Bitcoin, Cryptocurrency, and the Future of Global Finance

[kiddiedoc]

How does one invest in crypto? I had to pay someone in bitcoin a couple of years ago. I had to go to an ATM like thing in a convenience store and stuff $100 bills into it to a certain account number. Whats the easiest way to invest a couple thousand initially?

Coinbase is super easy

 

[InVOLuntary]

Coinbase is super easy

Seems like that may have been the ATM type machine I used.

 

[Majors]

How does one invest in crypto? I had to pay someone in bitcoin a couple of years ago. I had to go to an ATM like thing in a convenience store and stuff $100 bills into it to a certain account number. Whats the easiest way to invest a couple thousand initially?

If you have a brokerage account like Fidelity you can invest there in crypto like BTC, ETH, LTC and crypto mini trust funds. Coinbase app another brokerage account you can invest in ones like Solana, XRP, ADA.

Both are direct links to your bank account.

 

[InVOLuntary]

If you have a brokerage account like Fidelity you can invest there in crypto like BTC, ETH and LTC. Coinbase app another brokerage account you can invest in ones like Solana, XRP, ADA.

Both a direct links to your bank account.

I have a self directed IRA through Schwab but after a quick Google search, you can't invest in individual cryptos through them. I have a very small Robinhood account that does though and I may just use it.

 

[PKT_VOL]

Coinbase is super easy

This. Invest (more on the time side vs the moneywise) in a cold wallet as well. Don't leave it on the exchange.

 

[utvolpj]

This. Invest (more on the time side vs the moneywise) in a cold wallet as well. Don't leave it on the exchange.

Not your keys, not your crypto

 

[TN404]

Venmo app works too but they take a small charge

 

[SpaceCoastVol]

How does one invest in crypto? I had to pay someone in bitcoin a couple of years ago. I had to go to an ATM like thing in a convenience store and stuff $100 bills into it to a certain account number. Whats the easiest way to invest a couple thousand initially?

If you have an Interactive Brokers account you can buy some there. They work with Zero Hash who actually holds the crypto. It's pretty easy, but they have limits on how much you can buy there relative to your account.

 

[SpaceCoastVol]

If you have a brokerage account like Fidelity you can invest there in crypto like BTC, ETH, LTC and crypto mini trust funds. Coinbase app another brokerage account you can invest in ones like Solana, XRP, ADA.

Both are direct links to your bank account.

So which one do ya'll think is going to make the next big run? I have a couple of bitcoin, and a decimal place or two of ETH, but I don't know crap about XRP, ADA and Solana. Even if Bitcoin hits $100K, all the real money has already been made.

 

[DrRosenRosen]

So which one do ya'll think is going to make the next big run? I have a couple of bitcoin, and a decimal place or two of ETH, but I don't know crap about XRP, ADA and Solana. Even if Bitcoin hits $100K, all the real money has already been made.

HBAR has been hot and has ties to SpaceX and Musk.

Big night for Bitcoin smashing 100k!

 

[SpaceCoastVol]

HBAR has been hot and has ties to SpaceX and Musk.

Big night for Bitcoin smashing 100k!

I happened to be looking at it last night when it went thru $100K.

So help a neophyte like myself out. Where does one go to learn about all these alternate cryptos? I didn't touch bitcoin until it appeared (in my estimation) here to stay. Ya'll have thrown out some tickers and have mentioned coins that I have never heard of.

 

[theFallGuy]

Coinbase is super easy

This is the way.

Regulated US company that is public.

Also congrats to any of ya'll that picked up Coinbase stock when it was $40 during the crypto bear market. Feeling good today.

 

[theFallGuy]

If you have an Interactive Brokers account you can buy some there. They work with Zero Hash who actually holds the crypto. It's pretty easy, but they have limits on how much you can buy there relative to your account.

just remember it's all about self custody with crypto. You are letting someone else hold the keys.

