Crypto cash out

Cryptocurrencies

Cashing in your crypto assets

This week, DUFFMONEY will be looking at cashing in your crypto assets.

Recently, I have managed to cash out about £10k. That is my initial investment plus about £2k profit. I cashed some out in January and some in April.

Plus, I still have about 10 alt coins. These alt coins are spread between different exchanges and my trezor wallet (secure hard wallet).

I missed the boat with BTC (Bitcoin) but I’m hoping to do ok with my Alt coins (Alternative to BTC).

IF you get a bit of luck

If you manage to get a bit of luck, try and take at least some out.

We have all heard the stories. People who cashed out too early. People who don’t cash out and end up with zero.

Just invest with money you are willing to lose. And try and take some money out if your little investment does well.

In 2018, I had an alt coin that went from $2k to $20k and back down to $200. I was willing to lose the $2k but I didn’t take any money out. Try and avoid this situation.

In 2021, an alt coin has gone from $2k to $14k. I’ve had a bit of luck. I was willing to lose the $2k and I did take some money out. I cashed 50% out and took out $7k which is roughly £5k. This (from experience) is what I would recommend.

DISCLAIMER TIME: I am 100% not a financial advisor and am 100% NOT in a position to advise you on anything crypto related.

DUFFMONEY is about raising financial awareness and helping you learn from my experience.

How I cashed out

Before cashing out, I called my accountant for some tax advice. To see what to do with my profit from crypto assets.

I explained that the money will be used to help build my property business (DUFF PROPERTIES). This is the advice I received:

  • Transfer the money to your personal account
  • You can then transfer the money from your personal to your Limited company (if this applies to you)
  • You are allowed to make £12.5k profit tax free (capital gains tax free allowance)
  • This means my £5k from above is tax free
  • If I was to make £25k profit take half out one tax year and the other half out the next tax year (being tax efficient)
  • If I make £25k and take it out in one tax year – 1st £12.5k tax free, 2nd £12.5k taxed at 18%

This might sound like a very cautious approach, but it suits my long-term strategy. I am all about long-term buy and hold. That £5k will go towards my next BTL property.

What to do

Decide what suits you. Do your research and due diligence.

If you invest in crypto make sure you know the basics. How to buy, hold and transfer crypto assets.

If you fancy an alt coin, look into it. Go on the chat sites online and see what people are saying (Reddit).

Invest with money you are willing to lose.

Try and pull some money out e.g. your initial investment.

And good luck. Hopefully you will end up with a big cash out that will help you towards FI (Financial Independence).

Book of the week: Cryptoassets, by Chris Burniske and Jack Truner. Cryptoassets offer a massive investment opportunity for novice investors. But you need to do your research. This book will help you to familiarise yourself with the market and what it means to invest in Crypto.

For a hard copy visit the excellent Imagined Things Bookshop: https://imaginedthings.co.uk/

DUFFMONEY and crypto

Crypto assets

Crypto currencies are very popular at the moment. And at DUFFMONEY, we are very interested in crypto.

One Bitcoin (BTC) is worth about $60,000 dollars. Like everyone else I know, I would love to have got in early days. But it is pointless crying over spilt milk.

DUFFMONEY’s brief history with crypto

Most people I know have a little BTC story.

Or know someone who has made a fortune from BTC or other crypto assets.

Personally, I have a little story and I know a few people who have made fortunes on BTC.

Back in 2015, my cousin (Liam) told me about BTC when it was a few hundred dollars per coin (a lot less than the current $60,000).

I couldn’t get my head around it at the time, so I ignored Liam’s advice. I’d also lost money on single shares at that point which didn’t help.

Eventually, I started listening to Liam’s advice and started to invest in late 2017.

I had 1 coin that went from $2000 to $20,000, then back down to $200. I didn’t cash out – schoolboy.

Another coin went from $2000 to $10,000 then back down to $100. I didn’t cash out – schoolboy.

The next coin has been a bit of a rollercoaster. It went from $800 to $8000. It dropped to $400 and is now sat at around $2200.

