Cryptocurrency mega-thread

[cryptor]

Someone more experienced in this space than me told me over the weekend that any trades on exchanges that are based overseas cannot be tracked by the ATO, but those based here can. Any truth to this? I am not trying to skirt around any tax obligations, but interested to know whether the ATO can actually see any transactions on exchanges that aren’t located here.

They may not today, but they might tomorrow.

Every country's government would want to ensure their citizens aren't dodging tax. So it would make sense that eventually they'd agree to share records.

 

[Ghost Patrol]

Someone more experienced in this space than me told me over the weekend that any trades on exchanges that are based overseas cannot be tracked by the ATO, but those based here can. Any truth to this? I am not trying to skirt around any tax obligations, but interested to know whether the ATO can actually see any transactions on exchanges that aren’t located here.

Doubt they can track defi exchanges/apps like pancakeswap, uniswap etc where you just link your wallet.

 

[FRUMPY]

Doubt they can track defi exchanges/apps like pancakeswap, uniswap etc where you just link your wallet.

If and when you withdraw and your bank balance balloons out they may come knocking and asking where you got that $10 million from

 

[BACCS]

New ATH for SOL just hit!

 

[Shupe]

The tax thing isn't perfect. They may not be able to see transactions for different overseas exchanges. However they can audit you and the onus is on you to show where your money is coming from.

If you all of a sudden drop $50k into your bank account, then you will need to show how you came into that sum of money.

 

[Shupe]

New ATH for SOL just hit!

So did LUNA

 

[BACCS]

So did LUNA

ATHs for coins in the top 20 aren’t happening in a bear market. Saw a few of the bearish traders on crypto Twitter concede defeat today.

 

[BACCS]

Total crypto market cap back over 2 trillion as well today

 

[The Dice Man]

I finally crunched the numbers from when I started investing in May and was pleasantly surprised that when I add up all my wallets on exchanges I'm actually 48% up overall. I was a bit nervus that I must be just slightly ahead. Good day, and may it continue.

 

[Ghost Patrol]

So did LUNA

Fairly low volume as well, 10%/Mcap. Could go huge if that picks up

 

[BACCS]

I finally crunched the numbers from when I started investing in May and was pleasantly surprised that when I add up all my wallets on exchanges I'm actually 48% up overall. I was a bit nervus that I must be just slightly ahead. Good day, and may it continue.

I am up 15% overall, but up over 60% from the last low on July 20. Over the last week alone I have made what I normally do in a month, it feels pretty good!

 

[The Dice Man]

I am up 15% overall, but up over 60% from the last low on July 20. Over the last week alone I have made what I normally do in a month, it feels pretty good!

Did you buy in with 1 big lump sum or slowly add over time. I wouldn't say I've DCA in, but just bought when I had the vibe.

 

[BACCS]

Did you buy in with 1 big lump sum or slowly add over time. I wouldn't say I've DCA in, but just bought when I had the vibe.

I have DCAed over time, but put more in at the beginning and that’s why I was down for so long. I have also bought into every dip since May 19 and it has proved to be a good choice so far.

 

[Evolved1]

Someone more experienced in this space than me told me over the weekend that any trades on exchanges that are based overseas cannot be tracked by the ATO, but those based here can. Any truth to this? I am not trying to skirt around any tax obligations, but interested to know whether the ATO can actually see any transactions on exchanges that aren’t located here.

The centralised exchanges will give up your data if regulatory pressure is applied. It's just a matter of time before the ATO catches up.

 

[Evolved1]

Im hearing this term 'take profits'.
I havent been doing this.
Im guessing it is taking out the money you have gained and leaving in the amount you have deposited etc.

How do you know when to take profits? Is it a matter of analysis and timing the market?
My strategy is basically just DCA long term so should I even worry about this 'taking profits?'

I can see the benefits from it, such as taking your profits that you can then use in the future to buy more if there is a dip. So I kind of want to wrap my head around it.

Cryptocurrencies tend to move in bubbles. Most altcoins top out in their first bubble cycle.

Take NEO for example which was a popular altcoin in the last bullrun. It hasn't hit the same highs as it did in 2017-18.





If you bought early in 2017, with 100 units of NEO for example, you could set incremental targets to sell 5 or 10% of your holdings. That way you'd be banking profits while letting some of your investment ride. At each point on the way up the mountain, you take more profits.

Bubbles can go higher than you ever imagined, yet still return close to their lows. The theory behind banking profits is that you don't ride the bubble all the way up and all the way back down without profiting from it.

