It depends on the person you ask, I think judging it day by day isn't a good measure. I think over all trends such as bull and bear are more important. The crypto market has traditionally seen a selloff early in the year, a lot of people call this taking profits(they sell 5-10% of their portfolio). I expect in the next two months we will see an upward trend and another rally, my guess is the market will cross 1 trillion within 6 months and the overall cap will double this year to 1.6 trillion if not more. Still time to get in early!
Cryptocurrency
- Thread starter Playboi Carti
- Start date
It depends on the person you ask, I think judging it day by day isn't a good measure. I think over all trends such as bull and bear are more important. The crypto market has traditionally seen a selloff early in the year, a lot of people call this taking profits(they sell 5-10% of their portfolio). I expect in the next two months we will see an upward trend and another rally, my guess is the market will cross 1 trillion within 6 months and the overall cap will double this year to 1.6 trillion if not more. Still time to get in early!
Not really when you consider the coins that are “out there” but not in circulation. Dump some of those coins into circulation and the price drops and the market cap drops. It’s too easy to change. Coins who are centralized by the developers (holding a bunch of them) are scary because if they dump those into circulation the price could really fall.
L
LincolnWay187
Guest
I just use it to see where the market is at. I don't think it's accurate for coins with low volume.
Am I going to get in trouble if I don't pay taxes on gains? I sold half a bitcoin this year when it was around $6,000
. I actually do intend to pay the taxes on it, but am just kind of curious what the IRS is up to when it comes to crypto.
Last edited:
How does one pay taxes on their earnings? And will I get in trouble if I don’t pay taxes on the earnings?
Good question, I haven't made a Million yet but I did see a 2900% ROI on my initial investment last year.
I got my start from a buddy who told me in April of last year you need to purchase Eth, Bitcoin, Litecoin, Monero, Digibyte, Golem, and Factom and you need to do it now with what ever money you have laying around because this market is about to explode.
Obviously not everyone is going to have that kind of luck with someone stepping in and saying this is exactly what you need to buy. Since then I have developed my own strategy:
Join as many crypto communities that you can because there are smarter people then you that are willing to give out advice on which projects they see doing well. Then do your own research, figure out is the blockchain unique - For instance Monero vs Verge, Monero is an established name with a great community, has built a name for privacy and continues to innovate. Verge essentially is attempting to do the same thing but with out any of the above.
What is the back round of the dev team - I look up everyone's name listed on a whitepaper to see if what do they bring, is it someone who is well respected in the community or have had success in the startup process. Do they surround themselves with a diversity of skills to handle social media, the business end, do they have a lawyer on staff..
Finally look at the long term goals - Is this something that has the potential to be around in 10 - 15 years. You don't want to invest in the myspace of cryptos. Often times these are called moon and mars shots.
Use this to information for your initial investment, then set a specific number in your head. Once your book has hit that amount take profits and reinvest. I recommend picking one ICO and then the rest should go into known projects. Example I sold half of my Eth when it hit $300, I took half of the profits into an ICO and the rest I put into coins that had a conciseness among the crypto communities as projects that were going to have a high upside. This has allowed my crypto book even during down turns to have an upward trend overall.
From then on its rinse and repeat.
TLDR: Join social groups with other investors, research, set goals, diversify and repeat.
I would like to point out I have no degree in this field, just an enthusiast.
Taxes the bestest of subjects. First I should say always pay your taxes.
I know there is software that you can download your transaction history into and will kick out the amount you should pay in taxes. Some services are pay to play others are free. I currently use
https://cointracking.info/
A good article if you are looking to calculate yourself:
https://www.forbes.com/sites/greats...ut-taxation-of-cryptocurrencies/#50e6c8261346
Lastly contact who ever does your taxes for you, they have encountered this question at this point.
I wondered how you track your coins. I just use an app called CoinCap and have a notebook to track my progress.
I use blockfolio to track my buys and sells across exchanges. Great app and has real time price adjustments.
Interesting. I need something like this. Started on CoinBase for BTC and ETH and invested in a Nano S hard wallet, but then added Binance to get access to XLM and XRP. Would be nice to have a tracking app that was independent of the exchanges or wallet.
Invest $2 million. At the end of the day you'll have $1mm left!
