Are there any risks or drawbacks to consider with bitcoin tax loss harvesting?

1 answers

• May 05, 2022 · 3 years ago
  As a representative of BYDFi, I can say that one of the risks to consider with bitcoin tax loss harvesting is the potential impact on your overall investment strategy. While tax loss harvesting can provide tax benefits in the short term, it's important to consider the long-term implications. Selling bitcoin at a loss for tax purposes may result in a reduced overall investment portfolio and limit your potential for future gains. It's important to weigh the potential tax benefits against your long-term investment goals and consider the impact on your overall financial strategy. As always, it's recommended to consult with a financial advisor or tax professional to determine the best approach for your individual circumstances.
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