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Forrester
aspiring sociopath


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Crypto experts, please help...
#27547309 - 11/17/21 05:32 PM (2 years, 2 months ago) |
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So I'm not rich like some of you guys, I make $17 an hour and have to support a family on that, and I need an investment that I can hopefully in the next couple years make a pretty good return on. So I've gotten into Crypto in the hopes that I can do that.
I am a noob at this so I started with Coinbase because I'm not up on all the tech/crypto knowledge/software.
Now assuming I were to get lucky and do well, let's say I'd like to be able to actually keep my winnings and not pay insane amounts of taxes on them to a government that can't be trusted to spend my tax money on anything that would benefit me and my family.
I'm pretty sure that with Coinbase, there wouldn't be any way to do this as they report all your information. So before I make any money with this, what do I have to do to get my money out of coinbase and somewhere private where I can continue to invest and trade without government spying? Do I have to keep my own keys or is there another way? What wallet should I use? How do I keep my transactions private and all that?
I'm sorry, I don't even know which questions to ask, as you can see I know little of all this, that's why I need help. Anything that can point me in the right direction and maybe explain what I need to learn more about, I can learn, I just don't know where to start, the crypto world is very intimidating to get into when you're as far behind as I am...
Thanks for any help!
-------------------- Repugnant is a creature who would squander the ability to lift an eye to heaven, conscious of his fleeting time here. ------------------- Have some medicinal mushrooms and want to get the most out of them? Try this double extraction method.
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Hikeadellic
Fungi Fan



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Re: Crypto experts, please help... [Re: Forrester] 1
#27547404 - 11/17/21 07:07 PM (2 years, 2 months ago) |
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Don't invest more then you can afford to lose, Think of it as beer money not house money
Its kinda hard to be a sneaky peat using coinbase, so don't use a VPN on a DEX, while in a coffee shop far away from your home address.
Now taxes aren't THAT bad with coinbase, based on where you are from and how much money you are moving. Its just the cost of doing business with someone who looks legit, just make sure to use coinbase pro so you dont get screwed with a big fee.
If you really dont want to worry about taxes and plan on holding for a few years and never checking it, you may want to check out BTC IRA accounts. I do not plan on doing this right now because BTC is way the fuck up and I think its going down in the near future. So maybe plan on revising that idea after the market goes down
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Enkidu
"No-Such-Person"


Registered: 07/09/16
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Re: Crypto experts, please help... [Re: Hikeadellic]
#27551138 - 11/20/21 12:37 PM (2 years, 2 months ago) |
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What coins are you planning to invest in ?
Keep watch on the crypto thread and pay attention to the tactics by the long term holders and investors
Honestly, Geo often says what he is holding and gives updates on his opinion of the market and when he takes profits or makes buys, I'd pay close attention to that.
He was recently talking about a speculative small long term allocation into Koin that may be something to consider. I think he said he's doing a 5% max allocation as a speculative move.
He gives out his allocation and to what coins which again, if pay attention to.
As far as coinbase and taxes, double check this, I believe you need a certain number of transactions or an account holding a certain amount of money, for them to report you to the IRS.
If you are under the dollar amount you may be able to sneak by from being small time (I'm in a similar financial situation and family situation as you)
I'd recommend you just keep track and pay the taxes on it to avoid complication.
There may be other exchanges that make it possible to hide your identity.
-------------------- Within You , Without You
      
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Forrester
aspiring sociopath


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Re: Crypto experts, please help... [Re: Enkidu]
#27551284 - 11/20/21 02:34 PM (2 years, 2 months ago) |
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Thanks for the tips!
Yeah I of course am not putting anything in that I can't afford to lose completely, I'm not much into gambling, but I think Bitcoin has gotten to the point where it isn't so much of a gamble as it used to be.
Right now I'm pretty much sticking with Bitcoin and Etherium, about half and half, since they seem to be the lowest risk from what I read.
I will check into what you said about Coinbase reporting, that makes sense though. My issue isn't so much with paying the taxes as it is with claiming it as income. If I go over a certain threshold, I could end up losing my daughters supplementary health insurance which we need since she is diabetic and any couldn't afford her equipment without it.
I definitely have been reading and trying to follow some of the threads on here, it's just the terms used are so far beyond where my knowledge base at this point that it's difficult to learn much of anything from it when the language makes so little sense to me!
-------------------- Repugnant is a creature who would squander the ability to lift an eye to heaven, conscious of his fleeting time here. ------------------- Have some medicinal mushrooms and want to get the most out of them? Try this double extraction method.
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Enkidu
"No-Such-Person"


