 Welcome to Digital Asset News, the top stories in crypto, current digital assets, and break them down into bite-sized pieces. Today, we're going to go over some important things. It's a reminder of what you agreed to do, which is an exit strategy. Now right now, I know everybody's talking about how fantastic Bitcoin is doing and it's going to go to the moon and everything else, but just remember, if you have a plan in place, you need to follow it because like my man, Jaco says, discipline equals freedom also. We have Alex Moshinsky from Celsius on the show tomorrow. We're asking him some questions, so it'll probably air on Friday, and we really need to get to the whole basis of what is going on over there. And finally, we'll take a look at Q of the Day, where we have an interesting tax question. So we'll get to all that, but first take a look at what's going on in the market. So today, it is November 18th, it is 9 a.m. Texas time, trying to get things done early, so what do we have? So Bitcoin did touch 18K, and that's pretty fantastic. Now it has retreated a little bit to the 17.7 mark, but look, it's been a fantastic week, let's be honest. It's at 60% up for the week, 3% for 24 hours, and everything is looking pretty darn good. Now yesterday, I talked about don't FOMO in and dump all your money into Bitcoin. People are like, wait, this is different than 2017. This is going to be totally a new aspect of cryptocurrency assets. We're going to go to the moon and nothing's going to stop us. I'm like, wait, I'm telling you right now, this is not my first rodeo. Yes, 2017 was a little bit different. It was a lot of retail investors. Yes, it is true, we've got a lot more institutional investors, but here's the thing, these institutional guys, they've been doing this for a long time. And if you don't think they aren't going to pull out all the stops and all the tricks they know to lower the price a little bit, buy in a little bit more, and then bring it back up, and then bring it back down, and so on and so forth. If you don't think that they're going to do those types of things and tricks that they do in the traditional market, I think you're mistaken. I could be wrong, but really what I think is going to happen, and this is just pure speculation just like this entire market, is that we're not going to go to 65 or 150K overnight. It's going to take some time. We're going to go up. We're going to go down and up and down. It's going to be two steps forward, one step back, sometimes one step forward and three steps back, but we're going to keep going at an increase where it's going to go. I have no idea. The first thing is to hold on to some of your money when you are buying in dollar cost average in because it is the safest opportunity. I don't know what's going to happen. I don't know what's going to happen tomorrow. I don't know what's going to happen next week or a month from now. We don't know if we're going to have another situation come up that really bottomed us out in March. I don't know if you guys remember, but in March we went from a Bitcoin price of around 10K to like 4K in 48 hours or less, I think it was, because of the COVID-19. I don't know what's going to happen in the future, but those days, those options that if they do come about, you're going to be happy when you didn't dump every single dime that you had into cryptocurrency assets because you're like, hey, I'm just waiting for some big dips. The opposite is true. Yes, it's true. You could catch the tidal wave. You could be at the very beginning of the massive tsunami that is coming, but does that happen? Statistically not. I'm not here to tell you to just put it all in and just let it ride. Really just be disciplined. Just be an intelligent investor, and sometimes you're going to miss out on some opportunities, but for me personally, and you can do whatever you want to, me personally, I think to myself, I'm going to miss out on some opportunities, but I'm going to try to play it as safe as I possibly can for the maximum amount of gains. And look, from outsiders looking in, we're the crazy one. So when I say like play it safe, people like, I would never put my money into Bitcoin. It doesn't even exist and blah, blah, blah, blah, right? Which is the things that we talk about on here. But for me, I have a plan. I'm going to stick to that plan, and I'm going to keep going forward. So Ethereum 470, not real much movement, so that's okay. Chain lengths up 3%, above 13, so pretty happy about that. Look at Litecoin, $70, not too shabby, 3% down. Actually everything is down. Bitcoin, 2.2, da, da, da, da, da. 5% for, oh, I guess, okay, everything's pretty much down. Except for Celsius, hey, Celsius above $2. Congratulations to all you Celsius