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Do you tax your crypto earnings?

  • Thread starter Thread starter Grant
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Grant

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Do you make sure to tax your crypto earnings? I ask because it's required in the US to take taxes out of your crypto earnings. I haven't made money from my crypto purchases, so I didn't have to pay any taxes, but for those who have had success with their crypto, do you take out the required taxes as well? How do you tax it?
 
In Africa, currently, there is no taxation on crypto, mainly due to the lack of awareness and understanding of cryptocurrencies by most governments in the region. Consequently, we are taking advantage of this opportunity. However, it's important to note that this situation may change in the future as awareness grows and governments adapt their policies accordingly.
 
Yes, I did it in 2021, and I will have to do it again in the next year, I do not want to have problems with the tax agency if I am honest, now this year in my country a new law has come out where we are obliged to declare the cryptocurrencies we have abroad and in decentralized wallets.
 
As fas as I know, you do not pay taxes on your investment, you will pay taxes only when you buy or sell. Just because you hold x amount of cryptos does not mean you will have to pay taxes. But then countries have their own taxation rules and I don't know how crypto is taxed in the US. In my home country, crypto is not even legal.
 
chansa said:
In Africa, currently, there is no taxation on crypto, mainly due to the lack of awareness and understanding of cryptocurrencies by most governments in the region. Consequently, we are taking advantage of this opportunity. However, it's important to note that this situation may change in the future as awareness grows and governments adapt their policies accordingly.
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That's great. But, I would still take a small cut out out, maybe add it to a savings account or something. This way you could instead save some of your crypto on the side. But I have to take taxes out my end because I live in the states. It sucks, but it is what it is. Can't do much about that unless I move to a different country that doesn't tax my earnings.
 
The moment cryptocurrency begins to be taxed, means that the government now have a hand in cryptocurrency which is what they have been fighting for years since the inception of cryptocurrency.

I hope that they don't get that control because they're going to mess up everything that cryptocurrency is all about.
 
I don't think there's any tax on it around here or in my country though. I made withdrawals and the banks won't deduct anything from it. Maybe the reason is because the idea if cryptocurrency here in my country isn't fully a legal tender.
 
DigitalNomad said:
As fas as I know, you do not pay taxes on your investment, you will pay taxes only when you buy or sell. Just because you hold x amount of cryptos does not mean you will have to pay taxes. But then countries have their own taxation rules and I don't know how crypto is taxed in the US. In my home country, crypto is not even legal.
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I'm not even sure that I see any tax payment when making use of Binance Peer to Peer system on Binance to buy and sell any cryptocurrency I want. I have never used my bank to fund my cryptocurrency wallet. It's the only way you might end up being taxed.
 
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