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Look, we all love seeing green candles on
$SOL and watching our portfolio hit new all-time highs. It feels like free money. But here is the ugly truth that most moonboys ignore until it is too late. The moment you swap your winning bag of $FET for USDT, you triggered a tax event. Even if you didn't withdraw a single cent to your bank account.
Most traders get wiped out not because of bad trades, but becasue of bad planning. You make $100k in the bull run, reinvest it all into a meme coin, and it goes to zero. Guess what ? You still owe taxes on that initial $100k profit. This is how people go bankrupt.
THE INVISIBLE TRAP OF CRYPTO-TO-CRYPTO TRADES
Here is the thing. Governments are getting smarter. In 2026, on-chain tracking is terrifyingly good. If you think your DeFi swaps are hidden, you are delusional.
When you trade $RNDR for Bitcoin, that is a sale. You have to calculate the profit in fiat value at that exact second. It is a nightmare if you do 1000 trades a month.
My Unpopular Opinion: I actually love paying taxes. Call me crazy, but paying taxes means I made money. It means my income is white and I can buy real estate without looking over my shoulder. Only paper hands fear the audit. WAGMI is not for tax evaders.
TOOLS THAT SAVE YOUR LIFE
Stop trying to use Excel. You will mess it up. I use tools like CoinTracking or Koinly connected via API ( read-only ).
If you are trading heavily on Binance, go to your transaction history right now. Check your Realized PNL. If you see a big number there and you do not have 20-30% of that sitting in a stablecoin... you are technically short on your own freedom.
Use this simple rule:
Make a profit?Move 30% to a separate sub-account immediately.Do not touch it. That money belongs to the government, not you.
Your CHECKLIST
Download your CSVs monthly. Exchanges delist coins and data gets lost. Do it now.Harvest your losses. If you are holding a heavy bag of some dead altcoin, sell it to offset your gains. This is the silver lining of being a bagholder.Separate your wallets. Keep a Hold wallet that you never trade from, and a Degen wallet for the crazy stuff.Talk to a pro. Not your regular accountant. Find someone who knows what staking rewards are.
Honestly, just pay the bill. It is better to have less money and sleep like a baby than to be rich and paranoid. The market gives, but the tax man takes. Don't let him take more than he should just because you were lazy with paperwork.
So, are you actually tracking your trades, or are you just praying they don't find you ?
#Write2Earn #cryptotax #tradingtips #RiskManagement