I'm thinking about cashing in all my other cryptos are going all in on Chainlink. Still early and think we will see it in the 100s soon. I'm thinking it's maybe too late to hit it big on Bitcoin or ethereum.

I'm looking to make around $500 on doge assuming I cash out within the next day or so (leaving the initial position in place) while its at one of it's peaks.

What coin(s) would you all recommend sticking this on? I feel I'm a bit late on this whole crypto game to make any real money.

I see DGB is still pretty low cost, Litecoin seems interesting. Any suggestions?

Been all in on $AMP since it was below $.01. Definitely take a look at it before Consensus at the end of the month. It's at $.07 now and I think it will 10x in the next 6 months. It is the best use of crypto payments moving forward and will compete with Visa/Mastercard for this space. The main exchange is Gemini at the moment and it is listed on Coinbase Custody already. I think it gets listed on Coinbase before EOY. It is integrated with Link and has lots of partnerships coming/already in place.

mrmill3218 said:

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I'm thinking about cashing in all my other cryptos are going all in on Chainlink. Still early and think we will see it in the 100s soon. I'm thinking it's maybe too late to hit it big on Bitcoin or ethereum.

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It's all relative really, since you can buy fractions of any cryptocurrency. So I do not think it's too late to put money in BTC and ETH. They are both expected to grow far beyond where they are at now in the next 5-10 years.

XXXVII said:

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Pookers said:

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I'm looking to make around $500 on doge assuming I cash out within the next day or so (leaving the initial position in place) while its at one of it's peaks.

What coin(s) would you all recommend sticking this on? I feel I'm a bit late on this whole crypto game to make any real money.

I see DGB is still pretty low cost, Litecoin seems interesting. Any suggestions?

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I would put it in ADA. It seems to have a solid development team. The CEO was one of the co-founders of ETH, but he's making a better version of ETH from scratch with ADA.

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ADA Cardano?

mrmill3218 said:

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I'm thinking about cashing in all my other cryptos are going all in on Chainlink. Still early and think we will see it in the 100s soon. I'm thinking it's maybe too late to hit it big on Bitcoin or ethereum.

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While others may disagree, I think if you have the personal fortitude to YOLO into a single coin then you should knock yourself out. Have a plan and execute it though.

I'd recommend you look at different coins and see if they tend to move with LINK or not. Last thing you want is to jump out of a huge profit right into another coin that'll fall off the same way.

The classic hedge is a stablecoin like Dai or USDC or Tether. I like trying to play CELO since it often goes opposite. Although lately it's had some big swings exactly like other coins so that can be a challenge. Or you could fall back on BTC since it's likely %-wise more stable.

Just do some homework and again, have a plan. Do you want to monitor it? Set an alert and sell at 3AM? Hold for months? Is there a backup plan if LINK goes down in flames? What if you miss your exit and it comes back down?

Yes

XXXVII said:

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Yes

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Awesome, thanks.

I really want to move my ETH into ADA, but would I be taxed on that at my income tax rate if I swapped it on an exchange? I have held my ETH for less than a year.

XXXVII said:

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I really want to move my ETH into ADA, but would I be taxed on that at my income tax rate if I swapped it on an exchange? I have held my ETH for less than a year.

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Yes.

Quote:

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If you've owned your coins for less than one year before spending or selling them, any profits would be short-term capital gains, taxed at your normal income tax rate.

When you convert or exchange cryptoswapping bitcoin for ethereum, for exampleyou owe taxes on any gains you earn in the transaction. If you purchased $400 worth of bitcoin and used it to buy $1,000 worth of ethereum, you'd owe taxes on $600 in realized profit, even though you're just exchanging one crypto for another.

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All based strictly on what I've been reading. ADA continues to gain steam and XRP is due to be done with its lawsuit amd could break out. DGB is a break out any time now

XXXVII said:

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I really want to move my ETH into ADA, but would I be taxed on that at my income tax rate if I swapped it on an exchange? I have held my ETH for less than a year.

