Hello everyone! Since this is my second bull market, I want to prepare ahead of time. I’m from the UK, and I intend to sell all of my cryptocurrency before the next downturn (ideally).
Assume for the moment that everything went as planned and I turned a healthy profit. How can I cash out my cryptocurrency the best, and where should I store it?
Is it correct to assume that I won’t have to pay taxes if I convert them to stable coins and store them in a hardware wallet—that is, if I don’t convert them to fiat and deposit them into my bank account—?
No, exchanging any kind of currency is in theory subject to taxation. Thus, it is taxable to sell into stables. You get to pick whether or not anyone would find out now. Clearly, it is less noticeable than if you visited a bank. However, it can be tracked.
Think about whether you would want to receive a yield on that stable as well.
Additionally, timing the peak will be extremely challenging.
I strongly advise against using your wallet for anything other than sending and receiving transactions, regardless of which wallet you choose. I prefer to avoid any personal interactions or contract exchanges involving dex swaps.