Do not count on your broker or software to keep track of your cost basis, even though you would think they should. Do it yourself. Lesson learned from transfers, buyouts, mergers, and, of course, reverse splits.
If you are lucky you would only get taxed once on the interest with this new exchange/wallet/whatever you are using—assuming they provide a 1099. (Cred did send us one of those; I almost missed it.) Of course, if you are collecting interest in kind (i.e., XRP for XRP) wouldn’t they need to provide a dollar equivalent? You should probably inquire as to how it is reported so you are prepared. Do not be shy about using that Chat feature. Hope it is responsive like the Uphold one is (and not like the Cred one). Hmm, come to think of it, if Cred knew to send you a 1099, that means they knew you were a U.S. citizen; that would be hard to overlook, but maybe it is just your state (CT) that messes you up.
And watch your sales within 30 days, before AND after. I got stuck last year. I thought I had been careful to avoid wash sales, but one pair of transactions qualified. (Good thing we had an extra 3 months to do our taxes. Thanks to just one broker, who always has to send at least one corrected 1099, I was not ready in April.)
Meanwhile, speaking of Tether, did you notice XRP is in 3rd place again. Yay! Although I would prefer that was because we were above 22 cents, not because Tether is down to 97. Here is your chance, MS; didn’t you say you wanted to play those pendulum swings?
Speaking of reshuffling the top ten cryptos, while Link is pausing to refresh (and facing more competition in the DeFi space), it is getting passed by Crypto.com. Of course, I am not set up to buy Crypto.com. Hmm, smart choice in name. Figure that picks up some newbies just searching the net for crypto.
My new goal in life is to be interviewed by Chantel Elloway. When that happens, my comments will be story, observation, opinion, maybe even enthusiasm. What I say will never be instructions on how you should risk your money. Same goes for these posts.
