What Is a “Taxable Event” in the Context of Cryptocurrency Disposal?

A taxable event is any transaction that triggers a requirement to report a capital gain or loss to a tax authority. For cryptocurrency, common taxable events include selling crypto for fiat currency, trading one cryptocurrency for another, or using crypto to purchase goods or services.

Simply holding crypto or transferring it between personal wallets typically does not constitute a taxable event. The gain or loss is calculated at the moment of disposal.