Tax-Efficient Crypto Investment Strategies

Tax-efficient crypto investment strategies are all about managing your cryptocurrency investments in a way that minimizes the taxes you have to pay on them. Cryptocurrency investments can trigger taxes in various ways, such as when you sell your crypto for a profit or when you receive crypto as income.

One common strategy is called "HODLing," which basically means holding onto your cryptocurrency for the long term without selling it. By doing this, you can defer paying taxes until you eventually sell your crypto, hopefully at a time when you're in a lower tax bracket or when you qualify for long-term capital gains tax rates, which are typically lower than short-term rates.