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When do you have to pay crypto taxes?
When trading or investing in crypto, common taxable events include:
Selling crypto for cash – If you sell Bitcoin or other crypto for cash, you might owe taxes on any profit you make.
Trading one crypto for another – Swapping one crypto for another is usually a taxable event (e.g., trading ETH for SOL).
Buying things with crypto – Paying for goods or services with crypto is like selling it, so you might owe taxes.
Getting paid in crypto – If you mine, stake, or get paid in crypto, it’s usually taxed as income.
When you don’t have to pay taxes on crypto
Buying and holding crypto – If you buy crypto and don’t sell it, there’s usually no tax involved.
Transferring between your wallets – Moving crypto between personal wallets is generally tax-free. #Creator Incentive: Post to Unlock $2,000#