I made the big mistake of not derisking anything last cycle #hodl
I’ve been putting every extra penny I make into crypto since 2016 and saw my NW go from 60 to 600, then back down to 200
I figured 600 wasn’t really enough to retire on, yet I’d I had sold anywhere near there top I could have certainly hit financial independence by now.
DONT GET GREEDY AND DONT LISTEN TO THE AUTISM. If you are actually on the spectrum it’s easy to fall into rules like hodl forever. It’s easy to take most things very literally.
What would you have done differently after selling in order to hit FI? I keep seeing people saying to take profits but I’m not sure why. Won’t those profits be taxed and then you’ll just have to potentially buy back at higher prices anyway? Or are you saying you would’ve made some alt / meme plays that would’ve been freed up by the extra $? I’m genuinely curious because I just planned to HODL eth until at least 2030
I took comments by Bull and DeFi education too literally and stuck with hodl when they advised to derisk.
something long the lines of "derisk financial independence" but since I had not yet reached that I thought just to hodl. when really I should have sold, then bought back in lower later on.
I also had taken a loss of $2m in biz equity due to a partner stealing from me (he stole $1m from other people, too) so It paled a bit in comparison.
Sorry to hear about your business partner. I hope you can get the justice you deserve. Truly a terrible situation…
And I guess if the cost basis is high then it can always be bought back in lower, but I’d still personally be wary of getting screwed by short term capital gains tax and not having the chance to buy back in lower. But I suppose if you can use capital for a biz / other venture then it’s better served for that use during a bear anyway. Sorry just thinking out loud
I learned an important lesson that we have a 'legal system' not a 'justice system'
After three years and hundreds of thousands of dollars in legal fees absolutely nothing has come of it. He used the money owed to me to pay lawyers to delay and complicate the case untill he had years to spend and hide all the money. It'not just me, though since he ran a mini pyramid scheme to steal another $1m from some woman and a doctor.
As for the Crypto, Bull and Defi were confident (and are gnerally right) that the price was going to drop. I did sell some and take a hit on the capital gains from trading BTC to ETH, yet the year after I sold to USDC and rebought thus capturing capital losses which I then got a tax refund on.
That sounds extremely messy. The audacity from him to spend your money on legal fees… insane. I’ll take careful consideration if I ever go into biz with a partner, but going to try to go solo w/ the help of a mentor.
And I need to read up on tax loss harvesting / crypto tax in general. Maybe that’ll be the best way forward once the rehypothecation madness ensues. I hadn’t considered Bull’s point about the NASDAQ and how we could reach a mania bubble that takes a decade+ to recoup
Could give some advice on how we do these items in the article under the transactions?
Transactions
Level 1: You know how to read a transaction, look up the smart contract address on the block explorer to check the address is legitimate. You don’t always take the time.
Level 2: You’ve the discipline to check every transaction.
Level 3: You sometimes use advanced tooling to preview/simulate the effect of your blockchain transaction before confirming it.
Send Pudge to Gnosis Safe multisig. This works just like sending a token, but obviously try with a low value NFT first and make sure you can send it back to your wallet.
hi BT Iguana, I have a MacBook Air that I plan to use only for crypto related sites like coinbase, ledger.... If I do a factory reset on my MacBook Air , does that make everything 'clean'--free from malware, viruses, etc?? If so I can proceed to use my laptop only for crypto..best,J
Thanks so much for all work you all put in, your content is helping survive my first cycle.
Excuse the noob question - A majority of my bag is BTC/ETH that I have stored on a trezor. As I transition a small portion of my allocation from BTC/ETH to alts/memes, what’s the best way to properly secure coins not directly supported by trezor? I don’t want to leave everything sitting in a hot wallet.
Which chains are you using? Bitcoin, Ethereum, Solana right? I thought Trezor supported all ERC-20 coins on Ethereum and all SPL coins on SOL. Which ones are you having difficulty with?
Agree not to leave too much value on a hot wallet, especially if your security isn't perfect.
Level 4: You manually construct transaction objects on paper and wrote your own RLP encoding tool. You use multi-party computation and each secret share is stored in a nuclear bunker inside an HSM across every continent. Before you submit transactions on chain, you fly to each bunker and collect the RSV values produced and fly back to your secret remote location to submit your transaction via satellite-hosted RPC node.
I have some of my crypto on exchanges - I know the golden rule that not my keys, not my coins.
I'm curious about the operation of the exchanges tho - when I buy ETH or BTC, does anyone know if the exchange will move the actual coins to a wallet they allocate to me or is it all managed in a database? I imagine if they actually shuffle the coins, the transaction costs would be insane for the exchange.
The coins you send go to cold storage/master wallet and the exchange keeps a hot wallet for withdrawals and periodically replenishes from cold storage as needed.
It's all databases, and if you're lucky they might keep the seed phrase to the wallet in the cloud like FTX did.
What’s the best legal recourse for crypto hacks lost to bad links? Is there any company helping with recovery? Or legal entity that can at help at least get some documentation for tax purposes?
This!
I made the big mistake of not derisking anything last cycle #hodl
I’ve been putting every extra penny I make into crypto since 2016 and saw my NW go from 60 to 600, then back down to 200
I figured 600 wasn’t really enough to retire on, yet I’d I had sold anywhere near there top I could have certainly hit financial independence by now.
DONT GET GREEDY AND DONT LISTEN TO THE AUTISM. If you are actually on the spectrum it’s easy to fall into rules like hodl forever. It’s easy to take most things very literally.
