Locking in your crypto gains. Lessons from the 2017 Bull Market.
-Have multiple on/off ramps. Exchanges go down and approvals for deposits and withdrawals can take days. Relying on just one or two sources is a rookie mistake.
-Level up your verifications on each exchange. What's the point of hitting your targets if you can't move your money? Exchanges love to lock funds and use identity verification as an excuse. Remember-they only keep a certain amount in hot storage for security reasons.
-Have fees pre-loaded. High fees (especially with ERC-20 coins) will require you to have enough of that blockchains native currency to be able to send transactions.
-Practice sending small transactions. In the heat of the moment, figuring out what works best is a gamble. Having a plan means practicing your plan. Cashing out to a bank, only to learn the bank froze your account because they don't accept payments related to crypto, is avoidable.
-Network congestion is a serious problem. While some blockchains are able to process thousands of transactions per second, others are still stuck in time. Transaction speeds drastically decrease when networks get overwhelmed. In some cases this means waiting hours or even the better part of a day for your transaction to go through.
-Check your emotions. A crypto bull run is an emotional roller coaster. 100% gains in a day is normal. Enormous losses is an hour are normal. We must accept that this market (and the media reporting on the market) is highly manipulated. It is designed to wreck weak hands. A pro tip is to pre-set your entry and exit points. Have a plan and stick to it.
-Do your own research. As a general principle, don't trust anyone. Always get your news straight from the source, but remember-even official accounts can be compromised. If it sounds too good to be true-it probably is. Also only click links, download, or order anything from verified sources.
-Taxes. Unless you are fortunate enough to live in a crypto tax haven, there is no escaping taxes. Exchanges work with authorities, and the tax man will know if you did, or did not, pay them. The good news is that DeFi will give you a generous return on stable coins. Getting 12% interest on the money you set aside for the government is nice.
-Tax software. If you have been buying and holding for more than a year, there are plenty of crypto tax software out there that you can connect to all your exchanges. This will give you real time updates on what your gains and losses are, and whether you are in short or long term tax territory.
-And remember, don't brag. People are jealous animals and bringing attention to yourself will never benefit you.
-There's plenty more. If you have experiences you would like to share, please comment below!
Best of luck. This bull run will be one for the record books!!