Also any profit you make the tax man will collect on his share.
Uh, nope. Not going to report any income from profits on coins. My risk, MY MONEY. It's bad enough my paychecks get ripped off for taxes.
I need to figure a way to withdraw my profits from the exchange without going through a bank. I don't think I can pay my credit card directly from the exchange.
That's a risky strategy. I would always pay my taxes rather than have the possibility hanging over me that even years or decades later I would get a huge payment demand from the government. Your choice I suppose, but it is difficult to leave no digital footprints. I imagine it wouldn't take much investigating to uncover that you bought some LTC, and you may then have to explain what happened to it. Just a paranoid example, but what if at some point the government forces the credit card company to disclose details of the people who bought crypto?