 

[Majors]

I happened to be looking at it last night when it went thru $100K.

So help a neophyte like myself out. Where does one go to learn about all these alternate cryptos? I didn't touch bitcoin until it appeared (in my estimation) here to stay. Ya'll have thrown out some tickers and have mentioned coins that I have never heard of.

XRP, ADA & LTC is where Im making money right now.

With Bitcoin over 100K, LTC is my play over Solana.

 

[SpaceCoastVol]

just remember it's all about self custody with crypto. You are letting someone else hold the keys.

I'm not convinced anymore about that. The .gov can get in there, so that point is pretty much moot

 

[theFallGuy]

 

[n_huffhines]

Great discussion

Is Crypto Entering a New Golden Age—or Just a New Era of Failed Promises? - The Ringer

The crypto industry seems poised for a new golden age. But what exactly does that mean? Who would benefit? And, oh by the way, what does this technology do other than serve as a set of…

www.theringer.com

 

[Thunder Good-Oil]

Taxation is going to be interesting to watch if/when crypto becomes mainstream for consumer transactions.

Instead of figuring out how to manage the budget by limiting expenditures with a limited amount of taxation, the government now looks at how to tax EVERYTHING.

Crypto is often compared to gold. It stores value, hedges currencies, appreciates in value, etc. However gold has industrial uses but is no longer transactional with the micro element of transactions. You no longer trade a pinch of gold for a splash of whiskey at your favorite saloon. But that is happening with crypto.

So how will they tax it? And are they able? They can with the handful of regulated brokers (CoinBase, RobinHood, Fidelity, etc). They can put a burden on fin-techs like MasterCard and Visa to help calculate taxation of the small transactions. So how will they IRS tax crypto that is stored in consumer wallets? How will they keep up with billions or trillions of transactions?

If US citizens that frequently travel abroad put Eurodollars in foreign banks, is the IRS taxing those currencies if they appreciate before being spent?

It’s time for governments to get away from the tax and spend mentality that has been growing for a long time. The tax everything concept that’s been growing for decades or even a century or two is going to unravel with crypto being a major component.

 

[SpaceCoastVol]

Taxation is going to be interesting to watch if/when crypto becomes mainstream for consumer transactions.

Instead of figuring out how to manage the budget by limiting expenditures with a limited amount of taxation, the government now looks at how to tax EVERYTHING.

Crypto is often compared to gold. It stores value, hedges currencies, appreciates in value, etc. However gold has industrial uses but is no longer transactional with the micro element of transactions. You no longer trade a pinch of gold for a splash of whiskey at your favorite saloon. But that is happening with crypto.

So how will they tax it? And are they able? They can with the handful of regulated brokers (CoinBase, RobinHood, Fidelity, etc). They can put a burden on fin-techs like MasterCard and Visa to help calculate taxation of the small transactions. So how will they IRS tax crypto that is stored in consumer wallets? How will they keep up with billions or trillions of transactions?

If US citizens that frequently travel abroad put Eurodollars in foreign banks, is the IRS taxing those currencies if they appreciate before being spent?

It’s time for governments to get away from the tax and spend mentality that has been growing for a long time. The tax everything concept that’s been growing for decades or even a century or two is going to unravel with crypto being a major component.

How can you avoid it being taxed? I'd seriously like to know, because if there is a way, I am liquidating everything tomorrow and putting it all in Bitcoin.

 

[Thunder Good-Oil]

How can you avoid it being taxed? I'd seriously like to know, because if there is a way, I am liquidating everything tomorrow and putting it all in Bitcoin.

Right now there isn’t a system in place to track the “At the checkout register” transactions. But the catch all for the IRS is that the tax liability is required to be calculated and reported by the tax payers. The IRS just doesn’t have the ability to monitor and enforce it right now.

Ducking taxes would be dependent on coin administration and promoters playing ball with the IRS. I’m no expert but it seems like the coins that can rise above regulation and the exchange based trades are as far as the government would be able to enforce.

