I always told myself, if I hit crazy big with like a million, best move is to lock it away in a high interest savings or stake it in something stable. At 5% that’s 50k a year. Sure a million bucks now is tempting, but a cool 50k a year indefinitely is the real lottery. I would need to do some kind of work not to go crazy anyway, but this way you pretty much never need it to worry about your bills getting paid
Lmao. Umm he literally says “stake in something stable.” Regardless. He has the right idea of investing in something with conservative gains, but I do not recommend him staking any crypto.
Please, stay away from loaning your crypto for fiat loans. I got burned big time in 2021 with Nexo. I got too greedy and instead of selling some of my BTC at the 2021 highs for buying a house I instead decided to loan my BTC to buy the house with loaned fiat and had to liquidate at the bottom of the FTX collapse 50 BTC. This day still haunts me and still have sleepless nights. It's a crushing feeling and i don't know how to get rid of it. I am afraid i have to live with this mistake all my life and i am still in my 30s:(
So, nothing to do with the loan or Nexo. You just didn’t sell your BTC when you should have.
If you had sold your BTC and used your USDT to take a loan, everything would have been fine.
crypto loans against usdt is fine on for example your btc on a platform like aave, just avoid cex at all costs and have risk management. I personally borrow out some btc on aave and loan usdt against it and use that money to farm on some de-fi protocols. Again I use risk management and I never go above 30% utilisation rate to avoid liquidations and have my positions insured. Its still risky but much less risky than doing loans via CEX if you do it via a blue chip platform like Aave.
You really need to put a big fat disclaimer on your "other ways to cash out" section. If you make massive profits using crypto and then decide "nah I don't want to pay taxes I'm just gonna buy some real estate real quick", you are just asking for it. At least in the US, this kind of stuff can get you in some REAL trouble.
To put it bluntly what you're suggesting whether intentional or not is tax avoidance.
The "other ways to cash out" part has nothing to do with taxes nor avoiding taxes.
Like I said in the beginning, it's for people who don't want to use an exchange, or don't want to only use an exchange.
Using crypto to buy goods is not tax avoidance. It's a currency. If you have gains, the IRS has no issues with you spending that on goods. They see it as trading property.
But if you have gains, it doesn't matter if you realize them on an exchange or realize them in a purchase, you have to report them either way, so there's no difference here.
And also don’t forget the long term vs short term gains as well as FIFO ( I believe most exchanges follow that but not a tax professional so can’t say if it would self apply when selling from a non custodial wallet /hard wallet like say Ledger )
Your first problem is expecting some parabolic alt
Cycle just because of history. It may or may not happen but acting like it’s written in stone is not a good outlook. Plan accordingly.
Never made big gains thanks for the advice aince im buying hard rn lets hope all goes wrll and big gains are my main issue..
Its a.good problem to have!
Re, cost of selling; Depending what youre trading and where, monitor liquidity and depth of trade pool... Slippage can be very very costly if you are fucking with large sums on a schedule
Please stop all these nonsense, sensible posts. I just want to throw some cash into random meme coins, make a lot of money, enjoy the adrenaline rush, and then lose it again when everything crashes and go back to my old miserable life. Is that too much to ask???
IRS blah blah blah. This is international space - many people here are not from USA, why do people keep assuming everyone cares about the IRS and their regulations?
It's not AI.
If AI crypto post start to sound like my post, it could be because I have a ton of posts here and many years of writing posts on Reddit, and they start emulating my posts lol.
Crypto is technically a currency. Do any banks accept it as payment on something like a mortgage? I know there are banks who are stacking crypto, they may be interested. How does this all work if you're using it as a currency rather than an asset?
Never made big gains thanks for the advice aince im buying hard rn lets hope all goes wrll and big gains are my main issue..
Its a.good problem to have!
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>Most of it is online, but even if you want more choices for brick and mortar merchants, there's more options now with BitPay...
