Crypto taxes

Most countries do not tax simply buying and holding crypto. Tax is usually due on a disposal: selling for fiat, swapping one coin for another or paying for goods. The taxable amount is generally the difference between the value at disposal and the original cost, and many systems treat it as a capital gain.

Coins received as income are often taxed differently. Mining and staking rewards, airdrops, salaries paid in crypto and interest from lending may count as income when received, based on their market value at that moment. Each disposal needs a cost basis, so users who trade often across exchanges and wallets rely on transaction histories and tax software to calculate gains with methods such as FIFO.

Rules, rates and thresholds change from country to country and from year to year, so local guidance or a tax adviser is the reliable source. Tax authorities increasingly receive data directly from exchanges, which makes undeclared gains easier to detect.