Tax-Loss Harvest vs Hold Crypto
**Tax-loss harvesting** sells losers to offset gains, then often rebuys exposure. **Holding** avoids taxable events but carries unrealized loss until recovery—rules differ for crypto vs stocks (wash sale nuances).
Step by step
1. Net gains YTD
Harvest only helps if you have gains to offset or carryforward strategy.
2. Check wash rules
U.S. crypto wash-sale treatment—confirm with CPA for your year.
3. Track basis
FIFO vs specific ID changes harvest lots.
Harvest vs hold
Harvest is a tax tactic—not a market call.
- Tax-loss harvest: Realizes loss; may reset basis; transaction costs.
- Hold: No immediate tax event; emotional drawdown risk.
Use our calculators
Common mistakes
- Harvesting without gains to offset
- Poor lot tracking on multiple exchanges
FAQ
Can I rebuy immediately?
Legally depends on jurisdiction and year—get tax advice.