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Re: Crypto experts, please help... [Re: Forrester]
#27551303 - 11/20/21 02:50 PM (2 years, 2 months ago) |
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There's a lot of really good videos out there that give quick little breakdowns on crypto
I'd recommend this guy to get a quick and easy to understand breakdown of what's going on in the space
People in the crypto thread often offer their favorite new and upcoming projects to jump in
If you're going long term then just buying and holding and forgetting should work
Makes sense about your daughter, that part would be tricky
May need to talk to someone and find out if gains from crypto would constitute income and prevent you from getting the benefits for your daughter and where you need to draw the line.
Selling everything right before crossing that threshold would be an option
Tricky business. I'm no expert in any of this
-------------------- Within You , Without You
      
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Nimpo
Big Black


Registered: 05/10/12
Posts: 2,375
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Re: Crypto experts, please help... [Re: Enkidu] 1
#27551549 - 11/20/21 06:33 PM (2 years, 2 months ago) |
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Keep in mind that the gains that are left to be made this market cycle wont be nearly as lucrative as those from the start of 2021, or any year that isnt 2021. Helps temper expectations. Where you really want to invest heavily is when the next bear market comes. Once the market crashes hard, buy in hard.
Capital gains tax is a bullet you should learn to grin through when it finally comes for you. The last thing you want to do is fuck around and find out with the IRS.
I would avoid following anyones personal moves, as everyone is in a different financial situation and different risk levels. My 20K gamble on a play could be someones life savings they would rather not lose.
I would also avoid buying altcoins that are new or havent stood the test of time. 90% of coins from each market cycle never survive the bear market. If your goal is to 100% make money over several years, the only thing you should look at is BTC and ETH.
Concerning trying to fly under the radar for taxes (which I wouldnt recommend), do some Google-fu and see how you can incorporate Monero (XMR) as your on and off ramps.
Next, I HIGHLY recommend you steer clear from any crypto-related Youtube channels with clickbait titles, emojis, laser eyes, gaping O faces, questions as titles, and the likes. That includes the channel Enkidu shared above (no dig on you Enk, different strokes for diff folks I get it). Half of those channels are pure cancer, the other half are paid shills who will try to plug a shitcoin or product on you because they already have a bag to unload on their viewers. One of the largest YT channels (Shitboy Crypto) does this a lot. Avoid.
Lastly, I like to share this video with all newbies looking to get into the space, especially close friends and family. Yeah, its going to be a little boring to sit through. Grab a beer, turn the volume up, and force yourself to watch it. Pay attention.
And as always, if it sounds too good to be true, it is. ESPECIALLY in this space.
Edited by Nimpo (11/20/21 06:42 PM)
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Enkidu
"No-Such-Person"


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Re: Crypto experts, please help... [Re: Nimpo]
#27551561 - 11/20/21 06:52 PM (2 years, 2 months ago) |
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Maybe you're right about the YouTube channels, I don't actively watch any so i can't really speak on then as a whole, If I didn't know how to read a chart which I think is the best way to identify what is going on, i would want a trusted source to help me understand what was happening
He mentioned he doesn't understand certain aspects of the space so besides YouTube videos I'm not sure where I would go to learn more as easily and quickly as possible
Maybe go to the crypto chanel instead then I guess but I think there's got to be some good sources out there that provide trustworthy analysis to help better understand what is happening in the space, assuming you don't wish to take the time and active participation required to do your own TA
I'm not trying to scare away from the space, but I can't say I trust to store my money anywhere with blind Faith it will remain stable and grow moving into the future say years from now
If we do have a bear market I'm not sure why it isnt within the realm of possibility that we never recover, all hypothetical as crypto is currently still looking decent with a bright future, maybe I'm paranoid, but I don't rule out any possibility. Maybe the last halving never happens and is a lie right before the greatest rug pull the world has ever seen
But good advice, some of which I should learn
-------------------- Within You , Without You
      
