Cryptocurrency Daily Discussion - April 24, 2021 (GMT+0) |
- Daily Discussion - April 24, 2021 (GMT+0)
- So apparently government couldn't care less when banks secretly get $16T of bailouts of fiat from the Fed, but when people use crypto to secure their financial wellbeing, it becomes a problem
- People That Say "Imagine If DogeCoin Went to $10 or $100" Do You Guys Understand Market Cap and Circulating Supply? Dogecoin Price/Market Cap/Circulating Supply Analysis and Calculation
- Ethereum
- Kraken telling customers on the login page: "Not your keys, not your coins". This is the type of business I can support
- If you're asking strangers on the internet whether or not you should sell you crypto, you should probably sell your crypto
- Never forget that the Federal Reserve secretly gave $16 trillion dollars in bailouts to the big banks.
- How Market Cap ACTUALLY Works
- Took advantage of the dip to finally get the remaining .18 I needed for 1 ETH
- The typical crypto Redditor
- I have released a more powerful version of my crypto algorithm that places trades based on daily news sentiment, and it's all open source
- Can someone recommend me a cryptocurrency subreddit that doesn't try to earn moons all day?
- Friendly reminder on dip buying strategy and making REAL money in crypto
- For long term gains, buy for tech and not hype
- I'm high right now, and I got a brilliant idea!
- VeChain
- Reducing brave rewards is a dumb move
- Seeing posts on this sub made me realize people are stupid
- Update: My polymath tokens are recovered :)!
- Always, always rely on the madness of crowds
- PSA: Taxes DO NOT Work the Same Way With Crypto as Stocks... and Your Accountant Might Be Losing You Money
- Lesson learnt from the 2017/2018 crash that keep me sane nowadays
- I want you to get rich.
- Thoughts on a ‘life changing amount’
- How your hard wallet works : a simple explanation.
| Daily Discussion - April 24, 2021 (GMT+0) Posted: 23 Apr 2021 05:00 PM PDT Welcome to the Daily Discussion. Please read the disclaimer, guidelines, and rules before participating. Disclaimer:Though karma rules still apply, moderation is less stringent on this thread than on the rest of the sub. Therefore, consider all information posted here with several liberal heaps of salt, and always cross check any information you may read on this thread with known sources. Any trade information posted in this open thread may be highly misleading, and could be an attempt to manipulate new readers by known "pump and dump (PnD) groups" for their own profit. BEWARE of such practices and exercise utmost caution before acting on any trade tip mentioned here. Please be careful about what information you share and the actions you take. Do not share the amounts of your portfolios (why not just share percentage?). Do not share your private keys or wallet seed. Use strong, non-SMS 2FA if possible. Beware of scammers and be smart. Do not invest more than you can afford to lose, and do not fall for pyramid schemes, promises of unrealistic returns (get-rich-quick schemes), and other common scams. Rules:
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| Posted: 23 Apr 2021 07:49 PM PDT And then we have SEC who sued Ripple for selling an "unregistered security". Why aren't the SEC suing the banks and the government for the bailouts, especially when these are the big banks that don't need them? Oh wait, SEC is part of the government. When you hear about some criminal with a stolen suitcase of cash no one cares. Meanwhile, talk about carrying stolen bitcoin and monero and now people hates crypto for money laundering, and the government works extra hard to crack down and put regulations whenever possible. It's a double standard. And they let the banks launder $2T a year. The government is fucked. [link] [comments]  | ||
| Posted: 23 Apr 2021 07:24 AM PDT
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| Posted: 23 Apr 2021 09:44 PM PDT Ethereum, you've clearly won, my heart. When you start, to take a dip, you flip the script and right the ship Despite many coins down 30 percent, not far from your ATH is where you've went. And where you'll go, we only know, it will bring us joy, whether fast or slow. And here I send, this ode to you, so others may know the truth That Ethereum, at the very least, is one enticing, sexy beast [link] [comments]  | ||
| Posted: 23 Apr 2021 09:15 AM PDT One of their tips: "Keep the majority of your crypto offline in a hardware wallet. Only keep the funds you need for trading and other activities on Kraken." The fact that they want people to get crypto off their platform is an indicator that they are customer-centric. They'd benefit if people kept it there because they could use customer's crypto to stake it themselves and make a wagonload of money. It's good for the crypto space that we have exchanges that are doing their best for customers. We win, they win. I doubt Kraken is perfect, because who is? They are trying, and that's what matters to me. I'm not sponsored by them, check my comment history, I'm just a random customer. I am currently using Binance US, Coinbase Pro, Voyager as well, so if you have questions about them, I'll answer what I know. Side note if Kraken is reading this: Please allow us to do ACH deposit! :) [link] [comments]  | ||
