I completely understand all of that. My point is that it doesn't sound like she actually "realized" any profits so far. The stablecoin she used to profit at one point depegged and plummeted. Even though she cashed out to USD as it was falling, it's still a loss. Now, her portfolio is growing in value while she continues to invest. So yes, there's some details missing about how she is trading, but it sounds like she is mainly stacking at this point.

The current crypto environment makes it difficult to accurately determine what to report on your taxes, especially if you're using DeFi. I'm guessing the IRS is just happy right now if you're not trying to hide it. Thankfully the big players provide tax documents for account holders so at least that have that.