I would disagree with this. Do I need a technical background to sell AWS or ElasticSearch? I guess yes, so the same is with Crypto, blockchain services

Thank you for your comments. I didn't know that cloud mining has a bad reputation.

What else can I resell then instead of cloud mining? I am interested in something that has a technical component, so I can use my background

I am new to this but I am very interested in reselling cloud mining/mining farms. What are the major players in this industry? Are there any companies that have partnership programs?
I have software/hardware background and used to run a hosting company some time ago.

Thanks,
M

Thank you figmentofmyass! This is very helpful!
Do you know by chance, if can I use wighted average instead of FIFO to calculate basis for 2017?
it is hard for me to comprehend how FIFO works because I have 50 or 60 buy/sell transactions...

or is there any simple way to calculate FIFI in case of multiple SELL and BUY transactions?

Does anybody know how to do a tax return if you bought BTC in 2017 and sold in 2018?

I think, my situation is not uncommon I purchased around 3 BTC in total in December 2017 at around 16K, then I sold it later in 2018 at 6K

According to my research, the basic approach is to fill out form 8949 and attach it to 1040 Schedule D. The problem is that it spreads through more than 1 year, so I cannot do it automatically by exporting coinbase reports and using bitcoin.tax

I believe, I can use this formula: Total sale amount – basis = realized gain/loss
   
In my case, total sale amount is 3 * 6 = 18K

Now I need to calculate what the basis based on my transactions in 2017. But the problem is that I had numerous buy and sell transactions in 2017.

For example:
11/02/2017 BUY   0.8 BTC    $12K
11/04/2017 SELL  0.1 BTC    $11K
12/01/2017 BUY   0.5 BTC    $13K
12/07/2017 BUY   0.6 BTC    $14K
12/10/2017 BUY   0.7 BTC    $15K
12/10/2017 SELL  0.4 BTC    $15K
12/20/2017 BUY   0.5 BTC    $16K

so what would be the basis in my case?

is this the right approach overall?

PS: I am using Turbotax and bitcoin.tax. All my transactions were on coinbase

Thanks
M

Great idea.

Is it going to be an exchange similar to Gdax or Binance?

Do you have any ideas how to monetize it in the future?

I sold at around $6700 and I lost money. But I still cannot understand where I made a mistake. The market was bearish and it doesn't make sense to me to hold when the price is falling every day. What if bear marked lasted 2 years? Most analysts that I was watching on youtube predicted further decline at that moment and I wanted to minimize the loss. Everyone was sure that it was going even more down. There was a huge number of shorts!
But for some reasons it went up.  Someone pumped a lot of money once and after this initial pump the price started growing every day. How could you possibly predict something like this? This situation doesn't look logical to me.

I am kinda lost in the current situation. My original plan was to buy low in the dip, but I missed the bottom around $6500 and now bitcoin is going higher and higher every day.  Is it too late to jump in now?

Does it look like a parabolic parabolic rise now? it was around $6700 around 10 days ago, now $9400 which is around 25% in just 2 weeks!

If to be a disciplined investor, I should wait for a pullback. But on the other hand, if it is going to be 12K in a few days, now 9500 is pretty cheap.

What do you think?

Here is my strategy:

1. Wait for a bull market
2. Buy only in the dip
3. Do DCA daily by splitting amount to invest into 5-6 pieces
4. Check price weekly (if no parabolic rise/fall)
5. Be ready to hold for 1-2 years
6. Investments must be boring and must not add stress
7. Don't expect to earn money, if you really want something you are not gonna get it
8. Wait for a good set-up, like in poker, play only strong hands and fold weak ones

I think this is a right approach. I was also thinking of waiting for a bull market and only then come back. It is like in poker if you have a weak hand, you fold, if you have strong hand you play.

How are you trying to increase your BTC holdings?

 

Your advise makes sense for a bull market. But what to do if this is a bear market. You have a loss and what's is the point of holding and watching it go lower and lower?

how often do you check BTC price and how to cope with stress associated with this?  I am checking it every few hours and it drives me crazy and makes me anxious. Is there anybody in a similar situation and how do you cope with this?

PS: I was trying to do this once a month, but I think, I missed the beginning of the bear market in January this year because of this.  

Thanks,
Mike

I am also all in fiat now. My decision was based on the fact that I want to minimize risks. Most analysts claim that this is a bear market. Also if you look at tradingView page for BTC, most signals are sell, So, What is the point to hold if it goes lower and lower to 6K than to 4K -> 3K -> 1K ?  You cannot predict anything with bitcoin, but I decided to wait for bull market, then try to catch when it starts rising because of the bull market overall. I am not against holding for a few years, but psychologically it is hard to see how it is falling.

My rules are to wait for a bull market and then buy in the dips. I am more long term investor, and I want to check bitcoin price only once a month.

But here are some problems that I have with this approach. How to know if this is a bull market?  Now it looks sporadic so it is hard to say where we are in the cycle. Most sources say it is a bear market, but it looks like it is growing again.

Another problem is even in the bull market, it can fell at any moment. So if you invest long term, you can check the price in half a year and see you lost money.  For example, bitcoin reached 19K by the end of 2017, then it fell. And it was in this parabolic mode since September 2017. It could've fallen in September or October.

Hi there!
is there any way to use blockchain technology for insurance domain? For example, imagine, there is a token that you can buy as an insurance. Then at some moment you can redeem it in case if something happens. It should be something simple and inexpensive. I would not want to buy a home insurance like this but maybe you can buy an insurance/warranty for a TV or some electronics in this way.

Thanks,
Mike