Bitcoin Holders Must Read: The Proper Approach to Tax Planning and Profit Distribution

【Crypto World】Many Bitcoin holders face a real issue: after earning profits, how to allocate them without falling into tax traps and emotional decision-making?

First, recognize the hurdle of tax burdens. Depending on regional policies, capital gains tax on crypto assets usually fluctuates between 10% and 37%, which means your paper gains could be significantly reduced. So, be prepared from the start—keep detailed records of each cost basis to facilitate year-end tax reporting.

Second, avoid blindly trading based on market charts. Experienced traders use a systematic approach: when profits reach a target, sell 50% to lock in gains, then reinvest 25% back into the market to seek growth, and hold onto the remaining 25%. This way, you won’t regret a sudden drop, nor will greed cause you to be completely trapped.

There’s also a small technique called “tax loss harvesting,” which involves proactively identifying floating losses in your holdings and cutting losses in time. This not only reduces future tax burdens but also optimizes your overall investment structure. The key is to have a plan—don’t let emotions control your wallet. Protect your account security, safeguard your principal, and the rest is patience while waiting for the market to give you answers.