Should I take a loss with crypto?

[mentos]

The crypto bros got me just year. I bought more than I'd like to admit at the peak of euphoria. Now I'm down big, overall -65% but some crappy coins are down over 90%. Should I sell for a loss or hold for 10 years and hope the euphoria returns? Luckily I don't need the money now, not that it's worth much anymore. Sadly this wiped out all my stock gains from 2020 LoL.

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[Dred Pirate]

sell the crappy coins, they aren't ever coming back, hold to the bitcoin

 

[WVUPharm2007]

Sell it all immediately. Crypto is and always has been a greater fool scheme.

 

[mentos]

Sell it all immediately. Crypto is and always has been a greater fool scheme.

Would it make a difference if I sell all now vs 3k each year? Crypto supposedly has a bull cycle every 4 years.

 

[Dred Pirate]

Would it make a difference if I sell all now vs 3k each year? Crypto supposedly has a bull cycle every 4 years.

Does the IRS let you carry over crypto losses against your normal income to the next year? (3k a year max)

 

[owlegrad]

Would it make a difference if I sell all now vs 3k each year? Crypto supposedly has a bull cycle every 4 years.

Serious question - how many “cycles” has crypto had? I didn’t think it had been around long enough to have many 4 year cycles.

Even if another cycle comes in 4 years what are the odds that any of the ones you own will resurge? Chances are it will be some other newly minted coin that someone is peddling at that time.

 

[lord999]

Would it make a difference if I sell all now vs 3k each year? Crypto supposedly has a bull cycle every 4 years.

Depends on whether your philosophy on crypto is gold or tulips. People looking for gold bought plenty of tulips instead in the past. If you don't need the cash (and I hope you don't), make the decision based on philosophy.

As for me, I'm boring and not in any investments like usual, so it's just $ in the bank now.

There's an interesting play that quite a number of banks (Jeffries, UBS, etc.) are the counterparties to many of the claims. Make of that what you will.

 

[mentos]

Does the IRS let you carry over crypto losses against your normal income to the next year? (3k a year max)

Yes just like stocks.

 

[PharmDminus]

cut your losses

 

[mentos]

Serious question - how many “cycles” has crypto had? I didn’t think it had been around long enough to have many 4 year cycles.

Even if another cycle comes in 4 years what are the odds that any of the ones you own will resurge? Chances are it will be some other newly minted coin that someone is peddling at that time.

Looks like 2010-11, 2013, 2017, and 2020-21.

Bitcoin Doubled Its Value in 2021, Then Nearly Lost It All In the First Month of 2022. Here’s a Look at Its Price Over the Years

Bitcoin has yet to come near its all-time high in 2022. Here’s a look at bitcoin’s price history from its origins in 2009 until now.

time.com

No idea if my alts will be around in a few years. They're still currently top 30 in market cap.

I have mostly ETH and a little SOL, ADA, DOT, and CRO. I can't sell the ETH until it's unlocked so this is mostly about the last 4 which are probably crap. The only silver lining is that I'm getting 6-7% from staking each (kinda like interest) so if they ever come back I'll have more than I started with.

 

[mentos]

Thanks for the advice, dumped my CRO for a 3.6k loss. It'll be nice to close the account once the money is withdrawn.

 

[gwarm01]

Thanks for the advice, dumped my CRO for a 3.6k loss. It'll be nice to close the account once the money is withdrawn.

Ah man, I was going to say if you are down 90% are you really getting anything back selling now? I think crypto is pretty much a scam to fleece people looking to get rich quick, but if you are already down that much I'd just sit on it and sell if it ever got back to a worthwhile level.

 

[mentos]

Ah man, I was going to say if you are down 90% are you really getting anything back selling now? I think crypto is pretty much a scam to fleece people looking to get rich quick, but if you are already down that much I'd just sit on it and sell if it ever got back to a worthwhile level.

Don't worry I still have more bags down 90%, that's why I only took a 3k hit. I think CRO is the next exchange to fall after FTX and Gemini though, it's pretty shady.

