I’ve spent most of my adult life just barely scraping by, much to the dismay of my stable middle class parents. It’s not that I couldn’t find a good job, it’s that I needed a certain degree of freedom in order to stay positive, creative, and to continue growing.
I never thought I’d be rich, and to be completely honest, I always doubted my ability to reach anywhere near middle class.
A lot has changed these 3 years. It’s not all bitcoin. This community and what I’ve learned about myself and my ability to make sound financial decisions, to take a position of leadership and take risks....I’ve been able to share and reflect on all that, all as my crypto portfolio grew, especially in the last year.
I’m still not what most people consider rich, but suddenly, all my goals that require capital are well within reach. If I liquidate just a little of my portfolio, I can afford to travel....a little more and I can start a small business. I can quit my job and take a break for a few months without putting everything at risk. Since I don’t have kids, this level of financial well-being is enough to make me feel light as air.
(Pexels)
At the same time, I do hope to have kids if I can create a healthy environment for them in a way that won’t totally compromise all my dreams and goals. I want to become financial stable doing what I enjoy doing first...
...and for the first time, it’s just within grasp.
What happens if my portfolio 2-4x’s as many say it’s likely to do this year. How will I feel?
It isn’t all happiness I feel as bitcoin and crypto continue to increase in value...I feel a bit nervous too.
What happens if some crazy regulation causes the price to plummet?
What happens if I take profits way too early?
What happens if I’m hacked?
Will people start treating me differently? Can I continue to trust people?
What are the points of vulnerability?
What do I need to change in order to stay safe?
What about taxes? How urgent is it that I report my Hive earnings and how can I make this as painless as possible?
How much time and effort will that take?
How much will it cost?
What if in the end my earnings are far smaller than I imagined because of taxes?
Is it more complicated living overseas?
Is it ok to day trade? Will that make my taxes more complicated?
These are things I never had to worry about before. They kind of make me want to crawl up in a ball because it feels like the wealth isn’t worth all the stress.
Of course I know that isn’t true and that whether to feel stressed or not is a choice. If it’s a choice between a little pain in the ass + financial abundance or less accountability and financial instability, the choice seems obvious but it doesn’t make it easy to adapt to. If it’s between more wealth but more risk or just no wealth, that’s an obvious choice too but it doesn’t stop us from worrying.
I suppose I will need to direct my meditation and inner peace towards my finances more and more in order to stay chill about it all. After all, I’ve been at the bottom long enough, worst case scenario is more of the same as long as I don’t make any really stupid decisions.
I really need to find an accountant who understand the nuances of ever evolving crypto regulations. I think at this point, that is the first thing I want to do with my newfound abundance.
I am still waiting to take profits from crypto to cash but at some point I want to, just to make up for the enormous disparity between my crypto portfolio and my bank account. 60-70% crypto is a risk I’m willing to take....but 90-95% in crypto at this point when regulation is unclear and I still don’t have an accountant I trust to help me with reporting my crypto, it’s just too much risk.
So sometime this year I’m going to have to find an accountant and that’ll be when I take profits (otherwise I can’t really pay them lol).
I hope it’s sooner rather than later. A 10% cash out would be incredibly helpful right now and still leave me with considerable holdings.
I’d like to move to a bigger place and not empty out my bank account entirely. But with the way crypto is looking, if I play my cards right, I may even be able to buy my own house in a year or two after getting the business up and running.
I never saw that coming! And to be honest it’s a bit much for me. I’m having trouble processing all this.
I hope this time next year my business is up and running smoothly. I hope I am living in a more comfortable place. I hope I can live just a little bit more comfortably, buy shoes that are good for my feet and food that tastes better, take a break when I need it and take a trip to see all the friends I’ve made here.
Is it all just a few months away? It feels too good to be true. Is it too good to be true?
Obviously the issue is not the wealth itself but the extra risks and responsibility involved. But...Has anyone else had a hard time adapting to the idea of having a lot more wealth at their fingertips?
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Bitcoin and ETH are in good condition this year. Hopefully, you can profit now . Good luck @whatammidoing
It seems that you have put in much effort to get where you are. Whereas for me, I think I'm still like the person you were trying to reach the goals needed to be proud of himself.
