In addition, the tax authorities are already learning how cryptocurrency trading works, this is not like 5 or 10 years ago. They will ask you for justifications of each trade, and today they have many tools including AI to analyze, in addition to the statement of your CEX in Europe will include the outgoing transfer and the subsequent incoming transfer, so that plan you have is bullshit basically.
Taxes here are about 33% on profit (if you are lucky) and there is no compensation for losses if they didn't happen in that same year.
Obviously I will take profits by the peak of the bullrun in 2025.
When bitcoin was $100 I already said that governments would fight back with monster taxes and lawfare.
A 33% tax on profits is like a 33% conversion fee from USD to peso, for example.
With that kind of ripoff, I do not intend to ever convert any crypto assets back to cash.
It's hard to justify why someone would take a 33% tax hit, rather than just holding your BTC through the entire bearmarket.
I am hoping to pay for goods and services directly in stablecoins, in the near future. I know a jeweler who accepts crypto for payment, for example.
In my country we don't even know yet if the tax applies only when we convert crypto to cash, or also on each crypto conversion.
Our government prefers the latter of course, because it generates more taxes. But in practice it is pretty much impossible for them to trace every single conversion.