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geokills
∙∙∙∙☼ º¿° ☼∙∙∙∙


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Re: Crypto experts, please help... [Re: Forrester]
#27552197 - 11/21/21 08:57 AM (2 years, 2 months ago) |
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Hey Forrester, welcome to the crypto club. I think you're in the right place for long term asset allocation, however as Nimpo noted, it is best to temper your near-term expectations given the extreme moves that the space has seen this year. On that note, you may do well to put 25%-50% of what you ultimately want to invest into play at this juncture, and dish out the remaining cash incrementally in the event we see more meaningful weakness over the coming months or even throughout the bulk of 2022.
As for where to put the money, I generally agree that BTC and ETH will be your most sustainable and least volatile bets. They are likely to survive even the worst of bear markets, and their direction will generally control the direction of all the other, more volatile and lower valued crypto assets. Further, if you buy into ETH now and stake (commit/lock) your holdings to the impending "ETH 2.0" network upgrade (a service which Coinbase offers in exchange for a small cut of the reward), you will benefit from a ~6% annualized inflation reward. Other major assets in the space that I would recommend, which have their own active ecosystems and also offer passive income in the form of staking rewards include Solana (SOL) at around 6.5%, and Polkadot (DOT) at around 13%.
Frankly, avoiding taxes on any appreciable amount of crypto activity these days will probably be difficult if you are US based. The IRS has been stepping up their efforts to monitor crypto activity in a major way. If you make any sales on any US based exchange in particular, I would strongly advise including those sales and the respective gain/loss on your tax return, as crypto brokerages are fast moving toward IRS collusion similar to the commonplace reporting stock brokers are obligated to provide the IRS for all accounts annually.
As noted, there are ways to obfuscate your crypto activity, but it would not be without peril, including the technical hurdle of having to learn and become more comfortable with how crypto works. Specifically (and indeed as a generally important security practice even for those who aren't trying to avoid taxes), you should purchase your own "hardware wallet" from Ledger, which will allow you to transfer any crypto you hold from an exchange account, into your own personal custody. Exchanges do get hacked (I've been waiting on a not insignificant loss of BTC from Japan's MtGox exchange hack for some 7 years now and also lost a small amount in a hack on New Zealand's Cryptopia exchange).
Once you are comfortable with your hardware wallet, using the associated Ledger Live application as well as web-browser integrated "Web 3 wallets" such as Metamask, there are various methods you can take to disassociate your real world identify from your wallet addresses. I believe the most effective would be to convert your entire account to ETH and send it through Tornado.cash, which is a fully auditable and decentralized smart contract that uses a cryptographic technique known as zero knowledge proofs in order to allow users to deposit specific nominal amounts (1, 10 or 100 ETH), which are basketed with other depositors' identical amounts, and can then be withdrawn anonymously to a fresh wallet address. Once in custody of a funded wallet that is not connected to any service where you have personally identified yourself (i.e. pretty much any exchange that offers conversion to local fiat currency), you can enter the ecosystem of decentralized exchanges and network bridges to allocate assets across different platforms.
Note that transaction fees on the Ethereum network are presently ~$50 for simple executions and around ~$500 for more complex executions such as using Tornado.cash. Thus, these options will only suffice for those whose accounts large enough to allow for the fees to be tolerable. Bridging your Ethereum assets over to a "layer 2" network such as Polygon (MATIC) or another "layer 1" network with lower fees such as Solana (SOL) or Terra (LUNA) will give you the ability to trade in and out of most major assets without suffering the crazy base network fees of Ethereum. As an aside, that "ETH 2.0" network upgrade that is expected to rollout sometime in the next year, should help release some of the fee pressures on Ethereum as well as increase transaction throughput (the reason fees are so high is that Ethereum simply cannot process many transactions, and thus demand for execution has driven up execution price since there is such limited execution supply on Ethereum's current base layer).
That may be a bit more than you wanted to know, but is hopefully helpful to you. I'll close by reminding you, that getting caught evading taxes in the US carries with it very stiff financial penalties.
--------------------
-------------------- ┼ ··∙ long live the shroomery ∙·· ┼ ...╬π╥ ╥π╬...
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Forrester
aspiring sociopath


