Crypto - BTC & Alts

Scottex99

Thanks.

I see, so it is either sell it when you want for the fee at that moment or wait and hope the fee drops.
I did make 28% but after deducting the buy and sell fees is was 22%. I am not complaining as that was from 3 1/2 months but I just wondered if that is the usual fee cost.. I moved it into DOT this morning.

I noticed when sending BTC to a hard wallet the fees were low, between 24 and 42p. ETH was way more expensive, I expect that will be the same when sending it back to an exchange.

Nice, cant complain about 22%.

Yeah, there is a lot built on top of the Ethereum network (ERC20), lots of the alt coins, stablecoins, projects/protocols, NFTs etc so when the network gets congested, gas fees shoot up. You could pay $100 for a transfer that cost $5 the month before.

If you google gas fee tracker you can get an idea of the current costs

will_b

deejaybee said:

will_b - Thanks for the info re ALGO staking (  and the positivity on the project )

How easy is it to transfer from Coinbase to the official Algo wallet ?

You're welcome!

Transferring to the official Android Wallet is straightforward.  The website for the wallet https://algorandwallet.com/ has instructions.

The Algorand Wallet is an android/iphone app that you can download from the app store or Google play store.  As the world of crypto is rife with scams do make sure you're installing the right app...  You can get to it via the links in the website above, and to ensure that the website above is the right one you can go to the main https://www.algorand.com/ website and follow the link to the Algorand Wallet website from there.

When you install the wallet you will create an Algorand account, and the wallet app will give you a 25-word mnemonic phrase which is essentially the master password for that account. It's imperative that you keep that 25-word mnemonic phrase very safe, in a way that nobody can steal it (because with it they can easily steal your Algo), and, just as importantly, in a way that you won't accidentally lose it.  If you lose your phone it's no problem so long as you have your 25-word mnemonic phrase stored safely elsewhere, as, with that 25-word mnemonic phrase, you can easily recover your Algorand account on another phone.  If, however, you have lost your 25-word mnemonic phrase, there will be no way to access your Algo.  Algorand support won't be able to help you because the system is secured in this way by design - there is no backdoor.

Other wallets for other cryptos have similar long phrases that need to be kept secure.  This is just something you need to get used to when you start moving things off exchanges.  It's a little intimidating at first, but overall I think that, so long as you have a good system for keeping your 25-word mnemonic phrase safe, your Algorand will be safer in the wallet than in an exchange.  And it's definitely worth doing soon before the governance rewards start in October.

Also, following general crypto best practices, it makes sense to transfer a small amount of Algo from Coinbase to your wallet first, just to make sure the process works and that the Algo ends up in the right place.  Algorand transactions cost a fixed fee of 0.001 Algo (just over $0.001 USD at present) so are incredibly cheap compared to transactions on many other blockchains like Ethereum.  Coinbase adds its own extra fee to make it (I think) 0.002 Algo, but still it's negligible.  So you don't need to worry about the cost of making multiple transactions.  (Algorand's fast and cheap transactions are one of the key reasons more and more developers are choosing Algorand over Ethereum for new blockchain/smart-contract-based applications.)

tom9980

I suggest to anyone confused by ALTs to look into buying shares in KR1 instead currently their treasury is roughly the same value as their market cap. 

The staking revenues, unlisted holdings and privileged position as seed investors which gives them huge discounts on new projects means they are likely hugely undervalued.

Adyinvestment

Don't forget transferring out of an exchange is a taxable event and depending on your circumstances and if it is a large gain may not be worth it to get some yield.

Scottex99

tom9980 said:

I suggest to anyone confused by ALTs to look into buying shares in KR1 instead currently their treasury is roughly the same value as their market cap. 

The staking revenues, unlisted holdings and privileged position as seed investors which gives them huge discounts on new projects means they are likely hugely undervalued.

Know them well

will_b

Adyinvestment said:

Don't forget transferring out of an exchange is a taxable event and depending on your circumstances and if it is a large gain may not be worth it to get some yield.

Do you have a source for that?  It's not something I was aware of.  I found the following link saying it's not taxable but you do of course have to keep track of your holdings both on and off exchanges for tax reporting purposes:

https://blog.coinjar.com/crypto-tax-uk-in-2021-everything-you-need-to-know/#Moving-crypto-between-wallets

TimSynths

Just re staked my Bake tokens into Bakeryswap and earning a nice 16%.

BakerySwap

Scottex99

will_b said:

Adyinvestment said:

Don't forget transferring out of an exchange is a taxable event and depending on your circumstances and if it is a large gain may not be worth it to get some yield.

Do you have a source for that?  It's not something I was aware of.  I found the following link saying it's not taxable but you do of course have to keep track of your holdings both on and off exchanges for tax reporting purposes:

https://blog.coinjar.com/crypto-tax-uk-in-2021-everything-you-need-to-know/#Moving-crypto-between-wallets

In theory every single trade you ever do is a taxable event, not just when you cash out to fiat.

In reality, you could easily rack up thousands of trades on Binance, CB, Uniswap etc and I'm not sure how you're supposed to even find an accountant who could help you prepare a tax return for it (if you got into serious money territory).

Adyinvestment

will_b said:

Adyinvestment said:

Don't forget transferring out of an exchange is a taxable event and depending on your circumstances and if it is a large gain may not be worth it to get some yield.

Do you have a source for that?  It's not something I was aware of.  I found the following link saying it's not taxable but you do of course have to keep track of your holdings both on and off exchanges for tax reporting purposes:

It seems that if you own the wallet you are transferring from and then own the wallet you are transferring too you are okay, the below is taken from HMRC - everything else looks like a taxable event so I guess it pays to be careful how you do it.

"There is no disposal if the individual retains beneficial ownership of the tokens throughout the transaction, for example moving tokens between public addresses that the individual beneficially controls (commonly described as moving tokens between wallets)."

Although this took some digging to find - as time goes on I hope they make it clearer.

will_b

Thanks @Adyinvestment and @Scottex99!

Crypto taxation is rather complicated and overwhelming.  I often see the big price fluctuations and get tempted to try my hand at swing trading.  But then I think of how complicated that would make my tax return and I decide I'm too lazy

Taxation on staking income is a pain too, and risky in the sense that the tax you pay is based on the crypto you receive from staking, valued at the times you receive it.  Given the volatility of crypto prices who knows what that crypto might be worth by the time your tax bill is due.  I hope that, in time, the rules are modified as well as clarified.

There is plenty of software that aims to make it easy to total everything up ready for a tax return.  I have seen one called Koinly recommended a lot, but when I tried it it didn't exactly work as well as it was supposed to - I connected it to Binance, Kraken, and my Algorand Wallet, and, although it did manage to pull in a lot of info, it couldn't get everything it needed.  I decided I might as well do it all myself in a spreadsheet for the timebeing.