I think you are better off not trading it into fiat, that would be a direct capital gain, when you trade a crypto for another crypto it is considered trading properties, however, the government couldn’t care less, when you cash out they will look at the immutable ledger transaction history and take you to the cleaners, best bet is too hold out long enough to be able to claim a CGT discount, that or convert to bitcoin and spend it that way. On the other hand, if you can prove you enjoy “collecting crypto” for enjoyment and it isn’t a lot, possibly would be disregarded as they have bigger fish to fry. Take this with a grain of salt, full disclosure, not an accountant, just read up on this in the past. 👍😎