Does crypto need to pay tax?｜The IRS treats cryptocurrencies as property for tax purposes, which means: , and it is worth more than it was when you purchased it. This is because you trigger capital gains or losses if its market value has changed .You pay taxes on cryptocurrency if you sell or use your crypto in a transaction

Does cryptocurrency require the payment of taxes? It's a question that often puzzles many investors. According to the Internal Revenue Service, cryptocurrencies are taxed as property. This implies that if the value of your crypto assets has appreciated since you purchased them, you may be liable for capital gains taxes. Conversely, if the value has depreciated, you may be able to claim capital losses. The key factor here is whether you've engaged in a taxable event, such as selling your crypto or using it in a transaction. So, the answer to the question is: yes, cryptocurrency transactions may indeed be subject to taxes, depending on the specific circumstances.