Understanding Cryptocurrency Basics

Stop trying to get rich quick. My top 15 learnings from investing in the crypto markets: 1. Never invest in something because someone told you to. Do your own research. Develop your own conviction. And then ask others questions about your thesis. Analyze their answers to figure out if you know more than they do. Do this enough and you’ll develop conviction in your view vs the market view. 2. Write. The thoughts in your head aren’t real until you write them out. 3. Study onchain data. Artemis 4. Observe the market. If you aren’t observing the market, you are the market. Write out notes on a monthly basis about what you are seeing in the market. Observe the fear and greed of your friends and associates. The market is always telling you something. 5. Price moves first. This is extremely unique in crypto. Price. Moves. First. Fundamentals come later. Study Solana over the last year if you don’t believe me. 6. The name of the game is survival. Only invest what you are comfortable losing. If you are up at night worried about your investments, you’ve already lost the game. 7. Always leave some cash on the sideline. I keep a higher portion of my portfolio in cash than most (+10%). It keeps me calm. And I always feel like I can go on offense when an opportunity presents itself. 8. Never chase an opportunity out of FOMO. The next opportunity is right around the corner. Be patient. 9. Meditate daily. Meditation is the practice of observing your thoughts. Practice being mindful of that voice in your head. Do this enough and you’ll get better at observing your emotions and not let them get the best of you. This is a superpower not just for investing but for life. 10. Don’t forget to take profit. The market doesn’t owe you anything. Your price target isn’t real. Always re-assess and take profit or get out of a trade as information changes. 11. Never, ever, attach your identify to an investment. This is probably the biggest mistake I see in crypto, which is known for online communities, which function like cults. Everyone knows what happens to cults when everyone drinks the kool-aide. 12. Stay humble. Just when you start to think you’re a genius is when the market will hand you some L’s. 13. Pattern recognition is real. Why? Human behavior. 14. If you don’t understand macro, you don’t understand crypto. 15. Stop trying to get rich quick. Name of the game is *time in the market.* _______ The most obvious thing I see in the market right now? SOL will outperform ETH. Solana infra will outperform Ethereum infra (e.g. Pyth > Chainlink) Solana DeFi will outperform ETH DeFi (e.g. Jupiter > Uniswap) Solana memes will outperform ETH memes (e.g. Giga > Pepe) [none of this diminishes ETHs significance long-term. just the reality of the market today] SUI and TIA look like the alt L1 plays this cycle. What would you add? Data: Solana vs Ethereum Daily Fees powered by @artemis

If you're a crypto investor, the current bull run may have you considering taking profits. While realizing gains can be exciting, it’s important to think about the tax implications before making any moves. Here are some tax planning ideas to help minimize your capital gains tax liability: 1. **Hold for Over a Year**: If possible, hold your crypto assets for at least one year before selling. Long-term capital gains are generally taxed at a lower rate (0%, 15%, or 20%) compared to short-term gains, which are taxed as ordinary income. 2. **Offset Gains with Losses**: If you have other crypto or investment losses, consider selling those assets to offset your gains. This strategy, known as tax-loss harvesting, can help reduce your taxable income. 3. **Consider Tax-Advantaged Accounts**: If you’re investing in crypto through a tax-advantaged account like a self-directed IRA, any gains might grow tax-deferred or even tax-free (if it’s a Roth account). 4. **Donate Crypto**: Donating appreciated crypto assets to a qualified charity can provide a tax deduction for the fair market value while avoiding capital gains tax on the appreciation. 5. **Strategic Selling**: Spread out your crypto sales across multiple tax years to potentially keep your income in a lower tax bracket. 6. **Leverage Gifting**: You can gift crypto to family members in lower tax brackets, staying within the annual gift tax exclusion limit ($17,000 per recipient in 2024). They may pay lower capital gains tax when they sell. 7. **State Tax Planning**: If you live in a state with high income taxes and are planning a move to a state with no or low income tax, consider waiting until after your move to sell your crypto. 8. **Stay Compliant with Reporting**: The IRS is increasing scrutiny on crypto transactions, especially with new reporting requirements like Form 1099-DA starting in 2025. Ensure all your transactions are accurately tracked and reported to avoid penalties. Crypto tax planning can get complex, especially if you have significant transactions or use DeFi, NFTs, or other advanced crypto strategies. If you need help navigating the tax implications of your crypto investments, let’s connect! Our team specializes in crypto tax planning and compliance, and we’re here to help you make the most of your gains. #cryptotax #taxplanning #cryptoinvestment #capitalgainstax #cryptocpa

