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If you’re one of the newbie investors that recently started trading stocks and cryptos on the market it may be worthwhile to understand how capital gains tax work and how it can directly affect your earnings.

TD Ameritrade has a really good video that breaks down what capital gain taxes are, how they work, and how it impacts your taxes at the end of the year. I know we all get excited when our investments are doing good in the market and getting us some good gains. But, it’s worth taking note when you should or shouldn’t cash out on your positions because it may have negative consequences.

Check out the video above to understand more about capital gains tax. You’ll thank me later.