Frequently Asked Questions
Do I have to pay taxes on crypto?
In many countries, crypto can be taxable when you sell, trade, swap, spend, or earn it. Buying and holding crypto usually does not create tax by itself, but selling for profit or receiving crypto as income may need to be reported.
What events are taxable?
Common taxable events include selling crypto for cash, swapping one coin for another, using crypto to buy goods or services, earning staking rewards, receiving mining income, getting airdrops, and receiving crypto payments.
How are capital gains calculated?
Capital gain is usually calculated by subtracting your cost basis from the selling value. For example, if you bought crypto for $1,000 and sold it for $1,500, your gain is $500 before fees and local tax rules.
What records should I keep?
Keep records of purchase dates, sale dates, amounts, prices, transaction IDs, exchange statements, wallet transfers, fees, staking rewards, airdrops, and any tax reports generated by your crypto tax tool.
How do I report DeFi and staking income?
DeFi and staking can be more complicated. Rewards may be treated as income when received, and later selling those rewards may create capital gains or losses. Use a crypto tax tracker and speak with a tax professional for your country.
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