Ryan Salame just demonstrated that in FinTech/Crypto, “move fast and break things” can be very dangerous. Most of the media coverage about the former chief executive of FTX pleading guilty yesterday to multiple charges focused on the $1.5bn asset seizure order and the possible 10 year jail sentence he faces. But delving into the specific charges contains a valuable lesson for FinTech/Crypto companies. Specifically, one charge that Salame pled guilty to was the dry sounding “Conspiracy to Operate an Unlicensed Money Transmitting Business.” The background was FTX had no bank accounts to handle customer deposits/withdrawals. FTX tried to open one, but their bank (likely Silvergate) refused without FTX having the needed registration and licenses (money transmitter business license, primarily). Rather than let that slow them down, Salame and SBF pushed forward. Initially, they illegally used the bank accounts of Alameda (SBF’s trading businesses) for FTX customer deposits/withdrawals. Knowing that was not a durable solution, they then incorporated a new entity, misrepresented that entity’s business (not disclosing it would deal with FTX’s customers and was not licensed), and opened a bank account. That behaviour might have hewed well to the disruption ethos of many in tech (think the early days of Meta and Alphabet). But financial services is different as it is heavily regulated. This underscores the unique complexity of FinTech/Crypto. The need to balance the disruptive possibilities of new technology against a very well-established regulatory infrastructure. Many correctly cite the need for regulatory change for novel technologies Iike crypto. But they must also understand many foundational regulations in financial services are not up for debate: protection/separation of customer funds, KYC, anti-money laundering, anti-terrorism financing, sanctions compliance (to name but a few). Those FinTechs/Crypto companies that manage that balance between disruption and compliance will be successful. Those who don’t……. As Salame has aptly demonstrated yesterday, you can’t ignore financial regulations because it slows you down. In financial services, “move fast and break things” can easily land you in jail. Ex-FTX Executive Salame Pleads Guilty to Criminal Charges https://lnkd.in/eG2Vvytc

The first week of the new Administration has brought significant changes to US policy approaches towards digital asset and crypto financial markets. Policy formation, or lack thereof, has been a key impediment in the adoption of crypto financial capabilities. While execution of new policy agendas are still pending, the speed and scale of the shift in policy direction is significant. S&P remains dedicated to offering essential data, analytics, and benchmarks to enhance decision-making in markets. Key policy highlights from the week include: - The SEC rescinded SAB 121, eliminating the requirement for firms holding cryptocurrencies to list their customers' crypto holdings as liabilities on their balance sheets. - An Executive Order is establishing a Digital Asset Working Group tasked with proposing Federal regulatory frameworks within 6 months. The group will involve multiple regulators but will exclude the Federal Reserve and other banking regulators. - Commissioner Hester Peirce of the SEC is initiating a Crypto Task Force aimed at crafting a comprehensive regulatory framework for crypto assets. These developments mark a significant step in reshaping the regulatory landscape for digital assets and crypto markets. #PolicyChanges #DigitalAssets #CryptoRegulation #DeFi

I believe one of the most significant accomplishments of this administration is ensuring that financial regulators work closely together and are aligned on digital assets regulation. The EO on Digital Assets (EO 14178) and the White House Digital Assets Report directed regulators to coordinate under existing authorities to provide clarity for the digital asset ecosystem — even before Congress acts. Today we saw that direction put into practice. The SEC and CFTC issued a joint statement confirming that registered platforms under their supervision can facilitate trading of certain spot crypto assets. For an industry long facing jurisdictional ambiguity and turf battles, this joint action is significant. Here’s what it means in practice: ✅ Registered venues can move ahead: SEC-registered national securities exchanges (NSEs), CFTC-registered designated contract markets (DCMs), and certain foreign boards of trade (FBOTs) are not prohibited from listing and facilitating trades of approved spot crypto products. This means regulated entities can now handle actual crypto asset transactions — not just derivatives — within the same frameworks that govern equities and commodities. ✅ Direct engagement with staff: Firms are encouraged to engage directly with SEC and CFTC staff to determine how to apply existing requirements for transparency, surveillance, and investor protection — the “fair and orderly market” principles — to spot crypto trading. These discussions will guide how venues design compliance, reporting, and risk controls specific to digital assets. ✅ A bridge until Congress acts: Congress continues to debate wide-ranging market structure legislation. That process could take months. Today’s action provides a path forward now, signaling that U.S. regulators are aligned on how spot crypto trading can operate under current law. For years, one of the biggest gaps in oversight was the CFTC’s limited ability to regulate the spot market for crypto commodities, while the SEC asserted authority over crypto securities. The result was confusion and hesitation. Today’s announcement is the clearest signal yet that both regulators are prepared to supervise parts of the spot crypto market together, using existing law and coordinated oversight. To put it simply: think of two referees who once called different halves of the field, sometimes making conflicting calls. Players didn’t know which whistle to follow. Today, those referees are shoulder-to-shoulder, telling players: you can take the field, here are the rules, and we’ll enforce them together. This is exactly what the EO and the White House report envisioned. Regulatory clarity doesn’t just come from Congress passing new laws — it comes from regulators working in sync, applying their mandates consistently, and signaling to the market how to proceed.

