Sadly my portfolio mainly consists of small cap projects, which i have bought back in 2020 and 2021. Back then during the last bull market i was heavily in the profit zone with those profits with a portfolio value that was like a x100 from my initial investment. Of course i did not sell anything back then because obviously i was hoping that the price would get even higher and secondly i did not want to sell those tokens before i held them 1 year. If you hold the tokens for more than one year then you don't have to pay taxes on the profits in my country.
I don't know your country of origin, but in some countries the government has implemented a tax regime where the government cooperates with exchanges for tax revenue. Every trader will pay taxes automatically when they trade their assets, it doesn't have to be paid by you by reporting taxes yourself.
Of course now my portfolio value is down at least 95% or so because small cap coins always lose way harder during a bear market then the big ones.
If you are willing to take the risk then you are free to do so although in the end you should realize that the big profits you get from altcoin are down to luck. I mean every altcoin you own has no real use case, you just hope for volatility, and if you make a profit sell it and convert it immediately to bitcoin.