Reduce Your Crypto Tax Bill With Koinly’s Tax-Loss Harvesting Guide

Tax-loss harvesting allows you to claim capital losses by recognising and selling your assets at a loss. These capital losses may also be carried forward against future capital gains and even over multiple financial years. If you have an unrealized loss and do not crystallize it by selling before the end of the current financial year, you won’t be able to take advantage of this capital loss until next year’s tax return. In many jurisdictions, holding your crypto investment for longer than one year qualifies any gains as long-term capital gains. In the UK, individuals have a CGT allowance of up to £12,300 before paying tax. Germany has a relatively low threshold of €600, while Australians have no such allowance. Source