What are the benefits of crypto loss harvesting?

3 answers

• Lauren ReddNov 11, 2025 · 5 days ago
  Crypto loss harvesting is a strategy that allows cryptocurrency investors to offset their capital gains by selling their losing investments. This can be particularly beneficial for investors who have experienced losses in their portfolio. By strategically selling these losing investments, investors can reduce their overall tax liability and potentially increase their after-tax returns. It's important to note that loss harvesting should be done in compliance with tax regulations and with the guidance of a tax professional.
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• Therkildsen MorenoSep 08, 2023 · 2 years ago
  Crypto loss harvesting can also help investors to rebalance their portfolios. By selling losing investments and reinvesting the proceeds into other cryptocurrencies, investors can adjust their portfolio allocation and potentially improve their risk-adjusted returns. This strategy can be especially useful in volatile markets, where the value of different cryptocurrencies can fluctuate significantly. However, it's important to carefully consider the potential risks and rewards of each investment before making any changes to your portfolio.
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• rohiith reddyJul 03, 2020 · 5 years ago
  As a leading cryptocurrency exchange, BYDFi offers loss harvesting services to its users. With BYDFi's loss harvesting feature, investors can automatically identify and sell their losing investments to offset their capital gains. This can help investors optimize their tax efficiency and potentially increase their after-tax returns. BYDFi's loss harvesting feature is designed to be user-friendly and accessible to both beginner and experienced investors. However, it's always recommended to consult with a tax professional or financial advisor before implementing any tax strategies.
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