directly in the currencies and 1 which invests in companies which support the crypto infrastructure).  I have been reading this thread for about 6-weeks and haven't seen these discussed.  Are these off topic?  If so, I'll use this post as my  and not post about them again.  

 

[[icon]]

two whale alerts on my twitter feed for binance. 70million and 105million - usdt both times. they gettin' ready to buy.

What means this? 

 

[Chaos Commish]

What means this? 

whales moving money into binance, by far the biggest crypto exchange. 

 

[Captain Cranks]

To this point, I am in my early 50s and wanted to be "in" crypto without "owning" crypto.   Over the past 10 days, I've purchased shares in 5 crypto based ETFs (4 directly in the currencies and 1 which invests in companies which support the crypto infrastructure).  I have been reading this thread for about 6-weeks and haven't seen these discussed.  Are these off topic?  If so, I'll use this post as my  and not post about them again.  

Definitely not off topic.  My first exposure to Bitcoin was buying shares of the Grayscale Bitcoin Trust (GBTC).  That doesn't track BTC price too precisely, though, so It wasn't long before I learned how to buy the crypto directly (through Binance.US brokerage account).  Since then I've branched out into other exchanges (for coins that Binance doesn't cover) and recently got into staking (loaning your crypto to a staking pool to earn rewards).  I'm sure ETFs are fine for many who don't want to get too heavily involved in the process, especially now that the industry isn't so user friendly.  However, you may reach a point where you want to eliminate the middle man and enjoy some of the other benefits that holding your own crypto assets includes.      

 

[Captain Cranks]

whales moving money into binance, by far the biggest crypto exchange. 

One of the guys on Altcoin Daily suggested to ignore the daily/weekly price movements and focus solely on the fundamentals.  Those fundamentals continue to support increased adoption and bullish positioning by institutions and whales.  

I filled my ADA sack with another 1,000 tokens this am.  I hope to have 10,000 built up before it kisses $2 goodbye forever.

 

[ex-ghost]

One of the guys on Altcoin Daily suggested to ignore the daily/weekly price movements and focus solely on the fundamentals.  Those fundamentals continue to support increased adoption and bullish positioning by institutions and whales.  

I filled my ADA sack with another 1,000 tokens this am.  I hope to have 10,000 built up before it kisses $2 goodbye forever.

I did the same, not 1000 but around 650. I'm hoping to get to 5000.

 

[amnesiac]

just saw my first ada giveaway scam video on youtube.  
 

so i can check that off my list.  

 

[amnesiac]

One of the guys on Altcoin Daily suggested to ignore the daily/weekly price movements and focus solely on the fundamentals.  Those fundamentals continue to support increased adoption and bullish positioning by institutions and whales.  

I filled my ADA sack with another 1,000 tokens this am.  I hope to have 10,000 built up before it kisses $2 goodbye forever.

I’m looking to add some today too.  
 

just trying to figure out if it’s going to keep trending down or if I should just jump in.  

 

[Captain Cranks]

Love this guy's shtick.

Pretty objective TA on BTC, imo.  

 

[Captain Cranks]

I’m looking to add some today too.  
 

just trying to figure out if it’s going to keep trending down or if I should just jump in.  

I'd say it depends on your intent and your long term view.  If this is just a short term trade, then you'd want to have a more specific entry point.  If this is part of building a longer term position, it's just as good an entry as any.  You'll never be able to time the bottom of the market perfectly and if this thing goes to $10, you won't be laboring about having bought in at $1.50 vs $1.00.  If it does fall to $1 again, that'll be a great time to load up some more (again, if you hold a bullish long term view).     

 

[amnesiac]

I'd say it depends on your intent and your long term view.  If this is just a short term trade, then you'd want to have a more specific entry point.  If this is part of building a longer term position, it's just as good an entry as any.  You'll never be able to time the bottom of the market perfectly and if this thing goes to $10, you won't be laboring about having bought in at $1.50 vs $1.00.  If it does fall to $1 again, that'll be a great time to load up some more (again, if you hold a bullish long term view).     

I’m looking long term. 
 

I think I’m just mad I wasn’t ready to move when it hit $1 last week.  

 

[Chaos Commish]

just saw my first ada giveaway scam video on youtube.  
 

so i can check that off my list.  

i like the scam videos i've seen because at least the one i watched had Charles speaking at length. A seven hour one actually flipped my negative opinion on ADA. I wasn't sending to the bogus addy, but appreciated the effort.

 

[Chaos Commish]

One of the guys on Altcoin Daily suggested to ignore the daily/weekly price movements and focus solely on the fundamentals.  Those fundamentals continue to support increased adoption and bullish positioning by institutions and whales.  

