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?
The fees are something one cannot do without because wanting to avoid the fees means you are never going to make the 60% profit in the first place. I want to look at this from the point of view of comparing it with other alternatives where you can keep your funds.
Looking at banks, the maximum they would give you on your savings account per annum is say 10% depending on the country though and in this small return, they would charge you withholding tax which is 10% of what they are crediting you with on a monthly basis among other charges for maintaining your account.
If you go the way of stock trading via the stock market, since you can do that on your own, you have to employ a stock broker who will charge his own fees, he will pay government tax, he will way the stock market administration some fees and you have to wait quite a number of years for the margin to be high enough to cover those expenses.
Now comparing those options to the one you can turn around within days and even better profit, I will go for bitcoin option.