In most countries, selling, swapping or spending cryptocurrency can trigger a taxable event, and gains are generally subject to tax.
Selling crypto for a profit, swapping one coin for another, earning staking rewards and receiving airdrops can all have tax consequences.
Profits from selling crypto are usually taxed as capital gains. The amount depends on how long you held the asset and your tax bracket.
Track every buy, sell, swap and transfer with dates, amounts and prices. Crypto tax software can automate much of this work.
Most tax authorities require you to report crypto activity. Failing to do so can lead to penalties, so stay organized.
Crypto tax rules vary by country, but keeping good records from day one makes filing far easier and safer.