Never inflate your lifestyle based on paper gains.

Example:
A person is in a bull market, and just 10x'ed their portfolio. They're feeling great.
So now they move into a nicer Condo / buy a new car.
The market tanks.
They didn't take profits.
They owe taxes.
And they have a more expensive Condo / Car they can't afford.

Sorry for some confusion in my post regarding taking profits & taxes.
They were two separate thoughts and not correlated.
I meant to say someone might owe taxes for swapping tokens / earning farming rewards / transmuting them into Wrapped versions.

The problem with talking about taxes is:
1. it's confusing as fuck and governments are run by idiots.
2. I'm not a professional. I have an accountant + @koinly handling everything.
3. Everyone's in a different country / jurisdiction. So what applies to me may not apply to u