"Let’s start with a fundamental question: how different is a #stablecoin from e-money or a #bank_deposit? At first glance, stablecoins appear to be a novel #technological_innovation, promising faster, cheaper, and more efficient payments.   However, their core functions—storing value and enabling payments—are not fundamentally different from traditional financial instruments.   A stablecoin backed by #high_quality_liquid_assets mirrors the structure of #e_money issuers. Similarly, a stablecoin issued by a private entity with claims on an issuer resembles a bank deposit.    Yet, despite these similarities, stablecoins often operate outside the #regulatory_frameworks that govern bank deposits and other products that are similar to bank deposits, like money market funds.   This highlights the importance of the principle “#same_activity, #same_risk, #same_regulation.” If stablecoins perform the same economic functions as traditional instruments, they should adhere to equivalent regulatory and supervisory standards. This is not about stifling innovation but about safeguarding financial stability.   Consider a stablecoin issuer promising 1:1 backing with high-quality reserves. Without strict oversight, could these reserves fund riskier ventures, with stablecoins acting as conduits for leveraging the financial system? This scenario is not hypothetical.   We have seen how loosely regulated financial instruments can amplify risks rather than mitigate them. The potential for runs on large stablecoins could have financial stability implications given their large-scale investments in the short-term funding markets. The interconnectedness between stablecoins and traditional financial systems has grown rapidly.   To address these risks, the #FSB has set guardrails for the regulation, supervision, and #oversight_of_stablecoins. These guardrails ensure robust standards for #transparency, #governance, and #risk_management. However, if we want to prevent regulatory arbitrage, consistent implementation across jurisdictions is critical. We should not allow stablecoins to exploit gaps in oversight to gain a competitive advantage or to introduce hidden risks into the financial system."   — From: Remarks by FSB [Financial Stability Board] Chair, Klaas Knot, at the Group of Thirty (G30) Plenary Meeting, Berlin, June 7, 2025.   The full speech is available here: https://lnkd.in/eg8H9Bgp

Most people think that a large wave of enforcement actions is a sign of a regulatory framework that is healthy and active. I disagree. A large wave of enforcement actions can also result from a regulatory framework that is unclear, inconsistent, and overly restrictive to the market. This is what is happening in the crypto market in the U.S. 1) Unclear regulations - The United States is struggling how to fit crypto into a regulatory framework from almost 100 years ago. The Securities and Exchange Act of 1936 never anticipated digital assets, cryptocurrency, or blockchain technology. Trying to apply this framework to a technology for which it was not intended is tough. Both regulators and the industry struggle to make sense of it all. 💡Solution: A digital assets-specific framework. For the crypto industry to have a clear understanding of digital asset regulations, a new regulatory framework is required. 2) Inconsistencies in decisions- Inconsistent application of regulations creates confusion. It remains unclear to many lawyers and Web3 founders what the exact threshold is for a digital asset as a security and how to ensure complete compliance. 💡Solution: No more regulation by enforcement. The industry learns very little when selective enforcement occurs. Instead, the U.S. Securities and Exchange Commission should issue circulars, rules, procedures, and regulations that enable effective compliance implementation. 3) Stifling innovation - All companies look for jurisdictions that provide the best environment for business - this includes considerations around transparent, clear, and implementable regulations. The United States is at risk of losing the best digital asset innovations to other markets that have prioritized setting up a digital assets framework. 💡Solution: Foster innovation through digital asset working groups and other B2G collaborations. The only way to make a regulatory framework that fosters innovation is to invite the industry to join in its creation. Regulations are meant to protect the market and only a deep understanding of how that market works can support that goal. As I engage in conversations with both regulators and the industry, I see that there is potential for a win-win. The only question is how long that will take. What are your thoughts on the current state of regulatory development in the digital assets space in the U.S.? https://lnkd.in/d5RdSPHz #cryptoregulations #legalcompliance #law

