Crypto Staking/Cashing Out/Reinvesting

I live in the US and unfortunately I’m also a citizen. Although, I’m 100% leaving the country when I finish university. I started playing MIR4 about a year ago because I wanted to get into cryptocurrencies without investing my own money into it and because I’m a university student with negative money to invest anyway. I got lucky in a way and road the crypto price surge wave which allowed me to turn pretty much nothing into a decent amount of money while also selling at the right time before prices absolutely tanked. Because I didn’t really understand how taxes, reporting income, and other legal stuff works I just reinvested what I earned back into a few different staking mediums associated/part of the game’s ecosystem these past few months. I’m now getting about \~$1800/month in unrealized income and I think I should probably be diversifying/investing in other things because I think all games have a limited lifespan, so it’s not like I will be making this much forever.

My Wemix (The main token for the network the game is on) isn’t on the main exchanges, so the only way to get it on main exchanges is to convert it into KLAY and then sending it to those exchanges. So, it’s not like anything I have is even known by any tax entities. I figure I could send my money to an exchange without KYC. I’m thinking of using Kucoin or Kraken and start staking other coins/cashing out via ATMs for cash to cover all my living expenses so I can use 100% of my work income when I graduate to invest into other assets like ETFs/Real Estate. Although, I’ve read ATM fees are very high and defeats one of the purposes of not paying taxes on crypto.

If you were in my shoes, what would you do? What are some staking options I should look into/consider? I’m an absolute noob when it comes to all this stuff and I don’t really know anyone to discuss crypto/finances.

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4 thoughts on “Crypto Staking/Cashing Out/Reinvesting”

  1. I would do the right thing and pay taxes. This is tax fraud. Everything you are doing is essentially public and they can go back many years and investigate. At some point you will mess up and link your real world identity to an address and they could track it back. If you want crypto to grow we need to show we aren’t a bunch of people breaking laws.

    Use one of the many crypto tax sites to figure it out.

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  2. If I were you I will pay tax, not paying tax is wide and soon you might be prosecuted. I Invest 10% of my earnings on crypto max, and diversify my portfolio I have some of my tokens like UTK, RIDe, and EGLD staked on Maiar Dex, Stables on Binance, and yes I pay tax when necessary

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  3. If you have any worries about the future, you shouldn’t even think about tax evasion because it’s a bad foundation to build on. By investing in cryptocurrency with the intention of making money rather than just being ruthless about it, you can still make your cryptocurrency journey meaningful. For instance, before putting something in my bag, I consider the solution I receive from a project. I currently have some traction in the areas of identity management, privacy, and security.

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  4. As soon as you sold that first token, that’s a taxable event. You already owe taxes on that. Ignorance isn’t an excuse.

    You’re an American citizen, you owe taxes here even if you move away, unless you renounce it.

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