Crypto Taxes

Tax authorities treat crypto as property, income, or both — depending on the transaction and country. Many jurisdictions require reporting sales, swaps, staking rewards, airdrops, and mining income. Failure to report can trigger penalties far larger than the original trade. This chapter orients you to common event types; it is not tax advice.

Cost basis methods (FIFO, specific identification, average cost) determine gain or loss on disposal. Cross-chain activity, wrapped tokens, and LP positions add complexity. Tax software and specialized accountants exist because manual spreadsheets break down quickly for active traders.

New rules in several countries require exchanges to report user transactions to revenue agencies. On-chain privacy does not exempt you from filing obligations where you are tax resident. Consult a qualified tax professional for your situation — laws and forms change every year.