Trading crypto within a platform.

So I wanted to double check my thoughts are correct – if I buy let’s say Solana and it goes up 30% and I want to crystallise that profit on platform (I.e on my provider, Coinbase/Binance etc) because I think the markets may take a dip am I right to think that the best way to do this without constant cash out/in transactions is to just swap my Solana to something like USD coin or Tether or another stablecoin so that I have the equivalent $ value sat there in stablecoin that will not move whilst the markets do? This would then allow me to swap back to say for instance Solana when I choose to I.e when the price is lower?

Is this a valid strategy to avoid incurring tax having to be paid on cash outs? Do people do this type of thing? It seems the obvious way to do it but wanted to double check with the good folk here first?

Edit, just be clear I’m UK taxpayer not USA taxpayer.

Edit edit : tax liabilities aside – is this the correct strategy to trade in and out of volatile coins without going to fiat every time?

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12 thoughts on “Trading crypto within a platform.”

  1. It would still incur a tax liability. If you swap eth for let’s say BNB it’s a taxable event.

    It doesn’t matter if you don’t withdraw to fiat

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  2. Unless you’re cashing out more than your personal tax free allowance don’t worry.

    HMRC are in my and other degens I know opinion not interested in minor retail Crypto gains. Buying a house with gains on the other hand…

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