The key is not spending time, but in investing it.
I still HODL my cryptocurrencies but wanted to swing trade. Instead of swing trading to make a profit, I wanted to swing trade and buy more cryptocurrencies. I had to set my criteria to sell since the tax law is unforgiving for swing traders. I set my goal to sell a cryptocurrency when it made a 20% return.
The 20% return is more than enough to cover any taxes since short term trades requires more money from the IRS, the US tax agency. I could have sold for much less, but then it starts to get tricky, and I may end up owing a lot more money to the IRS than I wanted.
The first trade I executed was selling Digibyte (DGB). Digibyte made a nice run last month, and my investment was up 20%. I didn’t sell all of my Digibyte since I was a newbie selling in this market. Also, you have to consider, what if the cryptocurrency goes up higher than what you thought? You’ll miss out on these gains.
To be safe, I sold 54,157 Digibyte or the equivalent of 3.59 Ethereum. This was the total amount I had. I was ready to buy back in and reinvest the money. The question was, at what price? The market has slowing reached higher highs and higher lows, so I had to buy back in before the market jumps back up again.
When I bought back in, this was only two days later, and I was able to gain 3,000 more Digibyte. This was a nice little return with very little effort other than keeping my eye on the market price.