So I've been investing in cryptocurrencies for a few months now and want to do a little bit of swing/day trading. I'm only thinking about doing it with $1,000 for some fun "on the side" cash, not to get rich.
Got a couple of questions for you guys:
1.) Where would you do day/swing trading? A regular exchange likely has too high of fees. IE: Coinbase.
2.) How do you keep track of all of your trades for tax purposes?
I think that one of the best exchanges for introday trading is binance. Actually, such kind of traders are very beneficial for exchanges, so they encourage those, who trade every day and give them discounts.
What comes to taxes, I haven't ever withdrawn my money from crypto, but as I know, none of my friends has payed taxes as well, only fees of banks and exchanges.
Binance currently dominates the crypto market and because of the problems faced by platforms like ethereum, which are still struggling with high fees. in the future will binance also be able to maintain? maybe not if the price of BNB has also increased.
I think you are right, I also have not seen any taxes made for every transaction that I have made. because it is clear that the tax will be carried out by an authority that handles this, but we know that there are still many countries that still do not approve / recognize crypto, so it is clear that there is a dilemma when it comes to cutting taxes in crypto. in addition to the good intentions of individuals who will pay for the profits obtained but it also seems difficult to prove the truth, it is feared that it will even make it difficult for themselves.