DCA is the way, definitely. Would love to hear a show with updated content on UTXO consolidation to avoid the dust problem. Also, would love your thoughts on the latest tax reporting requirements in the US regarding Bitcoin.
Discussion
Some thign is coming but low daily buys DO NOT HAVE SHIT TO DO WITH THIS, unless you act like an idiot intentionally.
How you do this, LEAVE IT ON THE EXCHANGE until you get up to 500-1000 dollars, then withdraw to a single UTXO.
Don't hodl on exchange but do hold until it makes sense to withdraw.
I also think it makes sense at this point to once you have a few whole coins to consolidate to about .25 to UTXO over time at low cost times to consolidate. Say you have .5 well do .1 or .05 per. But none of that has a thing to do with buying low cost DCAs, at all unless you are a dip shit and insist on self custody for less than you'd spend on a long weekend with the guys bar hopping.
Thanks Jack, spot on as always
Jack was probably the first bitcoiner I followed who said anything about waiting until you reached a minimum number of sats before sending to self custody. Everyone else (myself included) was just parroting "Never leave sats on the exchange" without understanding the potential problems that could cause in the future.
Maybe we were just expecting to wake up one morning and find our $100 buy worth $10K and Coinbase out of order yet again. lol
Oh and tax there are NO tax requirements unless you spend it or trade it. If you hold NOTHING is required except saying "yes" to the crypto question on the form, yes I hold, done.
If you spend it, you declare a basis and report the profit/loss. This has been the way for a VERY long time.
I do think more disclosures are coming. FIFO is being pushed hard but the way it is being done, it really doesn't matter for most people.