In many countries, yes. For example, in the United States and Australia, cryptocurrencies are taxable. It's important to understand that tax is triggered not only when selling but also when exchanging one cryptocurrency for another. Knowing when gains or losses are recognized is crucial.

Avoiding crypto taxes is illegal. Tax authorities in various countries have ways to track transaction data, and failure to report can lead to penalties.

cryptact fetches your transactions from major exchanges and blockchains, finds the market prices at the time of your trades, matches transfers between your wallets, and calculates your crypto capital gains. All you need to do is enter the results on your tax form.

Yes, in most countries, you are still required to report losses on your tax return, even if you didn't make any gains. Reporting losses can work in your favor, as they can offset gains in future years and potentially reduce your tax burden. Be sure to check the specific requirements for your country.

Not reporting your cryptocurrency profits can result in legal consequences. Depending on the extent, it may be considered tax evasion or avoidance, leading to fines, penalties, or even imprisonment in severe cases. You would also be required to pay back taxes along with additional interest or penalties for the delay.