Get Rich Quick Or Get Free Slow

in LeoFinance2 months ago

Hey Jesspeculators

The Bitcoin halving seems to be quite the catalyst for the market, its programmable cut in supply results in a price run-up and has done so each time it has happened; this time looks no different. Each time Bitcoin runs up in price, it drags altcoins with it and mints new millionaires.

I do not doubt in my mind that in 2021 there will be new Bitcoin millionaires, new Altcoin Millionaires and new DE-FI millionaires. People will have the chance to dare me to say it "get rich quick."

I think a lot of people will strike it rich purely because of the number of investors coming in as well as the amount of capital sloshing around. There will be those in the so-called smart money camp and those in the dumb money camp that will make out like bandits once the dust settles.

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Strike it rich and keeping it

Call it luck, call it skill, call it skill, call it conviction in a trend. As humans, we all need to justify things that happen; some call it blessings, some call it a sign from the universe, others believe they're that smart. Whatever it is, it sure does feel rather random to me.

None of us knows which coins will be the big winners this time around; we're all guessing and placing out bets hoping to catch more of the upside. Eventually, it gets to a valuation where you cannot resist, as much as we in crypto say we don't care about fiat money.

There's always a fiat valuation someone is willing to call time on their crypto holdings and fiat exchange.

So now you've cashed out, you've made some sweet gains now what? Buy a Lambo? Live a life of leisure?

Cashing outcomes with obligations

I realise that there are valuations many of us cannot say no to, but you need to remember when looking at that valuation in your account how much of that is retained earnings. As soon as you enter the fiat money world, you enter a world of tax implications that can eat into your profits.

Sure, if you've made a pile of cash that you're happy to foot the bill, that's cool. But many crypto holders won't realise this; they'll unknowingly cash out only to be hit with a massive bill.

As governments feel more threatened by crypto, as government debts rise, they will be looking at crypto cashouts as a target.

Cashing out also means you're back on the wrong side of inflation

I get it; any person would be dumb to ride this market up only not to take some profits off the table. However, taking the entire load seems well, not prudent. Not only is it a larger tax liability, but you're cashing out into an asset that is constantly being devalued.

If, of course, the amount is so large that inflation will never matter to you, I get it. But if it's not life-changing money, all you're doing is giving to the government and while waiting for things you want to buy, losing purchasing power.

This bull market is a rare opportunity for many of us to close the gap that we lose to inflation and wage deflation each year, and I intend not to waste these opportunities.

Cashing out to fiat isn't the only option

Money is only as good as the things we want to buy with it,

  • so, if you want a holiday, why not just book it directly with crypto?

  • Purchase goods and services either P2P or through marketplaces from stores that accept crypto

  • Cash-out your principle and perhaps what's in the limits of your countries tax

  • Take a loan against your crypto should you require additional funds

  • Set aside some funds in staking coins/DE-FI/CE_FI to offset losses from the correction

This game has become far more nuanced than the old cash in cash out, and it's no longer just a get rich quick opportunity.

If you play it right, you could buy your freedom from having to work for more years; you could use it to reduce your debts, improve your lifestyle and attain freedoms you've always wanted.

Selling out at the top of a bull run isn't the end game, just a part of a new financial cycle that more people will be drawn into, and yields will decrease.

So while the risk is high, so too will the returns.

Have your say

What do you good people of HIVE think?

So have at it, my Jessies! If you don't have something to comment, "I am a Jessie."

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There's that question of cash out then what? Have the money in crypto to generate more returns or cash out to fiat which am running away from in the first place.

This is a very critical issue one needs to evaluate before making a move, I will personally prepare my money to remain in crypto as much as possible, and hopefully paying for things with crypto increases.

Striking it big might eventually come but staying big is the big equation to solve.

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That’s the exact same thinking I have why is it always trying to cash out into the worst asset for store of value and tax!

If you want a car or house buy it with your crypto if you want stocks buy it with your crypto! There are ways to move into other asset classes without going through fiat

After this run I just want to park my principle in stable coins and collect interest then I know I never invested anything lol

I can live on the fiat I have now and let this baby grow

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Good thinking!

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Just wait till the governments think they need more money and pass a unrealized gains tax. I don't like it but I feel like it will happen given the massive spending bills we got across the world.

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Even if governments taxed us 100% for the year it still woudln't be enough, we've gone past that point already, but they'll keep trying and you're probably right we'll see some stupid tax like this obliterate companies and people and capital will move digitally or to other countries not so foolish.

Its going to be a game of cat and mouse, they don't want to let go and are going to put up a fight

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Thinking long term is the best. Unless you plan to invest and get a return, cashing out is risky. Freedom is the real main goal people shoulf focus on. Immediate gratification in form of taking all the money out fast is a mistake

Lol, I like to think I am disciplined and that I am planning for my future and then I look back on the year and think, you know what there's a lot of stupid things I bought and like times I wasted money like when I have good in the house, and I'm like let's order sushi instead lol.

So I'm aware I still fall for those instant trappings; no man can resist it all of the time. But I see it as progress not perfection and I will treat myself sometimes, but there's defiantly times I waste money

Oh well we all need to spoil ourselves a little bit once in a while. Being too harsh on ourselves and thinking about scarcity does not call in the abundance. So yeah, get a little sushi insteand once in a while. It's good yum yum

This is a very timely post for me. I just cashed some out to take care of some bills and I am looking at some pretty hefty tax implications (for me). In the future, I will definitely be looking at alternative ways to get my money in to the right place. At this point I will just start assuming that government cut off the top until I can figure something else out.

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I'm already seeing people listing their homes for crypto and with apps like Lolli, crypto.com, strike, celsius, blockfi, you should be able to spend your crypto directly on goods and services so no need to switch over and take the tax hit. For us who have been here for some time the changes may seem slow but it's actually moving really fast, we just need to continue securing a position you comfortable within crypto where you not living off cat food and enjoy the change.

As long as I can earn fiat, granted our national currency is basically confetti already, I can use that to live while I HODL for the best deal possible in the future

I am seriously thinking about moving some more funds over to crypto.com and getting one of those cards. There are some things I really don't like about that platform though. I am with you. I earn fiat to cover the bills now. My next focus is maybe paying off my house.

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We don't have cards yet lol I have funds with crypto.com, BlockFi and Celsius hoping one of them issues a card available in South Africa soon. Until then I am forced to HODL since I refuse to move back int our dying fiat

That makes a lot of sense! I need to try and get some more before I start to think about getting a card.

thank you for the information, have a nice day

Downvoted for reward disagreement.
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After this run I just want to park my principle in stable coins and collect interest then I know I never invested anything lol

I might follow up on a similar plan. Just hope I can acquire a nice amount of BTC before the serious bullrun rise. And, if not, I’m looking forward to buying more coins after the bull cycle has finished and actually holding them ( instead of what I did after buying 1.3 BTC and plenty of ETH and LTC at the bottom for a total of 6k Euros in December 2018 ).

Have a good one!

I feel you, I won't be selling my BTC or ETH, all my other alts are up for grabs though, I don't see me being able to buy back the same positions I have in BTC or ETH so I am forced to HODL, ill just take a loan against it one day if I really need capital

thank you very much for the informative article, have a great day and good mood

Downvoted for reward disagreement.
This comment lacks substance related to the article.

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