Bits + Bips: Crypto Investing Is About Managing Risk, Not Chasing Upside - Ep. 978

If you traded, like, ETPs, if you have ETFs, there's there's a second step that you need to do in addition to relying on the ten nine nine b that you're getting from the broker. Wow. That does sound quite complicated. Hi, everyone. Welcome to Bits and Bips, the interview. I'm your host, Steve Ehrlich, executive editor at Unchained, and we've got a terrific lineup for you today. First, I'm gonna be joined by Shihan Chandrasekara, head of strategy at CoinTracker, And then we're gonna follow-up with Sebastian Derevo, a cofounder at the DeFi platform Steakhouse Financial. We have a lot to talk about today. Sheehan's gonna join us to discuss, year end tax strategies, things that everybody should be considering when, wrapping up the year. We're gonna cover tax loss harvesting, wash trading, and what's coming down the pike in 2026. So, so let's get started. Welcome, Shian. Yeah. Thanks, Steve. Thanks. Just one very quick disclaimer. Nothing that, either, I or my guest say here is tax or financial advice. For more information and disclosures, please check out, unchained.com/bitsandbips. So, Shian, let's yeah. Let's let's get right into it. A lot of people listening have probably been paying taxes on their crypto for years. But for anyone that is kind of new, can you just briefly explain how crypto, falls, in line with current tax law? Yeah. Sure. So cryptocurrencies, like, you know, Bitcoin or even NFTs, they are treated as property according to IRS rules. So that means whenever you cash out or go from one crypto to another or when you earn crypto through staking or any type of rewards, those are considered taxable event. I guess, like, one easy way for you to kinda think about crypto taxes is is kinda thinking about how stocks are taxes taxed. So crypto taxes are very similar to stock. How how top how stocks are taxed, with some exceptions. Okay. Yeah. And, since this is kind of a a year end sort of tax wrap up, I would imagine we might have you back in, the the spring to talk about when it comes to filing. But, what are some of the things that people should be thinking about, when it comes to sort of finishing out the year, especially in a year where, I mean, a few assets are up, but but a lot are down. Right. I would say, like, number one thing, you should consider doing, like, especially in December is what we call taxes harvesting. So, basically, I would look at all the wallets and exchanges you have and go asset by asset and see which assets are below the cost basis. Cost basis means how much you paid for it. If the value is below the cost basis, you could consider selling them and realize the loss. And if you want, you can buy it back, in this year or next year, depending on, like, you know, how you wanna maintain the question …