holders. Pretty good week for you guys. We're going to have Alex in here to answer some questions, so that'd be good. 10% up for Yurn, I don't know why, sure. 2.7 for Waze, got to look into that project, it looks pretty good. Compound down, actually everything's down. My friend Jerry Hall, over on his channel, he doesn't get a massive amount of views, but he says some really great things, pretty smart, and he had this comment today, I was listening to his video very early, and he said, you know what, we talked about institutional investors coming in, and how great it's gonna be for the crypto market, he goes, but you gotta remember, they're not coming for, you know, coin market cap of 287, they're mostly coming for Bitcoin, and that's why we're gonna see a pretty big increase. And again, some people will say, well, a Bitcoin goal and blah, blah, true. Well, you know what, it's older, it's over a decade old, it's battle tested, it's never been hacked, there's been no 51% attack for some of the things that people talk about, how great they are. So you just have to remember that these institutional guys and gals, they're coming, they're looking for, what's the biggest upside with the least amount of risk? Sonya, that's it, let's move on. So before I get into the exit strategy, I'm really excited to have Alex on, they actually reached out to us and said, hey, would like to be on answers to questions, probably because I decreased my portfolio from 30% to 10%, not that I'm a big whale or something, but I do talk about it, and I guess people also talk about it. So it'll be interesting. I watched his last AMA to see all the questions, and of course, yes, they did answer the questions about the DNS propagation and the website and the app and everything else, but there was one in particular that really sparked my interest, which was the comment at 1556 to 2256, which was about six, seven minutes or so, which is how is yield created? And that's the big question for me, how is yield created? How are they able to get a yield of 5% to 18% or whatever the interest rates are today from all the different cryptocurrencies that we put on there? And really it was Alex just going round and round. He didn't really answer the question. I'll just be honest with you. You can listen to it, maybe I'm incorrect. I'll link it in the description, but it's the Celsius AMA Friday, November 13th, and 8,000-some-plus views. So I didn't really get the answer, but in one of those things he did say that he answered it in detail on a podcast called Magnates. And he said, look for Magnates and look for its finance magnets. Do a Google search with finance magnets and MECO. And this is the only one that I found, and it was an hour and 11 minutes long. And he goes, I answered the question about yield. I listened to the whole thing. I didn't hear anything about yield. I heard a lot of great things about concepts, about where the bank industry is gonna go, water kind of moves around the banks and into it. MECO, if you guys haven't watched this, he's an extremely smart guy, especially about finance and the way that he talks about parallels. But again, I didn't hear exactly about how is yield created for really anything, especially for Celsius. Again, I could be wrong. I'll link that in the description as well. So when he gets in here, that's one of the questions I have. Now, whatever questions you have, please put them in the comment section and we'll find out. I will say one thing though, as far as like yield, if grayscale, and this is from Y charts, if grayscale can have a premium, which the premium that people are paying are for grayscale to custody these digital assets, it's at 22%. So I'm thinking myself, well, if grayscale can get 22%, why couldn't Celsius do the same thing? So if Celsius is getting 22, or if Celsius is loaning out the cryptocurrency that we give them to someplace else and they're loaning it for 22%, then they could definitely do that. But the question really then becomes is, how sustainable is it? And then I think to myself, well, even if it's not sustainable, it is right now. So I'm just thinking to myself, these are just questions that only Alex can really answer and I'm excited to have them on. So let's jump into the exit strategy. So first up, before we get into that, check out this book by Jaco Willink. And Jaco, if you don't know him, he's an ex Navy SEAL commander, does a lot of different podcasts and books and has a lot of good information out there and the Twitters and the YouTubes and just a good guy. And I like to listen to him. I liked his books. And one of the things that he says that resonates I think with a lot of people is discipline equals freedom. Because the things that we have, the things right