Help a crypto noob

BTC markets have more options, ETH markets have much less, mainly just tokens and assets based on the ETH blockchain (ANT, GNT, REP)

>>2942849
How does anybody find grotesquely oversized hips attractive?

>>2943503
It's a nigger thing, we'll never understand.

>>2943503
virgin detection sensor triggered

>>2943503
Oversized hips are an indicator of fertility, so for a normal functioning male large hips are attractive.

I hope this has been informative fag/autist.

>>2942849
BTC usually has more liquidity and low price spread between the highest bid and lowest ask. sometimes that's what you want and/or need depending on the volume you intend to move.

in the lower volume market pairs (ETH/LTC/etc) with higher price spread, sometimes you can get lucky and make cheap buys or high sells to dumb traders who don't know any better.

also if you are trying to minimize your tax footprint, sometimes you need to stay in or avoid certain markets so you don't end up paying taxes on the same set of coins twice. for example I hold a ton of ETH that I started buying around $10, so when I sell an altcoin I will have to pay tax on the sale of that alt - but if I sell it into ETH, then I'll need to pay taxes again on converting that ETH to fiat because I am using FIFO accounting for tax reporting. If I sell the alt to btc/ltc/something else that I don't have a big bag of, then sell that to fiat immediately, then the difference should only be a few dollars on the 2nd sale (ie: I only paid taxes once even though I needed 2 sales to get to fiat).

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>>2945796
>he pays taxes on crypto

>>2944610
kek speaking of niggers >>2944618

>>2945876
that's what happens when you want to spend your money. good luck trying to evade, you'll need it.

source: bank fag

>>2945946
I guess you pay the tax man when you win at monopoly too?

also, why not just localbitcoins and keep the cash...

>>2945961
only possible with small sums. when you're moving $10-20k at a time, and aren't doing anything illegal (I only use crypto for trading), then being legit is the best option.

>>2945796
How does that work though? Bitcoin is counted as an asset while ETH is not. Why would you not pay a tax on converting the BTC to fiat?

Why does converting alts into ETH / BTC even count as a taxable event? If you buy something with gold coins, they won't tax the sale but you'll be taxed on the market appreciation of the gold if you sell that.

>>2945989
say I have 16k golem at a $400 cost/$10k market value and 40 ETH w/$400 cost/$15k market value.

now I want to cash out the golem as quickly as possible. to get to fiat I could sell the GNT --> ETH --> fiat, go GNT --> LTC --> fiat, or GNT --> BTC --> fiat.

If I go GNT --> ETH, I pay gains on that sale ($10k worth), then again on the ETH to fiat because I had to sell $10k in ETH that I only had a $400 cost on, so tax wise I have $5K in ETH on what's left of that specific lot of 40, and a new 10k cost basis on the ETH that replaced it.

so what I did when I offloaded my GNT at $0.62 instead was sell the GNT to BTC, because I wasn't holding BTC, so my cost basis for the new BTC was $10k. then I sold that BTC, my only BTC, for $10k to fiat, a $0 gain/loss.

I still technically paid taxes on that $0. but I had to wait half a day for the btc to xfer over to gemini. operationally ETH would have been easier, but tax wise I paid on $10k + $0 instead of $10k + $10k.

the IRS only sees property to property or property to fiat. everything has a USD value at the time of sale, so that's all they care about. if you are trading (as opposed to doing some one-off property exchange), you are paying on every sale regardless - property to property or property to fiat. that's how they are treating cryptos.

>>2946120

Do you even 1031a?

https://en.wikipedia.org/wiki/Internal_Revenue_Code_section_1031#Section_1031_Like-Kind_Exchanges

Paying tax converting from GNT to ETH makes no sense. Where do you get the 10k from? When you trade you trade an equal value of GNT and ETH, if anything you lose money in the form of transaction fees. And if ETH's price drops to a penny the next week, you'll pay 10k of money you don't have anymore? The way you aare calculating this is foolish and makes no sense.

>>2946335
>if you are trading (as opposed to doing some one-off property exchange)

I use cryptos for trading. from the IRS's perspective, I am a professional trader. 1031 like-kind exchange is NOT for professional traders and would only serve as a massive red flag to be audited, and would never be accepted for claiming an earlier cost basis on a crypto trade. you'll need an expensive tax attorney and some creative opinion letters from said attorney if you want it to work. and it probably won't unless you planned the trade out to work for a future 1031 exchange.

that example is real life. I actually have much more than 40ETH, but that was my oldest lot at the time I sold my GNT. I don't remember what the cost of ETH was at the time, but if I would have sold into the GNT-ETH market then ETH-USD, then it would have added a new lot at the higher cost basis and sold my oldest lot that had a low cost basis, so I'd have the same net ETH amount afterwards but I paid taxes on ~20k of gains.