The name of the game is patience and risk management. I always put 50-80% into coins I know a lot about. Aside from bitcoin and ether hive is my only major holding. I play with 5-20% trying to make some big plays, sometimes I turn $200 into $800 based on finding really undervalued projects like stellar a few days ago. Today it went up like crazy. But most of the time I just sit on my bitcoin and buy hive when I can
What is that?
Stellar? It's one of the top 20 coins. They just announced they will be collaborating with Ukraine to build a national cryptocurrency
My memory can't keep up! It's like... there are so many cryptos everyone is telling me about. Some I've read and some I already have knowledge of them. Why are there so many cryptos and tokens? Will it not create something like confusion because of the numbers there are on the list?
...this is getting towards the future.
lol well....there is a lot of space for development and different people trying to develop. 60-80% will be garbage but the top 100 is at least 50% legit I think.
I learned 3-5 cryptos a day for a few weeks... you could do 1 or 2 a day. It only takes 4 or 5 minutes.
Some coins like litecoin or dash arent THAT different from bitcoin, maybe they have different privacy features and speed etc. Some coins are for building other projects like Etherium EOS and actually a bunch of others.
BAT is a cool coin, it allows people who use the Brave web browser to get paid for all the ads they have to see and then they can use that money to support their favorite sites who use brave, or I guess even keep it themselves.
There will be coins that allow people to coinify stocks and artwork and property and basketball teams in the future so you can buy 0.06% of your favorite team :-) Lots of stuff!
Take it slow!
I think I would deal with these when I don't have any choice but to deal with them. Almost everywhere, I hear people saying invest now in cryptos...but I'm still busy with my stuff so I can't give a look at how they are. Maybe one day.
The risk is always the bummer. It could either profit or cause you a lot. But honestly, I think you should do what ever you feel is right at the moment, you don't really need some expert to tutor you, your guts is a more qualified teacher, just listen to it.
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LOL just worried about getting in trouble with the law, that is all!
Everything else is a nice growing experience :-D
I guess I understand that now :)
Hmmmm.... This is really alot to process especially for a newbie like myself that is still swimming in an ocean of zero cryto knowledge. I know that there are always alot of risk that are involved in anything that we are doing but l pray that God will never allow any of our account to fall into the hands of hackers.
Your idea of getting an account is a perfect one and l can already see that you are a visionary. Your portfolio will always shoot up and l believe that you already have alot of ways to use your earning decently.
Your post made me to think about what life would be if l wake up tomorrow to see that the very little Crypto in my possession have skyrocketed to an alarming figure. It will make me excited and scared at the same time.
I truly hope that all our plan will be achieved. I enjoyed reading from you. Well Done
It's funny, you aren't ready for it when it happens. I'm still not "there" yet, but I see a huge difference in my prospects and it's actually quite hard to get used to, as happy as I am.
Feel free to ask questions, this is a great place to learn and grow :-D That's why I never feel bad about my investments here, it is worth it in just the knowledge and connections I've made...still I'm sure the coin will become valuable before long.
Yepppp
I will turn to a questionnaire so, get ready to receive a mouthful of my questions 🤣🤣
i think we are getting used to the "risks". for the past 4 years i am in the crypto world i have seen many ups and downs so i don't worry much, to be honest!
Ofc if you take out some profits now and after a year these profits have double the value you will feel a little bit weird but you have to think that there was a time that their worth was nothing!
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I'm just worried about what constitutes a taxable event and what doesn't. Or reporting too detailed or not detailed enough
to that, i cannot answer :P in my country, even the accountants don't know :P because there isn't an specific law or regulation
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In your words, I found a universal answer to all your questions.
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I will be doing a lot of research this winter 🤦♂️ don't want them to come after me with fines one day
= ME
You're really a brother from another mother. So much I recognize in this post. Could write a blog post reply on this but I won't. Instead let's try to catch up and 'talk' soonish :<)
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We know that much already. You could always do both smile 😃
Those are all good questions. A phrase that's stuck with me and worked well is "it's never bad to take profits".
Whatever your initial investment was might determine the maximum amount you might want to take off of the table. 10% seems to me a reasonable amount to profit.
