Don't Lose Your CRYPTO Gains! TOP TIPS When Exiting!!
🔐Wallet Issues🔐
Normally transaction fees to send crypto are quite minimal and cost anywhere between a fraction of a cent to a few dollars depending on the coin or token However, when the blockchain is busy, it can cost hundreds of dollars to move that crypto out of your wallet to an app or exchange As such, it is important to ensure that you have enough coins to pay for transaction fees, and make sure you have the right coin to pay for the fees to send any tokens you are holding (e.g. ETH and BNB)
💱Exchange Outages💱
Even the largest exchanges have a habit of going through outages when people need them the most. Consider making accounts on multiple exchanges to make sure you have alternatives if one goes dark If the exchange that’s down is the only one that offers trading for your altcoin, if it is an ERC-20 or BEP20 token you can trade it on DEXes like Uniswap and Pancakeswap, respectively There are also multiple cross chain bridges such as the Ren bridge which make it possible to bring Bitcoin to the Ethereum or Binance Smart Chain blockchain for use in DEXes
🥶Frozen Exchange Accounts🥶
Sometimes exchanges will freeze your account on the grounds of “suspicious activity”. This usually happens on lesser-known exchanges when you’re transferring a large amount of funds Doing KYC in advance can sometimes help protect against account freezes, although they seem to be used as a method to delay withdrawals when the exchange in question is short on crypto or cash. Similarly, stablecoins like USDC and USDT are centrally controlled, and their issuers have frozen their transfers at the request of law enforcement. Good alternatives are DAI and Terra’s UST stablecoin.
📃Tax Implications📃
Governments around the world have been spending billions of dollars to give artificial life to an otherwise dead economy and this has put many of them into record levels of debt. Besides printing money, governments get their money through taxes, and there is going to be no shortage of taxable gains sitting around when this bull market is over. Be sure to familiarize yourself with all the different tax laws in your country, and the options you have to reduce or eliminate that tax. You can watch the video linked further up in this description to help.
🏦Bank Account Freezes🏦
Like exchanges, banks could potentially freeze your account if you are wiring a large amount of fiat from a cryptocurrency exchange or crypto-fiat gateway. The procedures you will have to go through will be much more complicated and lengthy however. It might also be worth opening an additional bank account or two and transferring the money in batches. Alternatives to banks and exchanges are crypto visa debit cards which can be very convenient If you do not have access to a fiat payment gateway or crypto debit card, you can use LocalBitcoins.com
⚖Regulatory Problems⚖
Some cryptocurrencies you hold could be affected by regulations before you realize profits. If your profits are large, you may also be audited by tax authorities Last but not least, do not give financial advice as you could find yourself in court losing your hard earned gains to former friends
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📜 Disclaimer 📜
The information contained herein is for informational purposes only. Nothing herein shall be construed to be financial legal or tax advice. The content of this video is solely the opinions of the speaker who is not a licensed financial advisor or registered investment advisor. Trading cryptocurrencies poses considerable risk of loss. The speaker does not guarantee any particular outcome.
