Dec 25, 2025 11:29 PM
(This post was last modified: Dec 25, 2025 11:30 PM by Roy Gary.)
With my previous posts about my struggles, I've been on the search for a good way to make money online and a lot of these schemes involve cryptocurrency for transactions, but the issue is - I'm not sure if it's a good route anymore.
I'd never filed taxes once in my life as I'd never worked any sort of real job. With any business scheme, of course I'll pay taxes but I don't want to do it with crypto. Seems like a huge hassle that will continue if I keep engaging in crypto transactions. I would rather just get paid in fiat so it's easier to calculate the value of every purchase or sale I've ever made, if I had any sort of business.
I'd been worrying about my tax obligations for the past 3 years because I do use crypto to buy digital items like accounts and video game services every so often but never tracked my purchases, due to my mental health conditions. Never made a sale, etc. just kind of venting here but also asking for advice in a way. Also wondering if anyone feels the same about crypto.
Maybe use NON KYC / non tracked crypto and then you are not obligated to pay any taxes on it. :) Worryfree use.
It's really difficult. With my past, I expect an audit at any time, so I don't hide anything and I report everything.
When I was newer to defi and less tax savvy, the nightmare of figuring out what I owed at the end of the year accounting for hundreds or thousands of trades + the realization that you owe a lot more than you would have assumed on all these trades, was pretty awful. It took me 30+ hours to map everything out in a way that I thought made sense, and upon showing it to a tax accountant I was met with "what the actual fuck is this?" (He said it in nicer words) and I proceeded to work with him for a dozen more hours remapping it in a way that makes sense to the IRS and not just my dumb ass.
Since then, with the knowledge gained, the only easy path forward has been to be on top of it at all times, be keeping a spreadsheet or a ledger of sorts with all of your trades, cost basis, prices of tokens at the time of trade, etc. The moment you fall behind it becomes nightmare fuel, and the longer you put it off, the worse it gets.
I get that it's not easy for someone with mental health issues, I know that one of the ways that depression manifests through procrastination and trying to forget your problems, so if you truly struggle with something similar, then you may be correct, crypto may not be the best avenue for earning for you. The tax obligation it creates can be very... well... taxing...
(Dec 26, 2025 12:25 PM)SUI-3183372 Wrote: It's really difficult. With my past, I expect an audit at any time, so I don't hide anything and I report everything.
When I was newer to defi and less tax savvy, the nightmare of figuring out what I owed at the end of the year accounting for hundreds or thousands of trades + the realization that you owe a lot more than you would have assumed on all these trades, was pretty awful. It took me 30+ hours to map everything out in a way that I thought made sense, and upon showing it to a tax accountant I was met with "what the actual fuck is this?" (He said it in nicer words) and I proceeded to work with him for a dozen more hours remapping it in a way that makes sense to the IRS and not just my dumb ass.
Since then, with the knowledge gained, the only easy path forward has been to be on top of it at all times, be keeping a spreadsheet or a ledger of sorts with all of your trades, cost basis, prices of tokens at the time of trade, etc. The moment you fall behind it becomes nightmare fuel, and the longer you put it off, the worse it gets.
I get that it's not easy for someone with mental health issues, I know that one of the ways that depression manifests through procrastination and trying to forget your problems, so if you truly struggle with something similar, then you may be correct, crypto may not be the best avenue for earning for you. The tax obligation it creates can be very... well... taxing...
Your experience is exactly what I fear. Yea, unfortunately for some business expenses I may have to use crypto, but for personal spending I'll stick to USD
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Dec 26, 2025 10:41 PM
(This post was last modified: Dec 26, 2025 10:42 PM by Goatprime05.)
(Dec 26, 2025 05:44 AM)SIM-3107656 Wrote: Maybe use NON KYC / non tracked crypto and then you are not obligated to pay any taxes on it. :) Worryfree use.
I might have to look into that now fr
(Dec 26, 2025 07:25 PM)Roy Gary Wrote: Your experience is exactly what I fear. Yea, unfortunately for some business expenses I may have to use crypto, but for personal spending I'll stick to USD
Exactly, not only your worries pal, having to go through the experience is a great fear and a stress on one's mental health
(Dec 26, 2025 05:44 AM)SIM-3107656 Wrote: Maybe use NON KYC / non tracked crypto and then you are not obligated to pay any taxes on it. :) Worryfree use.
