This may sound silly because I’m holding since 2013. But I need some advice. I consider taking some profits for the first time ever. I’ve sold fractions in the past to pay some things. But never took profits like selling for fiat to hold fiat. I know all the sayings to never sell your bitcoin for fiat etc. But I’m also tired. Tired of the wild swings in the market. I would like to have at least something on the sideline if this Bitcoin ship fails one day due to something unpredicted. Whatever it might be. It would be an absolute nightmare to hold for 12 years and have nothing at the end. Because all my full wealth is in crypto. 97% in bitcoin. And 3% shitcoins I plan to convert to bitcoin if we get a altcoin rally. I literally have a few thousand on my bank account to live and pay the rent. That’s it.
So I wanna sell 10% of my holdings. DCA out. Here comes the problem. What’s the safest thing to convert to? USDT seems like a risk long term? USDC? Both had their bad moments in the past where both collapsed short term. But also I don’t prefer to hold fiat in my bank account. It’s confiscatable. And I don’t want the government (Germany) know how much money I have. Also right now I would prefer to hold it in US Dollar value because the USD is weak.
Also I like the option to hold it in stable coins and buy back if we get a bear market and go down to 5 digits again. I have no idea about investing. Of course it would be great to have fiat invested and get 5-7% on it annually. I could easily live off of that. But paying tax is theft and I don’t wanna feed the government.
Let's be real, no one intends to keep it forever, so it's perfectly normal to want to insure yourself in case something bad happens - and considering you're practically 100% in BTC, I don't see anything wrong with converting a certain percentage into something else. My opinion is that you should avoid stablecoins, because most of them have a mechanism that allows them to be frozen regardless of which wallet they are in - I think things are pretty clear there.
Regarding fiat and when you say you're from Germany, doesn't there exist 0% tax if you can prove that you've been holding BTC for more than 2 years? You don't necessarily have to keep fiat in a bank account, it can be in a safe (bank) or at your home, which of course has its own risks.
As for selling without KYC (for fiat), in some countries such as Croatia there are physical exchange offices where you can sell/buy EUR 1000 per transaction per day, and since there are many of them, you can easily sell for a few thousand EUR every day.
If you don't want fiat, there's always the option to invest in gold.
Thanks a lot!
Yes, in Germany the gains out of crypto are tax free after one year of holding. The issue I am afraid of is that I’ve bought them all over the place. Mt Gox. BTC-E. Two exchanges that do not exist anymore. And then some from Bitstamp. Some from Bitcoin.de. Another issue is, if they wanna see proof of where I got the money from back then to buy the Bitcoin. It was savings. How to prove savings. I’m just too paranoid of the German tax office. Technically I didn’t live in Germany since 2020 but I still pay my taxes there for my business income.
Gold is at an ATH, not sure how clever it is to buy that right now. Holding fiat as paper money is something I didn’t think of and I didn’t want to as well if it’s 6 digits. That’s not practical to travel with.
I guess best option is to cash out like 100k into my German bank account and see what happens. But the problem is the USD is too weak right now. Just few months ago 110k usd was like 106k Euros. Now $118k is 102k Euros. Would be perfect if the usd gets stronger the more we near the bull peak 😆