re: Crypto Trading Bots

For the new folks in the room, is there an easy way to tell which are nft/defi/whatever else? I found this, but isn’t great: LINK /

I’m thinking I’m going to do my best to diversify across the different types. MANA/ENJ/ZEC carried me most of this week and up until about 2am; now the other pairs have picked up the slack since that time and *fingers crossed* should get me my first $100 day (stalled at $98 profit the day amp made its run).

I’m slowly increasing my pairs ~5 at a time and slowly lowering my BO/SO $ amount to stay around $15k to fully fund. Up to 30 pairs right now.

Thanks again for this. Hoping this continues on a good trajectory and, basically using funds I had sitting in a “high interest” savings account, helps with a tight budget until this summer.

Something I didn’t think about until now. If you’re getting profit in crypto instead of fiat (including stable coins), we’re still liable for taxes on our profits, even if the value of the crypto goes down.

So for example, let’s say I buy some ETH at a cost of 0.01 BTC. If ETH goes up and I sell at 0.015, then I made a profit of 0.005 BTC. Let’s also assume that BTC had a value of 60,000 USD. Then my profit is 60,000*0.005 = 300 USD.

Now, let’s say a few days later BTC crashes in value and it’s now worth 40,000 USD. I still owe taxes on that 300 USD when BTC was high.

So in the above example, not only do you lose your USD profit, but you still owe the government taxes on profits when BTC was high. You also owe short term gains on those profits.

It’s something to think about. I’m considering shutting down my bitcoin bots until my account grows larger. I wish we could easily “bank” our profits instead of having them reinvested.

All this said, I’m not a tax expert so someone please correct me if I’m wrong. But since trading cryptos is a taxable event, and since my bots very rarely sell at a loss, there could be a larger than expected tax bill if Bitcoin’s value drops significantly right before tax season.

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i would need to continue to build that to fund more bots anyways but at some point take that usd profit then invest into crypto you want to hold would seem less confusing right?

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I think so. In my case, I already had some bitcoin that wasn't doing anything so I just decided to throw it at the bots. It's a good way to grow the bitcoin portfolio but yeah, it's also possible to get wrecked during tax season if we're not careful.

I'm banking on bitcoin being worth a lot more in 2022 Q2, but it's risky.

I made $15 bucks today. Time to supersize my Mickey D’s order

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Lots of us have no idea how to properly navigate the tax situation.

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And it's going to get worse once the Infrastructure Bill goes into effect.

I made $3.50 over night.

I don't have a lot in it while I learn, but it's better than losing while learning.

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We’ll need to start a thread on this soon about tips/rules/software about crypto/taxes. Lots of us have no idea how to properly navigate the tax situation.

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Yeah, I’ve been following this thread trying to get into it and that was a holdup. If I’ve got several bots making several trades a day it could get far too complicated for me very quickly.

That’s how I’m going to play it come tax season.

Mach kinda have a noob question. How do I stop a bot from trading or executing the next trade? I know you can press cancel and sell at market price right now, but I want them to finish the deal they are on and not start another. I have a few pairs I'm done with for now.

Thanks Rust