Flare FAssets Warning: Prevent a Costly Mistake! ⚠️💥

Are you ready to dive into the world of Flare's FAssets but worried about making a costly mistake? 😱 No worries, we've got your back! 💪
In this video, we’re breaking down a potential pitfall of Flare’s FAssets and how you can potentially dodge it. 🏃‍♂️💨
🎯 What You’ll Learn:
One common mistake that could burn you 🔥
Tips to manage and avoid this mistake
How to maximize benefits without the headaches! 🚀🛡️
Don’t let a simple oversight cost you big time. Join us for an easy-to-understand, fun-filled guide.
Subscribe for more crypto tips and hit that bell 🔔 to stay ahead in the game! Comment below if you have any FAssets stories or questions-we’d love to hear from you! 💬👇
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About Me:
Hi there,
My name is Matthew.
Crypto changed my life and I believe it can change your life, too.
On the DeFi Divvy channel you get data driven content that can help you compare cryptocurrencies and other assets so you can reach your goals faster.
On this channel you also get DeFi news, along with education and ideas that you can use for simple crypto passive income.
One goal of this channel is to expand our financial education in relation to blockchain metrics, adoption, and decentralized applications, so we can implement our own personal strategies with confidence. Why are we here? So we can reach our ultimate goal: Financial Freedom Faster.
The information on this KZbin channel and the resources available are for entertainment and educational purposes only. I am not an investment adviser and nothing said or written by DeFi Divvy is investment advise.
Please always do your own research into each project mentioned on DeFi Divvy so that you understand the risks involved with investing in Crypto, Defi, Staking and Delegation.
Thank you for Reading and Watching ❤
#flarenetwork #fassets #crypto

[@ThuyPham-lr5dc]

Good morning Matthew🎉🎉🎉 Hua Hin beach tomorrow 🎉🎉🎉 Let’s gooooooo Flare❤❤❤❤

[@DeFiDivvy]

Oh man I would love to meet up on Hua Hin. Enjoy Thuy!

[@ThuyPham-lr5dc]

@@DeFiDivvy First 10 Chang on me pal!

[@etaiii]

Wrapping and unwrapping a cryptocurrency is considered a taxable event in the US. However, you can use this process to tax-harvest when you're at a loss. This allows you to lock in the loss without selling the coin, which is a smart strategy.

[@DeFiDivvy]

Thats crazy. If it's true I won't be wrapping highly appreciated assets. In my example I'd have to earn $22,500 in yield to hit break even on the wrap.

[@casualtrips9571]

That doesn't even make sense. That's literally taxing unrealized gains at that point that's crazy if true.

[@Eternalxrp]

How about just don’t tell anyone

[@DeFiDivvy]

@@Eternalxrp If you want to pay bills with your earnings the Gov. will want to know how you're doing it. Tracing your income doesn't sound hard once you've converted to fiat on a Centralized Exchange.

[@XRPeakyBlindAR]

This is actually not true. And I have a resource that proves in unequivocally. I try and share it with those who show theyvare open to being incorrect about this whole tax situation I’d be willing to send the info to you Defi Divvy if you’re interested. Be well

[@monkeytube32]

Great point you made here, DeFi Divvy.

[@DeFiDivvy]

Thank you!

[@Anubis666]

As always great video Matthew 👏

[@DeFiDivvy]

Thank you!

[@david8769-d8p]

Good thoughts!

[@DeFiDivvy]

Thanks David!

[@juliusarceo3800]

Excellent point you brought up. Not tax advice but....in this case, a taxpayer will need to use the Speficic ID method of accounting in order to select individual purchases of BTC with the highest cost basis. If they've already filed crypto taxes in prior years using the LIFO or FIFO method, then they will need to change this by notifying the IRS. Now imagine the crypto investor has DCA'd into BTC over many years, accumulating many fractions of BTC at different prices throughout the Bull/Bear market, and has amassed 10 BTC. Taxpayer then decides to put 5 BTC into F-assets system. How many fractions of BTC (individual purchases) each with different cost bases represent that 5 BTC???? This would be a tax accounting nightmare if a failed redemption occurs. But I don't care, I'm all in on Flare and the F-asset system!!!

[@DeFiDivvy]

Great points. Thanks for watching and for for pointing out the name of 3rd option over LIFO and FIFO!

[@frankvalentich62]

Taking a small loan out against our Crypto is coming also. Pay no taxes

[@DeFiDivvy]

Looking forward to it!

[@MD-ce4vq]

how do you withdraw token from the bitfrost wallet into another wallet?

[@bullishx.r.p.blacc23merriw53]

Thank you

[@DeFiDivvy]

Thanks for watching!

[@freddythefly]

Finally fAssets🥳LFG FLR🔥🔥

[@DeFiDivvy]

Let's go Freddy!

[@semsolar9273]

impermanent loss going to be a consideration with FAssets?

[@DeFiDivvy]

Great question: Yes depending on where you deploy your FAssets. I recommend doing a deep dive on IL so you'll know which types of DeFi has impermanent loss risk.

