# Crypto (A SERIOUS Fucking Conversation)



## Ms. Aligned (Aug 26, 2021)

Hello folks. 

First off, I'm not sure how many of you invested in crypto last year but I'd like to publicly share some of my bad decisions over the year so that no one else ends up in the situation I'm in regarding taxes. Finally, I have a real world utility question regarding cryptos. 

First of all, I got into Crypto on a whim, but I didn't just go balls to the wall on it. I did my research and invested in Ethereum, Cardano, Solana (somewhat), and occasionally Stellar. I also allowed my kids to put a small amount of money on some which went to Shiba, and Doge, lol. 

I invested a small amount of money, at first, while I was trying to figure out how to ride the valleys and peaks of the crypto world. As I saw it, it was like backwards surfing on money. Lol. Paddling to find the wave and just as you stand up on the board (at the top of it), jumping with the board in hand to let the wave pass, as you land at the back base of it in preparation, and paddling, for the next one....

Thought I was pretty fucking clever doing this because someone told me, "Dude, if you can learn to ride those peaks and valleys, that pretty much makes you a genius."

Well, a genius I am not. I did really, REALLY well at times, other times, I ended up in a worse position than I started, eventually, I settled into a medium position. Not as good as I could have done, but not terrible either. Then I got distracted and apparently when that was happening, the markets tanked again. But I think, "....it's okay, it's okay...you're still up. Maybe not even a fraction of what you were, but enough to stay in the game."

Oh man was I fucking WRONG about THAT! 

Just went to file my taxes and *I...should have thought about this but didn't.* I thought the fees I paid for these transactions were taxed already....I had no idea that those were considered "gains"....*

I was thinking, "I haven't made a WHOLE lot of money because I made some bad timing mistakes." And, that I was prepared for. What I was NOT prepared for, were those fees being added up, and considered gains, and additional income. 

So, even though I'm SLIGHTLY up, on my cryptos now, I* owe* more than I made. As a result, I'm going to have a SIGNIFICANT loss of my hard earned savings. So, did "okay" on crypto, FUCKED on taxes. As such, the government wants approximately one paycheck per month (only get two here) to pay them off. 

I invested in cryptos because I believed in the purpose, like when Biden pulled out of Afgan and they started putting their money into crypto to avoid the economic down turn of the taliban takeover, etc. 

But now, with the RIDICULOUSLY high taxes that are associated with crypto gains and exchanges....I'm starting to find it very difficult to see how this could become a standardized method of currency without just feeding money into the institutions that support them and/or the government. I think maybe this is why the markets are crashing right now too, because it's more expensive to use it, than to simply have it. 


*Note: I'll also add that what also fucked me on my taxes this year was Biden's fucked up "Moneystore" plan to automatically send people advanced payments of their childcare credits. This also contributed to adding me to a different class bracket, and the additional repayment of those funds. I REALLY hate democratic fiscal policies...


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## ENTJudgement (Oct 6, 2013)

Ms. Aligned said:


> Hello folks.
> 
> First off, I'm not sure how many of you invested in crypto last year but I'd like to publicly share some of my bad decisions over the year so that no one else ends up in the situation I'm in regarding taxes. Finally, I have a real world utility question regarding cryptos.
> 
> ...


Thats coz u overtraded and didn't HODL, of course you'll incur ridiculous tax if you day trade, every trade is a taxable event.

For instance, if you just bought Solana a year ago which was $4 you'd still be up a staggering 22.5x after the current crash with only 1 taxable event (when you sell to realize your gain).

If you read trade analysis graphs, it's pretty easy to know when to do what, looking at the graph below, assuming we didn't know any of that info and had just bought Solana @ 4$.










First local top was around May, if u sell some i.e 15-25% on the bounce as indicated by "Take Profit (1) which comes after a local top (happens every time coz nothing just goes down in a straight line without being oversold unless it's a rug) you'd already have made a lot of profit. Then you ride your remaining tokens into the next local top and sell at the bounce (theres no way you know where the top is so u just wait for a trend reversal to appear which basically just means lower lows and lower highs on the daily or weekly).

Take another 25% profit of total (not remaining) there, ride into next bounce rinse and repeat.

Or you could of just HODLed it for a 22.5x profit.

All you really need to do in crypto is;

1. Check trend of BTC, if it's short term bullish, buy L1 alts.
2. Check trend of alts and which Fibonacci level they've hit, good entries for a macro bullish trend are generally around the 0.618 & 0.5 fib levels








3. Sell @ the fib levels









4. Wait for BTC crash then long again after confirmed bottom.

Alternatively, just buy and HODL.


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## letsrunlikecrazy (Sep 21, 2015)

Don't trade crypto if you're not prepared to lose more than you make. lol


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## thedazzlingdexter (12 mo ago)

Ms. Aligned said:


> Hello folks.
> 
> First off, I'm not sure how many of you invested in crypto last year but I'd like to publicly share some of my bad decisions over the year so that no one else ends up in the situation I'm in regarding taxes. Finally, I have a real world utility question regarding cryptos.
> 
> ...


