Swing Trading / Tax Question

[arkistan]

Several years ago I opened a small portfolio consisting of equal portions BTC and ETH, intended as a very long term (10+ years) investment. After passively holding these on a cold wallet for many years, last year I started swing trading using the ETH-BTC chart to alternate between holding either 100% BTC or 100% ETH depending in which was more positively trending. I have found it a relatively low risk, low reward (at least compared to fiat trading) method of slowly increasing the overall value of my portfolio. Let's assume for now that neither of these two currencies will one day suddenly become obsolete in the next decade. Besides the obvious risk that comes with trading and being subject to higher (short-term capital gains) US tax rates, are there any other negative aspects of this method compared to passively holding my positions long-term?

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[BitMaxz]

~snip~
Besides the obvious risk that comes with trading and being subject to higher (short-term capital gains) US tax rates, are there any other negative aspects of this method compared to passively holding my positions long-term?

Well, I think that's the only one; the trading fee from the exchanges and the risk from hackers.
 
You can only get a pretty cheap profit if you stay only on ETH and Bitcoin. Why not try to trade the 50% of what you hold right now and trade them on other altcoins like zcoin or USDT.

Or use only 20% to trade and try to make this 20% grow.

You can check this link below to learn some trading strategies that you can use to make your 20% grow.
- https://github.com/learn-crypto-trading/learn-crypto-trading.github.io