now, FOMO is, it's like just a small nine thing that eats away at us slowly but surely. And it caused us to break down the fundamentals of what we are here for and what we plan to do. So when you have discipline and you say to yourself, no, I'm not gonna do this. I had a plan in place. I'm gonna do this plan because all the other things are noise. It gives you the freedom to feel like you are not controlled by your emotions. And that is one of those things where I'm trying to get away from 2017 when I was in and also in 2018 as well. So these are one of those things that we talk about. I have a Bitcoin, Ethereum and XRP strategy. I'm gonna go through all three because one is pretty ridiculous. And I will just say this that if you look at any of my videos in the descriptions, there's going to be an exit strategy to scroll down. And there's XRP Bitcoin and you can just click on those that's gonna send you to the Google spreadsheets of my personal idea strategy. You don't have to do this. This is just something that I feel I'm going to do. I'm going to explain to you why I'm gonna do this and why I'm gonna hold on to it. So first thing you have to understand is that I will never, ever, ever sell all of my Bitcoin. However, at some point you have to take profits. And this is one of those hard things that people really run into is taking profits because they look at the charts like, wait, Bitcoin was just $12,000 just like a month or so ago. Now it's at $18,000. It'll keep going up forever. It doesn't go up forever. And sometimes there are small corrections. Sometimes there are big corrections. So you have to take profits along the way because it's just for the best. Now, I am not saying to pull everything out and sit there and stable coins and go, well, waiting for that dip to go down to $1,600. That's not happening. That's probably not gonna happen. I mean it could, but it's not gonna happen. So I will just say this, this is my strategy, follow it if you want to. That's just what I'm going to do. So first things first, you have to understand, first you have to think yourself, where do I see Bitcoin going? So to me, I thought a reasonable Bitcoin would be $200,000. I thought it was reasonable. Now I think reasonable could be $250,000. Maybe even $500,000 is reasonable. But I think $200,000 is very conservative. So I'm gonna go with that. So let's say it's at $200,000. So I'm gonna start to sell at $19,900. And this is basically the easiest one that I could think of. And I have actually two, because one is all about percentages and not really rounding up or down. And the other one is just more simple, all the one down here. So just take it with a grain of salt. So my selling point is $19,900. Why is it $19,900? Well, I learned this from Mr. BXRP. And Mr. B talked about, he goes, don't sell for round numbers, even those kind of round number. Sell at some really crazy numbers, like $19,874 and whatever cents. And the reason is because everybody's gonna sell at $20,000. Everybody's gonna sell at $25,000, $30,000. And just, you know, take a step up. So you want your price to be filled. And if you're trying to fill it on Coinbase, you wanna do it on Coinbase before it actually crashes. Just saying. Because, you know, it's gonna go down. You can set your watch to it. Coinbase will go down. That's why I'm always talking about, make sure that you actually check out this link here, all exchange fees and wallets recommendations. Because you're gonna want to sign up for as many different crypto exchanges and wallets as you can get your hands on before things start to crash. Cause don't rely on Coinbase only. That is a fool's errand. Or a Kraken or Gemini or anything else. They could all go down. You never know. So get as many as you possibly can. So just as a disclaimer, there are affiliate links right there. So you don't have to use these links. You can go right to Celsius, right to Kraken, right to Coinbase or Gemini. But if you use my affiliate links for like Gemini, 10 bucks goes to you, 10 bucks goes to me. Kraken, actually I don't think there is one. Celsius is 20 for you and 20 for me and so on and so forth. So again, you don't have to use it, do whatever you want. Say okay, so 19,900. I'm gonna sell before everybody gets in there, right? Maybe 19,7. And I'm gonna put it at 10%. So I'm gonna sell 10% of my total Bitcoin. And I just said, I have two Bitcoin, right? So I have two Bitcoin. So if I have two Bitcoin and maybe, I'm not gonna say exact how much I have. Maybe I have 100 Bitcoin. Maybe I have 1,000. I don't. But let's say I just have two, right? And I'm just gonna say, well, 10%, I'm just gonna sell 0.2. And the amount remaining is 1.8. So I'm gonna make a profit, hopefully, of $4,000 depending on