It’s not what you make. It’s what you keep. There is no better statement on wealth than that so if you think that it’s all about making incredible gains then you only know half the story.
Cryptocurrencies and digital assets offer an amazing asymmetrical return. It is HIGHLY volatile to the upside AS WELL AS the downside but that is what makes this space so fascinating – the ability to 10x, 20x, 1,000x your return on investment in a very short amount of time.
In the traditional market, a 10-15% gain in a SINGLE YEAR is an AMAZING return! In crypto, we call that a Tuesday.
As much as the gains can go to the upside the potential of a massive dip is always there so to be in this market you really have to have “ice in your veins”. Traditional stock pickers, hedge funds & day traders get washed out every day so get your mind right NOW to enjoy success LATER.
If you can do that (that’s a big if), you’ll enjoy COLOSSAL returns. Sounds great right? Not so fast! The government will always step in and take their cut to the poor soul that hasn’t prepared, so get ready for this scenario NOW before you’re handing over 25% – 43% of your gains. The Poocoin app can help the ones that want to get trading right and get the right returns.
Here’s an example…
Let’s say you invested in Ethereum at the beginning of 2017 when it only cost $10 and you bought 2,000 of them because you just KNEW it would be BIG. Well, if you sold at $1,400 per Ethereum at the end of 2017 you would have had a cool 2,800,000 in your account (almost 3 million!!!)
It’s not what you make, it’s what you keep.
So first of all, that initial investment was POST-TAX dollars. That means that the $20,000 you spent on buying 2,000 Ethereum at $100 was already taxed at a standard rate from however you got paid.
That could be from your paycheck through your employer or from whatever revenue you collect as a business owner like myself – YOU ALREADY GOT TAXED ONCE ON YOUR INCOME AND NOW YOU’RE ABOUT TO GET TAXED AGAIN AT A HIGHER RATE!
The government will ALWAYS ask for their cut and in this example, you cashed out in less than a year so that would subject you to Short-Term Capital gains tax.
In the United States, short-term capital gains can be anywhere between 22% – 37% depending on the tax bracket (and with close to 3 million you will be up there). That’s just the FEDERAL capital gains tax. Don’t forget about the STATE Capital Gains Tax to add on to that!
So, great job! You made almost 3 Million Dollars! On the flip side, you made only about 60% for yourself (1.7M) and you made the U.S. government 40% (1.3M). There’s nothing wrong with that but you need to start working smarter and making a plan NOW to MINIMIZE these taxes.
Don’t worry, the government will ALWAYS get a little bit of revenue from your bold decision to invest in cryptocurrencies and digital assets but they DON’T have to get a BIG CHUNK of it!
So let’s recap, you got taxed once on the income from your job or business revenue and then you ALSO got taxed for the gains you made. Doesn’t seem fair does it? Well, you can LEGALLY change how much you get taxed and here is how I am doing it.
I use a boring little program called an IRA through iTrust Capital that specializes in Crypto IRA’s. There are 3 types – Traditional, SEP & a Roth. Each one has their distinct advantages and disadvantages so instead of boring you with writing the details, I made a video which just gives you the condensed cliff notes version. Check it out below: