RogueCobraFull Member
Posts: 22 · Reputation: 551
#1Sep 8, 2021, 09:58 AM
When you buy altcoins like Iota or Lisk, you usually need BTC instead of USD or USDT. Just seems how it is…
Altcoin Purchases with BTC: Are We Always Losing?
19 replies 193 views
Not sure what you mean... but here’s a thought:
- 1 BTC is always 1 BTC.
- Don’t stress about price swings if you’re trading.
- Transaction fees are minimal, often under 0.1 bucks.
- You can send a million bucks with just a dollar fee.
- BTC to altcoin exchanges might have low fees too.
Honestly, it’s not clear what you’re getting at.
But, the tax implications are pretty straightforward:
- Fiat to crypto isn’t taxable.
- Crypto to crypto usually is.
- Crypto to fiat also counts as taxable.
Just focus on the values when you enter and exit.
Your point about fees is interesting. Sure, they can eat into profits, but it’s not always a loss. If you time it right, you could still profit despite fees. Just gotta know the math behind it.
Yeah, it took me a bit to grasp this too. There aren’t many fiat pairs with BTC, so every time you trade, you see those fees. Expect fluctuations; they’re part of the game.
RogueCobraFull Member
Posts: 22 · Reputation: 551
#6Sep 9, 2021, 01:43 AM
Seriously, why is this confusing? If you wanna buy an altcoin, you typically start with BTC. Like, if you wanna grab Lisk, sending USD to an exchange isn’t always an option.
If you’re in the USA, you might end up losing a couple bucks on fees. Like, if you buy BTC and convert it, that’s two losses just for the swap. It’s a real headache.
Maybe just hold off on selling until the price rises? If you wait long enough, those small losses could turn into gains once the market does its thing.
Buying an altcoin for $1000 and then selling for $998 means you lost $2. But holding BTC for a month could mean a gain instead. It’s all about timing.
pixel_vaultFull Member
Posts: 64 · Reputation: 260
#10Sep 9, 2021, 09:37 PM
You probably won’t have that $1000 BTC value when buying Lisk. Watch the market price closely; that’ll determine your capital gains or losses.
just_ravenNewbie
Posts: 181 · Reputation: 24
#11Sep 9, 2021, 10:33 PM
Look, if you treat BTC as a dollar amount, any leftover from the trade counts as capital gain. If you’re losing, it’s just part of the game. You might end up with less than expected.
People complicate this way too much. The IRS doesn’t care about your trading fees. You buy BTC, you’re still paying with that original $1000, fees or not.
eric.degenSenior Member
Posts: 21 · Reputation: 1427
#13Sep 10, 2021, 05:03 AM
I get what you’re saying, but what if the altcoin you bought goes up? If you bought Lisk for $1 and it jumps 30%, you’re in the green despite initial fees.
proto_2016Legendary
Posts: 5 · Reputation: 5730
#14Sep 10, 2021, 07:50 AM
Market movements can be unpredictable. Prices go up and down all the time. Better to check alt prices before buying with BTC.
cryptobyteSenior Member
Posts: 5 · Reputation: 1844
#15Sep 10, 2021, 10:59 AM
With BTC being 70% of the market, it’s growing faster than most altcoins. A few alts do well, but mostly, you’re losing out when trading for them.
RogueCobraFull Member
Posts: 22 · Reputation: 551
#16Sep 10, 2021, 12:24 PM
I’m in the US, but not currently there. How do altcoin purchases work if you don’t go USD to alt directly?
Doesn’t matter how many coins you go through. It’s all about what you put in versus what you get out. You could lose 10% just in fees before you even get the alt.
ericrocketFull Member
Posts: 3 · Reputation: 646
#18Sep 10, 2021, 04:10 PM
If you invest in solid altcoins like Ethereum or Ripple, the chance of losing decreases. Keep an open mind; BTC and alts can be a good mix.
You should read 1Referee’s post. Fees aren’t capital losses; they’re service charges. Just keep track of your fiat amounts.
swiftstackFull Member
Posts: 80 · Reputation: 292
#20Sep 12, 2021, 10:13 PM
Right on, your math checks out. Don’t sweat the low fees when buying altcoins with BTC. It’s just part of trading; get used to it.