Cryptocurrency Tax Incentives

Unlike when spending a dollar, payments made in cryptocurrencies are considered taxable events.

This means even if you never ‘cashed out’, you’ll still have to pay capital gains.

Here’s the flip side, and a major difference from the stock market:

Wash Sale

The Wash Sale rule does not exist in crypto markets, so it’s possible to buy and sell the same crypto many times in a 30 day span without facing tax repercussions. This means you’re allowed to take losses and buy back in at a lower price without fear. It’s not always so simple in the stock market.

In essence — losses on trades can always be claimed as such.

You can take advantage of this in dips by selling at a loss and buying back. Easy tax-loss harvesting.