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YouBet is correct.

I accepted the tax hit due to possible overall gains...short term and moreso hodling.

2.6 ETH $2,400 = $6,240
$6,240 .11 (ONE)(bought recent dip to add to my bag) = 56k


If ETH gets to $15k/token 2.6 = $39k
ONE (56k) just needs to get to .75 and I made $42k amnd expectations are a $1 One token this cycle.


Put my LINK into more ADA.
Used the math of LINK reaching $250/token vs $2,700 of ADA @ $1.2 = 2,250
ADA could/should reaxh $15.

Dumb question(s). I'm using uphold to trade my cryptos. When the tax man comes calling next year does uphold send me a statement with all my gains / exchanges and make it easy to figure out taxes or do I need to write this stuff down somewhere and manually calculate my taxes?

How the hell does the government know when I exchange one crypto for another? Does uphold report this to the IRS?

They demand records direct from the exchanges.

Same way they know if you have a foreign bank account. Treaties to share info with the IRS/DHS.

For P2P transactions?

I don't really know.

So if you trade a lower coin, like litecoin, into a higher coin, like ethereum, it would be at a loss and tax deductible?

One for you, nineteen for me.

Ledger didn't mess around with shipping. Found it sitting on the back porch this afternoon. Made it all the way from France in a couple days.

Rush Limbaugh said:

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So if you trade a lower coin, like litecoin, into a higher coin, like ethereum, it would be at a loss and tax deductible?

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It is based 9n taxable events and gains.
The coin doesn't matter. Invest $1,000 into ONE @ .13 and at .26 you take it out to put into something else. The taxable event was removing funds from one coin (closing your position) at a gain of $1,000. Putting that $$ I to any other coin doesn't make any difference.

Is it true that wash rule doesn't apply? So you could sell on a big drop to loss harvest and then buy back in right away?

Well...I'm a safemoon holder .... there goes any credibility I ever dreamed of having as an investor

TexasAg2017 said:

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Ledger didn't mess around with shipping. Found it sitting on the back porch this afternoon. Made it all the way from France in a couple days.

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Mine took nearly 2 weeks a few months ago

Crypto is treated as an asset in the tax code (and not currency), so basically apply stock trading rules to CYA.

I think the IRS is going to have a field day popping people trading crypto now that it's mainstream, new, and many don't understandably know the tax rules yet.

Personally, I have an open question on receiving crypto I'm running down right now. (Ex: There are 5-6 coins on Coinbase gifted to you for free if you listen to their 2 min video). These may be a taxable event when I thought it wasn't.

YouBet said:

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Crypto is treated as an asset in the tax code (and not currency), so basically apply stock trading rules to CYA.

I think the IRS is going to have a field day popping people trading crypto now that it's mainstream, new, and many don't understandably know the tax rules yet.

Personally, I have an open question on receiving crypto I'm running down right now. (Ex: There are 5-6 coins on Coinbase gifted to you for free if you listen to their 2 min video). These may be a taxable event when I thought it wasn't.

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But if you're trading crypto, your losses offset your gains. I don't understand why everyone is so afraid. You pay taxes day trading stocks and you pay taxes day trading crypto. Are there really people not expecting to pay taxes on their gains?

YouBet said:

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Crypto is treated as an asset in the tax code (and not currency), so basically apply stock trading rules to CYA.

I think the IRS is going to have a field day popping people trading crypto now that it's mainstream, new, and many don't understandably know the tax rules yet.

Personally, I have an open question on receiving crypto I'm running down right now. (Ex: There are 5-6 coins on Coinbase gifted to you for free if you listen to their 2 min video). These may be a taxable event when I thought it wasn't.

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I'm not too worried about those because they're such a small amount, and I assume coinbase would note those on the tax reports they create for you if they were taxable.

