A Neat Crypto Trick

Cryptocurrency is not subject to wash sale rules like stocks are.  Lets say you bought a coin for $10 and it is worth $5 and you want to continue to hold the coin.  Sell the coin this year and recognize a loss of $5 that you can deduct, then immediately repurchase the coin for $5.  You can use this $5 loss that you recognized to offset other gains or income you had this year.  Contrast this with a stock:  when you sell a stock and then re-purchase it within 30 days, you can’t deduct the loss in the year of sale (you have to save that loss to use when you finally sell the stock and don’t repurchase it within 30 days).