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bitcoin

April 15, 2021, 1:56 p.m.
Posts: 12812
Joined: Jan. 27, 2003

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?

April 15, 2021, 2:17 p.m.
Posts: 74
Joined: Feb. 2, 2021

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.


 Last edited by: Schnickelfritz on April 15, 2021, 2:40 p.m., edited 2 times in total.
April 15, 2021, 2:53 p.m.
Posts: 44
Joined: Jan. 5, 2021

Posted by: syncro

Have you cashed in yet? $72K and counting is pretty good depending when you first bought. Even 2018 prices back when this thread started are looking good, never mind 2012.

I'm buying $100 every 2 weeks for the next 10 years - I'll sell half with BTC hits a million, no other selling

April 15, 2021, 2:56 p.m.
Posts: 44
Joined: Jan. 5, 2021

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?

where do you buy your ETH?  I use a Zengo wallet and buy through coin mama, which is great for BTC - but when I bought ETH I lost a bunch in the buy, like 30% , so now that it's up, most the gain is just getting me back to what I paid.  not sure WTF happened

April 15, 2021, 3:36 p.m.
Posts: 12812
Joined: Jan. 27, 2003

^^I'm using NDAX. I'm just keeping my 2 Ethereum on the exchange. Only planning to add to it. Didn't notice any huge fees when I bought it.

For altcoins I have an exodus wallet and I can exchange various coins through that. I can send bitcoin to the wallet via NDAX but there's a decent sized fee involved. Think it was about 40 bucks in bitcoin. 

Gonna try one of those Bitcoin atms soon. See how much they cost. 

For alt coins I have fairly equal amounts of:

Vechain

Vethor

Cardano 

Doge 

XRP 

I'm building my portfolio around 25% bitcoin and 50% ether for the long haul and 25% random alt coins for more frequent trading.

April 15, 2021, 3:44 p.m.
Posts: 44
Joined: Jan. 5, 2021

Posted by: Fast-Orange

Gonna try one of those Bitcoin atms soon. See how much they cost.

tried a couple - very high fees, this is how I first my a few nuggets a few years back - very high fees (which caused me to switch to coinmama )


 Last edited by: gearwhore on April 15, 2021, 3:44 p.m., edited 1 time in total.
April 15, 2021, 3:46 p.m.
Posts: 12812
Joined: Jan. 27, 2003

Posted by: Schnickelfritz

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. 

The Exodus wallet I have allows me to exchange for different currencies.  Does that count as an exchange? Are those trades taxable if I'm exchanging after a gain? 

Also do I have to record it myself? I'm guessing the exchange isn't gonna send me a T-whatever.  Is there any automated software I could get on my phone to keep track of it?

April 15, 2021, 3:56 p.m.
Posts: 1668
Joined: Aug. 6, 2009

Posted by: Fast-Orange

^^I'm using NDAX. I'm just keeping my 2 Ethereum on the exchange. Only planning to add to it. Didn't notice any huge fees when I bought it.

If you're holding long term, consider getting a hardware wallet.  If the exchange goes down or gets hacked, you can lose all your ETH.

April 15, 2021, 3:57 p.m.
Posts: 74
Joined: Feb. 2, 2021

Posted by: Fast-Orange

Posted by: Schnickelfritz

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.

The Exodus wallet I have allows me to exchange for different currencies. Does that count as an exchange? Are those trades taxable if I'm exchanging after a gain?

Also do I have to record it myself? I'm guessing the exchange isn't gonna send me a T-whatever. Is there any automated software I could get on my phone to keep track of it?

Honestly, I think the feds likely want you to report any profits made, but if it's not on an exchange account that is tied to your identity, I would guess it's on the honor system as they have no way of tracking it.

"Trading cryptocurrency for another type of cryptocurrency

Generally, when you dispose of one type of cryptocurrency to acquire another cryptocurrency, the barter transaction rules apply. You have to convert the value of the cryptocurrency you received into Canadian dollars. This transaction is considered a disposition and you have to report it on your income tax return. Report the resulting gain or loss as either business income (or loss) or a capital gain (or loss)."