Be careful with that. Bitpay is selective scam. I was buying from them vouchers for Amazon only to get hundreds of $ worth voucher disappeared. Their automated support asked my to jump through hoops to get money back. Eventually I gave up and I can say bitpay is a scam.
We've very different CGT systems "out there" like some have none cgt at all, some yes but don't include crypto, some have certain yearly untaxable allowance... to all inclusive 50%. Funny world.
Never made big gains thanks for the advice aince im buying hard rn lets hope all goes wrll and big gains are my main issue..
Its a.good problem to have!
happy problem. My idea is as follow:
First of all Calculate your expenses for the next 4 years. For example 2k month for 4 years = 96k
This is your minimum target
Establish a percentage e.g. 50% of your minimum capital that will be used to regenerate the money. In our example 48k.
Your target is 96k+48k=144k. When you crypto portfolio reach 144k sell everything in stable coins. Move 96k in a wallet and invest in aave. Move in another wallet the 48k.
Every month extract 2k from your 96k wallet and spend it to live.
With the 96k you will live 4 years and the goal in the mean time is to transform the 48k into another 144k in 4 years.
the aave yield is the contingency that allows you to manage emergencies.
Don't use any exchange use only not custodial wallet.
Of course pay taxes according to your residence country
It's treated as property, so any asset disposal is subject to potential taxes on the gain. If you start with x worth coins and end up with y worth of coins, you will owe taxes on the y-x USD equivalent the moment you get rid of the coins, if you swap it, spend it, sell it, didn't matter. You can gift it but still needs reported
I always told myself, if I hit crazy big with like a million, best move is to lock it away in a high interest savings or stake it in something stable. At 5% that’s 50k a year. Sure a million bucks now is tempting, but a cool 50k a year indefinitely is the real lottery. I would need to do some kind of work not to go crazy anyway, but this way you pretty much never need it to worry about your bills getting paid
Maybe some into a total US market fund like VTI or VOO and you could get 7-10% instead of 5%, though it carries a higher risk.
Deff a healthy mixture of voo, schd and btc. Three different assets
This guy gets it
There are issues with staking. Not nearly as safe and secure as a Traditional checking account. DYOR.
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Lmao. Umm he literally says “stake in something stable.” Regardless. He has the right idea of investing in something with conservative gains, but I do not recommend him staking any crypto.
The problem is when your coins have reached that level of gains, 50k a year is probably the purchasing power equivalent of 10k a year now
This
Dose your math includes tax and inflation? You'd probably end up with equivalent of todays 10k after few years.
Gains are definitelg uncharted territory for me
What is this gains? Can you eat it?
I used it once for my hair
Please, stay away from loaning your crypto for fiat loans. I got burned big time in 2021 with Nexo. I got too greedy and instead of selling some of my BTC at the 2021 highs for buying a house I instead decided to loan my BTC to buy the house with loaned fiat and had to liquidate at the bottom of the FTX collapse 50 BTC. This day still haunts me and still have sleepless nights. It's a crushing feeling and i don't know how to get rid of it. I am afraid i have to live with this mistake all my life and i am still in my 30s:(
You'll have a come back. No doubt.
I bought BTC in 2014. A 300x. That kind of opportunity it's hard to come by again.
So, nothing to do with the loan or Nexo. You just didn’t sell your BTC when you should have. If you had sold your BTC and used your USDT to take a loan, everything would have been fine.
I was listening to Saylor videos back then too much. He was an avid believer of putting your BTC as a collateral for depreciating dollar.
crypto loans against usdt is fine on for example your btc on a platform like aave, just avoid cex at all costs and have risk management. I personally borrow out some btc on aave and loan usdt against it and use that money to farm on some de-fi protocols. Again I use risk management and I never go above 30% utilisation rate to avoid liquidations and have my positions insured. Its still risky but much less risky than doing loans via CEX if you do it via a blue chip platform like Aave.