I’ve spent 7 years in DeFi. I’ve lost money, made money, and learned more than I ever expected. Here are 10 mistakes I’ll never make again (so you don’t have to): 1. Chasing unsustainable APYs If the yield looks too good to be true, it probably is. I’ve learned to ask where the yield is actually coming from. 2. Overexposing to a single protocol or chain Putting all your capital in one place is dangerous. Even the most hyped projects can collapse overnight. 3. Using unaudited smart contracts I once trusted a sleek interface and lost funds to a basic exploit. Audits aren’t a guarantee, but no audit is a clear warning sign. 4. Not securing my keys properly Hot wallets are convenient, but they’re not the place to store serious capital. Hardware wallets and multisigs are now non-negotiable for me. 5. Assuming stablecoins will always stay stable I used to think stables were safe by default. I learned the hard way that understanding the mechanics behind the peg is essential. 6. Ignoring governance dynamics Low voter participation and whale-controlled voting often make governance meaningless. Now I evaluate a protocol’s political health before getting involved. 7. FOMOing into tokens without understanding tokenomics I used to buy the story. Now I break down emissions, lockups, and incentive structures. Most tokens lose value unless carefully designed. 8. Staying too long in ecosystems with fading developer activity If builders are leaving, I’m already late. Developer engagement is one of the clearest signs of a healthy ecosystem. 9. Underestimating regulatory risk I used to ignore it. Now I track legal exposure and jurisdictional risks before deploying capital. 10. Believing “this time is different” Every cycle has the same emotional beats. I keep notes, revisit old mistakes, and remind myself that experience is expensive. DeFi is still in its early days. The risks are real, but the innovation is too. If you’re navigating this space, I hope these lessons help you avoid a few pitfalls. What’s one DeFi mistake you’ll never repeat?

There are rumors spreading online that IRS Notice 2025-7 delays the new crypto tax rules under Rev. Proc. 2024-28. Spoiler: It doesn’t. 🧐 What IRS Notice 2025-7 Actually Does: This notice provides transitional relief for changes to cost basis rules. Instead of requiring you to tell your broker upfront which cost basis method you’re using before making a trade, you can track and record this information on your own books at the time of the trade—no need to pre-identify it with your broker. This is a temporary adjustment to help both taxpayers and brokers get used to the new cost basis reporting requirements. 🚨 What’s NOT Changing: Rev. Proc. 2024-28 still took effect January 1, 2025. The switch from the universal wallet method to the wallet-by-wallet allocation method is happening as planned. Taxpayers must track gains and losses separately for each wallet—no more aggregating transactions across all wallets. What you should do right now: 1️⃣ Get familiar with the wallet-by-wallet tracking method. 2️⃣ Start your 2024 crypto taxes without delay, and ensure prior years are reported accurately, as well. 3️⃣ Stop relying on rumors. Start relying on facts. Crypto tax rules are evolving fast. Staying informed isn’t optional—it’s essential. Reach out if you have any questions!

Not all that glitters is crypto gold. 💎 "The next Bitcoin is out there!" Spoiler: Probably not. In this wild, ever-shifting market, finding solid projects isn’t about luck—it’s about digging smart. The true gems are hidden beneath layers of hype, and uncovering them takes sharp research, patience, and a refusal to settle for shiny scams. Here’s how to separate treasures from traps: 1️⃣ Check the Team. Look for experienced, transparent leaders with a proven track record. Anonymity is a red flag. 2️⃣ Understand the Use Case. What problem does this project solve? Real-world utility is key. 3️⃣ Analyze Tokenomics. A sustainable, clear token model is essential. Watch for transparent distribution plans. 4️⃣ Community Matters. Active, engaged communities show strong belief. Explore their social channels. 5️⃣ Security First. Ensure smart contracts are audited by reputable firms. 6️⃣ Partnerships & Adoption. Real-world partnerships signal credibility. Look for adoption beyond the hype. 7️⃣ DYOR (Do Your Own Research). Don’t follow the crowd—dive into whitepapers, analyze the roadmap, and make an informed decision. Smart investing is about research, not hype. Stay informed, and invest wisely. #BTC #Investing #DYOR #Blockchain #SmartInvesting #Crypto