I filled my ADA sack with another 1,000 tokens this am.  I hope to have 10,000 built up before it kisses $2 goodbye forever.

Yes the recent conversation about old people like me being conservative because of volatility made smh. It's irresponsible, imo, not to have considerable exposure to crypto regardless of age. Every influencer podcaster I linked basically says, stop staring at price every ten seconds. Step away. The trend is up. The volatility ain't no big thing.

 

[amnesiac]

i like the scam videos i've seen because at least the one i watched had Charles speaking at length. A seven hour one actually flipped my negative opinion on ADA. I wasn't sending to the bogus addy, but appreciated the effort.

This one was similar.  
 

I think it’s cute they think they’re going to change the world. 
 

I just think the better technology and their slow and steady approach will win the race in the end. 

 

[Chaos Commish]

One of the guys on Altcoin Daily suggested to ignore the daily/weekly price movements and focus solely on the fundamentals.  Those fundamentals continue to support increased adoption and bullish positioning by institutions and whales.  

I filled my ADA sack with another 1,000 tokens this am.  I hope to have 10,000 built up before it kisses $2 goodbye forever.

When i first engaged this thread, i mentioned being concerned about ada and eth. Not enough to post anything negative, but what i was referencing was the idea that ada is a vapor coin. years of promises and nada. While algorand, dot, cosmos, etc. had already accomplished PoS goals and were rolling along. You called ada the ecosystem you trusted the most. I was big dot at the time. It took a week or so, but I "hope" i saw the light, because I am almost 40% ada.

The concerns about eth are well-known. Tons of pressure to catch up and lose the gas fees. Tons of ecosystems leaving for better performing chains, ada coming online soon. Several dubbed eth killers. Etc. I am still iffy on eth in comparison to the "killers". Eth will go up, but not as much as it's competition. 

Slept with limit orders in place. Nothing triggered. ha

 

[Chaos Commish]

So btc dipped below 35 as I type this. Somethin somethin triple red candles signifying more downward pressure. Exchanges still reporting huge inflows of stablecoins poised to buy. 

I'm setting up wallets and pancakeswap to take homerun swings on some projects and meme-ish coins that have potential doge-like upsides. I'll probably use of 70-80% of my eth to do this. It's alot of research and I haven't slept. These will be currencies not mentioned here, afaik. They are very high risk. I was gonna offer to list them if you want to see them, but I already know some of yo do.

So I'll get a little sleep and show my work later today. A likely suspect at the moment is DODO. Haha, yup dodo. My biggest win has been Pancake, and I own(ed) doge. Dodo is no meme. It's a Chinese Dex, with very impressive ideas, and funding from Pantera Capital, Binance, Three Arrows Capital,  Coinbase Ventures, Galaxy Digital, CMS Holdings, Alameda Research, and more. 

I believe Cake can eventually overtake or run neck and neck with UNI. Depends on how long eth takes for 2.0.Dodo might make a run for them both. MIGHT. It's the safest one I am considering and having a nice day in bear environment. This is not advice, just splainin' what my addiction did yesterday/last night/this morning. 

 

[amnesiac]

pulled the trigger at $1.42. 
 

could’ve probably gotten it lower, but didn’t want to stare at my phone the rest of the weekend. 

 

[Captain Cranks]

When i first engaged this thread, i mentioned being concerned about ada and eth. Not enough to post anything negative, but what i was referencing was the idea that ada is a vapor coin. years of promises and nada. While algorand, dot, cosmos, etc. had already accomplished PoS goals and were rolling along. You called ada the ecosystem you trusted the most. I was big dot at the time. It took a week or so, but I "hope" i saw the light, because I am almost 40% ada.

The concerns about eth are well-known. Tons of pressure to catch up and lose the gas fees. Tons of ecosystems leaving for better performing chains, ada coming online soon. Several dubbed eth killers. Etc. I am still iffy on eth in comparison to the "killers". Eth will go up, but not as much as it's competition. 

Slept with limit orders in place. Nothing triggered. ha

I go back and forth on how much to allocate to the big guys.  IMO, that's BTC, ETH, ADA, DOT, SOL, and LINK.  Since I do have the most confidence in ADA, perhaps it should be higher than its current 15%.  And just to be clear, when I say "most confident", what I really mean is most likely to not be a Netscape of the crypto age.  With BTC, I can see a narrative where everyone flocks to a more efficient, faster technology.  With ETH, I see a narrative where, because its foundation is flawed, has a difficult time scaling like everyone assumes it will with 2.0.  I hear DOT/KSM are excellent technologies with solid leadership. but Gavin Wood isn't a great marketer and that's a big part of the equation.  I've heard great things about SOL and it has great financial backing so I want to have some chips on their number, but don't know enough about what separates them to be as confident as I am with Cardano.  LINK seems to be in a great position regardless of which ecosystems thrive, so I like having a sizable position there.

