I have crypto invested that I've held for several years and receive interest on in a different cryptocurrency. I recently retired and I've been selling some of my invested crypto each week to live off (I'm not old enough to get a pension).
It recently occurred to me that I would be better off taking out my interest as I'm already paying income tax on it. The interest alone is not enough to live off but I would then be able to sell less of my investment.
The interest is paid daily and I'd have to transfer it to an exchange, sell it into a different crypto and then sell that into a third crypto (probably the one I'm in invested in) and then transfer the new cryptocurrency to an Australian exchange so that I could then sell it for $AU. This would all be done in a timeframe of several minutes. The reason for the two trades is due to available pairing and transfer fees. The daily amount isn't really worth the hassle and I'd be paying daily withdrawal fees.
Could I withdraw the interest weekly or fortnightly to use as income or would this then be counted as day trading because I'd have to sell into two different cryptocurrencies and then into $AU?
I keep very detailed records so each weekly or fortnightly sale would be broken down into it's daily interest amounts which would each be recorded as a separate sale with it's own profit/loss so that the tax paid would be correct.
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