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Is there a risk I could mess up my taxes by day trading crypto?

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by COINS NEWS 80 Views

So to start with, I did google. The main thing that people always say is "everything is a taxable event", but it's difficult to actually get a clear understanding of the risks and what that means. I invested like 1500 into bitcoin recently to do some trading and maybe make money - I am down in terms of total value, but kraken has my trading volume at about 15k for the past 30 days. I imagine by the end of the year if I continue doing this that trading volume will be over 100k.

Now my question is this - can me trading 100k in crypto but profiting nothing screw me over in some way? Can it push me to another tax bracket? Is there any way I can accidentally really mess up badly in this situation? Let's say hypothetically I profit 100 dollars and end of year im at 1600 value, and I had like trades where I gained 1000 dollars and trades where I lost 900 dollars. Could I get in trouble in this scenario, or would I just pay taxes on the 100 dollar profit for the year and be fine?

submitted by /u/xen123456
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