The US government will begin taxing people exchanging cryptocurrencies next year in 2018. These will be capital gains taxes of 15 to 20% since the government is viewing these, not as currencies, but as a capital asset. Read more about it on this Forbes post (You can skip about half of the article because it just explains what bitcoin is). These taxes will eat into the gains that we have been able to get without having to deal with giving the money back to the government. It is our free stock market for the millennials. Centralized exchanges can be targeted not only by the government but also by hackers and they could possibly take your money. So how do you get around it? Use a decentralized exchange.
I have started using Binance / Referral and will hopefully be able to bypass some of these taxes, fees, and risks. It is a new exchange so it isn't perfect but so far I haven't had many problems with it so I can recommend it to users that are used to exchanges but maybe not so much for new users. Other exchanges to consider: Bitshares and Etherdelta
Another way around it could be just to start mining, staking, or minting. If you mine coins they won't be able to see how much you have mined... until you put it in an exchange. They will also be able to see how much money you're pulling out if you take it out of Coinbase. What are some good ways of getting your crypto back to fiat without Big Brother finding out about it? There are some options but that is for another post. Also some could argue that that would be money laundering but hey, it's your hard earned money, you should be able to keep it!
Please comment with your thoughts on the matter. I always reply within a day or two :)
i really want to know that too
i think dex trading will soon be illegal...
Binance was not decentralized when you wrote this article, and it still isn't decentralized today.