In This Issue
- My latest portfolio updates.
- Rebecca breaks down this week’s trending coins.
- Erik has a report for you on stablecoins on Lightning Network.
- The team from Moonbeam discusses their growth since their Q1 launch.
- Jesse has a deep dive for you on if it’s Safe to Buy Monero or not.
For any crypto related questions please comment on the website.
For any support related issues please visit the website.
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Buy, Borrow, Swap & Earn Crypto with Celsius
Lark’s Portfolio
I bought a touch more Bitcoin this week. Surprise!
I also exited my Orca farm for SLC.
The APY had fallen so far that it was no longer very lucrative as a farm.
This was another farm where the impermanent loss was much bigger than the rewards gained. 😬
The Tax Man
Taxes really burned me this year.
So I have had to sell a few coins.
Why was the tax burden bigger than expected? Well, it comes down to the way that taxes are calculated in NZ.
When I enter a liquidity position on Uniswap, that counts as a sale since I am given an LP token in exchange for my ETH.
So everytime I went in and out of a defi pool using ETH, it was a big tax hit. And when swapping from ETH to WETH, also considered as a sale.
I literally swapped like 80 ETH one time to WETH to buy NFTs, and only ended up spending a few ETH before swapping back.
Basically just spanking myself with taxes for no reason.
Only stablecoin farming for this guy in the future!
No real tax implications and no impermanent loss.
This additional tax burden resulted in me selling off the rest of my BNB, MV, and some of my RIDE.
- BNB, as previously mentioned I was considering selling this off for some extra cash anyway. I have held this BNB for years now and was deeply in profit, like 100X in profit. So selling was no drama.
- Genso Kishi’s MV token I also sold. To be clear, I remain bullish on this game and think it has great potential, but faced with the unexpected addition to my tax bill I don’t have a problem cashing out something so heavily in profit. Plus I will receive more of these tokens later since I was an early stage investor.
- RIDE is such a cool project, and I really like the Elrond ecosystem. But once again, I was heavily in profit here and will receive more coins in the future.
I also reduced my stablecoin position by half in order to pay off my taxes. This WAS expected though, but still very much worth mentioning.
A portion of my stablecoins were always destined for this year’s tax payment. In the end I used about half of them.
The one unfortunate event here is that the reason I kept my fiat in stablecoins on-chain was to earn yield and “use” my assets to make money while waiting to pay taxes.
But the collapse of UST and its hit on my portfolio was not even covered by all of the yield I earned from Anchor and Convex Finance.
C’est la vie.
You may ask, Lark, why not just use all of your stablecoins to pay your taxes and keep your assets like BNB in your portfolio?
Simple. The markets remain shaky and I want to maintain a good strong cash position!
Nothing wrong with selling coins that are in big profits like those ones.
👉 VIEW LARK’S UPDATED PORTFOLIO 👈
Top Trending Coins This Week By…
Hi! My name is Lark Davis!
I’m a cryptocurrency investor with years of experience and I’ve been making consistent profits in the crypto space.
I’m passionate about helping others do the same, so I run multiple educational channels on crypto investing.