[@jcasi003]

Just having your asset sit as an F Asset, will not accrue Impermanet Loss?

[@DeFiDivvy]

@@jcasi003 I am not sure why you'd mint an FAsset to just "sit as an FAsset". Can you earn that way? I believe you have to put it to work in DeFi

[@Pl2045]

I was under impression you could simply mint..

[@pbono6758]

Yes. When you mint and simply hold an F asset you can get FLR from the reward pool.

[@Spartan69117]

That’s why SGB/FLR have to have higher value as collateral and insurance

[@hoos.crypto]

Wotcha Matthew. Excellent video sir. I've shared and features with phrens & phams on fBs.

[@DeFiDivvy]

Much appreciated! Thanks for dropping in on YT. See you on Twitter!

[@marchandfield4557]

keep up posting "whale list" an these videos. Great Work.

[@DeFiDivvy]

Thank you sir, will do!

[@dee3953]

How do you set it up?

[@charliebacchus5360]

@DeFi Divvy - Matthew can you give an explanation to the weekly FTSO rewards ? What are the factors that would increase or decrease the amount. Activity ? The last 2-weeks SGB rewards have significantly dropped. I do not see anything changing with my chosen providers.

[@DeFiDivvy]

Definitely worthy of a couple dedicated videos. Multiple variables in play. Thanks for the idea and suggestion! To be continued...

[@charliebacchus5360]

@@DeFiDivvy thank you much for taking the time to respond... much appreciated. I look forward to your educational Videos. Have a GR8 weekend. Cheers

[@Knackers_Oreilly]

Flare has a bright future

[@DeFiDivvy]

Yessir!

[@Guust_Flater]

So...waiting till XRP gets a high value, then transfer to FXRP, so that during the next bear market, you have an unrealized loss on your XRP. You don't care, because you do not want to sell, but still making gains with your FXRP. Right !? 🤷‍♂️

[@Scott-iw8yr]

I thought a taxable event occurs anytime you swap tokens

[@DeFiDivvy]

That is my understanding as well. And if there's no appreciation on the base token then there shouldn't be a gain to be taxed.

[@Cryptoview_1]

i think not sure but tax is base on FIFO ( first in first out) so you can't use fresh tokens?

[@DeFiDivvy]

That's a good point. I think there is an option on Coinbase where you can report the order of in / out if you want. I forgot the name of it.

[@dudanoseporque]

in my country its diffrent first btc value 10 to 100k. first you need to subtract your investment 10 k you only pay 0,25 on the 90 k. because your 10 k was already taxed before. f assets needs to be live on the chain to see the results :)

[@XxXxXBig]

Yep same as he said. 90k gain. 25% on the 90k. Tax

[@DeFiDivvy]

Yep, same here. Taxed on the $90K appreciation. No tax on the $10K cost basis.

[@user-mb1rq1dn4i]

So in this scenario what are you supposed to do with your BTC? Just have it's value sitting there not earning any yield. If so then there is no point in having the F-assets system.

[@DeFiDivvy]

Depends on each person's tax situation. If in your location wrapping alone is taxable, then you'll want to factor in that tax to calculate your break even before you're in profit. In my example, if I simply wrap a coin with a $90K gain (taxed owed $22.5K), then I know my profit doesn't kick in until I make that additional amount to pay off the cap gains.

[@mikeodonnell14]

Flare is should a great asset that its STILL sitting at .024 cents.... I have a large bag and hate to see this much $$ tied up for 4 yrs now... uugghhhh

[@DeFiDivvy]

My larger bags are in bigger cryptos with strong metcalfe's metrics. But fingers crossed FLR has a nice move soon. I have been stacking from airdrops and delegations for a while now, along with some fun DeFi

[@aqadaptiveintelligence]

Don’t lose money. buy more FLR & SGB. NOW.

[@DeFiDivvy]

I love when things are on sale.

[@aqadaptiveintelligence]

@@DeFiDivvy ye hope you did. About to moonrocket up 🚀 ⬆️

[@paulfrank158]

What do you think about the Forbes article ?????????????????????????????????????????????????

[@DeFiDivvy]

I didn't see it. Which one?

[@dee3953]

I'm confused 😢

[@MrArjan23]

FLare is build too be stronger in a bear marked

[@DeFiDivvy]

I like the sound of that. Thanks for stopping by.

[@futuresbright8023]

interesting tax talk

[@DeFiDivvy]

Thanks Future. Something to consider for your profits!

[@Xrp944]

So what if you got 100 of thousands of xrp how do you find the price of them? Hate the tax man you can’t do anything lol

[@DeFiDivvy]

To get your cost basis you divide the total USD you put into XRP by the total amount of XRP tokens you have. For example, if you put in $50,000 over a 6 year period and you own 150000 XRP, your cost basis for XRP is 33 cents per token. ($50,000/150,000 XRP)

[@Xrp944]

@@DeFiDivvy thanks I don’t even know how much I put in over the years been buying for so long,

[@Xrp944]

All I wanted to do is delegate my xrp like we do with flare,