Just ideas, I picked up here and there to help you save money. Will update over time. This also serves as a personal reminder to be as cheap as possible.
Creditcard churning with Bitcoin.
If you’re gonna buy Bitcoin with Creditcards, then learn how to scam the banks with creditcard churning. I’m not from the US but I know for a fact American Banks and CreditCards companies give out insane welcome-bonuses for new cardholders.
What is creditcard churning?
Credit card churning refers to the practice of repeatedly opening credit cards to earn welcome bonuses. Doing this with several credit cards lets you rack up far more rewards than you’d get if you stuck with just one credit card. You can use some other strategies—like combining rewards from loyalty programs or using rewards programs’ shopping portals—to maximize the number of rewards you earn.
The idea is to meet the minimum spending requirements (buying bitcoins) that earn a bonus or a reward then cancel the creditcard subscription once the annual fee kicks in. Pool together all the points across various cards to redeem free flights, hotel stays, cashbacks, free giftcards and more. Just don’t be greedy because you might end up ruining your credit-score.
Choose a exchange with low-fees like Binance The fee = 0.1% per trade for both limit and market orders. If you buy $1000 on Binance you will pay $1 in fees per trade. Other exchanges like Bitstamp and Coinbase charge 0.5% fees per trade. ($5). Binance is clearly cheaper. The downside of Binance is the basic-bitch interface. No advanced order-types like trailing-stop and scaled-orders.
The Pro’s who trade the BTC-spot market use Bitfinex for 2 reasons. Margin Funding and Advanced order-types.
Margin-funding = lending our your capital to other traders and receive interest, the interest on bitfinex is around 0.035% per day, it can spike to 0.1% on rare occasions. In bitcoin bull-markets, the average interest can spike to 1% a day.
The fees on Bitfinex are low. 0.1% for limit-orders and 0.2% for market orders.
Scale in orders.
If you are going to buy Bitcoin for long-term investing, learn how to scale in your orders, also known as laddering or dollar cost averaging. Just make sure you scale in buy-sell orders at key support-resistance levels. There are different types of Support and Resistance levels but they generally fall under 2 categories dynamic or static.
Static S/R levels are LowVolumeNodes, Closing-Opening Prices, High’s and Low’s.
Dynamic S/R levels = moving averages, vwap, tenkan, kijun, Developing Point of Control.
To get the best price for short-term speculation, you need to learn T.A. . If you can’t afford the time to study Technical Analysis. Then you try the bitcoin difficulty ribbon by Willy Woo. This is for long long-term position trading.
The assumption that Technical Analysis is bullshit is false. Technical Analysis is a broad term for analyzing charts. If you’re new to T.A… learn Japanese CandleSticks. The assumption that Technical Analysis with Japanese Candlesticks is something from the new modern computer era is false. It’s 400 + years old and originated from the Japanese rice-merchants who used Candlestick charting techniques to enrich themselves. I believe these Japanese Rice-traders were the first Technical Analyst ever to lay the foundation for technical analysis. To keep long story short, they got filthy rich, traders got murdered and their wealth got confiscated by the shogun.
Japanese candlesticks formations and patterns work on higher-time-frames like the daily and weekly. I honestly don’t care if you believe me or not. I use it to make informed decisions on probability. To learn more about the history of Japanese candlestick charting. Google ”Munehisa Homna”
Capital gains tax
Most exchanges that require KYC will keep a record of your transactions. If you think Bitcoin is going to dump the next week and you want to hedge in USD , you will pay tax on realized gains. The better way to do this, is opening a futures contract on bybit with low-leverage. The exchange doesn’t require KYC, your trades are anonymous so to speak. Just make sure, you don’t deposit your bitcoins on bybit from a KYC compliant exchange-wallet that is linked to your identity. Bitcoin isn’t anonymous, to make your bitcoins anonymous, you have to use bitcoin mixing services. Bitcoin mixing isn’t free, 0.1%-0.4% commission + network fees, watch out for scams. There are a shitton of fake bitcoin mixing services out there. Do research before you mix your bitcoins. Ask on reddit darknet markets for legit mixing services.
On paxful, you can buy and sell Bitcoins without ID-verification but expect to pay a premium for anonimity.
Depending where you live, it’s always better to pay tax.
Do the opposite.
The statistics don’t lie. More than 70% of the new traders short at support and long at resistance, Professional traders place their limit-sell or limit-buy where majority of the traders place their stops. Exactly the opposite.
Guess which income bracket is likely to make use of coupons. A survey conducted by Millionaire Corner, found that 1 out of 3 people with a networth exceeding 5 million dollars shop at wallmart, costco, target.