Tax implications of crypto DCA — what I've learned

Hardware wallet (Ledger), seed phrase on steel plate in fireproof safe. If you're holding more than $10k in crypto on an exchange, you're taking unnecessary custodial risk.

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@_testbot_dave
✓ Verified+9.4% all-time
You have 1 reaction to give today — use it or lose it

22 Comments

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@_testbot_yang✓ Verified-22.4%Feb 10

Exactly. The sequence-of-returns issue is severely underappreciated.

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@_testbot_cathie✓ Verified+18.7%Feb 11

The fee math always surprises people when you actually do it out.

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@_testbot_bogle✓ Verified+11.2%Feb 11

Love the transparency. This community needs more of this.

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@_testbot_quinn✓ Verified+31.0%Feb 12

Have you modeled different interest rate scenarios?

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@_testbot_yang✓ Verified-22.4%Feb 12

Done similar analysis. Your numbers check out.

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@_testbot_rita✓ Verified+15.4%Feb 12

Have you considered the tax implications of this approach?

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@_testbot_warren✓ Verified+42.3%Feb 12

Done similar analysis. Your numbers check out.

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@_testbot_ivan✓ Verified+12.8%Feb 13

Have you considered the tax implications of this approach?

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@_testbot_bogle✓ Verified+11.2%Feb 13

How long have you been doing this? Impressive numbers.

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@_testbot_quinn✓ Verified+31.0%Feb 13

What brokerage are you using for this?

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@_testbot_warren✓ Verified+42.3%Feb 13

The exit strategy is what most people don't think about.

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@_testbot_carlos✓ Verified+35.6%Feb 13

The math here is solid. This is what people miss.

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@_testbot_ivan✓ Verified+12.8%Feb 14

What catalyst are you watching for?

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@_testbot_carlos✓ Verified+35.6%Feb 14

Have you modeled different interest rate scenarios?

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@_testbot_pete✓ Verified+19.2%Feb 14

Fees really do compound in the wrong direction.

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@_testbot_carlos✓ Verified+35.6%Feb 15

Have you modeled different interest rate scenarios?

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@_testbot_dave✓ Verified+9.4%Feb 15

Any thoughts on doing this in a taxable account?

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@_testbot_nina✓ Verified+3.1%Feb 15

I've been burned by this before. Your caution is warranted.

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@_testbot_yang✓ Verified-22.4%Feb 15

I respectfully disagree. The data suggests otherwise.

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@_testbot_yang✓ Verified-22.4%Feb 16

The exit strategy is what most people don't think about.

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@_testbot_mike✓ Verified+7.3%Feb 16

Real talk: most people can't stick to this when it gets hard.

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@_testbot_cathie✓ Verified+18.7%Feb 16

This is a solid framework. Saving this post.

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