| Posted: 23 Apr 2021 06:32 PM PDT If you're basing your investing decisions on the reassurance of random people on the internet you probably: a) don't actually understand what you're putting your money into, so don't have faith in the investment long-term or b) have more invested than you're able to lose, so are panicking and looking for answers (PS. nobody has the answer). In either case, you should probably downsize your position [link] [comments]  | ||
| Posted: 23 Apr 2021 11:19 AM PDT
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| Posted: 23 Apr 2021 11:21 AM PDT Saw a guy thousands of upvotes and awards for trying to use Market cap to explain things. The thing is he used it incorrectly. I'm going to go ahead and explain how it actually works. EDIT: I have went ahead and added a non-Dogecoin example of this to show this applies to all crypto - not just Dogecoin. u/RFV1985 assisted with providing non-Dogecoin example market cap comparisons can be applied to any cryptocurrency- however he and many try to use it to discredit Dogecoin as an example - so will I and you how to correctly use it. First - let me clear up some misconceptions that the guy used in his post 1) Economically speaking Dogecoin can rise to whatever value the market dictates based off of supply and demand. As long as demand out paces the supply then the value will rise. - this apples to all cryptocurrency 2) Mathematically speaking market cap = price multiplied by supply MC (Market Cap) = P (Current Price) x S (Current Supply) HOWEVER - This is economics- not pure straight math. The order is important - The price or supply have to change FIRST - and THEN you get the market cap. 3) YOU CANT CHANGE ADD OR DECREASE MARKET CAP TO GET A DIFFERENT PRICE - MARKET CAP IS NOT A MANIPULATABLE value you can only change the price and supply. The price and supply change the market cap - completely different. The reason for this is because Price and supply are independent variables and market cap is a dependent variable. What this means is that supply and price can increase or decrease independently, but market cap cannot. he cannot mathematically say price = market cap / supply and then try to change market cap to change the price because market DEPENDS on the price and supply 4) *MARKET CAP DOES NOT MEAN TOTAL AMOUNT OF MONEY IN THE SYSTEM - A 6 billion dollar market cap does not mean there's 6 billion dollars in the system. It means that the entire supply is "worth" 6 billion at the current price. people get confused so I wanted to clarify that. Simply adding money to the system does absolutely nothing to affect market cap in the same way it does not necessarily change the price/demand. The only two variables that change the market cap are price and supply nothing else can change the market cap. 5) People use the "unlimited supply/infinitely being mined" argument as a way of saying the supply will continue to increase and therefore the market cap will continue to decrease and therefore the price is unsustainable. That is completely incorrect - yes there are 5.25 billion per year - but when taken into perspective with fiat currency - this number is extremely small. Dogecoin is indeed inflationary, but in the span of human life, Dogecoin is not infinite. In order to have an infinite supply requires infinite time. It would take 360 years for the supply to reach 1 trillion dollars. Which is less than the total supply of the US dollars fiat paper supply - for comparison. I will take this guys original point and explain it correctly. - his point is that based on market cap Dogecoin cannot hit $10 or 100. He used market cap Incorrectly when making his argument. I also see people asking what's stopping Dogecoin from going to bitcoin levels? Well, The short answer is the supply of Dogecoin is high relative to the supply of bitcoin. Dogecoin has a current supply of 128 billion, which is why the price is lower and harder to change in value. It is easier for bitcoin to rise $1 in price because the supply of bitcoin is so low and the supply of Dogecoin is so high. It doesn't mean that Dogecoin can't rise in price - just that it's harder. This is the long answer. First, It is important to note that demand does not necessarily equate to adding dollars to the system in 1 to 1 ratio. Demand can increase without ever having to add money into the system, however, adding new money into the system does help. I see people saying Dogecoin requires X million dollars per minute to account for the increase in supply. That is just completely wrong, and not how demand works. Increased Demand just means more people willing to trade Dogecoin at a higher price than people willing to trade at the current price. No net increase in fiat currency needs to be added in order for demand to increase. Despite