Buy Low, Live Free

HOWTO: Track your crypto portfolio using CoinMarketCap's API

I use a variety of ways to track my crypto portfolio, including using the built-in tools from CoinMarketCap and CoinGecko. I tend to find the latter a bit more accurate since it includes the transaction fee in your total returns, whereas CoinMarketCap does not.

Separately, I keep track (and ensure the accuracy of the online portfolios) using Excel. I recently created my own Excel spreadsheet tracker which I intend to share in the near future once I have all the features built. It's quite a low maintenance tracker and all I need to do is enter my transactions manually (e.g., buy or sell) and the spreadsheet handles all the updating and tracking for me, including calculating my gains and losses versus the market price. This is accomplished by accessing the CoinMarketCap API (free for personal use). 

There's an excellent HOWTO guide on linking the API to Excel here. 

How do you track your portfolio? Let me know in the comments below.

Ethereum powers the (ERC-20) world

I've been a firm HODLer believer since I got started with crypto (which is only a few months), but with the quick rise in BAT, I feel it's time for me to temporarily unload my holdings. This is my first time transferring an ERC-20 token to Gemini so I had to spend gas on the Ethereum network. A few takeaways:

  • Gas is used to fuel all ERC-20 transfers
  • You pay Gas in ETH, despite transferring ERC-20 tokens
  • Gas prices fluctuate every single minute, so what you saw as "normal gas prices" when sending your transfer may change by the time it reaches the Ethereum network
  • Failed transfers consume gas, but you still get to keep your ERC-20 (those don't leave your wallet)

Some helpful resources to find out how much gas to spend based on real world tracking:

https://etherscan.io/gastracker

https://www.ethgasstation.info/index.php

Crypto Sunday videos: Warren Buffett thinks Bitcoin has no value at all

Berkshire Hathaway recently had their annual shareholder meeting. They weren't very bullish on Bitcoin this year despite the strong rally; it's interesting to see how much things have changed for Bitcoin since his 2018 interview when it entered "crypto winter" compared to today when several Fortune 500 companies have purchased Bitcoin. 

Cryptocurrencies are unlikely to replace credit cards

With taxes due soon, it occurred to me that the grand vision of cryptocurrencies one day replacing credit card payments is probably unlikely to happen in the near future. Each time someone pays using crypto, a taxable event is triggered (assuming the value of the crypto exceeds its cost basis). Why would someone want to incur an additional expense and headache just to pay for a coffee?

The IRS has setup a really simple to understand FAQ:

Q14.  Will I recognize a gain or loss if I pay someone with virtual currency for providing me with a service?

 A14.  Yes.  If you pay for a service using virtual currency that you hold as a capital asset, then you have exchanged a capital asset for that service and will have a capital gain or loss.  For more information on capital gains and capital losses, see Publication 544, Sales and Other Dispositions of Assets.