How crypto trading is taxed
Most crypto tax comes down to one idea: when you dispose of crypto, you have a capital gain or loss. Selling for cash, swapping one coin for another, and spending crypto all count — though a few countries treat crypto-to-crypto differently. This guide covers the essentials and how CryptaTax handles it.
General information, not tax advice. Rules differ by country — verify against your country's guidance or a qualified tax advisor.
What counts as a disposal
A disposal generally means:
- selling crypto for fiat,
- swapping one crypto for another,
- spending crypto on goods or services.
Each one realises a capital gain or loss — the proceeds (or market value) minus your cost basis. Buying crypto with fiat and simply holding it isn't taxable; moving it between your own wallets isn't either.
The crypto-to-crypto split
This is the big country difference:
- Most countries (US, UK, Germany, and others) tax crypto-to-crypto swaps as disposals.
- France and Poland don't tax crypto-to-crypto — tax arises only when you cash out to fiat or spend it. France → · Poland →
Holding period and cost basis
Two things shape the final number:
- Holding period — some countries tax long-held crypto more favourably: the US has lower long-term rates after a year, and Germany can make crypto tax-free after a year. Others, like the UK, apply one capital gains rate regardless. US → · UK →
- Cost-basis method — FIFO, average cost, and others change which units you're deemed to have sold. Your jurisdiction may mandate a specific one (e.g. UK Section 104 pooling, Canada ACB), and CryptaTax applies it automatically. See your capital-gains report →
How CryptaTax handles trading
- Imports every trade across exchanges and wallets
- Calculates capital gains using your country's mandated cost-basis method automatically
- Applies holding-period rules (short vs long term, one-year exemptions)
- Defers crypto-to-crypto swaps where your country doesn't tax them (e.g. France, Poland)
Capital gains report → · Import your exchanges & wallets →
FAQ
In most countries, yes. A crypto-to-crypto swap is a disposal with a capital gain or loss. France and Poland are notable exceptions, taxing only fiat conversions and spending.
No. Buying with fiat and holding is not taxable, and neither is moving crypto between your own wallets. Tax arises when you dispose of it.
Generally yes. Spending crypto is a disposal, so you may have a capital gain or loss on it.
In some countries, a lot. The US has lower long-term rates after a year and Germany can be tax-free after a year. Others apply one rate regardless.