To avoid tax risks with cryptocurrency airdrops, consider these steps. First, understand your country’s tax laws—airdrops may be treated as taxable income based on their fair market value at receipt. Keep detailed records of each airdrop, including dates, amounts, and values, to ensure accurate reporting. Consult a tax professional familiar with crypto regulations to navigate complex rules. Avoid selling or trading airdropped tokens immediately, as this could trigger additional capital gains tax. If possible, decline unwanted airdrops to minimize tax obligations, though this isn’t always feasible. Use crypto tax software to track transactions and calculate liabilities efficiently. Lastly, stay updated on evolving regulations, as tax authorities are increasingly scrutinizing airdrops. Proactive planning and compliance can help you avoid unexpected penalties or audits.