Even if Cardano isn't an ETH killer, per se, they'll at least have a nice niche in Africa, so I'm "most confident" they'll still be a player in 5 years.    

 

[Captain Cranks]

pulled the trigger at $1.42. 
 

could’ve probably gotten it lower, but didn’t want to stare at my phone the rest of the weekend. 

Nice buy.  I picked some up this am too and have a limit order at $1.30 in case we fall some more.

 

[Captain Cranks]

So btc dipped below 35 as I type this. Somethin somethin triple red candles signifying more downward pressure. Exchanges still reporting huge inflows of stablecoins poised to buy. 

I'm setting up wallets and pancakeswap to take homerun swings on some projects and meme-ish coins that have potential doge-like upsides. I'll probably use of 70-80% of my eth to do this. It's alot of research and I haven't slept. These will be currencies not mentioned here, afaik. They are very high risk. I was gonna offer to list them if you want to see them, but I already know some of yo do.

So I'll get a little sleep and show my work later today. A likely suspect at the moment is DODO. Haha, yup dodo. My biggest win has been Pancake, and I own(ed) doge. Dodo is no meme. It's a Chinese Dex, with very impressive ideas, and funding from Pantera Capital, Binance, Three Arrows Capital,  Coinbase Ventures, Galaxy Digital, CMS Holdings, Alameda Research, and more. 

I believe Cake can eventually overtake or run neck and neck with UNI. Depends on how long eth takes for 2.0.Dodo might make a run for them both. MIGHT. It's the safest one I am considering and having a nice day in bear environment. This is not advice, just splainin' what my addiction did yesterday/last night/this morning. 

I also think this is the time to be accumulating DOGE if that's your game.  It's been pretty resilient which tells me there's some accumulation going on before its next run towards $1.

 

[amnesiac]

Nice buy.  I picked some up this am too and have a limit order at $1.30 in case we fall some more.

I’m waiting for my binance account to be activated, so I’m stuck with Coinbase for now, so I can only spot buy.  
 

oh well.  I’ll be prepared for next time.  

 

[Captain Cranks]

I’m waiting for my binance account to be activated, so I’m stuck with Coinbase for now, so I can only spot buy.  
 

oh well.  I’ll be prepared for next time.  

Unfortunately that's the worst part of Binance.  I'm hearing from others that it's taking forever to get set up.  

 

[unckeyherb]

Bought some more ada at 1.40.  I’m just under my target of 10,000 coins.  Will buy more if we get another drop 

 

[amnesiac]

Unfortunately that's the worst part of Binance.  I'm hearing from others that it's taking forever to get set up.  

Worst part is I had an account at binance, was recommended to go to Coinbase and deactivated the binance account.  
 

it’s been over a week waiting to get it reactivated.  
 

oh well.  All good. 

 

[Captain Cranks]

I'm not worried about this low volume drip selling.  If we consolidate and bounce between 30-40K for a few weeks/months, that will be bullish and setting up well for the next leg up.  

 

[beer 30]

Trying to sign up with Binance, have tried to upload my DL 3 times and every time they bounce it back. WTH?

0-4, screw it

 

[amnesiac]

Trying to sign up with Binance, have tried to upload my DL 3 times and every time they bounce it back. WTH?

0-4, screw it

not sure.  But try taking the photo with the lights off to minimize glare/shadows.  

 

[UOFI_316]

Last night I tired to setup an account at Binance.  Did the scan of my DL, then got to the scan of my face.  Since my DL is clean shaven, and I currently have a goatee it did not accept me. Any way around this??  I am not about to shave clean just to be able to buy DOGE. Ended up going with Coinbase and getting some ADA which has since dropped.

 

[Chaos Commish]

The primary use of central exchanges is profit taking. They are the most common way to have crypto converted to fiat and sent to your bank. It is the only use Binance or Coinbase have for me. I am committed to hodl, so these central exchanges are mostly useless after the initial fiat to crypto purchase, where Binance offers the lowest entry I know. It's also strongly advised to never leave your crypto on the exchanges. 

So if for whatever reason you are struggling to kyc (identify yourself) on an exhange, you need a good wallet anyway. I started with a wallet and didn't use a central exchange for a couple years. DeFi exchanges, I hope, are the future. They offer access to far more assets, competitive fees, more pairs for simple swaps, and more. Decentralizing finance is sort of the big idea behind crypto. 

Get a wallet and off ya go.

