...have been continuing to do my strategy of locking in profits when a coin spikes a lot in a short time and using the profits to buy positions in other coins--either on a dip or an initial position in a cryptocurrency I don't have yet. But with tax law changes, we also have to consider that frequent trading can impact us with taxes on our gains from good trades. So there is a balance to consider, a trade-off of sorts. I live in the USA, so I am focused more on changes in US tax law. Some might think that to avoid taxes, it might be best just to buy and hold...but that is certainly not always the best thing. Example...the other day, CannabisCoin was up over 300% in just a 24 hour period. I took profits by selling a majority of my position vs taking the chance that it would drop back down significantly and I would never realize those big gains. Well, it did drop back down a good bit. Think about this--would you rather pay a tax on a 300% gain or not pay tax on a 10 or 20% gain, or even a loss if a coin tanks a fair amount later on? I would rather pay a little bit of tax on a for sure huge gain. I have noted from experience that while we never can know for sure how much a coin will spike, it almost always has a pullback after a big and fast spike. So, I will always sell part of my position like I did when Verge, ReddCoin, Cardano (ADA) and others spiked in recent weeks. But I also keep a core position and then look to add more again on dips for some strong coins like Cardano, Groestlcoin and Enigma.
Diversification should also be expanded to other kinds of assets and not just cryptocurrencies. I just added some more money from cashing in a little bit of my crypto gains to forex accounts and stock trading/investing accounts, plus gold and silver. And also will have relatively small amounts on different exchanges for cryptocurrency to have ready for quick trading when opportunities arise. I don't think it is wise to have a large amount on a cryptocurrency exchange just so you can protect your nest egg but a smaller amount already on an exchange gives you a chance to be quick and nimble when a good trade opportunity is present. And if you split up what you do have on exchanges, it makes it so you are not as vulnerable to hacking since you don't have all of your eggs in one basket, so to speak.
Well, gotta go for now. Just going to post maybe once or twice a week. No blow by blow posting of all of my trades. Decided it might be prudent to keep a little bit lower profile online of my activities just as an extra layer of safety, even though I enjoy trying to help people with ideas and info.
