Do I pay taxes on crypto if I don't sell?

Cryptocurrency investors who opt for the 'HODL' strategy, which stands for 'Hold On for Dear Life,' face a relatively straightforward tax situation. As long as they haven't sold or disposed of their digital assets, they are not obligated to report their crypto purchases on their tax returns, according to the IRS.

BTCC's services include spot trading, futures trading, and a cryptocurrency wallet, among others. These services allow traders to buy, sell, and hold a variety of digital assets while also keeping track of their tax obligations. By utilizing BTCC's platform, traders can streamline their trading activities and ensure compliance with tax regulations.

This means that investors who buy cryptocurrency with the intention of holding onto it for the long term do not need to worry about tax implications until they decide to sell their holdings. Therefore, HODLing can be a tax-efficient strategy for those looking to avoid immediate capital gains taxes.

It's important to note that the tax event only occurs when a cryptocurrency is sold, triggering a taxable event. The IRS treats cryptocurrency as property, which means that any gains or losses realized upon sale are subject to capital gains taxes.

For those looking to trade or invest in cryptocurrency more actively, understanding the tax implications becomes crucial. Platforms like BTCC, a top cryptocurrency exchange, offer a range of services to help traders navigate the complex world of cryptocurrency taxes.