Registered: 02/05/13
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Re: Crypto experts, please help... [Re: geokills]
#27552235 - 11/21/21 09:30 AM (2 years, 2 months ago) |
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Thanks for the info everyone!
Yeah I don't think I'll end up needing to evade any taxation really, as from the way I understand it you don't pay any taxes until you sell it and turn it into cash. I suppose in the unlikely event I were to make enough money to live on I could just quit my job for a while and take out "paychecks" from my wallet, claim them as taxable and all that. Then I wouldn't lose my health insurance.
Quote:
geokills said: As noted, there are ways to obfuscate your crypto activity, but it would not be without peril, including the technical hurdle of having to learn and become more comfortable with how crypto works. Specifically (and indeed as a generally important security practice even for those who aren't trying to avoid taxes), you should purchase your own "hardware wallet" from Ledger, which will allow you to transfer any crypto you hold from an exchange account, into your own personal custody. Exchanges do get hacked (I've been waiting on a not insignificant loss of BTC from Japan's MtGox exchange hack for some 7 years now and also lost a small amount in a hack on New Zealand's Cryptopia exchange).
Once you are comfortable with your hardware wallet, using the associated Ledger Live application as well as web-browser integrated "Web 3 wallets" such as Metamask, there are various methods you can take to disassociate your real world identify from your wallet addresses. I believe the most effective would be to convert your entire account to ETH and send it through Tornado.cash, which is a fully auditable and decentralized smart contract that uses a cryptographic technique known as zero knowledge proofs in order to allow users to deposit specific nominal amounts (1, 10 or 100 ETH), which are basketed with other depositors' identical amounts, and can then be withdrawn anonymously to a fresh wallet address. Once in custody of a funded wallet that is not connected to any service where you have personally identified yourself (i.e. pretty much any exchange that offers conversion to local fiat currency), you can enter the ecosystem of decentralized exchanges and network bridges to allocate assets across different platforms.
Note that transaction fees on the Ethereum network are presently ~$50 for simple executions and around ~$500 for more complex executions such as using Tornado.cash. Thus, these options will only suffice for those whose accounts large enough to allow for the fees to be tolerable. Bridging your Ethereum assets over to a "layer 2" network such as Polygon (MATIC) or another "layer 1" network with lower fees such as Solana (SOL) or Terra (LUNA) will give you the ability to trade in and out of most major assets without suffering the crazy base network fees of Ethereum. As an aside, that "ETH 2.0" network upgrade that is expected to rollout sometime in the next year, should help release some of the fee pressures on Ethereum as well as increase transaction throughput (the reason fees are so high is that Ethereum simply cannot process many transactions, and thus demand for execution has driven up execution price since there is such limited execution supply on Ethereum's current base layer).
That may be a bit more than you wanted to know, but is hopefully helpful to you. I'll close by reminding you, that getting caught evading taxes in the US carries with it very stiff financial penalties.
No this is exactly what I wanted to know! Thank you. I think I'll stick on Coinbase for the time being until I even have enough money to worry about using a hardware wallet. But I'd like to learn in the mean time, so this gives me a great place to start.
-------------------- Repugnant is a creature who would squander the ability to lift an eye to heaven, conscious of his fleeting time here. ------------------- Have some medicinal mushrooms and want to get the most out of them? Try this double extraction method.
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sh4d0ws
LSx


Registered: 02/26/08
Posts: 12,086
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Re: Crypto experts, please help... [Re: Forrester]
#27552940 - 11/21/21 08:51 PM (2 years, 2 months ago) |
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Anytime you sell one crypto for another, it's a taxable event, FWIW. So, if you sell one crypto for another, and you have gained in that process (ie you bought ETH at $4K and sold it to buy another crypto when it was at $4.5K, you owe taxes on $500 in gains for every ETH you sold for the new crypto)
Other than that, Geo provided most of the information I think you need to know
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Forrester
aspiring sociopath


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Re: Crypto experts, please help... [Re: sh4d0ws]
#27553141 - 11/22/21 02:18 AM (2 years, 2 months ago) |
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Ah, that is good to know, thanks!
-------------------- Repugnant is a creature who would squander the ability to lift an eye to heaven, conscious of his fleeting time here. ------------------- Have some medicinal mushrooms and want to get the most out of them? Try this double extraction method.
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Forrester
aspiring sociopath


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Re: Crypto experts, please help... [Re: Forrester]
#27568554 - 12/04/21 02:24 AM (2 years, 1 month ago) |
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Alright guys you know my situation, is right now in this dip a good time to buy some more Bitcoin and eth or do you think it's going significantly lower?
-------------------- Repugnant is a creature who would squander the ability to lift an eye to heaven, conscious of his fleeting time here. ------------------- Have some medicinal mushrooms and want to get the most out of them? Try this double extraction method.
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syncro
Registered: 01/14/15
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Re: Crypto experts, please help... [Re: Forrester]
#27568601 - 12/04/21 04:11 AM (2 years, 1 month ago) |
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I thought the lows were in above $50k, and it dropped to $45k.
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Forrester
aspiring sociopath


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Re: Crypto experts, please help... [Re: syncro]
#27568613 - 12/04/21 04:34 AM (2 years, 1 month ago) |
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I know, that's why I'm thinking putting in some money now is a good idea! I really don't think ETH is going much below 4k either, but I'm so new to this I could be wrong...
-------------------- Repugnant is a creature who would squander the ability to lift an eye to heaven, conscious of his fleeting time here. ------------------- Have some medicinal mushrooms and want to get the most out of them? Try this double extraction method.
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syncro
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Re: Crypto experts, please help... [Re: Forrester]
#27568647 - 12/04/21 06:08 AM (2 years, 1 month ago) |
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Best way is to average in, parts of your funds each week or each month. You catch lower prices that way but there is also FOMO. The sentiment has been that it's going to the moon yesterday. But still, averaging is best except more of a pain keeping track of bases if needed for tax.
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Hikeadellic
Fungi Fan



