Trade bot 1000
I earn more USD when the price of Bitcoin goes up against the dollar. Why was it important to clear this up? Several things were on my mind the first time I had to do this.
What if I sell my BTC now and the price shoots up tomorrow? Yes, but your bills will be paid. Sell now so you can pay your rent. You can always hold out for more, but at the same time you are risking a loss. After a few months I got better at trading. I was earning more Bitcoin than I needed to cover my monthly expenses. At the end of the month I sold only what I needed, and kept the rest of my net worth in Bitcoin.
Around this time in my trading career it was getting to the point where I could have bought a Tesla or put a down payment on a house by selling my Bitcoin.
Do you sell your Bitcoin to realize your profit in USD? I can live a nice middle class lifestyle in Los Angeles. Or I can drive a flashy car while I rent a crappy apartment in Los Angeles. It all comes down to your values. In fact, if i see a chart like this I almost always ignore it:. The wild bull runs are hard to find, hard to time properly, and easy to go in the opposite direction where you lose a lot.
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. Dashboard with all information what you need. It is showing you trades, open positions, manual buy order, summary, error book, informations from developers. It is complete pack of functions what you need. The configuration is really master piece. And there is more. You can choose all best trading strategies and you can even decide multiple strategies to max your profits. Or you can choose some default strategies and they working as well.
Your Cryptohopper have option like stop-loss or trailing stop-loss. You can subscribe for external trading signal and make some good trades with big profit. You can subscribe for free ones or even paid one. Before they have some problems with external signal but know they are running smooth. But to be completely honest You don't even need to use signals to make profits.
They strategies what they offer are so good you can make ultimate profit strategy easy if you know what you doing. Backtesting are really easy, with lot of configuration, you can backtest every single coin on market and apply it to your strategy for specific coin. With stats, backtest history you can really find lot of opportunities to make some serious trades and profits. Cryptohoppers have really amazing statistics. You can use live charts, nice graphics in stats section where you can see your profit and loss statistics.
But one of the greatest and easiest option are history trades. Smooth, nice, you can find everything what your bot done during day, week, month.
Complete pack of information. Hopper for me doing like 30 or 40 trades a day. Sometimes with loss especially if market is on bear market like he was all January, but is normal. One of my history trades. What developer can be proved of is the support channel. You can find they Academy where you can find few introduction videos and basically everything what you need to know.
But seriously best of best it is Forum section. You don't need to write support and wait week or more to get some information what you need. They make forum on site where people can share everything what trey want and need to get answer on they'r questions. Admins are always there as well and there is nor really need to write to support because you will find everything there. I choose personally Cryptohopper because I am more investor then trader and it is enough for me to trade with dollar so i didn't want to spend lot of money for automatic trading bot.
Hopper for me is doing exactly what i want him to do. Small trades to grown my Btc balance. And you don't even need to extend your bot every single time. If you are interested in Cryptohopper register for free link and if you have any question just write me a message.