Legally no, at least in the US and NZ, but technically yes. On any stock exchange I know of, you'd sell your TSLA for cash, then use the cash to buy MSFT. On crypto exchanges there tend to be a lot of trading pairs with tokens on both sides, so cash is never involved.
not conceptually, though I don't know much about crytpo and have 2 questions:
1. can you recognize a capital loss on unregulated products like crypto and NFTs for favourable tax treatment?
2. do the exchanges (from an accounting perspective) trade directly between coins or move through a fiat (i.e. USD) currency?
So it might be more like "trading" stock directly without seeing the cash hit your account, which confuses people as to why they trigger a capital gain. The extra step of calculating the value of the source stock at the time of transaction is being missed.
Legally no, at least in the US and NZ, but technically yes. On any stock exchange I know of, you'd sell your TSLA for cash, then use the cash to buy MSFT. On crypto exchanges there tend to be a lot of trading pairs with tokens on both sides, so cash is never involved.
not conceptually, though I don't know much about crytpo and have 2 questions:
1. can you recognize a capital loss on unregulated products like crypto and NFTs for favourable tax treatment?
2. do the exchanges (from an accounting perspective) trade directly between coins or move through a fiat (i.e. USD) currency?
So it might be more like "trading" stock directly without seeing the cash hit your account, which confuses people as to why they trigger a capital gain. The extra step of calculating the value of the source stock at the time of transaction is being missed.
> can you recognize a capital loss on unregulated products like crypto and NFTs for favourable tax treatment?
Depends on the country. The US and Canada allow it.
> do the exchanges (from an accounting perspective) trade directly between coins or move through a fiat (i.e. USD) currency?
Doesn't matter. If you swap TSLA for MSFT with someone there is still tax due.