If you know that this is going to happen, go short and make a ton of money.
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Advice Needed: Tax Residency and Banking for Large Crypto Conversion
- Thread starter agentsmithhhhh
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Do you understand that selling crypto for fiat now means going short crypto? It also means buying a currency that is mathematically meant to tend to zero value.
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@JohnnyDoe ”“ Your #1 Source for Guidance in Different Offshore Fields
Ok i agree on diversification part
Let's say 50% crypto and 50% stocks or better index fund.
Uae residency where you spend at least 180 days in dubai and it is guaranteed 0% tax and no Swiss bank would bother you.
But first you need to establish tax residency in uae which would require to spend 6 months.
So best plan move to uae, after 6 months you get uae tax residency and then you apply with Swiss crypto friendly bank that offer you access to international stock market.
Ibkr is for people who can't get swiss bank account
But you have big take advantage that they don't have to get swiss bank account easily.
Sure, which is why I will always remain invested in crypto. My end goal isn't to move from crypto to fiat, it's to have fiat at my disposal to pursue alternative investments and diversify a bit. Not sure why this is controversial...
This is useful, thank you. So the idea would be to first establish an alternate tax residency, before then being able to approach a Swiss bank?
I'm not extremely keen on moving to UAE - would their golden visa or a tax residency in other areas with a territorial tax system be viable alternatives?
You don't necessarily need golden visa as it requires 500k
You can establish a small business and rent a home to start living in dubai
Tax is based on your residency not nationality, this is common misconception people make.
So yes first establish tax residency in dubai and then apply with Swiss bank
In this case Swiss banks will treat you as uae tax based resident.
You mentioned you are worth 7 digits with would work with dubai because many rich people live in dubai.
Nobody can ever be 100% sure about anything obviously but since the crash of 2008, there is unmistakable central bank coordination to manage global debt. Raoul Pal documented this very persuasively.
Since 2009, global liquidity has been cyclic in about 4 year time frames.
BTC is almost perfectly correlated with global liquidity.
For the first 3 bullmarkets, BTC peaked as net liquidity began to approach zero, and then took 12-14 months to bottom.
I think investors wil do well if they sell enough BTC to cover projected future expenses and interest payments on their borrowings, in Q4 of the next 4th year, once it is well above its last all-time high, and then buy an equivalent amount of BTC about 13 months after it's peaked. It will continue this pattern until it doesn't but the mathematics of exponential debt growth will not change. I think we'll know when the cycle will break bc the whole monetary system will have changed.
There is a difference between this approach and adding extra risk by going short. Going short requires trading skills that not everyone has. Since there can be huge dead-cat bounces on the way down, you can get liquidated. Not necessary to short and probably foolish if you don't have expertise in that area. Same with trading with leverage on the way up when you have 40% corrections.
Last edited: Oct 12, 2024
All nice and good in theory, until you are left with worthless fiat in your (bank's) pockets, or your fiat is confiscated.
I invest fiat to generate a revenue stream that I use to regularly buy crypto, and that's the only sensible thing to do.
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I invest fiat to generate a revenue stream that I use to regularly buy crypto, and that's the only sensible thing to do.
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@JohnnyDoe ”“ Your #1 Source for Guidance in Different Offshore Fields
The next time shtf the clearing houses will go belly up. Only then will you find out that you're the last in the line to be made whole with your securities investment. Tick tock next block ...
Take a trip to UAE and "live" there as a tourist for a while before you commit.
Measure thrice, cut once! 😉
I think we're talking about different things
You're talking about what to do with your fiat income stream
I'm talking about being self-sustaining in crypto when you don't have a fiat income stream
You invest your crypto, unless you have enough of it to be able not to care about investing and/or you are too lazy to do it. Your crypto investments will generate an income stream either in crypto or fiat and the wheel keeps turning.
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@JohnnyDoe ”“ Your #1 Source for Guidance in Different Offshore Fields
No they dont.
You will find many infos on newspapers or the pwc tax summaries what they do.
In short: Your life center needs to be elsewhere.
well, expropriations looming. But if youre cool with that, its an idea. Although id prefer cash/stables in that scenario.
Unless you need dirty fiat may as well keep it in stablecoins and earn yield on, or better yet split portfolio earning yield from ETH and in native BTC
You mean just hodl BTC, not earn yield from it, correct?
I don't want to keep money in a POS coin that gives yield. Yes Eth is supposed to be deflationary, and it has a big L2 ecosystem built on top of it, but there is much better tech out there, including in POW coins, and I'm not convinced it will keep its value.
I'd just as soon take that money and invest in a fiat investment. Stablecoins are 1:1 with fiat so what's the advantage? Unless you can persuade me that Eth is a good investment.....I'm all ears
If you have some time, you should do a Mentor Gold on ETH or list some ETH books and articles you think others may benefit from reading to get closer to your circle of competence on ETH.
PS. I admit...Vitalik used to be in Zug, remember? Something about him did NOT inspire ANY confidence in me. I could just be plain wrong (which is my natural state: being wrong smi(&% ), but it has hampered my ability to really look into ETH deeply. I got turned off. I'm getting more interested now since you and some others here on OCT have mentioned it.
Have you personally tried to directly pay with crypto for everything else? I've tried. 90%+ of the cases it doesn't work. I'm huge fan of crypto (more than I care to admit) but we are just not there yet. Your advice is great in principle but not yet applyable in practice.
So I completely understand why this person wants to diversify and so far from this whole thread only the UAE recommendation (and apply for swiss bank after tax resident) is actionable. Everything else is empty (and vague) recommendations from people that have not walked the walk.
p.s.
Yes im aware i'll get quite a bit of lash back for this. GO!
Yes. That's how I live. Save for gardeners and a few other salaried people but I'm positive they will eventually switch to crypto.
If a supplier doesn't want crypto, I simply switch to another supplier who does.
To Clients who insist paying fiat I offer a discount for crypto, otherwise I take their fiat and immediately buy crypto.
Can this seem inconvenient? Perhaps, at times. But compare it to the inconvenience of having ”your” fiat frozen/stolen/confiscated (which can all be used synonymously).
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@JohnnyDoe ”“ Your #1 Source for Guidance in Different Offshore Fields
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