Okay so first of all you buy bitcoin through places like coinbase and cex.io and so on, and they usually have a higher price for bitcoin then the market price, so you get screwed there. Then there is a huge fee to actually purchase the bitcoins. Then there is a transfer fee to the exchanges. Then there are trading fees. Then you send it back to coinbase or wherever for fees. Then you try withdrawing to cash out...and there is fees. Then year end you have to do tax, which is the biggest fee.
These "profits" are reduced by like 60% by the time you cash out.
Are people doing something different or am I not understanding this? Because there are WAY too many fees and then you gotta do taxes? Like damn.
What's everyone elses method?
Yes there are a lot of fees and if you thought about it, a large chunk of your capital is eaten up by fees that's why when someone intends to have transaction, a large amount would be suggested so that fees would be negligible. You can trade in exchanges like Bittrex because they have lesser fees there when you trade and then withdraw when you have a significant amount cause you have a fee again in withdrawing.
As long as you still have a profit when you withdraw and still higher than your previous capital then I'm okay with that. Others prefer to just hold their coins for a longer period of time so that in time when they withdraw, their profit would be folded many times compared to their original investment thus fees would not be that significant compared when you are withdrawing small value.