Bitcoin Forum

Hi all, please forgive such a nub question but couldn't seem to find this in the forum and there's too many different answers on the 'net.

Picked up some altcoin, they got a cease and desist from the NASAA and looks like the biz could go under. Trying to figure out the best thing to do.

If I hold and the value goes to zero, can I write this off as a loss based on the value at time of purchase? Should I try to just dump it all and pray someone buys?

Thank you
-G

You have to check the altcoin fully,before inverse your money in that altcoin.They are some potential altcion available in the market and some shit coin also available.If you are investing in bitcoin,no need to check.Incase you are purchasing altcoin,you have to choose the best.Some of the potential altcion is Ethereum,litecoin,Monero.

Sounds serious and hard to advise without specific knowledge of the situation.    A private individual can write down losses against their other profits within just one single financial year.   So thats April 2018 to April 2019 I think.

This is the economics section and this sounds like an alt coin question, find the ANN thread for the coin you are holding.  Use google

You need to find out which coin is worth to invest by long time following it on market, only thanks to that you could say that this coin is "nice" to invest. Loss is when your coin can't back to price with which you had purchased it.

Thanks. One coin was a dud and I didn't do my due diligence on it. Definitely at a loss, and trying to figure out if I can write it off and if that's worth it at this point.  Cheers

Hopefully, you didn't invest too much in it. Investing in any sense will always come with some loss. Even if you're really experienced, you will still have failures.

Thank you for the reply. This is sort of 'serious,' not too much invested but still turned out to be trash.  


I appreciate the note on writing down losses against other profits, I was thinking along that route - my big question:   do I have to sell it in order to write down a loss or can I write it down at the value at the end of the year?

You have just been showed that all that glitters in crypto.trading is not gold and its does not seems to be the way it shows. I guess you saw a coin rising and then dig in only to realise that its a case of pump and dump whose brunt is borne by newbies like this while they make money out of it. Now in this period, you have identify two solid ootions, its then left for you to decide which is the most beneficial of the two. You have learnt your lessons and going forward I hope you will make reference to it before making any further decision.

Heh, not a bad one. Just one thing I couldn't determine with crypto tokens - if I have to sell them to be able to claim the loss on the taxes I file next year.  I've seen both yes and no out in the wild.

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You have just been showed that all that glitters in crypto.trading is not gold and its does not seems to be the way it shows. I guess you saw a coin rising and then dig in only to realise that its a case of pump and dump whose brunt is borne by newbies like this while they make money out of it. Now in this period, you have identify two solid ootions, its then left for you to decide which is the most beneficial of the two. You have learnt your lessons and going forward I hope you will make reference to it before making any further decision.
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Definitely will. Got caught up in the glitter and a great advisor list, but turned out to be a dud hedge fund.

In most cases you don't have to sell. I advise you to ask an accountant, but most governments want you to report losses and gains based on the current value of your tokens. This means that if you buy a coin, and hold it until the tax year comes to an end, you should check the value of the coin and calculate whether you gained money or lost.
Personally I find it ridiculous because unrealized gains shouldn't count, and on top of that the government doesn't have the means to look into my wallet and know how much i am holding.

Well, realize the actual concept of loss. A loss is not a loss unless you take it and as you said, if the value goes to zero then there must be some issue with it and hence you should confirm the actual scenario of that coin. Technically, you will have 100% loss in that case unless the value is 1 Satoshi for each coin, if there is no buying history for any particular coin on the internet in last 30 days then there is no hope for looking for a buyer.

I believe you have to sell before end of the tax year to claim the loss.   There is nothing to stop you then buying it one day into the next tax year.    This detail might vary by country so you will have to double check but I think its true most places

Lossing is a part of our journey here in crypto since we all know that the value of cryptocurrencies is volatile. Holding or trading depends upon the token that you have and for you to have a hint on what to decide, you better read the whitepaper of an ico of the tokens that you have.

Good thing you experienced that on the way. Why? Because that bad experienced will be your foundation for much better trading experience that will affect your future decision. Not an assurance that you will always win next time but you can minimized the risks.

Now heading back to your question about what's the best thing to do, it's in your hands to make an own decision.

Study the case, refer to others who also have that coin, be updated in their main platform discussions (ANN, telegram, social media etc.), feed your mind and that's it. Your own portfolio can only managed by you so take this as a challenge.

It would be very advantageous for newbies to read every bit of information they see around and understand whatever thing they intend to do. Newbies are advised not to trade at unknown exchange site.

making losses are part of the road in the cryptocurrency industry due to high volatility nature of the tokens we deal with in here.They will help you to learn and understand the process better than before so that next time you may know how to avoid such losses in the future.

It is a regret that there is no stopping greed for thinking that there will be more money. Psychological instability will lead to bad results and greed too bad. Because when there are no stops we often miss out on good opportunities. So feel good enough when you can, do not be too greedy will lead to despair.

Well, there are a lot of coins in my portfolio which are near zero or on the way to zero. I have decided not to sell them because their prices are so ridiculous small so having sold them I will get small amount of money. As you can see in my case it does not make sense to sell coins but in your case you would better to figure out whether the invested money are required you right now or you are going to take a risk by holding your coins hoping on the growth in the future, of course, if you have investigated the project and you believe that the project can be successful in the future.

Every loss is an opportunity to learn and become wiser in cryptocurrency since without lesions well learnt through losses,future mistakes will occur in worse situations. Hence learn from every loss you make well.That could be a great gain in itself.