Quote:
Originally Posted by OneHungLo
Are you guys paying capital gains taxes on your earnings? Besides the risk (unless you have a crystal ball, you do not know when the price is going to go up or down) the capital gains tax, which could be as high as 39%, scares me away.
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Last two years, I did capital gains on the trading, and earned income on the mining. If the government decides to treat BTC like a currency (rather than a commodity), it'll be taxed as earned income as well -- which will definitely hurt.
The "up" and "down" don't really matter -- the volatility does. What my bots do with the various currencies are they buy in at X amount, and then sell at X+Y. If it drops by Z, they sell at a stop-loss price. They then wait for the coin to drop by W (or rise by V) to buy back in, and the cycle repeats. This happens a bunch of times per day (a lot more for volatile coins, or for busy days), and the +Y adds up over the course of the day.