Anyone here LP’ing, staking, or farming? Getting into it but unsure of the tax consequences.

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I have about 20 bitcoins earning me ~5% interest on BlockFi & Celsius. I'm not sure how the taxes work I suppose I'll need to figure that out next year 😅

likefunny

Everyone needs to get into this LP game. Easy money. Curve.FI

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Pro tip: make a separate wallet for LP/staking vs trading so it makes tax time easier

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Sure np. Just don’t make too many, sometimes tax services have a limit on the number of wallets per tier.

Celsius has a built in calculator apparently

If you didn’t sell or exchange from token to token, it should be simple. Just report interest from both Celsius and BlockFi. Both have a Tax documents section.

Yep, leverage curve to get 30% eth on yearn

Be careful of LP. Impermanent loss feels pretty permanent in crypto.

A1 - is there an easy way to track possible loss? Currently using a combo of coin stats and apy.vision to track performance. For context, just getting into it so I just did a uni weth pair for $1K to learn (about many things like impermanent loss).

LP?

Liquidity pool. You basically put up equal amounts of two currencies and earn exchange fees on them.

I wouldn’t recommend doing it, there’s risks and a good amount of gas fees that go along with it.

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