I'd be sure to sell crypto that i've been holding for over a year to insure you wouldn't be paying short term capital gains. Any coin that you have not been trading and have been holding would seem to be the best choice to keep your taxes simpler.
If you don't flaunt it I don't think anybody will treat you any differently. I think it ends up being more to making an adjustment to the way you feel about yourself because as you say "I am living in a more comfortable place".
I know in general it's all good. But I see a lot more attention on my posts and I know some of that has to do with my vp, if it keeps growing what will that be like? It's a strange experience but I guess a very good one
And yeah I heard that about long term capital gains so I've been sitting on it. Not sure how to calculate what's a year old when you dollar cost averaged in
When determining cost basis, the rule to follow would be to use a first in first out method, so when dollar cost averaging you want to calculate the amount of bitcoin for example that you purchased prior to Jan 2020. If you purchased all in the same place your account history should show you when your trades were made. It can definitely get sticky if you made purchases in various places but you can trace through the blockchain when each purchase was made.
This is incredibly helpful :-) Do you know how specific you have to be? Is it ok to only include information about large trades and leave out fee's and tiny transactions and such?
Well, obviously I can't advise you but I personally have followed what you are suggesting to a small degree. I'm a calculated risk taker and while it isn't 100% accurate as it is desired by the authorities, I'm a small potato and the difference between 100% accurate and 97% for example is insignificant.
What they are looking for is that you are reporting all of your income and not hiding it. Most audits happen because income is under reported and usually noticeably so. I personally know a couple of individuals who spent time in prison due to trying to hide a good chunk of income.
I plan on finding someone who knows this stuff for a living but you’ve been great help!
You have basically narrated my life situation, before I came to this blockchain I was struggling to find a job or earn stable means for me to have a business of my own. And now with the right alt coin moon, I can afford to build my own house and start up my own business without even affecting a whole lot.
I worked for 7 years in a corporate entity and I couldn't even save enough money to rent a little apartment for a year not to talk of even buying a house.
The opportunity that cryptocurrency and blockchain has given us is totally unmatchable by any prospects in real time and I can basically understand everything you mean. Right now also I can afford to make some basic investment choices and this was totally impossible 3 years ago. Cheers to how far we have come my friend
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It makes me really happy to hear this.
Thank you, it's a perfect testimony to how my life has changed.
That's really beautiful. Glad things are getting easier and it is kind of strange how working that hard can do less for us than the right investment. Or even strange how the wrong investment at the wrong time might lead to a total debt hell.
I see it less about crypto and more about us being able to sense the change in the times, catching the right wave and deciding to ride it.
Cheers to 2021
Thanks you so much, your story makes everything seems relatable, cheers to someone as you. Thanks for motivating
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:-)
what a positive and motivating story! thank you!
blockchain really gives alot of possibilities, but here there are many risks too. You're here for 3 years, and you've great power, but now the price of Hive is low, and you can take much less than some years ago when steem cost 1$, and we all hopes it would cost 5$, but....:(
and sorry for the question, but you say you've enough earned money here to build a house. I see 24,000 HivePower in your wallet, is it really enough? I've a dream about my own house too, but I won't be able to build it for such money. Or have I got you wrong?
I didn't say I have enough money to build a house, I said if hive can see new moons. Hive is an alt coin so if it moons like maybe 1$ then this will be possible
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ah, sorry.
yes, sure, if Hive reaches 1$, it will be great but if it ever happens..
when steem cost 1$ we all were so rich;) but then oops, and we can't rise even after btc growth. so sad..
It is starting now :-P we always move slower than other coins, but just as much usually
our grown has started now? hmm....where?:) have I missed it?:)
We are currently back on an uptrend for the first time since ....ever? Lol
Liquidate when you feel the time is right, you deserve to feel good about the positive financial decisions you've made in the last couple of years
Just worried about taxable events and how to report them but I guess on the other side of that is some nice peace of mind
Stellar article. It's certainly about our attitudes toward wealth and what abundance actually is.
I don't LIKE to take risks with finances and that's probably why I am not rich. But jeez.. if I could make just 50 K from crypto i would be happy. It DOES seem to good to be true..
Right? And it's that belief that's usually keeping it away. I guess I've believed enough to turn it into a number on a screen. Now I gotta believe a little harder is an easier life where the number can translate to something.