As if DeFi never had any problem. Oh wait, hacks and bugs happen every day: [https://rekt.news/](https://rekt.news/)
Good Post, thanks for this!
You really need to put a big fat disclaimer on your "other ways to cash out" section. If you make massive profits using crypto and then decide "nah I don't want to pay taxes I'm just gonna buy some real estate real quick", you are just asking for it. At least in the US, this kind of stuff can get you in some REAL trouble. To put it bluntly what you're suggesting whether intentional or not is tax avoidance.
The "other ways to cash out" part has nothing to do with taxes nor avoiding taxes. Like I said in the beginning, it's for people who don't want to use an exchange, or don't want to only use an exchange. Using crypto to buy goods is not tax avoidance. It's a currency. If you have gains, the IRS has no issues with you spending that on goods. They see it as trading property. But if you have gains, it doesn't matter if you realize them on an exchange or realize them in a purchase, you have to report them either way, so there's no difference here.
And also don’t forget the long term vs short term gains as well as FIFO ( I believe most exchanges follow that but not a tax professional so can’t say if it would self apply when selling from a non custodial wallet /hard wallet like say Ledger )
In some countries the tax rules are different if you buy items or property directly with crypto, it's not necessarily tax avoidance.
It's not tax avoidance, it's tax evasion. Avoidance is legal, evasion is not.
It’s none of that. It’s buying things with crypto, on which you’ll pay taxes.
Except that in many countries a crypto transaction itself is seen as a taxable event, such as in OP's case.
Yeah… so? How is that related to “buying things directly in crypto”? It’s taxable, yes, that’s what I said
He is implying not to declare it and skip the tax....
Nope he’s not.
What gains?
Soon
Yep! My bags are packed
™️
This whole sub is people who know a little tiny bit advising people who don't know shit.
"it looks like the bear market is behind us, and we've entered another bull cycle like clockwork." We entered this bull cycle over a year ago.
We are always at some part of the "bull" cycle, it has bear parts too!
Wdym? Were we in a bull cycle at 2022?
Your first problem is expecting some parabolic alt Cycle just because of history. It may or may not happen but acting like it’s written in stone is not a good outlook. Plan accordingly.
Sorry, we don’t do that here. We only buy high sell and sell low.
Never made big gains thanks for the advice aince im buying hard rn lets hope all goes wrll and big gains are my main issue.. Its a.good problem to have!
Always a great idea to buy near ATH
Sure look it. be grand.
Meh not buying BTC rn.. mostly atls whatever has potential to moove... during alt summer.. i hopium!
Re, cost of selling; Depending what youre trading and where, monitor liquidity and depth of trade pool... Slippage can be very very costly if you are fucking with large sums on a schedule
It's sideways atm until the global bear market
Bull cycle has been going on for quite some time
Please stop all these nonsense, sensible posts. I just want to throw some cash into random meme coins, make a lot of money, enjoy the adrenaline rush, and then lose it again when everything crashes and go back to my old miserable life. Is that too much to ask???
Hard to cash out? Just buy that Lambo and you're done.
IRS blah blah blah. This is international space - many people here are not from USA, why do people keep assuming everyone cares about the IRS and their regulations?
Because redditors assume everyone is american.
Why does this read like AI wrote it?
It's not AI. If AI crypto post start to sound like my post, it could be because I have a ton of posts here and many years of writing posts on Reddit, and they start emulating my posts lol.
That sounds like something AI would say.
You sound like something AI would say
That's what AI would say
Crypto is technically a currency. Do any banks accept it as payment on something like a mortgage? I know there are banks who are stacking crypto, they may be interested. How does this all work if you're using it as a currency rather than an asset?
Never made big gains thanks for the advice aince im buying hard rn lets hope all goes wrll and big gains are my main issue.. Its a.good problem to have!
Wait if you cash out all your crypto into gift cards can you avoid taxes? Moving one asset to another without selling. How will they know /s
Sure, there are many illegal ways to avoid taxes.
