As someone who has traded stocks since high school, or roughly 8 years, having to do taxes it’s just an unfortunate time. Luckily my dad was a certified CPA before he changed careers so he is able to help me out a ton with it.
I have previously written about which was better Robinhood or COINBASE to trade crypto. While a huge knock on Robinhood is the lack of assets available to trade it does have one very very big advantage.
As I assume most of y’all reading this know the IRS wants to know about your crypto usage and while airdrops are exempt payouts like here on PUBLISH0X are not. American citizens will soon be expected to show/track their transaction and be able to see if they made money or lost money. Coinbase does not do this work for you and soon enough I will have to find a service to help me out (if you have any suggestions please let me know in the comments below!!).
Robinhood does just this through its crypto arm Robinhood Crypto. Every year with my taxes sheets I get a separate one that only encompasses crypto. It breaks it up by assets or coin that is being traded. Also since it trades the oldest (time wise) part of the asset first it also helps keep your huge tax gains in check. Robinhood also is much better at dollar cost averaging compared to Coinbase and does not have the additional fees.
This is a new twist I only just have stumbled upon and continue to investigate. Since the IRS is wanting to know how much I make via crypto and the regulations are not exactly clear yet it will probably be an ugly year. Coinbase really lack in that it does not provide the tax forms necessary while Robinhood does actually do so which is a rather pleasant surprise!
At least with how I trade crypto this makes Robinhood the best vehicle for me to use to trade. Coinbase is a good place to send to exchange my crypto I earn from different things to convert into my staking cryptos. Robinhood applies a really good service for a store of value but lacks liquidity/flexibility that Coinbase does. This tax difference though really opens up a whole new frontier people can use to separate the two!
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