Tax treatment of cryptocurrency varies by country and transaction type. This article outlines general concepts only and is not tax advice.
Common taxable events (jurisdiction-dependent)
- Selling crypto for fiat.
- Trading one crypto for another.
- Receiving crypto as payment or rewards.
Recordkeeping
Maintain logs of dates, amounts, fair market value in local currency, fees, and wallet addresses. Export exchange CSVs promptly; accounts may close.
Cost basis methods
Some jurisdictions allow FIFO, specific identification, or average cost. Consistency matters more than aggressive minimization without documentation.
Summary
Consult a qualified tax professional for your situation. Keep records before year-end crunch periods.