Question: Crypto Staking

Hello guys! I made a huge profit in January with a certain stock. I’m not sure if I get classified as a professional trader.

So here my question:
For my safety, I have put a certain amount aside. Since I can’t do anything with this money anyway, would it be smart if I buy USDC and stake it for a year? You get about 12% staking reward in just one year. And since USDC is not changing his value there’s no volatility risk.

Does anyone have experience with staking cryptos in relation to taxes?

I’m happy if someone can help me :slight_smile:

Edit: If you have no clue what I’m talking about. Here you go: Earn up to 20% p.a. paid out daily | SwissBorg

Just a tiny side node: There are no 12% p.a. risk free - nowhere as of today! Not even 2% IMHO :wink:

Whats “huge” in relation to your NW? I’d be fine with your approach for like ~5% max of my NW. More than that, I’d put the money in a savings account (If I’m going to need the money in the next few month) or invest it in a broad index ETF (else)…

2 Likes

Technically you’re giving a loan to some entity and you get interest in return. That interest should be taxed as regular income no matter if crypto or fiat.

Why not? Buy an apartment or house?

I personally don’t trust anybody with my BTC unless I hold the keys to the wallet.

What does NW mean? (at least 20 characters)

net worth = your total assets (all money / stocks / real estate)

I quadrupled my total net worth. And would only stake the amount which is for the taxes, if I need to pay taxes. The rest of the profit is in ETFs and stocks.

I made not that much that I can buy an apartment or house. I’m only 23 y/o lol.

First of all, chances are you won’t get classified as a profesonal trader, there’re plenty of topics on the forum about this.
If you have money that needs to be used in the short term and thus remain in a low risk investment you’d better leave them sleeping in a bank account.
They can sell it as risk-free, but a fixed income investment returning 12%/year is pretty much guaranteed to come with higher risk than junk bonds.

1 Like

I read some of them. But I have still no clue if I get classified or not. It’s a 50/50 chance.
I would only use the money for the 2022 taxes. I have enough in my bank account to pay the taxes and fill the pillar 3a for this year.
Yes, maybe it sounds too good to be true. And as I understand it, I would also have to pay tax again on the reward.

So I end up to just leave it on my bank account for over a year and a half or are there any other suggestions? I get only about CHF 70 in interest on my savings account haha (yes I know, more than other ppl)

Also:

USDC is pegged to the USD, if you pay your taxes in CHF you’d still have the currency risk on the USD.CHF pair.

It’s not. Are you trading options daily? Are you consistently profitable or just had a lucky trade?

Yes, true. I’m not gonna do it.

1 Like

No, I never bought options so far. And yes, it was one lucky trade (+500%).

Then I’m not sure which part of the jurisprudence/guidelines you’re worried about. You bought one stock and got lucky, that’s it, there’s nothing professional about it.

Edit: do keep the evidence to demonstrate the source of the income though, in case they ask questions.

I’m worried because I hold it for only six days (1) and I’ve made more than 50% of my annual salary (3). Two points on the list.

Yes, I will keep it!

Partially OT, but you raised my curiosity with the 500% in six days… for the LOLz can you share with us the stock name? :slight_smile:

Shouldn’t that be GME or another meme stock?

Yes, it was GME @lowyield and @nabalzbhf

Sounds like a great buy and hold :thinking: :smiley:

By reading and partipating to this forum, you confirm you have read and agree with the disclaimer presented on http://www.mustachianpost.com/
En lisant et participant à ce forum, vous confirmez avoir lu et être d'accord avec l'avis de dégagement de responsabilité présenté sur http://www.mustachianpost.com/fr/