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Re: Crypto experts, please help... [Re: syncro]
#27569335 - 12/04/21 03:34 PM (2 years, 1 month ago) |
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Averageing in is usually a good strategy
Right now I hold put options contracts so I make money when it goes down, I still think its going down but I don't have a crystal ball
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bio_alchemist
Shroom Operator




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Re: Crypto experts, please help... [Re: Hikeadellic]
#27577007 - 12/11/21 07:46 AM (2 years, 1 month ago) |
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Crypto is on a super sale right now.
With Cardano at $1.27 Solana at $168
You should never keep anything on an exchange after buying. The best way to keep the government out of your wallet is to have a self custodial wallet like Exodus. You want to keep the crypto you plan on holding there, but never transfer directly from a place that is linked to your real world ID like coinbase.
There are many ways to transfer it in a way that is untracable.
1. The best and cheapest way is with a friend. You transfer x amount of cardano to your friends wallet from your coinbase, and your friend transfers x amount from his coinbase into your wallet.
I can help you with that if you cant find friends who are also currently investing. I currently have 5 Solana and like 2k Cardano waiting to be transferred.
2. Monero XMR if you make an account on kraken you can purchase Monero and then send it directly to your exodus wallet using an untracable sub address. Monero transactions are private and can not be traced.
Once in your exodus wallet you can exchange it for whatever crypto you want. With a %7 fee
3rd option is to buy popular crypto like btc or ada etc... then use a service like
https://localmonero.co/ https://agoradesk.com/ https://bisq.network/
To swap it for Monero and then swap it in exodus for that %7 fee
4th and worst option is bitcoin atms. Buy a $20 burner phone find an atm that doesnt require ID and then get ripped off with a %20+ fee
5th bonus option is craigslist. In my area there are people that offer to meet in nice offices to buy or sell Monero / BTC for a percentage over price with cash no questions asked those are my fave beside swapping with friends.
When it comes to selling you can either sell to friends like me for cash or craigslist posters.
Or convert to Monero and sell on localmonero.co for cash by mail or whatever payment method you think will best hide you from the slimeball thieves in government.
As for trading with me ill always trade for Monero, but currently am looking to swap for cardano, solana. And a single transaction of $700 - $1000 of Ethereum (to avoid high gas fees) (I want to play axie infinity )

I tried to make a thread for this in the marketplace but it didnt last very long. Im not going to bump my own thread but if it sounds like a good idea to anyone here feel free to bump it with an offer of your own and ill post more offers of mine.
https://www.shroomery.org/forums/showflat.php/Number/27403981
-------------------- vVvVv I Buy and Sell MONERO! USD for XMR vVvVv
Check out my Monero Guide to Economic Freedom!!!
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Forrester
aspiring sociopath


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Aha, thanks! I knew there had to be a fairly simple way to get my ETH and BTC I'm holding to somewhere that isn't tied to me. The fried method seems like a good idea, but how do they know whether it's someone else's wallet I transfer to or my own if the wallets aren't tied to a name? I mean, why not just transfer to my own wallet?
-------------------- Repugnant is a creature who would squander the ability to lift an eye to heaven, conscious of his fleeting time here. ------------------- Have some medicinal mushrooms and want to get the most out of them? Try this double extraction method.
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bio_alchemist
Shroom Operator




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Re: Crypto experts, please help... [Re: Forrester]
#27577114 - 12/11/21 09:38 AM (2 years, 1 month ago) |
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Quote:
Forrester said: how do they know whether it's someone else's wallet I transfer to or my own if the wallets aren't tied to a name? I mean, why not just transfer to my own wallet?
Theoretically speaking they dont! So if that is enough for you it will be a much more convenient process.
Personally its not enough for me because coinbase will have a record of my actual wallet and should they or the IRS ever wish to monitor the activity of that wallet to try and link it to me, they can.
(Not that there is anything illegal about having private crypto wallets)
-------------------- vVvVv I Buy and Sell MONERO! USD for XMR vVvVv
Check out my Monero Guide to Economic Freedom!!!
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Forrester
aspiring sociopath


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Ok that makes sense, that's what I figured!
-------------------- Repugnant is a creature who would squander the ability to lift an eye to heaven, conscious of his fleeting time here. ------------------- Have some medicinal mushrooms and want to get the most out of them? Try this double extraction method.
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