what I bought, right? Great, so I have a little bit of money in the bank in case there's a massive dip, right? So then I'm not gonna sell until 50,000 because I'm just stubborn. So at 50,000, I'm gonna sell another 10%. So 10% of 1.8, I'm gonna sell 0.18 Bitcoin. I'm gonna have 1.62 left. So I'll make a profit of 9,000. And so on and so forth and so on and so forth down I go. But just know, I will never sell on my Bitcoin. And then if you wanna just make it super simple, same type of thing, but instead of really, I just round up or down. So 1.75. And then if you look at it, I'll make 155,000 if I do it this way, 141,000 if I do it this way. So this is probably the easiest one, actually. But there is one of these caveats. Well, someone could say, well, why don't you just wait till 200,000 and then sell just one. And then you get 200,000. You can do that, but the chance that's gonna happen, I don't know. And that's why I play it safe. And I'm playing it safe in a market that is pretty volatile. So these are just the things that I think about you can do any way you want to. All right, so that is my Bitcoin exit strategy. Again, you can find that in the description of all my videos. It looks just like this and off we go. So let's take a look at Ethereum. Here's my selling points. I think at $1,000, and let's just say I have 40, all right? I could have a thousand Ethereum, but let's just say I have 40, right? This is just numbers. I, in my head, I believe that Ethereum is a 10,000 coin. I've said that last month, I said that eight months ago. I said that a year ago. I think Ethereum is a $10,000 coin. So I'm a little more conservative than that because I think it's gonna go up. Everything's built in Ethereum, looking pretty good. The only hiccup I see is Ethereum 2.0. If it actually gets off the ground, how long is it gonna take? That's the only problem I see with it. They have the smartest people, not the smartest, but a lot of the smartest people out there. So the selling point for me, $1,000. So how much am I gonna sell? Just 5%. So 5% of 40 Ethereum, I'm gonna sell two whole Ethereum and I'm gonna have 38 left. So I'm gonna sell $2,000, or $2,000 worth of Ethereum. That's a profit. Let's say it goes down to 800. Well, great, now I can buy back in if I want to. Again, let's say it doubles. Let's say it's $2,000 worth of Ethereum, which is pretty easy, I think, to hit. So 10% of the remaining amount, which would be 3.8, let's just round up to four. I got four. And I'm gonna sell four at $2,000. I'm gonna make $8,000 profit and I'm gonna still have 34. And then 4,000, 6,000, and so on. And I'm gonna make around $158,000 out of the 40 Ethereum that I have. But remember, I'm still going to have 12 Ethereum left. And let's just say that it goes to 15,000. Well, great, maybe I'll sell another one. I don't have a plan in place for that one right now, but I will take it as I see fit because I'll have $150,000 in the bank and I'll be okay with that. I will probably buy land, honestly. I'm just telling you right now, I'll probably buy some more land or more real estate because that's just what I do. So that's it. Now, the other question that people always ask me is like, well, how do you do this? How do you get the whole ball rolling? And I'm just gonna tell you my secret, which is not really a big secret because I've talked about this in my bull run exit strategy. It's that right now on the exchange on Coinbase Pro, I have a little bit of Ethereum to get the whole ball rolling. I have two Ethereum sitting right there. Also on Coinbase Pro, I think it has Coinbase Pro. I have 0.2 of Bitcoin sitting there waiting to be sold for the limit order and also an XRP. And the reason I have just a little bit on the exchanges because people say, well, not your keys, not your crypto, that's true, it's true. But here's the thing. I need to take the emotions out of it. And if I don't have something on there to get the ball rolling, I am afraid that I will look back and go, you know, I think you can go up some more. So I'm taking the emotion of the equation. I am making sure that I am regimented and that I have a plan in place and I am disciplined because that will equal freedom because I will just say, I've already got it there. The ball is rolling, everything's in motion. Next one, it's easier to do. Instead of just sitting there going, okay, now I gotta transfer everything from Analyzer then sell 0.2, but I don't know, it's gonna go up to, you know, a million, whatever. So I get the ball rolling by having there on the exchanges. And that's my little dirty little secret which isn't really a secret. So that's Ethereum and Bitcoin. That's pretty reasonable, I think, right? Just looking at it. Let's take a look at my awesome