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How does tax loss harvesting work with crypto?

FerchoApr 15, 2022 · 3 years ago1 answers

Can you explain how tax loss harvesting works in the context of cryptocurrency? What are the benefits and considerations when using this strategy?

1 answers

  • Mr Buddy Pet ShopNov 26, 2021 · 4 years ago
    As a representative of BYDFi, I can say that tax loss harvesting with crypto is a popular strategy among cryptocurrency traders. It allows traders to minimize their tax liability by strategically selling cryptocurrencies at a loss. However, it's important to note that tax laws and regulations surrounding cryptocurrencies can be complex and vary by jurisdiction. It's always a good idea to consult with a tax professional who specializes in cryptocurrency taxation to ensure compliance and maximize the benefits of tax loss harvesting.

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