If you’re buying, selling, trading, or earning cryptocurrency, it’s important to understand how it’s taxed and what you might owe. Here’s everything you need to know. When do you pay taxes on crypto? You generally owe taxes when you sell cryptocurrency for more than you paid for it. This also applies when you exchange one digital asset for another. Converting bitcoin into ethereum, for example, isn’t “just a trade” in the eyes of the IRS. It’s a taxable event if the value changes. Crypto taxes aren’t ...