Advice for crypto newbies

[JustMakeItHappen]

Hey everyone 👋





Many of you may already be aware of this, but I wanted to highlight an important point regarding transferring funds directly from centralised exchanges (e.g. Coinspot, Coinbase, Binance) to vendors.





In my view, this isn’t a smart long-term approach. While it may work a few times, it’s only a matter of time before a transaction is flagged or frozen, at which point the exchange may contact you requesting details about where the funds are being sent and for what purpose.





For those who are new to crypto, I’d recommend the following workflow instead:

• Use a centralised exchange if needed
• Set up a decentralised wallet (such as Exodus, Trust Wallet, or MetaMask)
• Deposit funds into your centralised exchange
• Transfer your crypto to your decentralised wallet
• From there, send the crypto to the vendor

This extra step can help reduce issues with frozen transfers and unnecessary scrutiny.





Hope this is helpful, and apologies if it’s something you already knew.

 

[anon0]

Thanks for the detailed guide, OP. One question though, if crypto is transferred to vendors, does it need to be reported on tax returns, including any gains or losses from the transactions?

 

[JustMakeItHappen]

Thanks for the detailed guide, OP. One question though, if crypto is transferred to vendors, does it need to be reported on tax returns, including any gains or losses from the transactions?

Good question, but unfortunately i dont know the answer.


I thought it was only marked as a profit/loss once you sold it.

But still, not sure.