And now we are in 2021, I have about 10 different altcoins (alternative coin to BTC).

Have a little flutter

In the last 4 years, I have put in $8000. Fortunately, I have taken that $8000 back out over the last few months. The money was used to pay for legal fees for 2 recent house purchases.

Fortunately, the 10 different coins I have now are with profit made. Profit made by listening to Liam who knows much more than me about crypto. Well about anything financial if I’m honest.

I am having a play with my crypto investments. I am getting used to buying coins on different platforms and transferring between different platforms.

Currently, this isn’t my main investing strategy. My strategy is long term buy and hold with index funds and property.

A few weeks ago, I even invested in a coin that has yet to be listed. This would normally get me carried away. It would have got me too emotional in the past. Too excited about the potential.

Now I do like a little flutter. It just doesn’t affect me like it used to.

With some self-awareness and a lot of practice, I have been able to calm myself down. I would love my latest coin to rocket and help me towards full time property investing. But I’m not checking on it every 5 minutes like I used to with single shares (single shares are not for me).

What to do

First of all, work out what investing strategy suits you personally. Read some books and get some financial literacy.

I am no expert and am definitely not a financial advisor. But I have stuck to my financial plan religiously for the last 2 years: Your own game.

If you fancy crypto, maybe have a little flutter to get used to the technology. Maybe read Bitcoin for Dummies or watch some YouTube videos to get your head into it.

Many investing books I have read (like How to own the world, by Andrew Craig) recommend a small allocation to risky assets – if at all. At first, maybe just invest 5% of your monthly amount on crypto assets.

If you are able to invest £1000 pcm, maybe invest £50 (5%) until you get more familiar with the asset class.

Learning about crypto is well worth it in my opinion. Cash will soon be a thing of the past. And moving with the times will benefit you and help you transition with the modern world.

All I’m saying is be open minded and have a little look into crypto. And you might be one of the lucky ones who makes a little fortune …

Book of the week: Bitcoin for dummies, by Prypto. This guide will help to get you started in digital assets. It will help you to understand the fundamentals and also protect you against fraud.

For a hard copy visit the excellent Imagined Things Bookshop: Imagined Things.

Don’t take it personally

DUFFMONEY

Don’t take it personally. Or should I say try not to take it personally.

The ability to not take it personally is a skill. It is about not getting stressed. Not losing patience. Not being irritated. Not getting too emotional …. The list goes on.

Personally, I am an irritable person. And you could say a bit of a stress head. So, there are times when I do take it personally.

But with some self-awareness we can try to be a little bit calmer. Or as Trevor Mowad would say, more neutral (It takes what it takes).

Frederik Imbo discusses this in his excellent TED talk.

How not to take things personally?

Frederik is a referee (local football). He made this decision to keep fit and to learn how not to take things personally.

Everything that goes wrong on the football pitch is the ref’s fault. The ref is the scapegoat. If you are into football, you will probably have had a good whinge about the ref. Or if you’ve played, you will have had a good whinge at the ref. I know I have!

He wanted to learn to take the abuse and not to take it personally.

One of his examples is when you are driving and there is a tailgator behind you. You know, when someone is driving right up your ass!

Personally, I have taken this very personally in the past. It used to make my blood boil.

How does he do it then? Or how has he learned to not take it personally?

  • He is conscious of it (self-awareness)
  • He has a strategy to stop himself from taking things personally

His strategy comes in 2 parts.

Strategy 1 – “it’s not about me, it’s about we.” It’s about we is about looking at someone else’s perspective.

By shifting your focus from me to we – will help you to not take things personally. This means that understanding will replace irritability and frustration.

The tailgator does it because he or she is in a rush to get somewhere. Maybe they shouldn’t be up my ass. But by looking at it from a we perspective, we understand why they are up our asses and don’t get pissed off. Getting pissed off and letting road rage kick in will only affect us negatively.

Strategy 2 – “it is about me.” When the first strategy doesn’t work, it is about me. It is about me because I have let my misgivings negatively affect me.

