Do I have to pay taxes on my crypto?

It depends on your jurisdiction. Countries and regions differ on how digital assets transactions and holdings are taxed and how they view digital assets in general (money, property, commodity). You should consult a local accountant, tax lawyer, and/or government official for your tax reporting obligations in your home jurisdiction.

If you're a US individual or business entity, you have to report gains and losses on each transaction or when you earn digital assets, even if the gain or loss isn't material. The US Internal Revenue Service (IRS) holds you responsible for reporting all income and transactions. You can find guidelines on how to report and pay taxes related to digital assets on the IRS website, including the official virtual currency tax notice.

Not every crypto transaction is taxable. The following activities are generally not considered taxable events:

• Buying crypto

• Transferring like-for-like assets between exchanges

• Gifting crypto excluding large gifts that could trigger other tax obligations

• Donating crypto, which is tax-deductible

The following crypto activities are generally considered taxable events:

• Selling crypto for cash

• Trading one digital currency for another

• Using crypto as payment

• Mining or staking crypto

• Receiving airdropped tokens

• Getting paid in crypto