AgPrognosticator said:

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YouBet said:

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Crypto is treated as an asset in the tax code (and not currency), so basically apply stock trading rules to CYA.

I think the IRS is going to have a field day popping people trading crypto now that it's mainstream, new, and many don't understandably know the tax rules yet.

Personally, I have an open question on receiving crypto I'm running down right now. (Ex: There are 5-6 coins on Coinbase gifted to you for free if you listen to their 2 min video). These may be a taxable event when I thought it wasn't.

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But if you're trading crypto, your losses offset your gains. I don't understand why everyone is so afraid. You pay taxes day trading stocks and you pay taxes day trading crypto. Are there really people not expecting to pay taxes on their gains?

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Yes. We've had people on this board ask about this very thing and there are all kinds of financial articles out there emphasizing this because people just think crypto is an unregulated space. To some extent, you could argue this has been effectively true in the past because it was so niche it flew under the radar. Not anymore.

AgPrognosticator said:

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YouBet said:

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Crypto is treated as an asset in the tax code (and not currency), so basically apply stock trading rules to CYA.

I think the IRS is going to have a field day popping people trading crypto now that it's mainstream, new, and many don't understandably know the tax rules yet.

Personally, I have an open question on receiving crypto I'm running down right now. (Ex: There are 5-6 coins on Coinbase gifted to you for free if you listen to their 2 min video). These may be a taxable event when I thought it wasn't.

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But if you're trading crypto, your losses offset your gains. I don't understand why everyone is so afraid. You pay taxes day trading stocks and you pay taxes day trading crypto. Are there really people not expecting to pay taxes on their gains?

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If I had 10,000 yuan, and then converted it to 1,278 Euro's, and the Euro becomes 10% stronger over that time, the US government coming in and saying I owe them now taxes on the unrealized 155 dollar gain I still have in Euros is pretty BS (think I worked out the math right).

XXXVII said:

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YouBet said:

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Crypto is treated as an asset in the tax code (and not currency), so basically apply stock trading rules to CYA.

I think the IRS is going to have a field day popping people trading crypto now that it's mainstream, new, and many don't understandably know the tax rules yet.

Personally, I have an open question on receiving crypto I'm running down right now. (Ex: There are 5-6 coins on Coinbase gifted to you for free if you listen to their 2 min video). These may be a taxable event when I thought it wasn't.

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I'm not too worried about those because they're such a small amount, and I assume coinbase would note those on the tax reports they create for you if they were taxable.

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Have confirmed receiving rewards are a taxable event but there may be a minimum threshold before it triggers tax. CoinBase suggests this limit is >=$600. I haven't confirmed limit yet but I'm sure a CPA can confirm. Coinbase reports categorize these transactions as "Coinbase Earn".

All of mine are in 2021 so will be reported next year.

Champ Bailey said:

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AgPrognosticator said:

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YouBet said:

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Crypto is treated as an asset in the tax code (and not currency), so basically apply stock trading rules to CYA.

I think the IRS is going to have a field day popping people trading crypto now that it's mainstream, new, and many don't understandably know the tax rules yet.

Personally, I have an open question on receiving crypto I'm running down right now. (Ex: There are 5-6 coins on Coinbase gifted to you for free if you listen to their 2 min video). These may be a taxable event when I thought it wasn't.

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But if you're trading crypto, your losses offset your gains. I don't understand why everyone is so afraid. You pay taxes day trading stocks and you pay taxes day trading crypto. Are there really people not expecting to pay taxes on their gains?

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If I had 10,000 yuan, and then converted it to 1,278 Euro's, and the Euro becomes 10% stronger over that time, the US government coming in and saying I owe them now taxes on the unrealized 155 dollar gain I still have in Euros is pretty BS (think I worked out the math right).

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Well, crypto isn't currency in the US tax code so this example doesn't apply here.

Oh I understand. But it's still BS. Just because I decide meth isn't a drug doesn't mean people aren't going to try high off of it.