Been investing for about a year or so on normal stock market but have been watching cryptos bc of the popularity. Had a couple questions and thought i'd ask yall.. be kind as again iam new to all this. Is it possible to buy and sell crypto rapidly to take advantage of the ups and downs that happen by the second/minute. example a crypto is at .07500 i buy 10 grand worth.,it may go down a little to for example .0744 or more but watching the fluctuations it rises to .075999 and i sell. will the transaction go through quickly enough to take advantage of that small rise, making 100 bucks or so. i understand the risks and can weather long term if needed, but thought it might be way of building money from rapid buying and selling.. i understand this is really just day trading but being new i wasnt sure if transactions happen fast enough to take advantage of small ups in prices, where you buy and in the next few seconds/minute you sell.. any insight is appreciated..
Do you suggest any specific app to achieve this up to the second trading.. and thank you for the reply..
I think you are free to do as you like, in terms of buying and selling. However, be aware that each sale will be a taxable event, as far as the IRS is concerned. Frequent trading could end up being a nightmare, in terms of tax filing.
Yes. I spent about 3 and half months inputting trades one year. (TurboTax would input HALF the info, so I ended up manually entering Every. Single. Trade. My return was about 60 pages that year.
You can absolutely do this with crypto, but you need to watch out for a few things: Fees: Coinbase Pro (which someone else mentioned), has 0.50% maker/taker fees for trades under $10k. Confirmation times: Blockchains take time to confirm transactions (10+ min for BTC), so you can only rapid-trade on centralized exchanges that act as an intermediary service to the blockchain Taxes: The very simple math for this is ( total sold - amount bought ) * tax rate — example of selling a 20% gain: ( $12,000 - $10,000 ) * 22% = $440 in taxes owed The reality: Day traders lose money, here are some studies: http://faculty.haas.berkeley.edu/odean/papers/Day Traders/Day Trading Skill 110523.pdf https://www.sciencedirect.com/science/article/abs/pii/S1386418113000190 https://faculty.haas.berkeley.edu/o...ons/Individual_Investor_Performance_Final.pdf This isn't investment advice, best of luck to you!
There are many exchanges to trade on, bit.com as another example. The difference being that off-bank exchanges are obviously unregulated.
Sure, why not. If the exchange or the broker you're using allows that sort of trading - you do have to ask them - there should not be an issue.
