General Crypto, HODLing, and Taking Profits (1 Viewer)

Okku

Okku

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I'm not sure what your guys' opinions are about holding crypto forever or what coins you guys are HODL/taking profits or holding for short term. I know there are tokens that I have now that I got into extremely cheap. I've taken what I've put into them so I'm basically playing for "free" now which is enjoyable. Then I'm constantly trying to find newer lower value coins that have great potential and get into those as soon as possible.

Then how do you guys go about taking profits out because I am scared to sell my crypto.

Maybe we can help each other on everything crypto in this thread which would be really fun.
 
As a responsible investor, there should probably be a limit on what % of your assets you want in a single asset class, especially something as volatile as crypto. As crypto goes up and up and up, it’s going to exceed that personal limit you set and that seems like an excellent reason to diversify and rebalance.
 
When buying a high risk coin(Doge, Safemoon, etc), I set a price in which I will sell a % in order to take a profit. That is....if it gets to that price. Especially with coins like Safemoon, you need to be prepared to weather the dips/losing your investment.
 
A fellow poker player buddy was full on harassing me about crypto every time we'd carpool to the local casino. BTC was at 2-3k at the time, and I was actually annoyed with my buddy for pushing this crap... it was like a weird religion for him, and he was preaching harder than a jehovas witness. I actually had an intervention with him, and told him I'd no longer car pool with him if he continued to badger me about BTC... Oh boy, was I stupid!

Ya, he heavily invested in BTC early on, and continues to dump money in whenever he can. Yup, i eventually caved last christmas time and put some money into crypto (using the Paypal app to snag maybe $500 of each BC and ETH). So after 1k investment (of play money), my account is now at $3500. Not horrible, but not life altering money.

As for taking my profits, I'm hesitant to cash out before 1 year, due to capital gains. This was the advice of some investor buddies of mine. I'll probably just let it ride for a while.

I also hedge my investments with a bit of physical gold and silver. I understand the drawbacks to PM's, and these aren't seen as investments for profit, but wealth holders. If inflation goes nutz, the gold and silver will hold their value.
 
There are some high-profile folks saying Doge will go to $1. At the same time, economists and national-bank-types are saying it will be worthless very soon, and that the bottom should have fallen out already. The current U.S. administration wants to raise taxes on capital gains from 20 to 39 percent, and the U.S. Treasury Secretary recently said she would like to see gains from any cryptocurrency taxed at 80 percent.

The puzzle of "HODL or sell" now includes a new factor: When will the government decide to tax all the profits out of crypto? I estimate that we'll see a new, high "crypto tax" within a year.

A few weeks ago, I told my wife I was holding 10,000 Doge. Days passed, and she forgot which coin it was. Yesterday, she was on the phone and told a family member we had 10,000 BITCOIN (which would now be worth about $530 million).
 
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A full third of one of my cryptography course in 2010 was dedicated to cryptocurrency. Didn’t want to buy any then, don’t want to buy any now.

Best of luck to you all, don’t put anything in you don’t mind losing. Real estate and blue chips seem like a much better inflation hedge.
 
dennis63 said:
gains from any cryptocurrency taxed at 80 percent.
Click to expand...
80% is absolutely ridiculous.

If DOGE does hit $1 I will sell the majority of my stake. I will use these to purchase blue chip stocks.

My biggest gamble right now is safemoon. I took what amounts to a bar tab in coins. If it goes up 40-50% from the current price....I'm completely out. This will cover the exit fee and give me a 25-35% profit.
 
Frogzilla said:
A full third of one of my cryptography course in 2010 was dedicated to cryptocurrency. Didn’t want to buy any then...
Click to expand...

I may be spending too much time browsing crypto twitter and discords. When you said that you had this kind of early exposure and didn't act on it, this immediately came to mind regarding your potential portfolio:

 
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I'm glad I got into it in late December, it's been an insane ride so far. I've seen days where my account goes up and down like I would have never expected. I feel like everything will keep going up from here, but obviously you want to check what's going on in the crypto space and everything regarding it. I've also gotten pretty lucky to get into a few coins pretty cheap to the point where they are at now I don't think they will ever fall to where I got in.

I've told people not to do things like me many times before. I'd say 90% of all my net worth is invested. Split pretty equally 45% stocks, 45% crypto.

When I see a stock or crypto that is under a cent or near a cent I don't mind throwing a few hundred into it. If it goes up then that's good and I'm sure it won't go under the cent, especially if it's crypto.
 
I also think that tax is not going to be a very hard thing to do but 80% is silly. Right now, foreign currency bought as an investment has the gains taxed as income (and you can also offset losses). I can imagine that crypto will be treated the same. But the government moves very slowly - how long did Amazon etc operate without collecting or remitting state sales tax?

