Learn everything you need to know in our newCrypto Tax Guide

Is Transferring Crypto Between Wallets or Exchanges Taxable?

Transferring crypto between wallets and/or exchanges is not in itself taxable. It's important, however, that you accurately account for all your crypto trades

Transferring crypto between your own wallets and exchanges is not taxable

No. Transferring crypto between wallets and/or exchanges is not a taxable event. We like to use the metaphor that it’s like transferring a bunch of gold coins from your nightstand to the bank — the assets remain in your possession as usual, unchanged, just put in a different location. 

Remember that if you send crypto to someone else, as a gift, payment, or sale, then certain tax considerations apply.

The IRS clarified in their recent FAQ that transfers are not taxable, even if you receive an information return from an exchange (such as a 1099-K) reporting the transfers.

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