Coin Tax Deferral Period: Determining Profitability Through Trading Methods

The coin tax deferral granted to Korean investors is not just a simple policy extension. As of February 2026, the roughly 10 months remaining until January 1, 2027, represent the final opportunity to choose how to participate in the market. Even with the same price movements, the ultimate returns can vary greatly depending on the trading approach.

In the US and Europe, taxation on virtual asset trading profits has already become standard. Investors always calculate after-tax returns first and then develop their strategies. In contrast, Korea still operates in a rare environment where taxes do not directly influence trading decisions. This gap is especially amplified in short-term trading that repeatedly targets small timeframes.

Tax deferral is a temporary opportunity… Now, with 1 year left, it’s a golden time to choose your structure

With the tax deferral on coins extended, the Korean market will remain free from capital gains tax on trading profits for at least 10 months. Originally, the government planned to impose a 20% capital gains tax, but the implementation date has been postponed to January 1, 2027.

This period is crucial for a clear reason. All trading profits generated before 2027 will remain fully with the investor. This means they can accumulate compound growth without tax burdens. The more frequent the trades, the more this gap widens beyond mere numbers.

More importantly, this time is not just for waiting. It’s also a strategic window to reconsider how to participate in the market. The choices made now are likely to form the foundation of investment performance after 2027.

Trading CFDs without wallets reduces security stress and management burden simultaneously

While interest in the virtual asset market is recovering, practical barriers to entry still exist. Managing private keys and seed phrases is a serious burden not only for beginners but also for experienced users. Losing them is irreversible, and exposure can put all assets at risk.

Recent security issues involving Solana-based assets on Upbit have amplified these concerns. It was reaffirmed that problems on specific chains can directly translate into exchange risks. Regardless of size or trustworthiness, the inherent insecurity of leaving assets on exchanges does not easily disappear.

CFD trading fundamentally solves this problem. No need to install separate wallets or store/transfer seed phrases. You can open an account and start trading immediately, similar to stock trading. It operates under regulatory oversight, with protections like segregated customer funds.

Since you don’t hold the coins directly, the risk of asset theft via hacking is structurally eliminated. This not only enhances security but also provides psychological peace of mind. The biggest advantage of CFD is that it reduces technical management and security stress, allowing you to focus solely on price movements and strategies.

Spot vs CFD: decisive differences that determine short-term returns

Even in the same tax deferral environment for coins, efficiency varies greatly depending on the trading structure chosen. Especially if you focus on short-term trading and swing trading, these differences directly impact actual profits.

Domestic exchanges like Upbit or Bithumb differ fundamentally from CFDs. The core difference lies in trading directionality. Spot trading primarily involves betting on price increases. When the market declines or stagnates, options are limited to waiting. Conversely, CFDs respond to both upward and downward movements, offering a broader strategic scope even in volatile markets.

Capital efficiency also differs clearly. Spot trading requires full capital for each position. CFDs leverage margin, allowing participation with less capital. This isn’t reckless betting but a more flexible allocation of the same funds, which is crucial for short-term traders.

Fee structures are also significant. Domestic exchanges charge trading fees on both buy and sell sides. Frequent trading causes costs to accumulate rapidly. Some CFD platforms do not charge trading fees, reducing costs for strategies that repeatedly target short timeframes.

Risk management also differs structurally. CFDs inherently offer stop-loss and take-profit functions, enabling fixed risk levels at entry. Spot traders often need to monitor prices actively and respond manually. During sharp volatility, this difference translates directly into realized gains or losses.

Breaking free from the ‘coin stock’ trap and re-evaluating the value of direct exposure

Recently, Korean investors have shown increasing interest in so-called ‘coin stocks’ like MicroStrategy or Bitmain, listed on US stock markets. This trend reflects a desire to indirectly bet on the crypto market through stocks instead of holding Bitcoin directly.

The underlying assumption is simple: if Bitcoin’s price rises, related stocks will also go up. However, actual data shows how unstable this expectation can be.

Over long periods—7 or 10 years—Bitcoin has delivered overwhelming cumulative returns, while MicroStrategy’s stock performance has been much more limited. At certain points, volatility was even higher, with deeper declines. In short-term periods, this divergence becomes even more pronounced.

Companies like Bitmain, with DAT-like characteristics, sometimes surge dramatically over specific periods. Some stocks have soared hundreds of percent over six months. But these surges depend heavily on market themes and capital inflows, not just the underlying crypto prices.

When the crypto market enters correction phases, the situation quickly changes. Some related companies issue new shares or convertible bonds to reduce financial burdens. As shares increase and dilution occurs, stock prices can plummet regardless of Bitcoin’s price. Investors may think they are betting on coins, but in reality, they also take on the company’s financial and management risks.

‘Coin stocks’ are more akin to investing in companies related to cryptocurrencies rather than direct crypto investment. Performance is influenced by earnings, funding, and management strategies—variables that constantly fluctuate. Especially in volatile phases, this gap can critically impact investment outcomes.

The coin tax deferral: the remaining period’s structure choices will determine everything

In the current environment, there’s little need to choose complicated detours. Korea still maintains the coin tax deferral, allowing direct exposure to price movements within the legal framework. Under these conditions, direct participation in price flows is simpler and more transparent than indirect exposure through corporate risks.

CFD trading emerges as a notable alternative here. It allows focusing solely on Bitcoin’s price without worrying about stock dilution or financial strategies of specific companies.

What matters in the market is not just ‘what to buy,’ but how to participate in price movements structurally. Data increasingly shows that the most efficient approach now is to engage directly with price trends—without security burdens, tax calculations, or corporate variables influencing the outcome.

The remaining roughly 10 months until 2027 is shorter than many think. This period of tax deferral is the last chance given by the system. How investors choose to utilize it is entirely up to them. The way you trade—more than what you buy—will likely have a longer-lasting impact on your results. It’s time to carefully consider the options that the current structure allows.