You only pay taxes after you cash out. (((You don't have to cash out if you don't want to)) If your a day trader, you have to keep track of your trades.
You only pay taxes after you cash out. (((You don't have to cash out if you don't want to)) If your a day trader, you have to keep track of your trades.
But what if you trade some of your holdings for another a few times with different cryptos, but still hold? If you have to report those as taxable events it seems like you have to pay capital gains on them, and in that case in order to pay that, if you had no other available capital, you would have to cash out to pay it, no?
That's complicated. You have to pay a fee to make trades. It's sort of a net loss when you buy.