Is it better to start a legal crypto business or just add the extra income to your taxes?
That probably depends on what country you are a resident for tax purposes.
Where I’m from, the government is particularly harsh in its treatment of individuals who are involved in Crypto mining and trading - they bite you for taxes on multiple occasions and allow no deductions - capital or operating. Of course they’re just doing their part to support big finance and discourage the little people from having any control over their money.
For a business on the other hand, you get all the normal business deductions as well as a favourable company tax rate. A negative of course is the extra cost of operating a company structure (compliance and accounting fees being examples of areas where expenses are far greater than for an individual) but for me it’s a no-brainer given my weekly income generated from mining.
One thing that I have found is that since moving everything into a company structure, I am much more relaxed about using top tier, legitimate exchanges in my own country who I know report everything to the government - I’m going to be reporting it anyway so I no longer feel the need to flirt with dodgy russian and chinese based organisations that can disappear with my money.