Making money on crypto can feel straightforward until tax season reveals how many everyday transactions quietly trigger taxes. As IRS reporting expands, investors who assume nothing counts until they cash out may be setting themselves up for an expensive surprise. Crypto experts explained five tax traps to avoid. 1. Thinking Nothing Counts Until You Cash Out Many crypto investors assume taxes only matter when money hits their bank account. “Many taxable events happen long before that,” said Ravi Parikh ...

Cryptocurrency is still relatively new and uncharted, so the rules for investing in it may appear to change as quickly as the price fluctuates. If you think this sounds complicated, just wait until you have to deal with these nuances for tax filing, as the IRS treats digital assets differently from traditional investments. Failing to report correctly can lead to penalties or financial headaches, which is not how you want to start 2026. To be sure you’re reporting any tax-relevant information correctly an ...

Market Analysis - Bitcoin (BTC) is mirroring post-2022 peak behavior [1] - Bitcoin price is pinned in an $81K–$89K range [1] Technical Indicators - Bitcoin is sitting below Short-Term Holder (STH) cost basis for a month [1] Demand Dynamics - New demand for Bitcoin struggles to materialize [1]

Market Sentiment - Fear and Greed Index hits a record low of 11, indicating extreme fear in the market [1] - The current level is lower than during the FTX collapse, which was at 16 [1] ETF Performance - Bitcoin ETF holders are underwater for the first time, with an average cost basis of $86,400 [1] - BlackRock is down $1.09 billion this week alone [1] Potential Market Mechanics - ETF cost basis break could trigger redemption mechanics [1] - This situation presents the first real test of the permanent bid thesis [1]

Financial Analysis - The document refutes claims of a "Margin Call" related to Saylor's investment [1] - The document clarifies that $74k is the cost basis, not a liquidation price [1] Risk Management - The document dismisses concerns about a potential liquidation event [1]

Market Trends - Ethereum cost basis is coming into focus amid slowing ETF and Treasury investments [1]

Market Trend & Risk - Bitcoin trading below a key 0.95 cost basis level [1] - Raising risk of a move to $105K–$90K unless regained, per Glassnode [1]

Investment & Tax Implications - The document explains how to calculate cost basis for investments [1] - It also covers adjustments for stock splits and dividends [1] - The document provides understanding of tax implications related to cost basis [1] Practical Application - The document uses practical examples to illustrate the concepts [1]