I keep reading that I should buy low and sell high *frequently*. How is this profitable when taking into account short term gains taxes?

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I keep reading that I should buy low and sell high *frequently*. How is this profitable when taking into account short term gains taxes?

Hi there. Super new to crypto. Super new to personal investing. Frankly I use Robinhood. So please go easy on me.

I made quite a bit of profit with Doge back whenever the whole GameStop fiasco was happening and doge exploded. Hoping to see it again, but we'll see

My question though is a lot of the advice I read is that prices dip because people sell, but theyre just making profit by selling once the coin is worth more than it was bought for, even if the gain is not huge. People say that they do this often. They'll buy a dip and then immediately sell when it goes green.

How is this profitable? When I sold my first round I had a hefty tax removed because of short term gains. I'm not understanding how buying and selling so frequently can end up being profitable if every sell has this tax added onto it. Those meager profits must be eaten by the tax, right?

I just don't understand how the process can function beyond holding for an extended period or selling after a huge jump.

submitted by /u/BentheBruiser
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