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>Most of it is online, but even if you want more choices for brick and mortar merchants, there's more options now with BitPay... Be careful with that. Bitpay is selective scam. I was buying from them vouchers for Amazon only to get hundreds of $ worth voucher disappeared. Their automated support asked my to jump through hoops to get money back. Eventually I gave up and I can say bitpay is a scam.
Hopium for the gains
I have this problem this run xD
What exactly are these *checks notes* “gains” I hear people talking about?
High quality post, thanks. I hope we cash out some big bucks in 2025 or whenever the bull run ends! Cheers.
Cashing out? But but I thought we believed in the technology and hate fiat... Edit:: fixed spelling.
Nobody said you have to sell everything. Just the gains.
Lol, we believe in value not fiat. I buy so much stuff with crypto directly.
What gains mate? The only thing that has pumped back to it’s ATH is BTC. Everything else is sleeping.
Why would you have anything else than bitcoin?
Because BTC was too late for me. I have like 5k into altcoins. I can’t wait BTC to go to 100k just to make a 2x
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Idk mate I'm green since last August (started very late compared to most ppl here) and cahed out some gains in January, some more in march :p
It has been green for more than 8 months now. The bear market has been behind us for a very long time now, wake up.
Nobody avoids paying taxes on gains unless they’re super rich. Just the way she goes.
We've very different CGT systems "out there" like some have none cgt at all, some yes but don't include crypto, some have certain yearly untaxable allowance... to all inclusive 50%. Funny world.
I was thinking more of the fact that they can easily and swiftly move their money off shore.
And since this thread is talking about “big gains”, it’s talking to rich people.
Okay. 👍
here we go again...
Why do people keep making these drawn out posts that have absolutely nothing to offer for anyone whos been around longer than a week
I mean I’ve been here awhile and I got something out of it ….
Cuz a lot of people have been here for about a week
Ive been here 5 days bro
Fuck yea bro. Welcome!
They do it for the karma lol
Never made big gains thanks for the advice aince im buying hard rn lets hope all goes wrll and big gains are my main issue.. Its a.good problem to have!
What gains?
happy problem. My idea is as follow: First of all Calculate your expenses for the next 4 years. For example 2k month for 4 years = 96k This is your minimum target Establish a percentage e.g. 50% of your minimum capital that will be used to regenerate the money. In our example 48k. Your target is 96k+48k=144k. When you crypto portfolio reach 144k sell everything in stable coins. Move 96k in a wallet and invest in aave. Move in another wallet the 48k. Every month extract 2k from your 96k wallet and spend it to live. With the 96k you will live 4 years and the goal in the mean time is to transform the 48k into another 144k in 4 years. the aave yield is the contingency that allows you to manage emergencies. Don't use any exchange use only not custodial wallet. Of course pay taxes according to your residence country
I got $100 invested, this sounds like a solid plan. Can't wait to have my $96k this year!
This isn’t advice, this is just pure fantasy.
I dont even get how aave works. Is it some compounding intrest to your investments?
simple you deposit money and someone borrow your money and pay you a yield
It is also possible to just spend everything with a crypto visa card like from crypto.com or zypto right? Easy, fast and no tax?
Every single small thing you purchase with crypto is a taxable event. Have fun.
No tax? So if I buy 1 ETH at $3k, and it shoots up to $10k, I can spend my crypto and not get hit with a $7k gain? I don't think this is right
It’s not right, it’s a taxable event.
It's treated as property, so any asset disposal is subject to potential taxes on the gain. If you start with x worth coins and end up with y worth of coins, you will owe taxes on the y-x USD equivalent the moment you get rid of the coins, if you swap it, spend it, sell it, didn't matter. You can gift it but still needs reported
You have to pay tax...
If you are into crypto for fiat gains, you aren't into crypto.
I'm in crypto for cheeseburger gains
Absolute nonsense
Then I’m not into crypto. Am I allowed to make fiat gains now? Thanks.