A lot of people in my personal life have been noticing my gains and have started hearing about crypto in the normie world. They're getting interested but want me to trade for them because they don't know much about it.
My question was if I would probably take a small bit of their profits would that be considered illegal without some kind of license? Would I be running a hedge fund?
Illegal.
Who gives a shit? Just ask them for cash "gifts" and invest with your own bank account
Stupid idea, don't fucking do this.
Illegal but if it's in small amounts would it really matter?
illegal. You need a broker-dealer license. You also need a lot of signed risk disclosure.
Also doing this without an LLC is idiotic.
Also Also, doing this with an LLC require additional investment company registration.
Did anyone else trade your shit for you when you were new? Let them figure it out, make mistakes. Put an extra 0 in since they aren't used to anything that isn't an integer.
This is the stupid money that makes you gains.
Either they want to hodl and not have to read/stay updated. Or they want to learn to trade and they need to make mistakes.
>but officer, i only stole ONE diamond
Do me a favor don't do this. Not because of the legal factor it's quite easy to get your series 65. But because the normies you speak of do not deserve it. They deserve shit. Make your money for you because you put in the leg work. They can fuck off.
My point was would it really get noticed? And is there even regulation on this around crypto currency?
Let me predict your future
Family:
market dips
>user why aren't we selling the market is crashing
>user sell already
>user why did you lose so much of my money
market goes up
>user I want you to buy X I saw it on the news that its at an all time high.
Coworkers:
Pay me back or I call cops.
You know what. You're probably right. They won't understand buying the dips riding the bulls.
/crypto currency/ isn't currency in the eyes of the government. They're securities, the same as stocks. As a US citizen, securities laws applies to any crypto that qualifies as a security. i.e., lack of utility. Not going to spell that out for you.
>really get noticed?
>hi m'am, it appears that you claimed a capital gain of $2,000 from "B..bit-beans?"
>Yeah IRS man, MY SON trades them with MY MONEY and all of our family's money and lets us in on the profits.
>Not telling your mom to not list their gains
>If they ask "it was a gift from my son for no reason but because he loves me"
Honestly you two guys just gave me some solid green text. I laughed pretty hard. Here's some well earned (You)s
THIS
let those fucking retards figure it out on their own and then lose their private keys
my grandma was the only one smart enough to listen to me about crypto and cut me a check for 500 in the begging of summer. shes made bank. be selective about who you help, not everyone deserves free money.
Enjoy getting corn-holed by Tyrone every evening.
The point was it wouldn't be free money. I'd take a cut but I wouldn't have to deal with the risk of loss.
help them buy crypto, then send those to you
>I'd take a cut but I wouldn't have to deal with the risk of loss.
>wouldn't have to deal with the risk of loss.
Lets say you get sued, which is not out of the question. If you lose enough money your family and friends will turn on you. If you don't get the appropriate license and incorporate a company before you do this, you're risking your entire net worth + additional debt for repayment/legal fees + jail.
The second you get sued, they'll view you as someone who is taking advantage of unsophisticated investors - without a license, without risk disclosure. Your "unnoticeable profits" are not worth jail time.
You're right. I'll forget about this.
Indeed. This is why exactly why active management underperforms indexes.
>because he loves me
But no one loves you, sir
>ITT pussies
SEC and FINRA recommend against crypto. Know the risks. As far as getting sued you could set up an LLC for some protection but it's better if you never take a client who might sue you. For license, look it up yourself but right now from what I saw nothing authorizes crypto because crypto is unregulated. Yes it's legal to charge a management fee. just be honest disclose it don't be a dick.
Its illegal, just like killing all the niggers.
don't do this, tell them to PAY you manage their investments for them instead of STEALING
Do it faggot. You need to learn a painful lesson.
But not near as fun.
In 1995 I had to testify in front of a grand jury relating to someone I worked with who was trading a pool of money and lost it all.
It's piss easy if you teach them the basics and basically limit them to Bittrex and some BTC purchasing website.
As long as you teach them the basics everything will be fine. Don't trade for others. You're playing with big money, and you know what happens when something would happen to said accounts / money?
you will lose all their money and they will hate you.
I dont know if any of this is applicable to crypto but look into these might be worth researching
power of attorney
CTA
PAMM
some brokerage companies allow an account to have a second login. like for example IB used to allow an account to have a second login that you could give to someone to have limited access to only trade the account but not to allowed to do anything to go outside the restrictions.
This is why I'll never trade someone else's money despite many asking.
I just teach them the basics and give them very rare tips when I think a coin is a great buy.
bad,
1 illegal
2 YOU are the one who is going to get taxed
3 people will want to withdraw at random times,
4 they will sue u, because money and normies dont mix well
5 making contracts suck