Crypto and taxation is interesting (or complicated) because of the tens of thousands (or more) of coins. It will be a diverse universe. Bitcoin will be more in the IRS crosshairs just because of the massive market cap. Coin #10,000 won’t be, but will it have a functional use?

 

[SpaceCoastVol]

Right now there isn’t a system in place to track the “At the checkout register” transactions. But the catch all for the IRS is that the tax liability is required to be calculated and reported by the tax payers. The IRS just doesn’t have the ability to monitor and enforce it right now.

Ducking taxes would be dependent on coin administration and promoters playing ball with the IRS. I’m no expert but it seems like the coins that can rise above regulation and the exchange based trades are as far as the government would be able to enforce.

Crypto and taxation is interesting (or complicated) because of the tens of thousands (or more) of coins. It will be a diverse universe. Bitcoin will be more in the IRS crosshairs just because of the massive market cap. Coin #10,000 won’t be, but will it have a functional use?

Well that is like saying there is a difference between investing in AMZN or Solyndra.

And maybe the taxation issue is why the Jackass needed 87,000 new IRS agents.

 

[Thunder Good-Oil]

Well that is like saying there is a difference between investing in AMZN or Solyndra.

And maybe the taxation issue is why the Jackass needed 87,000 new IRS agents.

Taxation is simply a mess and mainstream use of crypto could wreck it. It’s amazing that FIT started out as 1% on earnings after a base exclusion and today we have foolish narratives like Bernie’s 100% income tax and taxation of unrealized capital gains.

 

[SpaceCoastVol]

I am unsafe to fly in July. My goal after that is to pay $0.00 in taxes. I might not be able to be completely successful, but it will be my mission.

 

[Thunder Good-Oil]

I am unsafe to fly in July. My goal after that is to pay $0.00 in taxes. I might not be able to be completely successful, but it will be my mission.

Munis and Roths. And if cash is needed, borrow against investments in taxable accounts and only sell those investments (in taxable accounts) if there are loses to offset capital gains.

I’d convert more IRA dollars to Roths and take tge immediate tax hit if I knew that I have 40 years left.

I think that I can take the RMDs in regular IRAs though and donate them for charitable purposes and avoid taxes.

Life insurance proceeds paid to beneficiaries isn’t (or at least “wasn’t”) taxable.

Sell primary residence and max out that exclusion. Don’t sell assets that have appreciated the most in taxable accounts - use the stepped up cost basis to pass assets to heirs.

There are going to be some tricks using trusts as well.

Of course, if the leftists like Bernie and Beth ever gain real power they’ll work hard to strip every tax shelter rule, benefiting the middle class and up, that they can out of the tax code. And for those earning a lot less than $400k/year.

 

[SpaceCoastVol]

Munis and Roths. And if cash is needed, borrow against investments in taxable accounts and only sell those investments (in taxable accounts) if there are loses to offset capital gains.

I’d convert more IRA dollars to Roths and take tge immediate tax hit if I knew that I have 40 years left.

I think that I can take the RMDs in regular IRAs though and donate them for charitable purposes and avoid taxes.

Life insurance proceeds paid to beneficiaries isn’t (or at least “wasn’t”) taxable.

Sell primary residence and max out that exclusion. Don’t sell assets that have appreciated the most in taxable accounts - use the stepped up cost basis to pass assets to heirs.

There are going to be some tricks using trusts as well.

Of course, if the leftists like Bernie and Beth ever gain real power they’ll work hard to strip every tax shelter rule, benefiting the middle class and up, that they can out of the tax code. And for those earning a lot less than $400k/year.

The majority of my IRAs were converted to ROTHs. I still have my 401k which will have to be converted to a regular IRA though. And I am thinking of putting my trading account into a LLC to get trader tax status so I can fund a Solo ROTH 401k for both my wife and myself. I just have to figure out that mark to market accounting thing which seems like voodoo to me.