Tax deferral period until 2027, now is the time to reevaluate your trading methods.

The Korean government’s decision to defer virtual asset taxation until 2027 effectively postpones the imposition of taxes on trading profits for at least two more years, opening a window of strategic choices for domestic investors. Currently, Bitcoin is moving in the $91,000 range, showing increased trading activity, but more than which asset to choose, how to trade is emerging as a more critical factor. Changes in the tax system not only present technological opportunities but also serve as a catalyst to review the trading structure itself.

The Pitfalls of Indirect Investment: Why ‘Cryptocurrency-Related Stocks’ Differ from the Underlying Assets

One recent trend among Korean investors is investing in stocks of crypto-related companies listed on U.S. stock exchanges. This approach aims to indirectly bet on the virtual asset market by investing in specific companies instead of holding Bitcoin directly, but actual returns often fall significantly short of expectations.

A comparison of historical performance makes this discrepancy clear. Bitcoin has delivered overwhelming cumulative returns over 7- and 10-year periods, whereas the stock prices of crypto-related companies have shown limited growth over the same periods. At certain points, they even experienced high volatility and sharp declines.

In the short term, this gap becomes even more pronounced. Some related companies have seen hundreds of percent gains over specific periods, but these are more dependent on market themes and capital inflows than on actual cryptocurrency price movements. When the market enters a correction phase, the situation can change rapidly. Capital increases such as rights issues or convertible bond issuances aimed at reducing financial burdens dilute existing shareholders, causing stock prices to plummet regardless of Bitcoin’s price.

Ultimately, these choices are not direct investments in cryptocurrencies but investments in companies that operate in the crypto space. Besides price volatility, factors like earnings, fundraising, and management strategies constantly influence outcomes. In the current environment, there is no need to take such indirect routes.

Options for Trading Methods in Virtual Assets: The Practical Difference Between Spot Trading and CFDs

Under the condition of tax deferral, for investors considering short-term trading and swing trading, the efficiency of the trading structure is crucial. The methods via domestic spot trading platforms and CFDs fundamentally differ in their characteristics.

The most basic difference lies in the directionality of trading. Traditional spot trading allows only betting on price increases; in a declining or sideways market, options for response are limited to holding or waiting. Conversely, CFDs enable trading in both directions—up and down—allowing strategies to adapt even in volatile or uncertain market conditions.

There are also differences in capital utilization. Spot trading requires the full amount of capital for positions, whereas CFDs leverage margin, enabling participation with less initial capital. This is not about reckless betting but about more flexible capital allocation and risk management, which is especially important for short-term traders.

Fee structures are another critical aspect. Spot trading platforms charge transaction fees on both buy and sell sides, and high trading frequency can lead to rapidly accumulating costs. Some CFD platforms do not charge trading fees, significantly reducing costs for frequent short-term trading strategies.

Risk management mechanisms also differ structurally. CFDs typically include built-in stop-loss and take-profit functions, allowing traders to quantify and fix risk at entry. In spot trading, traders often need to monitor prices continuously and respond manually, which can lead to actual losses during sudden market swings.

Eliminating Technical Management Burdens and Reducing Security Risks

Another barrier to entering the virtual asset market is the complexity of managing private keys and seed phrases. Losing them means irrecoverable loss, and exposure can threaten all assets, creating psychological hurdles not only for beginners but also for experienced investors.

Recent security incidents at domestic exchanges have amplified these concerns. Technical issues with certain blockchains or tokens can quickly translate into platform risks. The fact that assets are stored on exchanges inherently contains security vulnerabilities remains unchanged.

CFD trading structurally removes these technical and security burdens. No need to install digital wallets or manage seed phrases. Once an account is opened, trading can commence immediately with an intuitive interface similar to stock trading. It operates under regulatory oversight, with basic protections like segregated client funds. Since traders do not hold the actual coins, the risk of hacking and asset theft is fundamentally eliminated.

This not only offers technical convenience but also provides peace of mind during trading. Without worries about storage risks, traders can focus solely on market trends and strategies.

Strategic Use of the Tax Deferral Period

The tax deferral on virtual assets is a temporary, legislated condition. After January 1, 2027, Korea’s trading environment is expected to change significantly. Currently, Bitcoin is moving in the $91,000 range, signaling increased trading activity, but how investors utilize this period is entirely a matter of choice.

The importance of current decisions goes beyond mere profit opportunities. Gaining experience with structured trading methods lays the foundation for future relationships with the virtual asset market. Even with similar price movements, the costs, risks, and ultimate returns vary greatly depending on the trading structure.

Minimizing technical management and security concerns, focusing solely on trading strategies without tax calculations, and being unaffected by external factors like corporate financial variables or stock dilution, align well with the current regulatory environment. Especially in highly volatile markets, simplicity in trading structure translates into better execution and stability.

Time is limited until 2027. It is the right moment to carefully review and adopt trading methods that maximize the available regulatory conditions while managing risks appropriately. In hindsight, the way you structured your trades may be remembered longer than the specific assets you chose.