When investing in any crypto asset, it’s important to understand the tax implications of your actions. Most investors understand they will be taxed on gains made when they dispose of cryptocurrencies but few remember that losses are just as important to document as well. Losses can help reduce your tax liability massively and can be carried forward multiple years.

As the cryptocurrency market passes the 2 trillion market cap mark, it still surprises us how little traders and investors capitalize on a crypto accountant. Almost all other assets and investment opportunities are oversaturated with under qualified accountants attempting to provide a worthwhile service, which investors will throw their money at.

Any project or idea in the financial world usually requires some startup capital to get going and maintain operations before the model becomes profitable. Normally, startups would look towards angel investors or perform an IPO, to raise capital for the project. In the cryptocurrency world, ICOs have generated more and more funding year on year for new cryptocurrency projects popping up all over the crypto sphere.

Decentralized, trustless and permissionless activity is at the heart of the crypto sphere. With that comes the ability for anyone, anywhere to create their own cryptocurrency, or Shitcoin.

Remaining tax compliant when investing in the crypto sphere is often more tedious and tricky than one thinks, especially when interacting with DeFi protocols or several self-custodial wallets.

Investors usually struggle with one major problem: capital. To solve this problem, banks have given investors loans providing they are trustworthy enough. In the crypto space with its decentralized nature, loans can be given out purely based on collateralized assets.

Any competent investor should always be on a lookout for ways to legally reduce their tax liability on their investment income. Luckily, crypto investors have some options when it comes to reducing their cryptocurrency tax liability.

Any person making taxable income in Canada has the option, although not legal, to simply not declare or not pay their taxes on taxable income.

Decentralization and autonomy over one’s assets and privacy is a core fundamental of cryptocurrency today. Although we have central exchanges which act in a similar way to banks, there are many non-custodial wallets such as MetaMask which connects a user to DeFi (Decentralized Finance), allowing them access to trustless and permissionless dApps all with only basic internet access.

NFTs are rife with crazy projects, scams and mind-boggling purchases of seemingly useless assets. The crypto community is often torn on whether NFTs have legitimate use cases and if the current market is a complete bubble ready to burst at any moment.