Lots of info here: https://www.canada.ca/en/revenue-agency/programs/about-canada-revenue-agency-cra/compliance/digital-currency/cryptocurrency-guide.html

I try not keep funds on exchanges directly tied to my identity, the only time it goes to an exchange is when I'm trading it for fiat.

Since you're planning on holding Bitcoin long term, have you looked into a Cold Wallet (either an offline wallet or a hardware wallet). Exchanges and online wallets can be pretty vulnerable, just look into the Nicehash heist. - Edit* What PaulB said!


 Last edited by: Schnickelfritz on April 15, 2021, 4:08 p.m., edited 2 times in total.
April 15, 2021, 4:48 p.m.
Posts: 12812
Joined: Jan. 27, 2003

Posted by: Schnickelfritz

Since you're planning on holding Bitcoin long term, have you looked into a Cold Wallet (either an offline wallet or a hardware wallet). Exchanges and online wallets can be pretty vulnerable, just look into the Nicehash heist. - Edit* What PaulB said!

I'm still debating. Part of me trusts online storage more than my ability to not lose a thumbdrive

April 15, 2021, 5:13 p.m.
Posts: 1668
Joined: Aug. 6, 2009

Posted by: Fast-Orange

I'm still debating. Part of me trusts online storage more than my ability to not lose a thumbdrive.

Every wallet should allow you to create a recovery phrase (often 24 random words in a specific order) that you can use to recover everything even if you lose or damage the hardware device, or forget your password. There are plenty of online guides with recommendations on how to safely store your recovery phrase, from as simple as writing it down and hiding it somewhere to as complex as engraving the encrypted phrase onto a metal plate and burying it.

https://www.ledger.com/academy/crypto/what-is-a-recovery-phrase

Lots of stories of people who would be millionaires today if they could remember the password, or had the recovery phrase, for the wallet they set up back in 2018.

I lost a bit of cash when the Quadriga exchange went down, but if it had happened a few weeks earlier when I still had some coins on there, I would have been out a whole lot more.


 Last edited by: PaulB on April 15, 2021, 5:24 p.m., edited 3 times in total.
April 15, 2021, 5:22 p.m.
Posts: 313
Joined: Oct. 23, 2003

I put a little bit of money into BIGG and it's tripled for me in 2 months.

Once they get their regulatory approval for their Netcoins exchange they will be the first regulated Bitcoin exchange in Canada. This will happen very soon and should make it go way up in value.

April 15, 2021, 5:52 p.m.
Posts: 14402
Joined: Feb. 19, 2003

Posted by: Fast-Orange

Posted by: Schnickelfritz

Since you're planning on holding Bitcoin long term, have you looked into a Cold Wallet (either an offline wallet or a hardware wallet). Exchanges and online wallets can be pretty vulnerable, just look into the Nicehash heist. - Edit* What PaulB said!

I'm still debating. Part of me trusts online storage more than my ability to not lose a thumbdrive

There are a couple of Epic stories about that already

April 16, 2021, 10:27 a.m.
Posts: 11499
Joined: June 29, 2006

I will just keep assuming it will crash any minute while the rest of you make out like bandits.  I am the Pedro of crypto!

April 16, 2021, 11:54 a.m.
Posts: 74
Joined: Feb. 2, 2021

Posted by: Fast-Orange

I'm still debating. Part of me trusts online storage more than my ability to not lose a thumbdrive.

Every wallet should allow you to create a recovery phrase (often 24 random words in a specific order) that you can use to recover everything even if you lose or damage the hardware device, or forget your password. There are plenty of online guides with recommendations on how to safely store your recovery phrase, from as simple as writing it down and hiding it somewhere to as complex as engraving the encrypted phrase onto a metal plate and burying it.

https://www.ledger.com/academy/crypto/what-is-a-recovery-phrase

Lots of stories of people who would be millionaires today if they could remember the password, or had the recovery phrase, for the wallet they set up back in 2018.

I lost a bit of cash when the Quadriga exchange went down, but if it had happened a few weeks earlier when I still had some coins on there, I would have been out a whole lot more.

^^ This. 

I had a ton of Bitcoin and Eth from my Miners tied up in the Nicehash hack in 2017. They JUST finished their payback plan a few months ago.

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