Core Insights - The IRS treats crypto and digital assets as physical property for tax purposes, making transactions taxable at the federal level, while state taxation varies significantly [1] State Taxation of Crypto - Crypto gains are taxed similarly to other investment gains, with short-term capital gains applicable for holdings under a year, often at higher rates than long-term gains [2] - Approximately ten states do not tax crypto gains, while others impose substantial taxes [2] States with High Crypto Taxation - California imposes a tax rate of up to 13.3% on crypto gains, including an additional 1% for households earning over $1 million [4] - Hawaii has a tax rate of up to 11%, with unclear regulations affecting the trading environment [5] - New York taxes crypto gains at a rate of up to 10.9%, with lower rates for households earning under $1 million [6] - Minnesota's tax rate on crypto gains is up to 10.85%, including an additional 1% for high-income households [7] - New Jersey imposes a tax rate of up to 10.75% on crypto gains, treating them as regular income [8][9] - Oregon has a tax rate of up to 9.9%, also treating crypto gains as regular income [10] Record Keeping for Crypto Investors - Detailed transaction records are crucial for crypto trading in taxable accounts, with traders receiving Form 1099-DA in early 2026 to report sales proceeds [11]

Investment Strategy - A disciplined approach, such as the half-and-half method, can be effective: when an investment doubles, take out half and let the other half ride [1] - It's crucial to be ruthless in selling when indicators suggest it's time [1] Risk Management - Having a plan in place, like Avantis, is essential for managing investments [1] - The market requires a disciplined approach to selling based on indicators [1]

Market Sentiment - The crypto industry is encouraging users to reflect on and share their realized gains today [1] - The crypto industry is prompting a discussion about successful crypto investments [1]