I keep seeing people in investing communities that are vocal about the alleged risks of Bitcoin. And price speculation is perfectly fine when observing an asset purely as an investment. However, that’s far from Bitcoin’s value proposition. But it’s understandable. This is mostly done by bad stock pickers that consider $BTC gambling, think that dividends …
I often talk about crypto cycles and their relevance for timing entries and exits. In this post, I will share my experience with the cycle of 2021. The goal is to show how volatile and life-changing (in both directions) this market can be. The interesting part is that I incorporated exactly the same strategy to …
If you’re a Bitcoin HODLer, this post might be not only relevant, but potentially life-changing for you. Whether you plan to live off of $BTC or simply want to optimize your taxes while stacking, understanding the tax treatment of this asset is of utmost importance. In this post, I’ll do a detailed breakdown of Bitcoin …
It’s here, ladies and gentlemen! After many hours of research, I compiled a list of all taxes relevant to European investors. For each EU, EEA, and EFTA country, I’m covering the following: Capital Gains Tax Rate Dividend Tax Rate Wealth Tax Rates Exit Taxes Note: this post is for individual investors. Not for workers or entrepreneurs. If …
If you recently started venturing the depths of DeFi, you might need help understanding LSTs and LRTs. In order to describe these intermediate concepts, we need to start at the beginning. This is a n00b-friendly introduction to liquid staking and liquid restaking. What is Proof of Stake? Proof of Stake (PoS) is a consensus mechanism …
Rebalancing means redistributing your wealth across different investments, in order to match your target allocation. Understanding asset allocation is crucial in order to understand the need for rebalancing. So if you still haven’t, make sure to read this post: Asset Allocation. Rebalancing Explained Rebalancing usually happens on frequent intervals or when the target asset allocation drastically …
With crypto summer emerging, the scammers are back with their old bag of tricks. This post is a n00b-friendly introduction to the most common crypto scams you should be aware of. Note: even if you self-custody, that’s not protection against lack of common sense. Having control of your coins makes you your own bank, i.e. …
“The 4 Year Cycle” is one of the most important posts you’ll ever read. I mean it. People that understood the cyclical nature of the markets will never struggle financially. In this post, I’ll explain the single most relevant indicator for Bitcoin’s price and how I used it to build a position with full conviction. …
In my previous post on this topic, I wrote about events in recent history that lead to the death of the gold standard. I’ll do a short recap and jump into the aftermath – what’s been going on after we went off the gold standard. The Gold Standard: Modern History These are the major events …
An Airdrop represents a distribution of free crypto to users’ addresses. These distributions may be worth up to 6 figures and oftentimes require no financial investment. However, they’re rarely announced or guaranteed. As a veteran in the DeFi space and a recipient of over 100 airdrops, I want to shed some light on the process. …
The block reward halving is one of the key characteristics of Bitcoin. It’s extremely relevant both for ideologists and investors, so make sure to understand it. Introduction to Bitcoin Block Rewards All Bitcoin transactions are grouped into blocks, which are added to the blockchain through a process called mining. Each Bitcoin miner tries to be the fastest one to …
The gold standard is a monetary system where a country’s currency or paper money has a value directly linked to gold. Investopedia, What is the Gold Standard? Throughout a major part of human history, gold was the only globally recognized unit of account. And it still has that status, as every system/country/empire agrees on its …
Cost averaging (DCA or dollar cost averaging) is an investment strategy for investing capital over time. It can be especially valuable to beginners that determined their asset allocation but still looking for an entry point for the actual purchase. This post will describe one of the best and time-tested strategies of deploying cash. What is Dollar …
The Byzantine generals problem is a distributed computing problem introduced in 1982, in a paper of the same name. In this post, I’ll give a simplified summary of a formulation of the problem. Then, I’ll explain how the Bitcoin blockchain and its use of Proof of Work solves it in practice. The Byzantine Generals Problem: …
Having control over your seed phrase is equivalent to having control over your crypto. I already covered the importance of self-custody before, so if you’re reading this post, make sure to know the basics. With that being said, let’s dive into how you can protect your seed phrase and increase the security of your crypto assets. …