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> but they don't apply to day traders How does this work for bot trading? Is that considered day trading? Crypto bots are popular. When you trade cryptocurr
by EMM_386 6y ago
> but they don't apply to day traders
How does this work for bot trading? Is that considered day trading?
Crypto bots are popular. When you trade cryptocurrency for another crypto, you are taxed on the value at which you sold it in USD, net the amount for which you purchased it in USD.
Would this be done mark-to-market?
I'd imagine a lot of traders thinking they can easily plug in the latest bot into their Binance account are in for a surprise when they see the size of the return they have to file.
I'm only talking about the US regulation here.
- astrange 6y agoWash sale rules (the problem here) don't apply to crypto because it's considered property and wash sales only apply to "stocks and securities". You can definitely get into trouble if you do something like sell at a gain at the end of the year and instantly lose it all though.