When you buy or sell bitcoin on an exchange
there are no TAXES involved just transaction fees
for the MINERS to process your order,
as YYmeans posted above.
When you want to CASH-OUT into your bank account
that is when you will be {possibly} liable for taxes,
this depends on your country, you will more than likely
be allowed a certain amount TAX-FREE.
This.
Just switching currencies does not make you tax liable, just cashing out.
Can someone confirm if this is true? So when you trade btc for altcoins like lisk for example. You make profit and then sell those lisk back to btc. If u do not convert the btc into fiat... and use that btc to buy other coins and trade over and over again but never convert it to fiat, is there any tax liability? The thing that is confusing is how do you even calculate this profit since this profit would be in terms of btc? And the btc price is constantly changing? So your 1k profit right now... could be 900 one day or 1300 later on etc. So if you keep it as btc, there is no tax liability until you cash out?