Posted by: Fast-Orange
Anyone else riding this ethereum wave?
Late to the party but I bought two coins a couple weeks ago when they were around 2k$.
With that and the other alt coins I jumped into I've made twice in the last two weeks what I made at work. Almost 100% return on my total investment in 2 weeks!
There is of course the fear that at any moment this can all go poof and vanish but I'm trying to silence that voice and keep hodling. I haven't dumped life savings into it. Just enough to be life changing if the crypto fanboy predictors are right in their 10 year predictions.
Plan is to drop 100-200 bucks off every paycheque from now on into my crypto wallet.
One question I have which may have been addressed earlier in the thread are the tax implications. Is trading one coin for another in my wallet considered a capital gain or does that only happen when I cash evetything in back to fiat?
I shifted a lot of my Eth into Bitcoin because I suspect there is going to be a lot of volatility surrounding the switch to Eth 2.0. There is a lot of talk about 51% attacks... etc leading up to the switch to POS. As long as you keep in mind you're buying at an all-time high, be prepared to have your money tied up for a few years in case the market takes a tumble (which it inevitably will), you may have to HODL the dip, which it sounds like you're down with. I have a few acquaintances who bought heavy at the $1000 USD mark last cycle and were pretty unhappy when ETH dipped to $176, they held on and I'm happy to report that they're feeling just fine today.
I believe you have to pay Capital gains on profits on every trade, whether you're trading it for another currency, or fiat. Transfers to another wallet are fine, it's only the exchanges the track that sort of stuff. Not that I encourage tax avoidance generally, but you can quite often find people willing to privately buy crypto at market values.
I mine, so the tax rules are different for me, it's treated like income from a home business as there is no trade history to calculate profits from, as long as I keep earnings below 10K/year, I don't pay any tax on it. Anything more than 10K and it's treated as an additional income source and you pay income tax on it.