Should I buy back in LoL? There is no wash sale rule with crypto.

 

[Chrish]

Get rid of it as it can get even worse.. I had kept sizable investment into total international index for 4-5 years.. But I decided to sell it since it wasn’t going anywhere. While I didn’t loose, I barely broke even which is a loss anyways considering it would have worth far more had I invested it into total US.

Sometimes you should follow your gut..

 

[mentos]

It appears I sold the bottom.

 

[Dr Wario]

If you had the value of your crypto in cash sitting on your kitchen table, would you use that cash to buy your coins today or not? If yes, hold, if no, sell.

 

[mentos]

Yep I sold the bottom LoL.

 

[randompharm]

Should I sell for a loss or hold for 10 years and hope the euphoria returns?

Hold. You’ve been doing it with the PharmD just as long.


In all seriousness, crypto is going back up, probably hold if you don’t need the money.

 

[randompharm]

Get rid of it as it can get even worse.. I had kept sizable investment into total international index for 4-5 years.. But I decided to sell it since it wasn’t going anywhere. While I didn’t loose, I barely broke even which is a loss anyways considering it would have worth far more had I invested it into total US.

Sometimes you should follow your gut..

It’s going back up. The whole point is invest what you won’t mind losing, and just keep it there. Of course, the golden era was best to do this in, but there’s still some potential. Made this mistake and sold BTC that would have allowed me to retire and purchase just about anything i could desire, right before it went up.

 

[mentos]

Hold. You’ve been doing it with the PharmD just as long.


In all seriousness, crypto is going back up, probably hold if you don’t need the money.

I took 3k loss on CRO for taxes. Held the rest. I'll decide each December if I want to take a loss I guess. Luckily I didn't risk more than I could afford to lose. I'm down 53% overall now, could have been worse. I'd be down more if I bought Tesla instead.

 

[RxPreceptor]

it’s got a history lesson too

 

[mentos]

it’s got a history lesson too

I agree, this is pure gambling. Just like AMC/GME/TSLA stocks.

 

[RXDOC1986]

I agree, this is pure gambling. Just like AMC/GME/TSLA stocks.

Well it's not pure gambling, you don't have a fair chance to win, like in VEGAS. It's more like playing against the crooked house that can "fix" the games!

 

[RXDOC1986]

I took 3k loss on CRO for taxes. Held the rest. I'll decide each December if I want to take a loss I guess. Luckily I didn't risk more than I could afford to lose. I'm down 53% overall now, could have been worse. I'd be down more if I bought Tesla instead.

My financial advisor tells me that soon, the IRS will stop accepting crypto losses as legitimate investment losses. As crypto is so manipulated by their creators. (Same with Tesla stocks- up and down with one tweet from Musk)

 

[mentos]

Well it's not pure gambling, you don't have a fair chance to win, like in VEGAS. It's more like playing against the crooked house that can "fix" the games!

Well I was up at first but greed got the best of me. Just like in Vegas.

 

[mentos]

My financial advisor tells me that soon, the IRS will stop accepting crypto losses as legitimate investment losses. As crypto is so manipulated by their creators. (Same with Tesla stocks- up and down with one tweet from Musk)

Do you have a link for this? I'm glad I took a loss last year then.

 

[RXDOC1986]

Do you have a link for this? I'm glad I took a loss last year then.

This is from a Raymond James Financial Bulletin article. They have never been on-board with crypto trading, and now I can see why.

 

[nampa]

The crypto bros got me just year. I bought more than I'd like to admit at the peak of euphoria. Now I'm down big, overall -65% but some crappy coins are down over 90%. Should I sell for a loss or hold for 10 years and hope the euphoria returns? Luckily I don't need the money now, not that it's worth much anymore. Sadly this wiped out all my stock gains from 2020 LoL.

As it turns out, these are not separate monetary assets, as opposed to more speculative financial assets. They are having a direct correlation with the wider market. At this point, I would probably hold bitcoin, etherum, etc.