Anyone who realized gains in early 2018 only to lose money on paper later in the year might want to consider “Tax-Loss Harvesting.”
In simple terms, if you quickly trade out of the crypto you are in and then back into it, you realize profits / losses at that point.
This can be used to offset your early 2018 gains, and thus used to ensure you don’t owe taxes on your crypto in 2018… if you are in a situation where you had gains early in the year but then lost them later in the year.
If you had epic gains, but then HODL’d down on paper, you could save yourself from crushing debt to the IRS by being smart. This only works if you take action before midnight.
See Crypto Tax-Loss Harvesting for more details.
IMPORTANT: I’m not a tax professional, I’m simply doing my best to relay what is logically the case given the current rules for crypto. This is explained in detail on the tax-loss harvesting page linked above. Please consult a tax professional before making important decisions about your investments. Also, make sure to think through things like long term capital gains tax benefits and your other tax liabilities before taking any action.