1) Set up a ladder of equally-spaced limit sell orders above current price, each for the same small increment of your stash.
2) Set up a ladder of equally-spaced limit buy orders below current price, each for the $USD value of the sell increment above it.
3) Harvest the volatility.
4) Profit. And relax, knowing that you are set up to maximize returns in any environment.
Well, that's my suggestion anyway.
In my opinion this is
exactly the right way to do it if you're a long term bull. And assuming you don't have to sell sooner to pay the bills.
My plan assumes you're already sitting on a stake big enough for all anticipated lifetime needs, given your expectation of
eventual Bitcoin price.
Although when it came time for me to sell during the 20k run-up, I sold less than my plan told me to. You know what stopped me? The thought of triggering capital gains.
I sold more than the above plan. I recognized the likelihood of the blowoff top,
For me, just sticking with the incremental sell plan created way more cash than I was ready, willing and able to spend, so that higher than expected amount of cash was well placed as a reserve for any kind of severe correction, which we ended up having. I am still in kind of a mental dilemma whether our last BTC price peak had resulted in a blow off top. I will concede if the correction lasts for more than a year and if we are in the below $10k doldrums for more than a year.. then perhaps last year's BTC price peak could be fairly classified as a blow off top. However, if we get something else, and even perhaps a return to another price peak that rises us above $10k before February 2019, then maybe our real blow off top for this exponential growth period (and perhaps series of peaks like 2013) is yet to come... which could mean that $100k is within grasp.
and I wanted to buy my lambo.
I am more likely to consider a figurative lambo than an actual lambo.. .because even though they do seem to be a bit of a sassy show off car, it just seems a bit too much for my personality.... Although the next time around, if we get another peak after going above $19k we could get into a kind of figurative lambo territory for myself , but really just to throw money as pocket change, would perhaps have to wait until the 2022-2024-ish price peak(s). At a certain point, a lambo could be a kind of pocket change?
Even recognizing the spike would be followed by an imminent retrace, I probably would not have accelerated my sells if I did not have an earmarked expenditure. For the next spike -- whenever it materializes -- will dwarf this last one.
I think that you are saying something that describes both thoughts and a position of increasing wealth that seems to be similar to mine. I could actually go out and buy a whole lot of luxury items, and that would likely be in contemplation of a BTC price that rose and had come back down, but still came back down to such a level that I am still considerably more wealthy than I had expected to be.
If you think about it, a peak at $19k was about 3-5x higher than any of us had reasonably considered our spike to be.. so maybe we could have reasonably thought that the 2017 spike would be $4k to $8k or something like that, and then ramp up for a run at $10k in the next exponential trend, but then when we actually got a spike to $19k our retracement actually brought us back down to the high levels in which we may have reasonably thought to have been the top, rather than the bottom. It is reasonable to NOT take too many profits and to see what is going to happen, and it is also reasonable to expect that there remain decent chances that in the near future that we are going to experience another spike above $19k that goes decently high... but hey, even if such spike does not happen, there still seem to be a lot of opportunities to cash out BTC and receive extensive profits, whether those profits are shy of $19k, just in territories above or 3x $19k or even into the $100k plus territories that also seem reasonably likely whether it takes 4months or 4 years or some other variant.
Capital gains are a natural result of profits - they're a lot more affordable than a 2/3 haircut.
No problem trying to figure out ways to pay less taxes, but if there are reasonable lifestyle purchases, such as a lambo or even a lambo substitute, better to just declare everything outright rather than spending too much energy to try to save on taxes but then miss opportunities to enjoy the fruits of your years of investment and HODLing.
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