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Exchanging one cryptocurrency for another also exposes you to taxes. Many exchanges help crypto traders to avoid paying taxes on your crypto except not using.
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Tax implications of investing in CryptocurrencyDepends on the jurisdiction. In the US: If you got an airdrop or are given a coin in any way, that's taxed as income, regardless of whether. A decision to refund a Nashville couple taxes related to unsold Tezos tokens is set to clarify the IRS tax treatment of staked cryptocurrency. Tokens attained through proof-of-stake protocols are taxpayer-created property and should not be taxed until sold or exchanged, the Jerretts argued. The.