RE: Does it really matter what price Bitcoin is if you are an Alt coin investor?
I feel your pain when you were talking about setting up your slew of exchanges trying to get more BTC. When my friend started convincing me to get into cryptos, I had no idea on what to do and sometimes it felt like I was opening up all these platforms, but didn't know how to get a reasonable amount into my investment without waiting long periods of time. I was excited to find out that I could use my credit card through coinbase, but it was only $750 minimum per week... Now I'm glad that I've already got a Kucoin account because I'm sure they are going to stop accepting people soon and I'm really interested in their shares program.
Also, I know it sucks about the taxes of per transaction, but be careful... The government doesn't care what you think, they will charge you for every move you make because they are treating it like a traditional stock. Even though it's not being realized into fiat currency, It is still making a taxable event.
Thanks for the post!
Yes, it was difficult a year ago and although its easier now, it's still a ton of work to buy on any of 6 or 7 exchanges and then move the coins to various wallets not on the exchange.
In terms of the taxes, if there is no capital gain, there is no tax. So I'm quite comfortable only using BTC to buy other alt coins. I'm worried however for so many people who are trying to day trade. If they don't have a good record of buy and sells I'm not sure how someone would unwind the tangle when they do their taxes. I have good records and a good tracking Excel file I use. I'm also not trading. I'm buying and holder long term, so that makes it a bit cleaner. And I've done very well so far in the first year with one token up 750X at one point in January!
Yikes! that's pretty high. I've missed most of the big gains this last year. I just started getting a firm understanding on what I'm doing, but I'm still a crypto millionaire that's for sure lol.