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Investors can adopt either a long-term investment strategy or engage in short-term trading. Holding onto assets for extended periods (more than a year) tends to yield lower tax consequences, characterized as long-term capital gains. Meanwhile, short-term trading, which involves quicker transactions, may be taxed at higher rates, directly impacting the overall profitability of trades.
Additionally, those looking to maximize their crypto holdings should consider diversifying their portfolios across various tokens while employing sound risk management strategies to navigate the unpredictable nature of cryptocurrency markets.
Noteworthy Tools and Resources
Different platforms support the crypto trading framework.