not having a capped supply, using the current supply known, as well as the mining rate to account for new coins entering - you can make comparisons to other cryptocurrency to get an idea of the demand required in order for Dogecoin to reach a certain price. The way to do this is through market cap comparisons Market caps REAL use is a comparison tool. It's used to compare how successful a market is compared to other markets. If Dogecoin were to reach $1 today it would have a market cap of about 128 billion dollars ($1 x 128,495,957,919 circulating supply). Bitcoin (the most successful cryptocurrency) currently has a market cap of approximately $898,761,019,333 (~ $900 billion). This means that at $1, the total supply of Dogecoin would be "worth" about 1/7th of Bitcoins total supply. The take away from this comparison is that in order to reach $1 Dogecoin would require approximately 1/7th the current demand of bitcoin due to the differences in supply between Dogecoin and bitcoin. This is definitely not impossible, and an achievable goal. If Dogecoin were to reach the demand bitcoin has currently - its price would $7. Since bitcoin is the highest performing cryptocurrency, $7 dollars is the most realistic possible goal at current market conditions. Anything past $7 dollars per coin means that Dogecoin is reaching uncharted territory for cryptocurrency as it will have surpassed bitcoin. Now for the hypothetical extension of this comparison. Everything after this point is hypothetical since we don't have a true comparison available in the market The estimated supply of the US dollar is about $2,000,000,000 (2 trillion), thus the market cap of the US currency is $2 trillion. If Dogecoin were to reach the equivalent market cap ($2tn / $128bn), the price per Dogecoin would have to be $15.60, thus matching the entire short-term US currency (M0 money supply in economics). This is definitely not impossible, but it is highly highly improbable to reach such value any time soon. If that were to ever happen, it would take years. Now, the entire supply of the entire worlds fiat (short-term liquidity / paper) currency is $37 trillion. You can apply the same logic from above and see that the value of Dogecoin would have to be $288.60. If it was valued any higher than that amount, Dogecoin would be "worth" more than the entire world's short-term liquidity currencies combined. It could technically go past this point, but what that would mean is that the economy behind Dogecoin would be stronger than the entire global economy of today. At that value you wouldn't even compare it to the dollar anymore because it already surpassed all fiat currency. It's not impossible- but is is highly unrealistic to pass that point. It is important to note that this number is not static. Which means if the market conditions change such as an increase in supply or change in price the numbers will change. Here is another real world example: - not mine but I wanted to add it case it gets lost in the comments Thank you u/RFV1985 This can also be explained with a real world scenario. As of the time I'm writing this, I am going to pick a low ranking alt...let's use SPI (ranks #300 on CoinGecko). It has a $132M market cap. If I go to KuCoin, I see it currently trades for $141. Based on the order book, if I were to place a $1k market buy order, the price would then immediately jump to about $144 based on the supply of the order book. So my $1k market buy order drives the price up by $3. So I effectively increased its market cap by ~$3M with just a $1k order. So clearly, market cap does not equal money in the system. That is how you CORRECTLY use market cap Thank you for coming to my Ted Talk [link] [comments]  | ||
| Took advantage of the dip to finally get the remaining .18 I needed for 1 ETH Posted: 23 Apr 2021 09:00 AM PDT Something I've learned over the past few years dealing with crypto is to pull your profits and keep them in stable coin or whatever currency you're buying with in order to take advantage of big dips like we've seen over the last few days. I'm not a big investor but my one full ETH was made possible by doing this. When you're pulling $20 here and $50 there it doesn't seem like a lot, but when we're bullish like we have been for the last year or so it really adds up. It's always good to have some sort of stable crypto/fiat to use when the market tanks. The people who make the most off this buy when everyone else is selling. Something to think about. [link] [comments]  | ||
| Posted: 24 Apr 2021 12:00 AM PDT
Did I miss anything else fundamental? Edit: Keep em coming [link] [comments]  | ||
