The possibility to wait a year before selling in order to avoid taxes in Germany really helps with the hodling.

Explain please?


If you buy cryptocurrency in Germany and wait at least one year before selling it, you pay no taxes on your gains.

Germany: no tax if you hold Bitcoin for one year
As opposed to most developed countries, Germany doesn’t see cryptos as currencies, commodities, or stocks. Instead, Bitcoin and altcoins are considered private money. This distinction is important since private sales bring tax benefits in Germany.

According to rule 23 EStG, private sales that do not exceed 600 euros are tax exempted. But perhaps even more interesting is the fact that you pay no tax if you hold your Bitcoin, Litecoin, Ethereum, Ripple, or other altcoins, for a period of over one year. No matter how much you make selling your cryptocurrencies, you don’t pay tax on the capital gains if you’ve held them for over one year.