XRP plan. Nothing against XRP. Somebody asked me yesterday, hey man, why are you so bitter? Like, well, I'm bitter because I bought it at like $2 and $1.78 or something like that and then $2.46 or something. So not too happy. It's just an underperforming. That's all it is, it's an underperforming. Could it make big gains? Yeah, I think it could. I mean, there are is, there are is. There is a massive opportunity for a cross-border payment. So is XRP gonna be the one? I don't know. They have to get regulation in place which is exactly what Brad Garlinghouse talked about. But again, people will say, you need to sell XRP and get something else. No, I'm too stubborn and I'm still sticking with this. So you know why? Because I'm super stubborn. And that's just how I am. So my selling point for XRP, well, if you want to, I don't care. 318, 318 is my selling point for XRP and I will wait till the cows come home or I'll write it to zero. I do not care. I've already lost a ton, 80% plus, 90% in some situations. So another 10%, not gonna kill me. So again, 5% on my XRP. Let's say I have 30,000 XRP. I'm gonna sell 5% on my total amount, 1,500. I'm gonna have 28,500 left. I'm gonna make $4,500. Great. Next price point, below $10. Remember, everybody's gonna sell at the all-time high for XRP, I think it was like 345, 335, someone fact-checked me. So at $10, everybody's gonna have their limit orders in. I'm not, I'm mined at 992. I'm gonna sell 10% of the total amount, 20,500, 20,50, and off and off and off we go. So one thing before I go, I'm gonna make 904,000 if XRP gets $200. Was that gonna happen? I don't know. It was pretty unlikely last bull run for XRP to go to next to nothing to three bucks. So you never know. I have no idea. But this is what I got. Even if I hit here, even if it goes to three bucks, I'll be pretty happy. Honestly, I'll be happy and that's good for me. And then one more thing I will make mention is that some people in the comments have said, hey, bro, your percentages don't add up because you got 2020, that's 60. My math is correct. Plus 25, that's 85%. Plus 10 is 95%. Plus 10% is 105%. That doesn't add up. Well, it does because remember, this is just the percentage that I'm gonna sell of my remaining Bitcoin. Not I need to equal up to 100%. So just be aware of that. And that's it. Also remember, this is two Bitcoin, not one Bitcoin, just the way that I put it together. But it's all up to you how you wanna do it. But this is my exit strategy. And the question I have been receiving is, hey, Rob, you still gonna take that exit strategy? Because things are going up so much. Yes, 100%, yes, this is exactly what I'm doing because I have a plan in place. And once I have things in my brain, that's the direction I'm gonna go. And that's really how it works out. So let me know what you think in the comments section and that is it for that part. Let's just go over the quick cue today, which is a tax question, which is mostly US people, but really it comes down to, hey, can I gift all my Bitcoin to somebody else or at least some of it and then not pay taxes? Now, let's jump right in. So everybody, welcome back to the office in the Houston home area. I will be going back to pass in a couple of weeks to the hotbed of activity for the coronavirus. But today there's a question that was pretty good. It's all about taxes. So it's actually a way that could potentially save some money, but we'll see. So this is from Ryan and he says, hey, I'm just gonna paraphrase this question. He says, hey, can I gift somebody, send a gift of 15,000 in crypto, whatever that is, to somebody else and then they can gift their cryptocurrency back to me as like in 15K. So it'd just be like a swap and then neither of us would have to pay taxes. That's pretty much what he's saying. I just wanna gift somebody 15K. They're gonna gift me 15K and we don't have to pay taxes at all. Is that how it works? And the second question is, he's talking about since I'm following the BCA approach, how does this work for long-term and short-term capital gains? The example was if I bought Bitcoin in May, 2020 and then I sell Bitcoin in May, 2021, how does it all work? If I buy half of Bitcoin in May, then June, then July, would I have to like stagger them as I sell them because long-term capital gains are better than short-term. And I'll answer the second one first. Yes, that's pretty much it. So long-term and short-term, it's just that long-term capital gains is anything that you make after a year of holding that whatever asset that you have that could be a land, it could be a stock, it could be cryptocurrency, it has to be over a year. So if you bought half of Bitcoin in May, you gotta wait in May, 2020, you have to wait a full year, like