Crypto investors have a reputation for hanging on to coins through market gyrations. Partly, it’s because they remain convinced that investors, companies, and governments are warming to crypto. They also dislike admitting they were wrong, particularly if they bought
now at $20,500, when it was near its $60,000 November peak.
But crypto investors might consider selling their losers—if just for a day. The reason? A loophole that investors in stocks and other securities lack. By taking losses, crypto owners can offset capital gains made elsewhere, often up to $3,000 a year of ordinary income.