It is important to understand what a taxable event is since this can impact your net result significant.
While a taxable event is defined different for different jurisdiction the following statements can be used as a general benchmark
Crypto taxable events are
- Selling a cryptocurrency
- Trading or exchange a cryptocurrency
- Buy goods or services for a cryptocurrency
Once you close a trade, you create a taxable event. If the trade is profitable you own taxes and if the trade is non-profitable you might be able to deduct on your taxes.
We strongly recommend you to use a crypto tax software for crypto trading. Here, you can follow your tax obligations since they are tracking your trading in real time via an API.