Even if I know the tailgator has probably got something going on in his or her life, I still let road rage kick in. Well, that is on me. Road rage really won’t help me and won’t achieve anything.

What to do?

What normally makes you angry or frustrated? What makes you take it personally?

If your friend doesn’t text you back or your partner doesn’t text you back? This might piss you off. Practice not taking it personally.

Look at the strategy’s above and try it out. It has helped me when dealing with tailgators. I don’t take it personally anymore. It has taken some practice, but I don’t get frustrated when driving.

It used to make my blood boil when someone was up my ass. Not anymore.

If someone didn’t acknowledge me if I let them pass in their car, it would make my blood boil. Not anymore.

Don’t take my word for it, listen to this excellent TedTalk, Dont take it personally. Let Frederik explain his strategies and help you to not take it personally.

Book of the week: Learn the Hard Way, teach the easy way, by Peter Duffy. This book cares about you and your financial future. It looks at money mindset, financial literacy and financial independence (Learn the hard way, teach the easy way).

For a hard copy visit the excellent Imagined Things Bookshop: Imagined Things.

ISA season

ISA fundamentals

ISA basics

If you are looking to top your ISA up, the deadline of 5th April is today. You only have a few hours to make the most of your yearly allowance.

In the UK, we are allowed to save £20,000 per year tax free.

If you are investing in the stock market, a stocks and shares ISA is a way to be tax efficient. Any interest you earn is free from CGT (Capital Gains Tax). And tax-free withdrawals can be made at any time.

Looking at ISAs at a high level, they are an effective tax shelter. They offer you a tax-efficient solution for helping you build and preserve long-term tax-free wealth.

Taken directly from Stephen Sutherland (How to Make Money in ISAs and SIPPs), here is a quick summary of ISA basics:

  • Individual Savings Accounts (ISAs) are tax-free savings accounts
  • There are two types of ISA; a stocks and shares ISA and a cash ISA
  • ISAs were introduced in 1999 to replace PEPs (which were a tax free way of investing in equities) and TESSAs (which were tax free deposit accounts)
  • The present annual ISA allowance is £20,000 per person (2020/21 tax year)

Your investing preference

After many years of investment mistakes, I finally realised that set and forget is the strategy that suits me (Set and forget). Long-term buy and hold.

Spend less than you earn and invest the rest. This is the mantra of any personal finance expert. This requires some serious discipline and budgeting skills.

Index investing is how I invest. I invest using a Vanguard fund within my UK ISA tax shelter.

I am not a FA (financial advisor) so I am not going to advise you what fund to invest in. This just works for me after many years of making poor financial decisions.

With set and forget, I check on my fund once every 6 months. I have done this since mid-2019. This is around the time when I finally started to get my financial act together.

My long-term buy and hold strategy are split between index funds and property.

Understanding your relationship with money will help you determine your strategy. It will help you to do some much-needed financial planning. To see how I finally got around to financial planning, you can read a copy of my 1st book – Learn the hard way, teach the easy way.

Financial planning might not be the sexiest topic in the world. But it will help you look after your older self.

What to do

In my opinion, financial literacy is well worth looking into. It will help you make educated investing decisions that will help you. It will help you provide for your retirement. And it might just get you out of the rat race earlier than expected.

Here are some books I would recommend getting you going:

  • Rich Dad, Poor Dad, by Robert Kiyosaki – this will help you from a concept point of view. A massively popular self-development book
  • How to own the world, by Andrew Craig – an excellent book aimed at UK investors
  • RESET, by David Sawyer – this is an early retirement plan for midlife careerists. Will help you on your way to financial independence
  • The Little Book of Common Sense Investing, by John Bogle – if you are interested in index investing, this book is a must read

If you believe what I have read, you will know that it is possible to earn 7-8% interest per year with index investing.

Do your own research and think about making the most of your UK ISA allowance. Don’t settle for less than 1% in the high street banks.

Book of the week: How to Make Money in ISAs and SIPPs, by Stephen Sutherland. Tax efficient investing made easy.

For a hard copy visit the excellent Imagined Things Bookshop: https://imaginedthings.co.uk/