| Posted: 24 Apr 2021 03:44 AM PDT I have recently shared my latest project with you guys - a trading algorithm connected to Binance that buys cryptocurrencies based on how positive the daily news sentiment is for the top 100 crypto news feeds. With the help of some talented Redditors and GitHub contributors, the algorithm is now more powerful than before, allowing you to further configure how you would like it to trade. Many of the improvements made, were actually suggested by you in the previous post, so thanks to you all, there is now a better news algo that we can all use! The algorithm analyses the news sentiment from biggest crypto news sites, and automatically decides what coins to buy or sell based on how many times a coin is mentioned across all headlines, and how positively or negatively it's depicted in the news headlines. I've been working on this project for about a month now, and I can say that the bot is now in a state where it can be used and it's stable! I haven't yet tested it on the mainnet but I will put together some reports on its performance on the testnet and will post on here. Here is the link to the open-sourced project: https://github.com/CyberPunkMetalHead/Binance-News-Sentiment-Bot And here is a step-by-step guide if you would like to set the bot up yourself but you need some more guidance on how to do so: This is a guide on how to set up the base version, not including the latest updates, for a guide on how to add additional featured to the bot please see: https://www.cryptomaton.org/2021/04/24/improving-binance-news-trading-algorithm/ If you do follow either guides, I suggest working off of the code posted on GitHub as that contains the updated latest version of the algo. Happy coding! [link] [comments]  | ||
| Can someone recommend me a cryptocurrency subreddit that doesn't try to earn moons all day? Posted: 23 Apr 2021 08:28 PM PDT Every other post is directly related to moons. The rest of them are parroted advice about Dogecoin or not selling low. Shit we know everyone agrees with gets upvotes, big surprise. So while I'm trying to figure out what to invest in next, I get bombarded with people either trying to earn moons or coming up with new ways that should be implemented to earn moons. It's so obvious it's stupid. If you thought reddit was people spewing canned bullshit for upvotes before, why not pay them to come up with new and clever ways to spam bullshit. [link] [comments]  | ||
| Friendly reminder on dip buying strategy and making REAL money in crypto Posted: 23 Apr 2021 12:40 PM PDT There's a lot of talk about DCAing (dollar cost averaging) and "buying the dip" so I wanted to share a few strategies that I rarely, if ever, see posted on here. The thing is, it makes almost no sense to just tell people to DCA into markets or to "buy the dip." There are nuances that make or break the strategy. First off - YOU CAN DCA OUT OF A MARKET THE SAME WAY YOU DCA INTO IT. But more importantly, you can take profits, and then reinvest them during the dips. And rest assured, even if the market doesn't crash, local corrections ALWAYS happen. Bitcoin can reach 10 million USD by the end of the year, and on the way there we will still see plenty of 10-30% corrections. What you should be asking yourself is are you ready to act when these corrections happen? And are you ready to act when your random altcoin goes 2x or 3x? Here is some food for thought:
But what does buying a dip actually look like?
Buying the dip in bearish momentum causes people a lot of anxiety because we all think "what if it keeps crashing? What if this is the end of the bull market?" Here's the thing about the bull market ending... The same way that local dips ALWAYS happen in a crazy bull run, local pumps ALWAYS happen in a bear market. Often times we call these a "dead cat bounce." And this is where we make our money when there is a lot of bearish momentum. I'll give you an example that I played a few months ago with XRP. I bought XRP at an average cost of about 55 cents. When the SEC news hit, I sold my entire stack at 48 cents for a sizeable loss. But here's the catch. It kept dipping, in fact it crashed all the way to like 17 cents. And I bought the dipIt went back up to about 36 cents and I managed to sell the top of that wick because I was watching the charts all day at that point. Then it crashed back down. While most people were freaking out about losses, I turned my loss into big gains by buying the dip... AND THEN SELLING THE DEAD CAT BOUNCE. Why did I sell the bounce instead of just holding? Bearish momentum. The sentiment change about XRP and its lawsuit + exchange delisting meant that the opportunity cost of holding it was too high, especially when I just made thousands of dollars on riding the dead cat bounce upward. "But /u/alexisaacs, if you had just held XRP for 5 months you would have made even more money!" And therein lies the mentality that loses people their life savings. Yes, eventually XRP pumped to $1.70+ But what guarantee did I have that the lawsuit would go well? How could I guess the bull market would continue? How could I know that we'd have an alt season? The risk vs reward was too much, but I knew ONE thing for certain. IF XRP EVER PUMPED AGAIN, IT WOULD BE IN AN ALT SEASON WHERE EVERYTHING PUMPS. So I sold the dead cat bounce, bought a ton of other alts + eth, and made way more money holding those than I could have by just holding XRP and "buying the dip." tl;dr:
Lastly...
