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Cryptocurrency Tax: What You Need to Know

Transferring Crypto Between Your Own Accounts

Transferring cryptocurrency between wallets or accounts that you own is not a taxable event. This means that you can move your crypto around without having to worry about paying taxes. However, if you transfer crypto to someone else, this is considered a sale and you may be liable for capital gains tax.

Tax Basis

When you transfer crypto between your own accounts, your original cost basis carries over. This means that the cost basis of the crypto in your new account will be the same as the cost basis of the crypto in your old account. This is important because it will affect your capital gains tax liability if you later sell the crypto.