May 2nd, May 15th, somewhere around there to actually sell it to not get put in that short-term capital gains territory. That's all you gotta do, right? And I think even now with Gemini, every time that you go to sell something, either it's implemented now or it's gonna be implemented soon, they tell you the tax ramifications of what it is. So like, you don't even think about it. It's like, it's right there. So Gemini is doing a pretty good job. The second one is about the gifts, because it's like, well, I'm just gonna give 15,000 to somebody and they give me 15,000, I don't want to pay any taxes. And I was like, no, it's not how it works. I actually even reached out to my man, Shi Han, Chandra Sagar, if you don't know him, he is a crypto-specific CPA and I just asked him, is that, can we do that? And he says, no, we can't. He goes, you can gift someone a crypto of 15,000. The recipient doesn't pay taxes, no reports it anywhere. The sender has to file a form seven and nine with the IRS, only if the amount exceeds 15,000. So here's the rub. If you're gonna send somebody as a gift, 15,000 in Bitcoin, and he sends you or she sends you 15,000, you've already purchased that and you've already gotten taxed on the money that you did it with. So however you pay for that Bitcoin, right? If you have a nine to five job, right? You've got your salary, you've got your check and you just say, okay, I'm gonna take this much money that I have and I'm putting in Bitcoin. Well, you've already gotten taxed on that. So there's really nothing you can do about that. And then, well, some people say, well, what if I just do like, I put it into a theorem first, then I do an XRP and I do a Bitcoin, do all these transfers and then I put in a Bitcoin and then I send it away. Like, well, every single transaction you just did, you got taxed for it, right? And the next question was, well, what if I go to just immediately sell it? Well, you can immediately sell it, but it's the same thing, right? And if you immediately sell it, you don't really pay any taxes, but you've already gotten taxed on the front end. And then if you wait, let's say it's at 15K, you bought 15K worth of Bitcoin back in May, let's say it was worth 10,000. Now it's worth 20,000 and you go to sell it, you're like, ah, I got this nice gift. Still doesn't matter because you're gonna get taxed on the gains from 10K to 20K, even if you wait a year or more and you're in the long-term capital gain. So that is the big thing. And that's really what it comes down to. Now, as far as like tax deductions, again, if you are looking for a way to minimize your taxes, did a video, talked about the different legal ways you can minimize taxes using a Roth traditional or SEP IRA and I'll link that at the very end, looks like this. And that is it for Q of the Day. So it sounds like a good idea at first, but again, there's all these different laws and it's very hard to get away from taxes. Although I did hear one thing before I sign off. Some people have said, well, I'm not gonna pay any taxes because all I'm gonna do is just take a loan out and I'm going to take the money that I get from these loans, small loans and I'm just going to let everything ride. Well, that works out pretty well right now because everything is going up, right? But what goes up will come down. So if you keep doing that for time over time, you're gonna have to eventually pay the piper because it's gonna go up and then it's gonna start to come down again and maybe down below what it is right now. So if you take that loan, you have to pay it back and I guess you could do it. It's just going to be a little bit of a Robin Peter to pay Paul, I guess. All right, so that's it for today. Let me just name the comments section and now let's jump back. So I have to answer your question about all those things. Thanks to Sheehan for again answering my questions. I really appreciate it. I gotta get them on the show. But before we take off, just wanted to give a quick shout out to everybody who has signed up for Digital Asset News, the YouTube channel. I really appreciate it and let's just do some random shout out. So Juno No, Dubnet, Keith Noir, Eric Larson, DJ Vinberg in Trust, nice. Eric Mitko, Steve Erlich. Yeah, Steve from Voyager. Juan Pablo Esperanza, Jamie Watson. Dad Beame, that's pretty funny. Jess Zadra and Patrick Mai and Frank Weinhammer. So everybody, thanks for signing up. Really appreciate it. If you like these types of videos, it'll be two months going to pop up on your left and right, not really sure exactly because YouTube does their magic and that is it. So thanks for watching. Appreciate it. Good luck on this bull run. We're going to see some pullbacks just remember and I'll see you on the next one.