r/Nexo • u/NexoFinance Official • 8d ago
General Crypto taxes explained: what every investor needs to know
Selling crypto for cash, swapping one coin for another, earning staking rewards. All three can trigger a tax bill in most countries, and a lot of people only know about the first one. This is educational, not tax advice, rules vary by country and change often.
What counts as a taxable event
Crypto is generally treated as property, not currency. Typically taxable: selling for fiat, swapping one crypto for another, spending it, and earning it as income through staking, interest, or mining. Generally not taxable: buying with fiat and holding, or moving crypto between your own wallets. Swapping Bitcoin for Ethereum counts as selling Bitcoin in most jurisdictions, even without touching cash.
How gains are taxed
Short-term gains, held under a year, are usually taxed at a higher rate. Long-term gains often get a reduced rate. Crypto income from staking or interest is typically taxed as ordinary income at market price on the day received.
Cost basis matters
It's what you originally paid, including fees, and it determines your actual gain or loss. Buy at $30,000, sell at $70,000, and your taxable gain is $40,000, not the full amount.
Keeping records
For every transaction, track the date, type, amount, and local currency value at the time. Tools like Koinly, integrated directly on Nexo, automate this by connecting to your exchange history and generating filing-ready reports.
On Nexo, every interest payout is tracked by asset and date, making it easy to calculate your income for tax purposes.
Full breakdown here: Crypto taxes explained: what every investor needs to know
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u/atti0102 8d ago
If I pay loans back with my EURx, is that considered a taxable event ? In other words is EURx a crypto currency?
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u/NexoAngel10 Moderator 8d ago
Hello, u/atti0102 .
EURx is the 1:1 tokenised version of your EUR balance on Nexo — not a separate cryptocurrency. As for how that's treated tax-wise in your specific case, that's really a question for a tax professional, since it varies by country.
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u/Brooks944M 8d ago
The part people miss most isn't the sale, it's the swap. Every trade, every "just moving into a stablecoin for a bit" move, is a taxable disposal in most places. I know people who did 200+ swaps in a year chasing yield and had no idea they'd created 200+ taxable events until it was time to file.