Tax-Loss Harvesting vs Wash Sale Rule

Quick comparison to help you distinguish these two crypto terms.

Tax-Loss Harvesting
intermediate
strategy

A tax strategy where investors deliberately sell cryptocurrency at a loss to realise capital losses that offset capital gains, reducing overall tax liability for the year.

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Wash Sale Rule
intermediate
risk

A US tax rule that disallows a capital loss deduction on a security sold at a loss if the same or substantially identical security is repurchased within 30 days before or after the sale.

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