BITCOIN

debthelp1

I have some BTC (10x from original investment) and ETH (3x) and debating whether to move some into memecoins?

Also the current holdings are with Coinbase and realised today when withdrawing that their fees are pretty hefty, any advice on what to do.

I am no expert it was just an impulsive deposit with £500 around 5-6 years ago

Scottex99

debthelp1 said:

I have some BTC (10x from original investment) and ETH (3x) and debating whether to move some into memecoins?

Also the current holdings are with Coinbase and realised today when withdrawing that their fees are pretty hefty, any advice on what to do.

I am no expert it was just an impulsive deposit with £500 around 5-6 years ago

If you’re happy with the profit and want to gamble some on a 100x shot… then memecoins would do it, more than likely you’ll just lose though.

Hefty fees in terms of converting to GBP? I don’t use CB anymore but I’m pretty sure there is a “Prime” or advanced version which is not something stupid like 4%. Or open a Kraken account, move the coins over and sell there.

Congrats on the profit 

redlightbulb

I started about 3 years ago investing monthly into BTC.  Only £50 a month.. but with the recent gains it has really taken off.  Tempted to withdraw but I could easily let it run for years and hope that it really pays off in 5-10 years.  Not interested in alt coins.  The vast majority of my investments are in index funds.. this is just a bit on the side. 
The £50 per month was taken out from Starling on a standing order.. but they have recently kicked up a fuss so had to change to Nationwide. 

Scottex99

For most, you can’t really beat a solid medium/long term DCA strategy.

If it follows previous 4 year cycles, it will run up higher than this then collapse for whatever reason. And the whole thing starts again, in theory.

I’ll be holding into Summer 2025 at least 

Sumselkb

I still don't understand how crypto and cgt work exactly. For example, if I buy £1,000 of Bitcoin today, and in 2028 it has a gain of £5,000, and if the allowance is still £3,000 a year, then if I change the Bitcoin to £6,000 and withdraw to my bank then I work out how much cgt to pay.

But if I only change some of the Bitcoin (eg £3,000) and withdraw to my bank but keep the rest as Bitcoin until 2032 then I don't pay cgt? Or I do pay cgt? 

Does my annual salary from my job or personal allowance affect anything? It just seems so complicated.

User232002

Tulips! Clouds! Beanie Babies! Bubbles! Greater Fool!

User232002 said:

I've not been anywhere. I have enjoyed the quiet time and the ability to position accordingly. However, my participation here over the next two years will be mostly spent laughing at the naysayers as time serves to dismantle your arguments.

And then, I will remind you that some of us saw this coming. And that wasn't an accident or luck.

That fat lady is warming up...

Sumselkb said:

I still don't understand how crypto and cgt work exactly. For example, if I buy £1,000 of Bitcoin today, and in 2028 it has a gain of £5,000, and if the allowance is still £3,000 a year, then if I change the Bitcoin to £6,000 and withdraw to my bank then I work out how much cgt to pay.

But if I only change some of the Bitcoin (eg £3,000) and withdraw to my bank but keep the rest as Bitcoin until 2032 then I don't pay cgt? Or I do pay cgt? 

Does my annual salary from my job or personal allowance affect anything? It just seems so complicated.

Your cost basis is £1000. The value of the asset is £6000 at sale. Your gain is £5000. Your allowance is £3000. You pay CGT on the difference of £2000.

The better answer is to buy MSTR, or other Bitcoin proxies, in a S&S ISA and pay no tax at all.

The best answer is to realise that tax rates in this country are only going one way (CGT allowance was £12k two years ago) given demographics and that you should leave to a more tax friendly jurisdiction rather than pay these tax rates for these shoddy public services.

Moose1960

Scottex99 said:

It will probably nuke when it gets to 100k, imagine how many limit sells are sat there!

Interesting. Common sense would suggest a sell off is likely at $100k but then I would have expected previous "landmark" levels to trigger a temporary dip generated by those holding long positions. We haven't seen that though - not at 10k, 20k and so on. We'll see.

@Scottex99 - will you be calling this run's high or have you given up on the Mystic Meg stuff?

Scottex99

I don’t really spend time in charts but we saw it bounce off 69-70 as the previous ATH.

It bounces off most levels except in the rare times where it goes parabolic and straight up for a short period.

Earlier this year I thought 80-120k, so I’ll stick to that 

gatters

Sumselkb said:

I still don't understand how crypto and cgt work exactly. For example, if I buy £1,000 of Bitcoin today, and in 2028 it has a gain of £5,000, and if the allowance is still £3,000 a year, then if I change the Bitcoin to £6,000 and withdraw to my bank then I work out how much cgt to pay.

But if I only change some of the Bitcoin (eg £3,000) and withdraw to my bank but keep the rest as Bitcoin until 2032 then I don't pay cgt? Or I do pay cgt? 

Does my annual salary from my job or personal allowance affect anything? It just seems so complicated.

Your salary doesn't affect your CGT allowance, but might affect the CGT rate you pay. There's different rates for basic and higher tax payers. 

You only make a gain on the amount you trade/change. So assuming you buy £1,000 of BTC: If you sell HALF your BTC in 2028 for £3,000, you've made a gain of £3k - ( Half of £1k) which equals £2,500. Which is within your allowance, no CGT to be paid. You could then sell the remaining BTC in another tax year to remain within that year's allowance.

This assumes no changes to CGT allowances, and is in no way a suggestion to buy BTC. 

Qyburn

How does CGT work if you bought Bitcoin in chunks over several years? Are the "chunks" separately identifiable so that their specific gain can be seen?