Bitcoin per day chart
Those gains are only exciting if you understand how far they can get you. Of course the numbers above assume you trade days per year. Not many people are willing to forego vacation and weekends to work as a full time crypto trader, even with numbers like that.
Not only that but I also let my emotions control my trades. For example, I once purchased Stratis after the price dropped massively. My assumption was that on such a sharp decrease in price, it had to rebound eventually. The price kept diving. I was constantly tuned into that chart waiting for an opportunity to sell back to Bitcoin.
Now I have my strategy that I stick to without letting my emotions interfere. I have a set of coins that I like trading so I only look at those charts. I have patterns and indicators that I look for on those charts so I can quickly flip through them. Within minutes I can set my orders, set alerts on my desired entry and exit prices, and walk away from the computer. As the market cap of crypto increases, be sure that the IRS is going to find out how to get their slice. And they will look into the past.
I am not a tax advisor. This is a simple overview of what I keep in mind as I trade. My accountant handles my taxes, and I advise you to get an accountant to do the same. Keep in mind that this is US-centric. You need to double check if this is the case in your country. The taxable event is when you sell your cryptocurrency for fiat. How much tax you pay depends on how long you were holding the cryptocurrency.
Buy crypto with fiat - no tax. Sell crypto for fiat - pay ordinary income tax. Buy crypto with crypto - unclear, but does not seem to be a taxable event. This is where things get foggy. Consult your advisor, but as far as I know this is a like-kind exchange which is not taxable but must be reported to the IRS. The exchange you use will output all of these transactions so you can hand them to your accountant. The IRS has clarified that a crypto to crypto exchange is not a like-kind exchange.
The profit made from each transaction is taxed. If you are holding a currency for more than a year it is classified as long term capital gains. This is another reason why I like keeping my net worth in Bitcoin. At least not right now. Passive income is great. After you make an initial investment, you mostly sit back and watch the money roll in. Most cryptocurrencies are mined. You invest in a very strong computer and the electricity to run it, and you are rewarded with crypto for contributing to the network as a node that confirms blockchain transactions.
This is an alternative to mining that does not require vast amounts of electricity. The idea is that you stake the cryptocurrency that you own over a wifi connection. That crypto that you stake is used to validate transactions on the blockchain, and you are rewarded more cryptocurrency for putting the currency you own in the pool. In fact, I intend on staking Ethereum when it is possible. Here are some of the questions with my answers. BTC is my base currency right now because I believe in it as a store of value, and I believe that its value will keep increasing against fiat currencies.
I am emotionally invested in the success of Bitcoin and crypto in general. Now I take up to 8 positions in a trading day. I follow the charts. Fundamental analysis could give me a hint on which charts to look at, but at the end of the day my trades are based on technical indicators. Let me know if you know of someone who does it. Get the course here. Leave a comment below if you have any questions about how I make a living day trading cryptocurrencies!
In this course you'll see me make a profitable cryptocurrency trade. I'll explain what trading is all about, show you how to get set up to trade yourself, and then make a live trade. Check out this presentation I gave on why I trade. My first month as a cryptocurrency trader At this point I still owned Ethereum and the price was still swinging back and forth. The goal is to get more BTC. There are three reasons for this: Many exchanges are cryptocurrency-only.
I believe in Bitcoin as a store of value. I am faced with that decision every day now. In fact, if i see a chart like this I almost always ignore it: There are two reasons. It makes a whole lot more sense if you are only working 90 minutes per day. At this point I am actively trading for only 1 to 2 hours every day. Crypto that you hold for more than a year If you are holding a currency for more than a year it is classified as long term capital gains.
Cryptocurrencies offer at least two routes for passive income. Mining Most cryptocurrencies are mined. Proof of stake This is an alternative to mining that does not require vast amounts of electricity. Proof of stake is not widely used yet, but it is going to be introduced into Ethereum next year.
Chart shows the number of reachable nodes during the last days. Individual series can be enabled or disabled from the legend to view the chart for specific networks. Chart shows the distribution of reachable nodes across leading user agents.
Series can be enabled or disabled from the legend to view the chart for specific user agents. Chart shows the distribution of reachable nodes across leading ASNs.
Series can be enabled or disabled from the legend to view the chart for specific ASNs. Chart shows the distribution of reachable nodes across leading countries. Series can be enabled or disabled from the legend to view the chart for specific countries. Chart shows the distribution of reachable nodes across leading block heights.
Series can be enabled or disabled from the legend to view the chart for specific groups of block heights. Index 0 denotes nodes with the consensus block height. Index 1 denotes nodes with 1 block behind the consensus block height. Consensus block height is determined based on the most common block height among the reachable nodes in the network. Chart shows propagation time in milliseconds for transactions during the last days. Timestamp for an inv message is based on the time when the kernel first saw the packet containing the inv message.