yeh but the tax is only on the gains so say the capital gains tax is 35%. I buy a coin for $9 and sell for $10 and make $1 on the trade I still profit 65c after the 35c is set aside for taxes. So there still is profit to be made. Now mind you you can still use that 35c for trades until you pay taxes.
My friend said he quadrupled her bitcoin in just 2 weeks doing swing trade. Is that really possible?
ah ok lot of paperwork if you trade a lot
thanks for explaining
At what point does it become a gain? Once it hits your bank or once hit is “cashed” out in your wallet? I ask because, you can take that 35c and lose it too. Then, it’s not a gain.
I ask because, I plan on treating the gain only after I cash it out and it gets to my back. I’m very new to the process and taxes are too, so I guess we’ll see how it all plays out.
When you win a huge hand of blackjack, do you pay taxes immediately, or only if you walk away with a certain amount?
As soon as you do the trade.
It is still considered a gain now what you do with that gain in the future is up to you.
It is up to you whether you set that money aside so that you have the cash to pay your taxes or use it for further gains and figure out how you are going to pay taxes later.
Please see the Law and Tax section under beginners and Help as there are many discussions that explain this topic. Here is one good read for you.
This is such a wonderful community! Just wanted to say that. Great info here for us noobs.
what i do is have separate ‘bags’ or accounts.
So ill have my coinbase where I just accumulate - generally dollar cost averaging into it, however; if I come to buy and there has been a dip I will ramp up the investment amount. For example if I put 50 in a week as standard but there has been a dip I will jack it up to 100.
Then I have a separate account for trading BTC and a separate account for trading Alts. Generally with my alts I’m a bag holder, every now and then if I catch a pump ill buy and sell some shit coin quickly.
With my BTC trading I will do what your friend does and just take those small gains. I usually aim for 5% - 10% but if I have loaded up on the money then ill be happy to take 2% or something. Rinse and repeat, however; this does have a downfall, example: I made a very piss poor entry after many successful trades and BTC as we all know tanked. I never checked back quick enough to cut a small loss so now I’m basically just leaving that money in there in the hopes it will go back up at some point. maybe it will? maybe ill just lose 95% of money on that trade but nevermind ey!!!
What coins did you use for that? I try it with ETH/NEO only and later I try to combine ETH/NEO/BTC/LTC, they change the price between each other quite often and seems to me quite stabil also
Back then I was using vtc, grs and mona I believe. I think OMG would be a good coin to swing trade with. I haven’t been trading much lately but might get back into it.