The question about taxes and cryptocurrencies usually comes up at two specific moments: when someone starts making money, or when fear of "doing something wrong" meets a lack of clear information. Confusion is normal, because the crypto world originated outside the traditional financial system, but today it interacts more and more with it. Understanding whether you need to pay taxes on holding cryptocurrencies is not just a legal issue—it's also an exercise in financial clarity.
The first thing to clarify is distinguishing between holding cryptocurrencies and realizing taxable events. In most jurisdictions, simply owning cryptocurrencies in a wallet does not automatically trigger a tax obligation. That is, having Bitcoin, USDT, or other coins stored, without selling or using them, is typically considered asset ownership, not realized gains. Tax arises only when a fiscal event occurs that the government deems relevant.