You pay taxes on your capital gains over the year, this means that there is no "sorting out" before withdrawing!
Does this mean one would pay capital tax even though they are yet to liquidate their assets?
- Jay -
No, you pay capital gains when you make those gains, and this can't be done without you first selling them and thus taking your gains.
If you sell your coins for $ and leave those $ for years there and do not withdraw them you will indeed pay taxes even without cashing out to a bank account, but that's most likely an exception for many, what I was trying to say is that if you sell your coins today you don't have to pay taxes tomorrow before the exchange allows you to withdraw.