If your trading is classed as CGT i see it like this:
If you buy coins for a value of 10K. You then sell at 12K and have to pay CGT on the 2K profit.
If you buy coins at a value of 10K. You then sell them at 8K and have made a 2K loss, which can be used to off set your CGT.
So i don’t see a negative regarding tax and trading with the above in mind, as the gains and losses balance each other out.
If you buy coins at a value of 10K and hodl them to 20K, you pay CGT on the 10K profit.
If you buy coins at a value of 10K and sell them at 12K, then wait for a dip to 10K and repeat this process 5 times, you pay CGT of 10K.
Basically what i’m saying is i don’t think it’s better or worse to trade or hodl from a CGT point of view.
That said i’m not sure at what point trading is classed as income tax. If your trading is classed as income tax it’s possible you will NOT be allowed to off set your losses against your gains. If this were the case it would certainly make hodling better than trading from a tax point of view.
That said people who have a certain x amount of trading skill could still do better than hodling i suppose.
I’d be wary of anyone who appears to be good at trading though. Just because someone has done well doesn’t mean they know what they’re doing. Don’t forget people win big at the casino all the time. It doesn’t mean they’re +ev against the casino. It’s just that a small percentage of casino customers will get lucky. This is simply positive variance. The same happens in the trading world. If enough people throw mud at a wall some will stick.
My advice would be don’t use a trading bot. I’m sceptical of trading bots, because if the bot is that good why would the creator sell it. Surely it’s better for the creator to be the only person using this bot. If it’s really that good they would be immensely wealthy. Hard to imagine they would then share it with random people on the internet.
I’d advise using a DCA strategy, as it makes life much simpler by taking the guess work and stress out of investing. Also look at hodling with a long term view of 3-5 years. If you will panic sell on 30-80% dips then hodling is not for you.
Oh and keep in mind i’m just a random internet person and very possibly don’t have a clue what i’m talking about. ;o)