Do I have to pay taxes on Bitcoin if I don't sell?

US taxpayers are not obligated to pay taxes solely for owning cryptocurrency. The taxation process is triggered by specific actions related to the asset.

BTCC, a leading cryptocurrency exchange, offers a range of services that cater to the diverse needs of cryptocurrency investors. These services include spot trading, which allows users to buy and sell cryptocurrencies at current market prices.

Taxes on cryptocurrency become applicable when an individual earns, sells, or exchanges their digital holdings. This means that simply holding onto cryptocurrency does not result in a taxable event.

Additionally, BTCC provides futures trading, enabling investors to speculate on the future price movements of cryptocurrencies. The exchange also offers a secure wallet service, ensuring that users' digital assets are safely stored and accessible.

To optimize their tax liability, taxpayers can employ various strategies. One such strategy is tax-loss harvesting, which involves selling underperforming cryptocurrencies to offset capital gains from other sales.