Keep track of all your transactions

The first step to staying compliant with crypto taxes is to keep track of all your transactions.

Know your cost basis

When you sell or exchange cryptocurrency, you must know your cost basis.

This is the amount you paid for the cryptocurrency plus any fees associated with the purchase.

Use tax-loss harvesting

Tax-loss harvesting is a strategy that involves selling cryptocurrency at a loss to offset gains from other investments. This can help reduce your tax liability.

Be aware of taxable events:  Taxable events in crypto include the sale or exchange of cryptocurrency.

Receiving cryptocurrency as payment for goods or services, and mining cryptocurrency. 

Don’t forget about crypto-to-crypto trades: Crypto-to-crypto trades are also taxable events. 

If you’re unsure about how to handle your crypto taxes, it’s best to seek professional help.

Seek professional help