I'm a fan of taking out my initial outlay once I've doubled my investment. After that your investment is essentially free money.

It's important to have a consistent strategy. Find a strategy that works for you and stick to it.

 

[LongBombFromOutside50]

New ATH for SOL just hit!

Solana officially the first coin to hit all time high again. I've been in since $3-$5 and I'm not f**king selling!!

 

[The Dice Man]

Anyone else expecting a bit of a pullback over the next few days for ADA? Looks pretty overbought on the daily, or is the smart contract news plus the amount staked, going to keep it floating where its at?

 

[BACCS]

Anyone else expecting a bit of a pullback over the next few days for ADA? Looks pretty overbought on the daily, or is the smart contract news plus the amount staked, going to keep it floating where its at?

RSI is a good indicator, but it can remain in the overbought range for a month or two during a bull run. With the RSI I’ve found it’s better to monitor the overall trend i.e. is it continuing to make higher highs, or lower highs? If it’s the former, then price should still be trending up; the latter, I would expect it’s starting to decline or is very close to. The amount staked with ADA (over 70%) and smart contracts launching will keep it bullish until late September I predict, but I will definitely sell a bit as the smart contract date approaches.

 

[ash_1050]

Someone more experienced in this space than me told me over the weekend that any trades on exchanges that are based overseas cannot be tracked by the ATO, but those based here can. Any truth to this? I am not trying to skirt around any tax obligations, but interested to know whether the ATO can actually see any transactions on exchanges that aren’t located here.

Someone more experienced is providing you with terrible unlicensed advice. What platform are you trading on and what platform are you using to deposit and withdraw to fiat?

 

[FRUMPY]

Someone more experienced is providing terrible unlicensed advice. What platform are you trading on and what platform are you using to deposit and withdraw to fiat?

Exactly, the ATO can track money going in and out of any crypto trading platform (and wouldnt surprise if they can track alot of the trading platforms anyway). You withdraw $50,000 from your bank account and deposit it into a crypto trading platform and havent declared any capital gains for a few years......Audit time.

I had my first client with Crypto trading last financial year - the ATO had a note on his file saying he has held or disposed of cryptocurrency in that financial year that may have resulted in a capital gain. So they have some sort of records and they will have at least 5 years to catch you out if/when they get access to actual transactions (like they have with shares etc where they list each share sale, number of shares, dates etc)

Only a matter of time.

 

[BACCS]

Someone more experienced is providing you with terrible unlicensed advice. What platform are you trading on and what platform are you using to deposit and withdraw to fiat?

I’m talking crypto to crypto transactions, not withdrawing into a fiat bank account. I think anyone with common sense would know that withdrawing into a bank account would need to be reported. It’s pretty clear from the replies to just report everything with crypto transactions as it would catch up with you eventually.

 

[LongBombFromOutside50]

Solana and Luna holders

 

[philthy05]

Hey. Pretty new to crypto, I’ve just started to buy a little bit. Any advice? I’m not looking to invest large amounts, nor do I need quick returns. Is crypto reliable to gain ground over time? I’ve literally only dropped around $150 on a few different coins just to start.

 

[faible]

Is crypto reliable

No, plan for it not being reliable.

Most of us believe that in the long-run it'll grow, but when, how, where, and which, is a lottery.

The key thing is to have some form of plan; are you looking to buy-and-hold long term? To trade regularly?

If buy-and-hold, work out which coins you believe are worth holding, how much you want to invest, and what your exit strategy is.

If a trader, work out what your plan is for taking profits, entering and exiting positions on coins, and whether your goal is to trade in and out of BTC or all the way back to fiat.

There's a shitload of information out there, a lot of it's rubbish, good luck.

 

[philthy05]

No, plan for it not being reliable.

Most of us believe that in the long-run it'll grow, but when, how, where, and which, is a lottery.

The key thing is to have some form of plan; are you looking to buy-and-hold long term? To trade regularly?

If buy-and-hold, work out which coins you believe are worth holding, how much you want to invest, and what your exit strategy is.

If a trader, work out what your plan is for taking profits, entering and exiting positions on coins, and whether your goal is to trade in and out of BTC or all the way back to fiat.

There's a shitload of information out there, a lot of it's rubbish, good luck.

I mean reliable as in long term outlook if you’re willing to be patient.

I’m not talking about lots of money, as I said I’ve only dropped bout $150 right now. Really only looking to drop an amount I can afford to lose, let it ride on a diversified lot and see if the lottery hits ie a coin explodes.