While I've been doing my crypto taxes and recording with Cointracking, I've rediscovered little caches of tokens and coins that I had forgotten about... or had only been partly registered in the record keeping, and so had been marked as withdrawn without the corresponding deposit in a different place.
And unusually enough, it does mean that I've been noticing the price movements of crypto in general a bit more whilst I've been heads down in block explorers and all of that. And for whatever reason, it looks like we are starting to gear up for a bull market in the next year or two!
That will be quite nice... as the last bull market was when we had relocated back to Australia, and that had meant that all our crypto-assets were marked at all time highs for capital gains basis. And that has meant that we have accrued some decent capital gains losses that can be used to offset any gains in the coming years. So, no need to pay taxes on the sales for quite some time!
Lots of talk about preparing for the bull market has been more about capital allocation and positioning. I'm not really that much of a market analyst or trader... so, I have my conviction plays, and a trailing list of interesting bets. And I tend not to rebalance that much.... too lazy to take an active part in what I consider to be a very long term play!
No... when I'm talking about preparing for a bull market, I'm talking about when to take some profit. It can be quite intoxicating in a bull market to be hypnotised by the numbers going up... and to forget that it is all just paper gains... and to then forget to skim off something to make your life better. During the euphoria.... you aren't likely to sell things... and most people will hold onto things for too long... and then lose all their gains... or even worse, hold to zero.
So... set your targets. Decide what it is you want to achieve with some of your gains and profits (and if you don't have capital gains losses to offset... make sure that you set aside more than enough to pay your taxes!).
For me... I have set various targets (five in total for the moment) for the whole portfolio worth. When I hit those target triggers, I will sell a set percentage into stablecoins...
... and what is the target "thing" that will make our lives in the physical world better? Well... we just recently started a little savings fund to build an extension to our house... a proper music studio where we can move the pianos and harpsichords... and reclaim our living room.
This has always been the plan since we bought this place... but I'm notoriously debt-adverse... and my wife had gotten quite antsy about it, complaining that we would NEVER build out the extension like we had agreed. In my defence, I wanted to stabilise our incomes and expenses before knowing how long we would take before we would take the plunge to build the extension... and I had asked her to draw up plans so that we could also get it priced up with a rough estimate. But she didn't do that... and took it all to be a "no"... or that I wasn't keen... when I just wanted more information and some stability before committing!
So... we talked about it, and this will be the thing that we will spend any bull market profits on!
Whilst your head is calm and cool... draw up your plans for skimming and taking profits... get the thing that you wanted that will make your life better. And be disciplined... and stick to the plan, don't look back if your assets keep going up... you will be already better off by doing/getting that thing!
I can also be found cross-posting at:
Hive
Steem
Publish0x
Handy Crypto Tools
Ledger Nano S/X: Keep your crypto safe and offline with the leading hardware wallet provider. Not your keys, not your crypto!
Binance: My first choice of centralised exchange, featuring a wide variety of crypto and savings products.
WooX: The centralised version of WooFi. Stake WOO for fee-free trades and free withdrawals! This link also gives you back 25% of the commission.
GMX.io: Decentralised perpetual futures trading on Arbitrum!
Coinbase: If you need a regulated and safe environment to trade, this is the first exchange for most newcomers!
Crypto.com: Mixed feelings, but they have the BEST looking VISA debit card in existence! Seriously, it is beautiful!
CoinList: Access to early investor and crowdsale of vetted and reserached projects.
Cointracking: Automated or manual tracking of crypto for accounting and taxation reports.
KuCoin: I still use this exchange to take part in the Spotlight and Burning Drop launches.