 

[bcnfinance]

The primary use of central exchanges is profit taking. They are the most common way to have crypto converted to fiat and sent to your bank. It is the only use Binance or Coinbase have for me. I am committed to hodl, so these central exchanges are mostly useless after the initial fiat to crypto purchase, where Binance offers the lowest entry I know. It's also strongly advised to never leave your crypto on the exchanges. 

So if for whatever reason you are struggling to kyc (identify yourself) on an exhange, you need a good wallet anyway. I started with a wallet and didn't use a central exchange for a couple years. DeFi exchanges, I hope, are the future. They offer access to far more assets, competitive fees, more pairs for simple swaps, and more. Decentralizing finance is sort of the big idea behind crypto. 

Get a wallet and off ya go.

For a long term holder, What’s the risk with leaving your crypto in Coinbase?

 

[Chaos Commish]

I also think this is the time to be accumulating DOGE if that's your game.  It's been pretty resilient which tells me there's some accumulation going on before its next run towards $1.

I wouldn't say doge is my game. I was fortunate to listen to the reddit community and jump in in January. I haven't decided if I will eventually buy more Doge. It likely gets pumped to a $1. So 3x+ is a thing. But the same is true of better projects. I'm tepid.

Doge was a silly microcap with a huge following. It's a big cap now, so things are different. I decided to burn the gas and divest my eth for "silly microcaps" and such, in part because I am a little bored, but mostly owning something that goes 500x is pretty awesome. So I am fishing for some of that crazy with 10% of what I hold (my eth).  

A recent survey on twitter asked if given $1000 to buy any crypto, what would you buy? The answers were spread among usual suspects and many new to me. The winner by a fair margin was FEG - Feed Every Gorilla. Lol, wth? 

So I dig. There's similarities on social media to early doge and recent shiba inu. But it's actually a serious Binance project with another dumb name. I almost whiffed on Pancake because of the name, but digging made me love the "superior to uni" heavily backed defi exchange. And, I've made a killing still hold-ed tho. 

Feg has some outstanding features atm. Hard to find anything sub 2500 in market cap with 25 to 35 million in daily volume. Harder to find anything so small on over 100,000 watchlists. Methinks maybe the price pumpers who drove doge and shiba may be primed to pump this one. In for $1500. This is the first of probably six or seven homerun swings.

 

[Chaos Commish]

For a long term holder, What’s the risk with leaving your crypto in Coinbase?

Sorry, a quick google is the best answer. 

There's a few reasons, security being the key one. 

 

[Harry Frogfish]

Last night I tired to setup an account at Binance.  Did the scan of my DL, then got to the scan of my face.  Since my DL is clean shaven, and I currently have a goatee it did not accept me. Any way around this??  I am not about to shave clean just to be able to buy DOGE. Ended up going with Coinbase and getting some ADA which has since dropped.

This will be fantastic if there is a wild swing one way or the other.  I hope it swings your way, but that goater could end up the greatest, or worst, story of your life.  Hilarious.

 

[Chaos Commish]

This will be fantastic if there is a wild swing one way or the other.  I hope it swings your way, but that goater could end up the greatest, or worst, story of your life.  Hilarious.

He could take a pencil to his id and sketch in the goater. 

 

[Captain Cranks]

I wouldn't say doge is my game. I was fortunate to listen to the reddit community and jump in in January. I haven't decided if I will eventually buy more Doge. It likely gets pumped to a $1. So 3x+ is a thing. But the same is true of better projects. I'm tepid.

Doge was a silly microcap with a huge following. It's a big cap now, so things are different. I decided to burn the gas and divest my eth for "silly microcaps" and such, in part because I am a little bored, but mostly owning something that goes 500x is pretty awesome. So I am fishing for some of that crazy with 10% of what I hold (my eth).  

A recent survey on twitter asked if given $1000 to buy any crypto, what would you buy? The answers were spread among usual suspects and many new to me. The winner by a fair margin was FEG - Feed Every Gorilla. Lol, wth? 

So I dig. There's similarities on social media to early doge and recent shiba inu. But it's actually a serious Binance project with another dumb name. I almost whiffed on Pancake because of the name, but digging made me love the "superior to uni" heavily backed defi exchange. And, I've made a killing still hold-ed tho. 

Feg has some outstanding features atm. Hard to find anything sub 2500 in market cap with 25 to 35 million in daily volume. Harder to find anything so small on over 100,000 watchlists. Methinks maybe the price pumpers who drove doge and shiba may be primed to pump this one. In for $1500. This is the first of probably six or seven homerun swings.

I love the strategy.  I really need to take the next step on the path and begin using platforms and DEXes in order to get in super early on this stuff.  I scour Kucoin for tokens that are breaking out technically, but being on Kucoin means the coin's already done its first 50X.  I really wish I could devote my full time to this space.  There's so much money to be made if you have the time to dive into the weeds.