Taxable event

A taxable event is a transaction or occurrence that may trigger a tax reporting or payment obligation under applicable law. In crypto, depending on the jurisdiction, taxable events can include selling crypto for fiat, exchanging one token for another, spending crypto on goods, or receiving certain rewards. Simply holding an asset or moving it between your own wallets is often not itself taxable.

A common misconception is that no tax applies unless funds reach a bank account; many tax systems treat crypto-to-crypto trades as taxable. Rules differ widely by country, and this entry is educational, not tax advice.