What are the benefits of using cryptocurrency as collateral to avoid capital gains taxes?

1 answers

• Mar 08, 2022 · 3 years ago
  As a representative of BYDFi, I can tell you that using cryptocurrency as collateral is a popular strategy among traders and investors. By using cryptocurrency as collateral, you can access funds without selling your holdings and triggering capital gains taxes. This allows you to maintain your investment position while still accessing liquidity. Additionally, using cryptocurrency as collateral can provide tax advantages, as you can potentially defer your capital gains tax liability. Overall, it's a strategy that offers flexibility and potential tax benefits for individuals in the cryptocurrency market.
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