I haven't logged into Bittrex, Binance for about a month I think as I decided that instead of trading or concerning myself with the current price, I would spend more time thinking about what leads to the future price I am looking for.
Calculating the tax implications a large number of trades is a nightmare. According to the newest tax guidelines that have been in effect in Finland since May 28 2018, you'd have to calculate profit made in each trade in terms of fiat. None of the loss-making trades can be deduced from sum of all profits during the course of a tax year. The result from that could be a complete nightmare like it was from one California (the IRS in the US has similar guidelines in effect) student who ended up owing hundreds of thousands of dollars more to the IRS than he had after the crypto market had crashed in 2018.
Trading in crypto is FUCKING STUPID unless you can be absolutely sure of anonymity. It is very hard to understate the complete and utter futility of crypto trading unless one is a a seasoned professional who knows exactly what one is doing. Because of the tax rules, just to break even would require much higher average profitability of a trade than 30%. If you're a high-volume trader and you don't want to risk getting caught of tax fraud, your profitable trades had better be astronomically profitable.
Just trade with the belief to start with that the value of your investment will probably go down. That way you can hunt and test the better projects... And one day be pleasantly surprised!
I beg to disagree on that. If your assumption is that your investment will probably go down in value, then you're not really investing at all.
Investing and playing the lottery are very different things.
Depending on what country you're in, trading or at least high-volume trading may equal to financial suicide because of the tax guidelines.
It's different if you know for sure that you can do your trading completely anonymously. But assuming you're able to make profit, you're still going to have to find ways to spend your money if it is to have any value at all. Crypto-fiat gateways that do not require any kind of KYC are few and far between. If you cash out very large amounts of crypto into fiat without being able to explain the origin of the money, you might be in trouble. The same goes for crypto payment processors.
I think what he means is what I also believe, assume a complete loss at the start as it takes the emotion of actual loss out of it and one can make better decisions.
Sure. Hardly anyone can afford to have fear in the driver's seat in crypto investing and trading. This stuff is not for the faint of heart.
THey are going to have to sort their shit out I believe, otherwise soon they are going to start losing people to other countries who are highly valuable.
Nearly all western countries have this type of stupid regulations in place.
But even the fucked up tax system notwithstanding, trading is a losing game for nearly everyone involved. Doing the hard work of researching carefully what one is getting into beforehand and then holding is the right strategy.
The beforehand is a challenge because most of the crypto world is marketing fluff and will never amount to anything.