It’s an important point.  I addressed it by migrating most  holdings into a Bitcoin-friendly Roth IRA when prices had crashed in 2022 and I had only capital losses, not gains.  It’s not self custodied but it is Bitcoin.  I know others will disagree but it’s the choice I researched and made for myself.  Cheers. 

 I have some bitcoin via etf in a Roth and some in a standard 401k too. Fortunately, Roth came first via GBTC :)

Self custody is very important, imho, but a diversity of strategies to avoid having your coins taken from you is only wise. Tax mitigation is part of such a diverse strategy. 

 Exactly.  “Wallet diversification!” 

 I did something like this way way back in the day. I bought these things called bitbills…think casascius coins but in laminated bill form. In bitcoin terms it cost me a small fortune as price was very low and shipping wasn’t cheap. Probably cost me 5 bitcoin. 

 But, it did move bitcoin safely in to the future for me…better than the time I sent all my bitcoin to one address and wrote down the private key by hand on an envelope. This was before the whole “seed phrase” thing was invented.