Imagine purchasing 100 units of a cryptocurrency at a cost of 1 dollar each. If the value increases to 1.50 dollars and you choose to sell 50 units, this results in a return of 75 dollars. Are you liable to pay taxes on this transaction despite receiving less than your original investment of 100 dollars?
The taxation of cryptocurrency transactions, such as buying and then selling, often hinges on the concept of capital gains. Even though you received less than your initial investment, you did make a profit on the units sold, which can be considered a taxable event. This profit calculation is generally based on the difference between your selling price and the purchase price of those specific sold units. Various jurisdictions might have distinct guidelines on how these taxes are computed, so reviewing local tax regulations or consulting a tax advisor can be beneficial.
hey guys, this is such a fascinating topic! do you guys think that the complexities of crypto taxation might make it more common for people to miss out on declaring them properly? like, doesnt it seem overwhelming sometimes? 
also, have any of you had personal experience dealing with crypto taxes? if so, what was that process like for you? i’m just wondering if understanding all the nuances is manageable for individuals or if it’s better to always go for professional help!
most countrys tax crypto as property, so any gain u make when selling it can be taxable. u sold at a gain, so it’s subject to tax even if it’s less than ur original investment. best to keep track & maybe consult a tax pro for ur specific case.