EXAMPLE: You buy Harmony One @ .01. You sell Harmony One @ .02 Harmony One keeps pumping to .05 You start panicking, but instead you should pay attention to the chart because... Harmony One eventually has a local correction to .03 Yep that's way above what you sold it for but... Buying at .03 is buying the local dip, and in a bull market it could easily pump back up and even if it never goes above .04 again, you can sell at .04 and enjoy 33% gains. I hope this all made sense and helps some traders. Just thought I'd share a strategy I rarely see posted in the daily thread here. [link] [comments]  | ||
| For long term gains, buy for tech and not hype Posted: 23 Apr 2021 04:07 PM PDT Stellar lumens is one of the cheapest and fastest ways to transfer money across the world with no middleman, banks across the world are using xlm to transfer millions cheaply and securely. Whilst this was previously expensive before crypto existed, with crypto this has become much cheaper. Nano is completely free and almost instant and thus the use case for future adoption is very promising, though as of now it lacks adoption Monero is completely untraceable providing anonymity to transactions which is hugely important for people living in repressive regimes across the world, people wary of government tyranny and many other valid reasons. Dash and zcash are also privacy coins though don't have the same level of adoption and thus aren't as good long term projects. These are examples of working products with real use cases that are proven to work and thus make excellent long term investments. Ethereum is the backbone of hundreds of different block chain services/products/ decentralised applications. Litecoin has stood the test of time as a cheap secure coin for transactions and will have added privacy soon. Cardano is an 'Eth killer' that's is faster, cheaper and doesn't need mining. It also has smart contracts coming soon and is basically eth on steroids and was built by one of the eth Co founders. Now compare this to dogecoin, safe moon, cum rocket ( ͡° ͜Ê– ͡°) or whatever 'moon' coin that was released today, what do any of them do? They are essentially a ponzi scheme and as they fulfill no purpose (or none that other coins can do better) they won't stand the test of time and people will be left holding bags. What's I'm getting at is do your research and buy based on the tech and fundemantals, not hype, as this is what will grant you successful investments long term. If you want to buy doge or safe moon go ahead, just treat it as a bit of fun and don't yolo your life savings in lol P.s I don't own all the coins I have examples of and am not trying to shill, just taking a few examples to get the point across [link] [comments]  | ||
| I'm high right now, and I got a brilliant idea! Posted: 23 Apr 2021 06:17 PM PDT I just got off my phone, turned on my laptop for the first time in a while just to type this up, so hear me out. Let me first define a term not everyone may know: Decentralized Autonomous Organizatoin (DAO) - as defined by Wikipedia: is an organization represented by rules encoded as a computer program that is transparent, controlled by the organization members and not influenced by a central government. (It's basically a company, but without the C-Suite) My Idea: There should be a DAO which its primary role is to invest in the cryptocurrency market. It is governed by a combination of code and its governance token holders. Once the token holders vote on various projects, it deploys its tradeable token to buy the different cryptocurrencies. The tokenonomics can be discussed in more detail. Why is this important: In the traditional financial world, there are hedge funds, venture capital, private equity, mutual funds, family offices, and many more different ways rich people invest their money. These same rich people are currently trying to enter the crypto space. Currently, wealth management firms are gathering all their abled bodies to find a way to get the SEC, and more largely, the US government, to allow them to buy, sell, hold, and trade crypto for their investors. These slow-moving giants are panicking. How do we know? Even JP Morgan is trying to enter the space - the very bank which its CEO, Jamie Dimon runs. Jamie Dimon has historically been a super bear when it comes to Bitcoin - even calling it a fraud.. Mr.Dimon if Bitcoin is a fraud, why is your company trying to gain exposure into the market? Wouldn't that be against the best interest of your investors, who you serve? We can take some of that market share. My Question: Do you know of any projects that is currently trying to provide wealth management for its investors? If so, let's talk about it. If not, could someone in this subreddit start one? I'd love to be your first investor. Again, I'm high as a kite right now, so this may all be garbage-talk. I'll see tomorrow morning. [link] [comments]  | ||
| Posted: 23 Apr 2021 11:15 PM PDT VeChain, bringin' a sea change Tsunami in the comments of the dailies Everyone bragging bout the rises like they hit with VeChain rabbies This shit is crazy.... but maybe... they onto something cause its potential does seem amazing And its rises have been pretty sustaining So my anger, has turned to respect and I'm embracing That VeChain's love probably isn't waning So I'll buy a few coins.... and start the waiting To see if it moons And if not? Its ok: I never bet more than I can afford to lose [link] [comments]  | ||
