Official BGOL Crypto Currency Thread ★★★★★
- Thread starter Matt Beesy
- Start date
Yeah, it looks like a good time to buy some Monero
I guess. I was just confused because the way we sent or received money was from an overseas account. Wasn't sure they followed regulations. Plus some idiot so no and he's never received a 1040 form while participating.
I don't understand this, are the coins based in the US? Who sends you a documentation about how much you've made off the trades?
I wish there was a way to stash your BTC and drip feed them into your bank or something. Maybe a gift card or them throw away Visa cards or something. A phone card lol.
Regarding taxes, the IRS considers digital coins as an asset class, meaning they are subject to the capital gains rules.
So if you hold the coin for longer than a year it will be subject to the long term capital gains rate.
However if you buy, sell and cash out within a year they will be subject to short term capital gains rate which essentially is the ordinary income rate.
The IRS does not have the means to determine how much you are subject to since Polo and the exchanges don't provide that information,so most of this is self reporting.
HOWEVER....Coinbase and Kraken have your bank and your personal information. That's why they made you "verify" for higher limits, because the IRS can link you to your trading profits through those services.
So here's the deal: if after all your hard work you hit 1,000 BTCs, if you withdraw that cash to Coinbase the IRS may find out. Also your banks report any deposits over $15k...
If you truly want to remain off the radar you have to spend that BTC online or find a way to sell it for cash.
....or get creative... If y'all saw 'Dope' you know the angle. Create a hard wallet and set up a trust. The trust owns the wallet which contains the BTC, the trust takes a loan out for approximately the value of the holdings, you get the loan and payback the premiums by selling off BTC in Coinbase. That's your deduction.
Of course its more detailed than that but its the framework.
So if you hold the coin for longer than a year it will be subject to the long term capital gains rate.
However if you buy, sell and cash out within a year they will be subject to short term capital gains rate which essentially is the ordinary income rate.
The IRS does not have the means to determine how much you are subject to since Polo and the exchanges don't provide that information,so most of this is self reporting.
HOWEVER....Coinbase and Kraken have your bank and your personal information. That's why they made you "verify" for higher limits, because the IRS can link you to your trading profits through those services.
So here's the deal: if after all your hard work you hit 1,000 BTCs, if you withdraw that cash to Coinbase the IRS may find out. Also your banks report any deposits over $15k...
If you truly want to remain off the radar you have to spend that BTC online or find a way to sell it for cash.
....or get creative... If y'all saw 'Dope' you know the angle. Create a hard wallet and set up a trust. The trust owns the wallet which contains the BTC, the trust takes a loan out for approximately the value of the holdings, you get the loan and payback the premiums by selling off BTC in Coinbase. That's your deduction.
Of course its more detailed than that but its the framework.
I have a question for the fam. I currently have some XRP sitting on my ripple desktop wallet. If, in the future, XRP does increase in value and I want to cash out, how would go about that process? Would I have to Kraken or Coinbase, create an account on either of them, then convert the XRP to Bitcoin? is that right? Please help!
Yes! You would have to create an accnt on an exchange(Kraken/Poloniex or whatever) in order to be able to convert your XRP for BTC. You also need a Coinbase acct which you would link to your bank acct. So the procedure would go like this in your case. Send XRP to the Kraken/Poloniex, exchange XRP for bitcoins, send bitcoins to coinbase, and deposit whatever bitcoins are worth to your bank acct. If anyone see any wrong info in my explanation please correct me.
Ok, i'm going to dabble in some of these other currencies. I currently am signed up with Kraken where I have my Ripple, Coinbase which I used to buy Bitcoin and just signed up with Poloniex. Are you guys just using Poloniex for your trades? How far are you guys getting verified?
If one has a kraken account why couldn't they just settle out there?
Forgot to mention that.
Appreciate the help!
i missed it
i have only been using Poloniex. However, I just added BTC and made my first trade through Kraken Yesterday. I do not like their interface compared to Poloniex. I cannot find the candle charts on Kraken
Got it. I do wish Poloniex had an app though. I envision basically day trading where I pump and dump daily. It will be tough to monitor and move the currencies quickly if I need to always access a laptop/desktop.
You can't be too greedy but if you know what your doing you should be able to make a living for maybe less than 40 hrs a week
Honestly, i'd love to make $100 a day playing with 1K. That would be a 10% return a day which would net 2K a month excluding weekends.Seems doable. Going back and trying to get educated on Candlesticks and predicting how these currencies are doing.
think bigger brother. you can do better than 2k in a whole month
My ears are open.
Other than increasing the amount i'm playing with(risk), what would you suggest? Long term i'm still adding to my Ripple account at Kraken as well.
Yea man this is my problem
Because of my 9-to-5 job, I am almost always on the road driving
It's a pain in the ass to do these trades on a small ass cell phone screen
The poloniex website moves slooooow as hell, and locks up sometimes, on my Galaxy Note 4
I'm almost always missing out on good pump & dumps
I agree with you long term. If you have 1k in your account, why not put whatever amount in your XRP and then keep the rest to jump on and off these coins as they go through their cycles? If patient enough (sometimes days, you should be able to profit). If you leave your BTC there and just invest your profit along with your original BTC. Rinse/Repeat.
From what I have seen, if you get on a coin at a good price, it is a matter of time before it profits for you. Set you limits at whatever the %10 or %20 profit is for what you bought it and set it there. Give it time to get to 10 or 20%. Depending on how quickly it makes it to 10% will determine if I stay on for 15% and then 20% if it is good like that.
man you may need to get a used IPAD just for thisYea man this is my problem
Because of my 9-to-5 job, I am almost always on the road driving
It's a pain in the ass to do these trades on a small ass cell phone screen
The poloniex website moves slooooow as hell, and locks up sometimes, on my Galaxy Note 4
I'm almost always missing out on good pump & dumps
Legal, can you tell me the steps at 10% on 1k to get to $50k? I think I am taking my 1st 50k and opening a payday loan spot
I did the same with PSC, now holding a bag full of them
Have you or anyone else been learning the stuff I posted, like the last free course that was on Udemy? It's best to use another tracking site like TradingView.com and set up the correct indicators to make the best decisions on when to pull the trigger.Yea man this is my problem
Because of my 9-to-5 job, I am almost always on the road driving
It's a pain in the ass to do these trades on a small ass cell phone screen
The poloniex website moves slooooow as hell, and locks up sometimes, on my Galaxy Note 4
I'm almost always missing out on good pump & dumps
I use Moving Averages, Stochastic and Relative Strength Indicators. Apply it to every coin I open and look at. If it don't meet certain criteria, I ain't budging on a coin.
I need to get on that because otherwise I'm gambling.
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