I'm in a financial pinch and need to liquidate somewhere
I have 0.105 Bitcoin and my Avg Cost is $101k (my dumbass bought at the peak)
I also have $21k in a Taxable Brokerage Acct in Index Funds
I need around $10k, which is exactly how much Bitcoin I have. Should I take the L and sell the Bitcoin or should I sell the Stock?
Also planning on buying back in once my work picks back up again.
Posted by scarn95
11 Comments
Are you up on the stock? IMO sell whichever you have the least losses with
Personally I’d sell the stock… index funds highly unlikely to outperform BTC over a long time horizon.
If you were saying should I sell BTC or *insert high growth stock here* it’s a more nuanced scenario… but if it’s just a boring index, I’d get rid of that first, personally.
Never sell, borrow against or what ever but never sell
I’d honestly sell the bitcoin, you can likely claim the loss on your taxes. Buy back and DCA once work picks up.
If you’re in a pinch selling the stock that is in profit will force you to pay taxes if you lost money on your bitcoin, then you don’t owe any taxes on that.
Asking this in a Bitcoin thread is already answering ur own question indirectly
If you had disposable 10k, what would you buy, stocks or Bitcoin? There’s your answer
It’s a tough one, but also take into consideration we may not even be fully at the Bitcoin bottom yet.
If you sell now, you could potentially offset the losses for tax purposes, preserve capital, then slowly buy back later if we revisit lower ranges again. That strategy can actually make sense depending on your situation and tax jurisdiction.
The reason it’s tough decision, if BTC eventually revisits something like a $250k cycle top, your 0.105 BTC could still become ~$26k+ in the future. This will definitely outperformed index funds.
Mate, good luck!
Personally, I would sell 10K in stocks. Stocks are at market high and Bitcoin is it a bear market despite the recent rally
You will have to pay capital gains on your sale, but that’s okay you can offset that with your Bitcoin.
You can sell your Bitcoin at a loss, and because there’s no wash sale rule in crypto, immediately buy it all back. This is tax loss harvesting. That will offset the capital gains on your sale of stocks.
Whatever one has the least dollar/tax/loss ratio.
sell all double the amount of stock
use the 10k you need
put another 10k into bitcoin and double down on it
after that chill and pray we bitcoin idiots ain’t hallucinating anything here