I also think that if the government starts taxing crypto, it will effectively be recognizing it as a bona fide investment vehicle. So while they may take their slice, it will also become possible to hold crypto in your retirement accounts etc. I wouldn't mind sticking a ETH or two into a Roth IRA and seeing where it goes in 10 years.
 
Just so we are clear, the US government already taxes crypto as do states with a state income tax. If you sell a holding, buy something with a coin or swap one coin for another, it is a taxable event.

Please get professional advice about tax exposure. And don't assume Uncle Sam is blind. The tax man might not care about modest transactions, but thousands of dollars in profits is big enough to attract attention.
 
Ignorant me! I assumed that crypto for some reason wasn't covered by the tax code. Clearly I was wrong.

The IRS treats crypto as property, therefore:
- Gains are only considered when the item is transacted (either exchanged for fiat currency or to another coin)
- Short term gains on crypto (held for less than 1 year) are taxed as income.
- Long term gains on crypto (held for more than 1 year) are taxed as capital gains.
- Losses can be used to lower your taxable income and carried forward if they're large
- Coinbase and others will be sending you a 1099!

I will be HODLing for the long term.
 
Right now I have been using BTC to hold extra money from my online poker account....but I went broke yesterday. So, I will need to deposit back in before I play again. So, for the most part, I am using it as a (relatively) safe place to store poker money in case Bovada goes tits up.

Does anybody actually use crypto for purchases? This is what truly scares me about crypto, is that everybody uses it as STOCK or a COMMODITY, when it is actually designed as a currency. But few people use it as currency. In fact, you can buy/sell BTC on PayPal, but you cannot purchase with it.
 
Anyone panicking ?

I have minimal holdings. So a loss wouldn’t be catastrophic. But is this the end ?
 
grebe said:
Right now I have been using BTC to hold extra money from my online poker account....but I went broke yesterday. So, I will need to deposit back in before I play again. So, for the most part, I am using it as a (relatively) safe place to store poker money in case Bovada goes tits up.

Does anybody actually use crypto for purchases? This is what truly scares me about crypto, is that everybody uses it as STOCK or a COMMODITY, when it is actually designed as a currency. But few people use it as currency. In fact, you can buy/sell BTC on PayPal, but you cannot purchase with it.
Click to expand...

does using it to buy more crypto count?
 
I use it to mint liquidity tokens on Raydium and then stake the tokens to earn more APY.
 
This cycle isn’t over
Stay the course
Buy the dips
HODL
New ATH later this year are coming
BTC drives the prices of alts most times unless you get a short alt season



If you have family overseas crypto is a miracle worker
Easy to send $$ over with no fees for the unbanked
Use coins.PH all the time


If you have been in this for the long haul this cycle is nothing new
Covid and new circumstances have extended the cycle I believe.

I have no desire to sell when it’s not enough yet to be able to quit work
With inflation only getting worse this year and rate hikes coming crypto is a no brainer hold

I bought lots of gold
It made me nearly nothing in 10 years

$250 ETH was the chance to buy like $1000 BTC
I hope people did
 
chkyrslf said:
I bought 10 ETH @ ~$240AUD (~$170USD)...and sold it later @ ~$300AUD (~$215USD) to buy some Ripple/XRP :rolleyes: FML.
Click to expand...
Yah I’m no fan of XRP
I HOPE IT works out

I have faith in CRO
It’s one of my small cap hopes

ADA is good

BNB is good

BTC and ETH I’ll keep forever

Those are most all I’m looking at

Have heard good stuff with Solana
Polka could do well
 
awesome. im following the mantra of "buying the dip". Regardless of the price movement, Im happy either ways because its for the long term.
 
I've been buying the dips as I can over the past few weeks. Loading up on the things I believe in and I'm not selling anytime soon. I don't see any point in selling crypto right now. It's still new, many people haven't converted, invested or even thought about getting into it. They'll have to get into it sooner or later.

Think about this... The NY mayor literally just had his paycheck be split 50/50 ETH and BTC. This is huge!
https://www.reuters.com/world/us/ny...check-cryptocurrency-via-coinbase-2022-01-20/

This is also interesting. Report: Goldman Sachs And Other Wall Street Banks Are Exploring Bitcoin-Backed Loans
https://www.nasdaq.com/articles/rep...reet-banks-are-exploring-bitcoin-backed-loans

Tons of stuff happening in the world surrounding crypto. The metaverse, new alts and companies getting more and more interesting in it. SO SO SO many things.
 
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giphy.webp
 

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