| Reducing brave rewards is a dumb move Posted: 24 Apr 2021 01:33 AM PDT This is not just speculation, but if you calculate the maximum amount of BAT you would get in a month using the new rewards system, you would max out at 3 BAT/month. 20 ads a day is the maximum number of ads a user gets on Brave, this is to demotivate usage of unethical means of obtaining and concentrating brave rewards. Now, let us assume that you get 20 ads a day which is not the case for most users as 20 is the cap or maximum ads you might get but not a guaranteed number 20 ads times 0.001 BAT/ad as per the updated rewards system gives 20*0.001, or 0.02 BAT/day For a whole month of 30 days on an average, 0.02 BAT/day * 30 days, or 0.6 BAT/month This is not too big a deal for the users who have been using brave for a long time, but it does create problems in getting new users to switch to Brave. Decreased incentive to 0.6 BAT which amounts to $0.666 as of this time. This is not enough for new users to sign up with Brave, as privacy and open source is not unique to Brave, but being rewarded for ads is. I think there would be a huge reduction in new users signing up for Brave and leaving the browsers they have been using for years, all for 0.6 BAT [link] [comments]  | ||
| Seeing posts on this sub made me realize people are stupid Posted: 23 Apr 2021 05:42 AM PDT First of all, in this space it's very common to see 20% variation in a couple of weeks, and we keep telling you that it will happen sooner or later. Now what I spy with my little eye this morning? Suicide hotline posts, panic posts, etc. And for what? A 8% dip... Second thing: we regularly see posts saying to not get a loan to buy crypto??? How can you be so stupid to get a loan to buy something as risky as crypto? Every 2 posts in this sub is telling you not to invest more than you're willing to lose, how did you miss this information? Sorry for this post, but seeing all of these posts make me lose faith in humanity. [link] [comments]  | ||
| Update: My polymath tokens are recovered :)! Posted: 23 Apr 2021 11:47 PM PDT TLDR: Celsius recovered the tokens which I sent to a wrong adres. woohoo! So around 6 weeks ago I accidentally bought Polymath tokens in Binance instead of Polygon (MATIC) which I actually was intending to buy. I wanted to transfer it to my Celsius wallet for the interest. After doing so and noting that the tokens did not arrive I checked the transferring receipt from Binance and noted the horror: I had transferred Polymath tokens to a Polygon wallet address from my Celsius (Celsius has no support for Polymath tokens at all) After reaching out to both parties, it became clear that I needed to ask Celsius to check if they could recover. Since both tokens are ERC-20 it was in theory possible. Eventhough the support is very busy and requires some patience, they were able to recover it within a reasonable time and they returned my Polymath without charging any gas fee. Hence I would like to thank both Binance: for providing a receipt everytime you transfer something. And Celsius for providing a service which they could have chosen not to provide if they wanted to. [link] [comments]  | ||
| Always, always rely on the madness of crowds Posted: 23 Apr 2021 07:17 PM PDT Simple as that. It's always happened, it will always keep happening. Rely on it, it will never change. Do the opposite of the crowd. When they sell and it dips, buy. When they buy and it rises, sell or hold. There is no real science to it. TA and all the other bullshit. Fibonacci this, RSI that, bearish divergence this... they know nothing and they know it too. When a crowd moves one way, go the other. Good luck all. [link] [comments]  | ||
| Posted: 23 Apr 2021 04:21 PM PDT Edit: This applies to US taxpayers. Many tax accountants are treating crypto the same way they would stocks. Unfortunately, this is wrong, and if you've ever sold a coin at a loss then quickly bought back in... it REALLY matters. With securities, if you sell at a loss then rebuy within 30 days you have performed a "Wash Sale" and your tax obligation will be more than just any gain minus loss. This rule does not apply to crypto. With crypto, you can simply add your total gains and losses together. From the IRS documentation: "For federal tax purposes, virtual currency is treated as property. General tax principles applicable to property transactions apply to transactions using virtual currency." See page 25: https://www.irs.gov/pub/irs-pdf/p544.pdf Additional information in the links below: See Also: https://www.irs.gov/pub/irs-drop/n-14-21.pdf Definition of wash sales: https://www.irs.gov/publications/p550#en_US_2020_publink100010601 Edit: This is financial advice. I am not your financial advisor or a fiduciary nor do I offer you any evidence that I am qualified to offer this advice in any way. I am writing under a pseudonym on Reddit. Please stop saying you aren't giving financial advice under everything. [link] [comments]  | ||