I used to try to go that route but there are no cheap ways to acquire crypto without kyc so I just gave up and verified myself on platforms lol. We'll see what happens in 2026 when those forms are finally issued. Depending on the stress level I wouldn't mind reporting but I'm not sure I'd need to because the way my jurisdiction handles online money and crypto in general is very weird. Locals say that Guam is a tax paradise for crypto owners I guess but I don't want to risk anything so I would rather report it regardless.
(Dec 27, 2025 06:47 PM)Roy Gary Wrote: I used to try to go that route but there are no cheap ways to acquire crypto without kyc so I just gave up and verified myself on platforms lol. We'll see what happens in 2026 when those forms are finally issued. Depending on the stress level I wouldn't mind reporting but I'm not sure I'd need to because the way my jurisdiction handles online money and crypto in general is very weird. Locals say that Guam is a tax paradise for crypto owners I guess but I don't want to risk anything so I would rather report it regardless.
CASH / Bank notes is most obvious and easiest way to get nonkyc crypto 1k, 2k, 10k€ txs... obviously not 5-100€ / txs
(Dec 27, 2025 06:47 PM)Roy Gary Wrote: I used to try to go that route but there are no cheap ways to acquire crypto without kyc so I just gave up and verified myself on platforms lol. We'll see what happens in 2026 when those forms are finally issued. Depending on the stress level I wouldn't mind reporting but I'm not sure I'd need to because the way my jurisdiction handles online money and crypto in general is very weird. Locals say that Guam is a tax paradise for crypto owners I guess but I don't want to risk anything so I would rather report it regardless.
Just use Monero. What can the IRS prove in taxes anyways? Just make a magical number of how much you want to pay out of your feelings
(Dec 30, 2025 01:19 PM)Mewtwo Wrote: Just use Monero. What can the IRS prove in taxes anyways? Just make a magical number of how much you want to pay out of your feelings
I'm not sure I understand what you mean
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Dec 31, 2025 12:18 AM
(This post was last modified: Dec 31, 2025 12:21 AM by Varsity.)
Honestly dude, just don't pay your taxes. Who gives a fuck. Why pay for the Israeli wars, why pay for the debasement of your currency, why pay in to a system that was rigged before your parents were even born.
And they won't find out you bought runescape items or whatever. HODL Bitcoin and don't mention it. Easy.
(Dec 30, 2025 05:50 PM)Roy Gary Wrote: I'm not sure I understand what you mean
Bitcoin and most other cryptocurrencies are a public ledger, that is what a blockchain is. You can sell Bitcoin and say you have $0 left, and if you're lying, they will know if they look into it.
Monero however is unique, completely untraceable and there is nothing they can do to prove you otherwise.
(Dec 31, 2025 12:18 AM)Varsity Wrote: Honestly dude, just don't pay your taxes. Who gives a fuck. Why pay for the Israeli wars, why pay for the debasement of your currency, why pay in to a system that was rigged before your parents were even born.
And they won't find out you bought runescape items or whatever. HODL Bitcoin and don't mention it. Easy.
Bitcoin and most other cryptocurrencies are a public ledger, that is what a blockchain is. You can sell Bitcoin and say you have $0 left, and if you're lying, they will know if they look into it.
Monero however is unique, completely untraceable and there is nothing they can do to prove you otherwise.
I partially get what you're saying, but I also don't want to get in trouble... Monero does seem appealing but many merchants don't accept it
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(Dec 31, 2025 12:50 AM)Roy Gary Wrote: I partially get what you're saying, but I also don't want to get in trouble... Monero does seem appealing but many merchants don't accept it
Did you buy your crypto on a CEX that you KYC'd on? If you didn't, I would not worry about it.
(Dec 31, 2025 02:14 AM)Varsity Wrote: Did you buy your crypto on a CEX that you KYC'd on? If you didn't, I would not worry about it.
I did kyc on coin base. Bought crypto and spent it
If you're financially capable with the right entity structure you can offload most of the tax through expenses and rebates.
But this doesn't sound like your scenario. Spending crypto on personal expenses like shopping, groceries, anything third party ecommerce is fine.
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(Dec 31, 2025 03:39 AM)Roy Gary Wrote: I did kyc on coin base. Bought crypto and spent it
Don't do that in the future. Also, if your income is below a certain amount, I am pretty sure there is tax exemptions. When I didn't have a job, I sold around $9k on Kraken worth of crypto and I did fill out the forms to pay the taxes (it was Monero, so I lied about my cost base average), but I was told I owe no money. Kraken is good, if you're going to be spending the crypto you buy with your bank money (that is not recommended either), use XMR.
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