Prices are sliding downward, exchanges are declaring bankruptcy, and the while many people remain optimistic, most people are straight up not having a good time.
We have no idea which exchanges or lenders are going to close up shop. Is this a temporary bump in the road? Or the start of a cascading collapses with many more to come?
Nobody knows.
But I do know this much: Once a platform is taken offline getting your transaction history from the platform to report your taxes next year will be impossible.
It is my job to help people figure out their tax situations. In the past couple of years countless people who hadn't bothered reporting their taxes from the 2017/2018 cycle "because I lost money" ended up with massive holes in their transaction history. (Cryptopia closed, Binance.com closed its doors to Americans, lost logins, etc.) The result was that they were in a tough spot come tax season when they finally had gains in 2021: Either overpaying in taxes in previous years or paying someone like me to help build out the lost transaction history.
With so much up in the air about which exchanges are going to be around next year, do yourself a favor and preserve every shred of transaction history you can find before it is too late. If you never look at it again, so be it. But if you do need it in the future for something, you and your tax attorney/accountant will be glad you saved it.
Cost basis and holding period are the two most important things you need for reporting your taxes. If you're missing your transaction data because you didn't bother logging in to Voyager, Crypto.com, or Celcius one last time to preserve your transaction data, then you'll be dealing with another headache down the road.
TLDR: We don't know which exchanges will be closing for good during this downturn. Log into your accounts right now and download every piece of transaction data you can. It will be important to preserve for your tax reporting later. Do yourself a favor and take 10 minutes to save your transaction history for later reference -- even if you swear you'll never trade crypto again.
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