Tax Optimization

Staying Compliant While Maximizing Returns

Arbitrage trading generates numerous taxable events. Every trade is potentially taxable, regardless of whether you withdraw to fiat. Understanding tax implications before trading prevents expensive surprises at year-end.

Different jurisdictions treat crypto trading differently. In the US, each trade is a taxable event subject to capital gains. Some countries treat crypto trading as business income. Others have tax-free thresholds or special regimes. Consult local tax professionals for specific advice.

Record keeping is essential for tax compliance. Track every trade including timestamps, amounts, prices, fees, and profit/loss. Our platform provides exportable reports, but maintain your own records as backup. Tax authorities may request documentation years later.

Tax loss harvesting can reduce your liability. If you have losing positions, consider realizing losses to offset gains. However, be aware of wash sale rules in some jurisdictions. Strategic loss realization should be part of year-end planning.

Consider your business structure carefully. Trading as an individual versus through a corporation has different tax implications. Corporations might deduct expenses and pay different tax rates. However, they also have additional compliance requirements. Evaluate options with professional advisors.