So Crypto is basically Stocks but a lot of people who trade Crypto state it is not a valid comparison and its totally different. Which I guess Crypto basically made its own market of Stocks to trade which is not connected to the main Stock market but you are still trading Stocks. This indicates that the people trading it are often- Delusional 

A lot of people I seeing trading Crypto seem to be stressed and unable to focus on anything when not trading stocks. They seem addicted to the high of the possibility they will "Win a lot of money". Which indicates a- Gambling addiction 

Now for the price. A Coin costs a dollar but is a fraction of a dollar. This goes against the idea of a normal Stock Market where you "Buy low and sell high" in Crypto you "Buy high, and hope you can sell high" but if that is the case you are already losing money. How are people making money off this exactly? 

Than we have- NFTs (Which is buying for the right to look at a picture if I understand correctly) but there is also nothing from me copy and pasting that picture is there? So what are you auctually paying for? (Thats clearly a SCAM. The Scammers are getting Rich off Hype) 

So as far as I have Seen 

CRYPTO is associated with 

People who are delusional 
People with a gambling addiction and likely addictions to other things 
People will lose money initially 

and NFT are made by Scammers who figured out how make money off the "Crypto" hype by the people who thought "Crypto" made sense. 

So why should I buy Crypto again?


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## CountZero (Sep 28, 2012)

I mined Ethereum for a while, but I sold my ETH as soon as I got to the point my mining pool would allow a payout. That way I didn't trigger 'capital gains' taxes by holding the crypto, nor did I trade it. Just converted the ETH into USD as soon as I could. I'm neither a math whiz nor a CPA, and the tax calcs look mind boggling when you try to start figuring them on your own. The amount is small enough, and my 'farm' (2 GPUs lol) is tiny enough that I should be able to report it as a hobby.


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## SouDesuNyan (Sep 8, 2015)

Stock and crypto trading are zero-sum games. One trader's win is another trader's loss. Probably less than zero-sum if you consider transaction costs. It's similar to playing poker, the players with more experience take money from the players with less experience, in a hierarchical structure. And like poker, the house always wins as long as people play.

Investing usually means holding a position for years if not decades. The daily, weekly, monthly up and downs are just noises that can be ignored.

In the US, taxes are against you if you take capital gains. But losses can be deducted. There's also long term capital gains which are taxed at a lower level than income. Also, investing has an advantage of making transaction cost somewhat negligible. Many platforms allow 20-50 free transactions a year, which is plenty for an investor.


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## superloco3000 (Dec 15, 2017)

Well ... as inflation is so high all over the world everyone wonders what can be done?

The cryptocurrency philosophy is a great idea, and it solves one of the biggest problems that has caused the fall of empires, inflation.
But you also have to be careful because you have to look at what the big investors are doing, all these people with huge capital invest in practically everything, their portfolios hold percentages of everything.

But giving advice in this matter is complicated , I bet my money and if I lose it is my fault , But I would never talk about what someone else should do ...Everyone has their own experience and you are adults ( I have more gold and silver than cryptos personally ).

My way of investing in cryptos is to use the money I am willing to lose and holding forever, every month a percentage and over the years it has accumulated, It is a stupid bet on a concept that can revolutionize societies ....

But I have a total distrust for these modern political ideologies , All these people who talk about creating a better world seems to me like clowns.


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## superloco3000 (Dec 15, 2017)

Stealergul said:


> If you’re involved in short-term trading, you must realize the consequences of multiple executions. Taxes and fees imposed on each operation may be a game-changer.


Yep and if you add leverage 99.9% of the time you are going to lose money if you are not a professional with in-house data.


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## steveaonson (9 mo ago)

You know, for me, cryptocurrency is an alternative financial system, a digital asset, an investment tool. Cryptocurrency has become as full-fledged stock exchange asset as gold, oil or stocks. All of this opens up huge opportunities in the field of investment. And many people have already taken advantage of these opportunities. But a lot of people are asking the question of whether it is worthwhile to invest in cryptocurrency right now. I think it is. After all, you can easily buy, for example, a thousandth of it for quite reasonable money. Having studied more detailed information here, I understand that cryptocurrency market changes its vector of direction and only those people who will find this vector of direction correctly and quickly get into all details of this direction will be able to make money.


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## Ms. Aligned (Aug 26, 2021)

steveaonson said:


> You know, for me, cryptocurrency is an alternative financial system, a digital asset, an investment tool. Cryptocurrency has become as full-fledged stock exchange asset as gold, oil or stocks. All of this opens up huge opportunities in the field of investment. And many people have already taken advantage of these opportunities. But a lot of people are asking the question of whether it is worthwhile to invest in cryptocurrency right now. I think it is. After all, you can easily buy, for example, a thousandth of it for quite reasonable money. Having studied more detailed information here, I understand that cryptocurrency market changes its vector of direction and only those people who will find this vector of direction correctly and quickly get into all details of this direction will be able to make money.


Lol, during the pandemic I attended a Crypto forum that is now only held in person in New York. I felt like I gained more knowledge, but now that things opened up again, I'm just not in these circles of people who spend more time and research on it than I can. Alas, why people don't feel comfortable investing. I'm out of the "loop", and think I should probably cash out....


