Let say you want to make around 50k a year for someone in the US trading As im sure lot of US ppl know, if you trade short term, you have to pay like 35% on your short term gains.
That's only near the very top tax brackets, if you're making $200K+ a year. You pay your ordinary tax rate on short term gains. For some people, that means 10%, not 35%.
Are you from the US?
If so, you say thats only the highest tax bracket percentage... I dont think you are correct here. Aren't all short term profits doesn't matter the amt taxed at that rate though? Im pretty certain it is?
I'm from Canada but I've been living and paying taxes in the US for a long time.
I didn't say 35% was the highest but that it was
near the top. The top tax bracket is 37%. Short term gains are taxed at your ordinary tax rate, which is dictated by your tax bracket.
Net short-term capital gains are subject to taxation as ordinary income at graduated tax rates.
https://www.irs.gov/taxtopics/tc409Well if you buy btc only like in my example and never sell it unless its higher than your bought price... then you don't lose right?
Sure but if you buy at the wrong time you could be sitting on losses for years. Someone who bought in December 2017 or January 2018 is
still in the red 2+ years later. That's not an effective way to trade.