| Lesson learnt from the 2017/2018 crash that keep me sane nowadays Posted: 24 Apr 2021 03:21 AM PDT I'm posting this as I see so many comments in the daily of people genuinely fearful and distressed and the recent price drop. Firstly, there is no point asking others what's going to happen with the price eg is this it are we crashing? Or is this just a correction and still heading upwards? No one will actually be able to answer your question with certainty. In addition, what you are actually looking for is reassurance. What you will find is people answering with opinions that can be like an echo chamber. The more people that are repeating the same kind of message creates this false sense of certainty that can actually make you believe something based on very little. Secondly, it's easier said then done but you need to keep your emotions in check. My first experience of crypto was investing 2017/2018 and rode it up and back down and I made many mistakes and bought/sold based on emotion. Very rarely is this going to be a sensible decision. If you struggle with this, there are options, invest less and make sure you are aware and prepared that you may lose this money entirely or at the very least it could crash down 80-90% and can you tolerate this? Thirdly, so many people want to get rich without putting in the time and effort. I'm not judging, I was the same. I did this 3-4 years back and went after moonshots left right and centre. I put months salaries in NEO at $150, GVT at $20, ICX at $5 etc. A simple look at the charts will tell you that I spent years down 90-95% because of these decisions. The vast majority of people (including me) don't have the skill, knowledge or time to successfully day trade or make money from short term trades. Most of us need to invest over the longer term and ride out the short term volatility. As a result of this, I learnt I need to weight my portfolio heavily in BTC and ETH. I do this because I would always encourage people to hold long term like I did with NEO, ICX and GVT etc as they return or are well on there way to ATH. However, some if not a lot of the alts you see are shitty projects with shit fundamentals and will be eaten up over the years. Even alts with massive support and popularity disappear, look at Substratum. So blindly holding really depends on what you are holding. I got lucky with my alts (except substratum :() In BTC and ETH we trust, I think the combination of tech, future adoption and support make these the safest holds you can have. I hope this helps even a few people [link] [comments]  | ||
| Posted: 23 Apr 2021 06:37 AM PDT This has taken a long time to feel. But I want all of you to get rich. BTC purist? Get those gains, poppa hodler! ETHhead? May all your decentralized tech change the world. Oh, you're into ADA? To the moon. DOT? ATOM? MOONMOON. VET, FET, VRA. MOON MOON MOON! DeFi cloud storage? MOON for all those coins. NFTs? Fuck it, I hope the artists you support AND you make incredible profits. I used to want some projects to fail because I got burned by them. But at this point, I just want us to all make gains. We're humans, many of us are probably looking for financial freedom or financial security through investments. Many of us are probably making longshots with a dream of one day being able to better our lives or our families. We're just people. Hell, you hold DOGE? I hope that even you make great gains. You hold some hyper-deflationary hype coin like SAFEMOON? I hope you 3x your initial. I WANT YOU ALL TO SUCCEED IN YOUR FINANCIAL GOALS. I understand warning others about the age-old traps. We need the old heads to give us the sage advice when it's warranted. But from now on, I'm committed to not laugh at or cheer on our brothers' and sisters' losses. We're just people. Missed gains will still hurt, tanked investments will still devastate. But let's let the prices do the emotional harm, not us. In the Shakespearean words of the contemporary poet DJ Drama: we in this bitch together. [link] [comments]  | ||
| Thoughts on a ‘life changing amount’ Posted: 23 Apr 2021 11:38 PM PDT Some, if not most of us are not already wealthy. If you're like me you make (much) less than $50k/year working. We all dream of a life changing amount of money, but I don't often hear the reality of what it takes to get there. Right now I have more riding on crypto than I ever have and I can tell you how hard it is to watch $1,000 move up and down and that isn't a life changing amount (for me). Some people have tens of thousands, hundreds of thousands, maybe even millions riding this roller coaster and I genuinely can't imagine what that's like. Dips like yesterday are pretty normal, so if you're in this for a huge amount that changes your life, you have to be ready to watch it fall as much as you're ready to watch it rise. It's gut wrenching, but if I've learned anything from selling at a loss in 2018, it's worth it. Just hold on, and set goals for when it's time to get off. [link] [comments]  | ||
| How your hard wallet works : a simple explanation. Posted: 23 Apr 2021 03:39 PM PDT
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