When markets dip, most traders feel discouraged — but losses can actually be a powerful financial tool when used correctly.Crypto tax regulations allow you to use capital losses to reduce your overall tax burden. This includes offsetting capital gains from other investments and even reducing up to $3,000 of your regular income if your losses exceed your gains. The software makes this process easier by automatically tracking every realized and unrealized loss across wallets, exchanges, and DeFi platforms. Instead of scrambling through spreadsheets, the system clearly shows how much you can claim and how it impacts your taxes. During bear markets, this becomes especially important. Widespread portfolio drops often create large tax-saving opportunities that traders don’t realize they can legally With the software’s real-time loss-tracking and tax projection features, you can strategize more responsibly — making informed decisions about when to harvest losses, wh...
Wondering how much you’ll need to pay in cryptocurrency taxes? Let’s break down how much money you’ll owe to the IRS in different scenarios. Ordinary income tax: If you earn cryptocurrency — whether through your job, mining, staking, or airdrops — you’ll recognize ordinary income subject to income tax. This can range from 10% - 37% depending on your income level. Meanwhile, cryptocurrency disposals are subject to capital gains tax. Examples of disposals include selling crypto, trading your crypto for other cryptocurrencies, or making a purchase with crypto. Long-term capital gains tax: If you’ve held cryptocurrency for more than a year, your disposals will be subject to long-term capital gains tax. This ranges from 0%-20% depending on your income level.