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## steveaonson (9 mo ago)

Ms. Aligned said:


> Lol, during the pandemic I attended a Crypto forum that is now only held in person in New York. I felt like I gained more knowledge, but now that things opened up again, I'm just not in these circles of people who spend more time and research on it than I can. Alas, why people don't feel comfortable investing. I'm out of the "loop", and think I should probably cash out....


I had a similar feeling when Spring 2020 came, then bitcoin fell in price by 50% in 2 days, despite the fact that my whole investment portfolio was only in bitcoin. But I made the decision to continue on this thorny path. You too can go back in this direction if you are really interested in it


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## SouDesuNyan (Sep 8, 2015)

I would never invest in crypto. Technically, currency is considered an investment, but it seems like a crappy one. Just like I wouldn't invest in euros and yens when I'm living in the US. Currency is meant to be used. I would hold just enough USD for emergency and daily spending, and that's it. Until stores stop accepting USD and only accept bitcoin, I'm not buying any bitcoin.


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## Ms. Aligned (Aug 26, 2021)

steveaonson said:


> I had a similar feeling when Spring 2020 came, then bitcoin fell in price by 50% in 2 days, despite the fact that my whole investment portfolio was only in bitcoin. But I made the decision to continue on this thorny path. You too can go back in this direction if you are really interested in it


I'm still in. Had great intuition, but little patience. Now, it has to go back up. Every time I think about it, Bon Jovie's Living on a Prayer starts playing in my head. Lol

I read an article today about how industry experts are quite pleased with the correction because they anticipate a bunch of the BS currencies dropping off the radar now that the "boom" has died down. They're going to start playing with less sensational and more practical applications, allowing for more forward movement. 

I feel like by investing in ETH I'm investing in block chain which I've heard other businesses really want to get on as far as ledgers go. I'm going to admit, I do not know enough about this to have any deep insights or ability to predict the trends. All I know, is what I read. :/ 

That said, I remember there being talk about Cardano, and Solana as possibly surpassing ETH based on the technology, but people called them fads. So I hope my investment in ETH is still good in the long run. Because....shit's difficult to be patient with. Lol


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## steveaonson (9 mo ago)

Ms. Aligned said:


> I'm still in. Had great intuition, but little patience. Now, it has to go back up. Every time I think about it, Bon Jovie's Living on a Prayer starts playing in my head. Lol
> 
> I read an article today about how industry experts are quite pleased with the correction because they anticipate a bunch of the BS currencies dropping off the radar now that the "boom" has died down. They're going to start playing with less sensational and more practical applications, allowing for more forward movement.
> 
> ...


In ETH to invest is a great decision. And as for Solana network, I would not do it, because the system which constantly weighs when you want to withdraw money and have to wait 1-2 days. Accordingly, such a network can not be profitable, because it simply will not be used.


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## Scoobyscoob (Sep 4, 2016)

Norman56 said:


> There's been a hell of a lot going on with cryptocurrency lately. There is news about the closure of not little-known exchanges. Shares of the cryptocurrency exchange Coinbase fell in value by almost 8% in 1 day. This happened immediately after it became known that the trading platform would be subjected to inspections by the U.S. Securities and Exchange Commission Representatives of the organization stressed that they had launched an investigation into the management of the service and its activities.


That's funny. It seems like crypto is going to turn out to be just another trading instrument. There are already some people who are saying bitcoin is going to turn into a trading instrument that tracks the US stock market.


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## Scoobyscoob (Sep 4, 2016)

Current price of bitcoin:


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## Scoobyscoob (Sep 4, 2016)

What a useless trading instrument.


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## ignoregasm (9 mo ago)

Don't listen to all of the criticism.
Crypto is a booming industry and will continue to grow.
There are far too many Indians and not enough chiefs.
You can make money if you want to make money and believe that you can make it.
Because you are your thoughts.
I think you should embrace your passion in life.
- Raj from tech support, making $2 an hour and living in his parent's basement.
Jk.


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## SouDesuNyan (Sep 8, 2015)

iammax$7 said:


> heey, what`s up! i`ve been investing in cryptocurrency for about a year now and everything is going well, but recently I thought about whether it is possible to somehow protect my money👀 does anyone know any ways???


I recommend I-series bonds. It follows inflation, except that it doesn't go negative when there's a deflation. You can only buy $10k every year though.


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## Wallacenf (3 mo ago)

Thank you for sharing your experience. Most people who start to engage in cryptocurrency and investments think that I will be able to master the whole theory in practice, so they make hasty decisions. Any financial sphere requires attention and time to practice skills and survive a good moment. I constantly read the Blog Cryptex to know all the latest and up-to-date news. In cryptocurrency, it is important to be aware of any information guides. Over the past few years, Elon Musk has been changing market conditions with a single tweet. Information that loses relevance becomes useless.


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## Necrofantasia (Feb 26, 2014)

Nevermind the taxes, the environmental impact is ridiculous.
And for what is basically a grifting tool, one of the dumbest and most damaging ever made.


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## 98403942 (Feb 10, 2021)

Sounds like every betting shop I've ever heard of.


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