What would you have done differently after selling in order to hit FI? I keep seeing people saying to take profits but I’m not sure why. Won’t those profits be taxed and then you’ll just have to potentially buy back at higher prices anyway? Or are you saying you would’ve made some alt / meme plays that would’ve been freed up by the extra $? I’m genuinely curious because I just planned to HODL eth until at least 2030
I took comments by Bull and DeFi education too literally and stuck with hodl when they advised to derisk.
something long the lines of "derisk financial independence" but since I had not yet reached that I thought just to hodl. when really I should have sold, then bought back in lower later on.
I also had taken a loss of $2m in biz equity due to a partner stealing from me (he stole $1m from other people, too) so It paled a bit in comparison.
Sorry to hear about your business partner. I hope you can get the justice you deserve. Truly a terrible situation…
And I guess if the cost basis is high then it can always be bought back in lower, but I’d still personally be wary of getting screwed by short term capital gains tax and not having the chance to buy back in lower. But I suppose if you can use capital for a biz / other venture then it’s better served for that use during a bear anyway. Sorry just thinking out loud
I learned an important lesson that we have a 'legal system' not a 'justice system'
After three years and hundreds of thousands of dollars in legal fees absolutely nothing has come of it. He used the money owed to me to pay lawyers to delay and complicate the case untill he had years to spend and hide all the money. It'not just me, though since he ran a mini pyramid scheme to steal another $1m from some woman and a doctor.
As for the Crypto, Bull and Defi were confident (and are gnerally right) that the price was going to drop. I did sell some and take a hit on the capital gains from trading BTC to ETH, yet the year after I sold to USDC and rebought thus capturing capital losses which I then got a tax refund on.
That sounds extremely messy. The audacity from him to spend your money on legal fees… insane. I’ll take careful consideration if I ever go into biz with a partner, but going to try to go solo w/ the help of a mentor.
And I need to read up on tax loss harvesting / crypto tax in general. Maybe that’ll be the best way forward once the rehypothecation madness ensues. I hadn’t considered Bull’s point about the NASDAQ and how we could reach a mania bubble that takes a decade+ to recoup
Could give some advice on how we do these items in the article under the transactions?
Transactions
Level 1: You know how to read a transaction, look up the smart contract address on the block explorer to check the address is legitimate. You don’t always take the time.
Level 2: You’ve the discipline to check every transaction.
Level 3: You sometimes use advanced tooling to preview/simulate the effect of your blockchain transaction before confirming it.
Check out Blowfish for transaction simulation. They support all EVM chains + Solana. They have both a chrome extension and an API.
What do you guys do for NFTs?
Trezor does not directly support NFTs (as far as I understand).
Any thought? I love my pengus and don’t want lose them or anything else in a zoo break!
Send Pudge to Gnosis Safe multisig. This works just like sending a token, but obviously try with a low value NFT first and make sure you can send it back to your wallet.
Excellent must read post.
1) Thoughts operating systems? I always do a wipe when I buy a computer. I know Linux is preferred.
2) Is a mobile with vpn still too risky for small hot wallet?
2) Nothing is too risky for a small hot wallet. Should be an amount you'd be comfortable carrying as cash and not bothered much if you misplaced it.
1) Qubes is strongly preferred. If you can't get that a major Linux distro will do. Or MacOS.
hi BT Iguana, I have a MacBook Air that I plan to use only for crypto related sites like coinbase, ledger.... If I do a factory reset on my MacBook Air , does that make everything 'clean'--free from malware, viruses, etc?? If so I can proceed to use my laptop only for crypto..best,J
Unless you were infected with some very advanced malware, which is unlikely, then yes you should be good to go after a reset.
Thanks so much for all work you all put in, your content is helping survive my first cycle.
Excuse the noob question - A majority of my bag is BTC/ETH that I have stored on a trezor. As I transition a small portion of my allocation from BTC/ETH to alts/memes, what’s the best way to properly secure coins not directly supported by trezor? I don’t want to leave everything sitting in a hot wallet.
Which chains are you using? Bitcoin, Ethereum, Solana right? I thought Trezor supported all ERC-20 coins on Ethereum and all SPL coins on SOL. Which ones are you having difficulty with?
Agree not to leave too much value on a hot wallet, especially if your security isn't perfect.
Any specific antivirus you would recommend for your pc? And how do you feel about tangem wallets instead of trezor?
Level 4: You manually construct transaction objects on paper and wrote your own RLP encoding tool. You use multi-party computation and each secret share is stored in a nuclear bunker inside an HSM across every continent. Before you submit transactions on chain, you fly to each bunker and collect the RSV values produced and fly back to your secret remote location to submit your transaction via satellite-hosted RPC node.
Brilliant
I have some of my crypto on exchanges - I know the golden rule that not my keys, not my coins.
I'm curious about the operation of the exchanges tho - when I buy ETH or BTC, does anyone know if the exchange will move the actual coins to a wallet they allocate to me or is it all managed in a database? I imagine if they actually shuffle the coins, the transaction costs would be insane for the exchange.
The coins you send go to cold storage/master wallet and the exchange keeps a hot wallet for withdrawals and periodically replenishes from cold storage as needed.
It's all databases, and if you're lucky they might keep the seed phrase to the wallet in the cloud like FTX did.
What’s the best legal recourse for crypto hacks lost to bad links? Is there any company helping with recovery? Or legal entity that can at help at least get some documentation for tax purposes?
I can't/won't name specific cases. But I've heard some CPAs will help writeoff losses from crypto hacks.
this is alfa
If I buy a BAYC on this dip, how many levels does my aggregate security fall? Worried ill have no choice but to start clicking random links
In your opinion, what is the best crypto tax software?
ctc actually rly good (not just saying that). I've tried both cointracker and token tax and found ctc faster and more intuitive to use
they all work, its just about which one minimizes the pain
It's mentioned in the article to check out btb's recommendation
yes
I need to get a new laptop for crypto. Any specific specs or must haves you would look for?