How to Avoid Crypto Tax Legally in 2025: 7 Proven Strategies

Last updated:07/03/2025
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BTCC, a seasoned player in the cryptocurrency sector, has established a solid foundation of credibility through its over a decade of platform operation and profound industry experience. The platform boasts an experienced team of professional analysts who leverage their keen market insights and profound understanding of blockchain technology to offer precise market analyses and investment strategies to users. Furthermore, BTCC adheres to rigorous editorial standards, ensuring that every report and analysis is fact-based, striving for objectivity and fairness, thus providing investors with authoritative insights they can rely on. In the rapidly evolving cryptocurrency market, BTCC stands out as an indispensable partner for numerous investors and enthusiasts due to its stability, professionalism, and forward-thinking approach.

With a new wave of regulatory scrutiny—like the U.S. Form 1099‑DA reporting in 2025 and global CARF requirements—crypto profits are no longer off the radar  . This guide covers questions like how to avoid crypto tax legally, how to offset crypto taxes with losses,,how to borrow against crypto to avoid selling. And Discover 7 legal ways to minimize crypto taxes in 2025—from long-term holding and tax-loss harvesting to crypto-backed loans and donations.

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1. Hold Crypto for More Than 12 Months

•Holding crypto over 12 months qualifies for long-term capital gains, taxed at 0–20% instead of up to 37%   .
•Simple strategy: buy and wait—no taxable event until selling.

2. Tax-Loss Harvesting

•Sell tokens at a loss to offset gains or up to $3K of ordinary income; unused losses roll over  .
•Tip: do this before year-end to optimize filing.

3. Borrow Against Crypto (Avoid Selling)

•Use crypto-backed loans instead of selling. Borrowing itself is not taxable   .
•Reddit confirms:
“generally yes, you borrow against your crypto in the short term…”
•Risk note: only repay with non-appreciated assets to avoid gain events .

4. Donate Crypto to Charity

•Donating avoids capital gains and grants a fair-market-value deduction  .
•Fidelity Charitable received $688M in crypto donations through Nov 2024  .

5. Gift Crypto Tax-Free

•In the U.S., gifts under ~$19K (2025) per recipient aren’t taxable  .
•Ideal for transferring to lower-bracket family members (who then pay little to no tax).

6. Invest via Crypto-Enabled Retirement Accounts

•Trading inside a Self-Directed IRA/401(k) defers or eliminates annual crypto taxes  .
•Platforms: Alto CryptoIRA, iTrustCapital, BitIRA, Blockpit-managed IRAs.

7. Move or Use Tax-Friendly Jurisdictions

•Consider relocating or establishing tax residency in Portugal, UAE, Singapore, Switzerland, Germany (post-1-year hold)  .
•Also, states like Florida or Puerto Rico offer tax perks within the U.S. .

 Tools & Resources

•Crypto tax software: CoinLedger, TokenTax, Koinly, Blockpit help with recordkeeping, lot selections (HIFO/FIFO), and harvesting   .
•Find a crypto-savvy CPA for personalized advice, especially with DeFi/NFT/loan complexities  .

/ You can claim a welcome reward of up to 10,055 USDT🎁\

FAQs

Q: Is staking taxable?
Yes, staking rewards are considered ordinary income taxed at market value upon receipt  .
Q: Is moving crypto between my wallets taxable?
No—no taxable event if no sale. Just record addresses to prove self-transfer .
Q: Are DEX swaps taxable?
Yes—crypto-to-crypto trades count as disposals and trigger capital gains  .

 Conclusion

By applying these seven legal strategies—long-term holding, loss harvesting, crypto-backed loans, donations, gifting, retirement accounts, and tax-friendly residency—you can significantly minimize your crypto tax burden in 2025. Always track every transaction, consult professionals, and stay ahead of changing regulations.

How to Trade Crypto on BTCC?

This brief instruction will assist you in registering for and trading on the BTCC exchange.

Step 1: Register an account

The first step is to hit the “Sign Up” button on the BTCC website or app. Your email address and a strong password are all you need. After completing that, look for a verification email in your inbox. To activate your account, click the link in the email.

 

Create an Account

 

Step 2: Finish the KYC

The Know Your Customer (KYC) procedure is the next step after your account is operational. The main goal of this stage is to maintain compliance and security. You must upload identification, such as a passport or driver’s license. You’ll receive a confirmation email as soon as your documents are validated, so don’t worry—it’s a quick process.

 

Complete KYC

 

 

Step 3. Deposit Funds

After that, adding money to your account is simple. BTCC provides a range of payment options, such as credit cards and bank transfers. To get your money into your trading account, simply choose what works best for you, enter the amount, and then follow the instructions.

  • Fiat Deposit. Buy USDT using Visa/Mastercard (KYC required).
  • Crypto Deposit. Transfer crypto from another platform or wallet.

 

Deposit Funds

 

Step 4. Start Trading

If you wish to follow profitable traders, you might go for copy trading, futures, or spot trading. After choosing your order type and the cryptocurrency you wish to trade, press the buy or sell button. Managing your portfolio and keeping track of your trades is made simple by the user-friendly interface.

 

Start Trading

 

Look more for details: How to Trade Crypto Futures Contracts on BTCC

 

BTCC FAQs

Is BTCC safe?

Based on its track record since 2011, BTCC has established itself as a secure cryptocurrency exchange. There have been no reports of fraudulent activity involving user accounts or the platform’s infrastructure. By enforcing mandatory know-your-customer (KYC) and anti-money laundering (AML) procedures, the cryptocurrency trading platform gives consumers greater security. For operations like withdrawals, it also provides extra security features like two-factor authentication (2FA).

Is KYC Necessary for BTCC?

Indeed. Before using BTCC goods, users must finish the Know Your Customer (KYC) process. A facial recognition scan and legitimate identification documents must be submitted for this process. Usually, it is finished in a few minutes. This procedure has the benefit of strengthening the security of the exchange and satisfying legal requirements.

Because their accounts will have a lower daily withdrawal limit, those who do not finish their KYC are unable to make deposits. It should be noted that those who present a legitimate ID without a facial recognition scan will likewise have restricted withdrawal options.

Is There a Mobile App for BTCC?

Indeed. For users of iOS and Android, BTCC has a mobile app. The exchange’s website offers the mobile app for download. Since both the web version and the mobile app have the same features and capabilities, they are comparable.

Will I Have to Pay BTCC Trading Fees?

Indeed. BTCC levies a fee for trade, just like a lot of other centralised exchanges. Each user’s VIP level, which is unlocked according to their available money, determines the different costs. The BTCC website provides information on the charge rates.

Can I Access BTCC From the U.S?

You can, indeed. According to its website, BTCC has obtained a crypto license from the US Financial Crimes Enforcement Network (FinCEN), which enables the cryptocurrency exchange to provide its services to investors who are headquartered in the US.

According to BTCC’s User Agreement document, its goods are not allowed to be used in nations and organisations that have been sanctioned by the United States or other nations where it has a licence.

 

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